Project On Sharekhan

SHAREKHAN PVT LTD. LTD.
INVESTORS PREFRENCE IN ONLINE TRADING

JATIN BBA 1st SHIFT 04514001710 (2010-2013)
JAGAN INSTITUTE OF MANAGEMENT STUDIES NEW DELHI
ACKNOWLEGDMENT
I express my sincere gratitude to my faculty guide Mrs. POOJA JAIN and my company guide Mr. AMIT SHARMA, for supporting me throughout the project SHAREKHAN PVT LTD. has given me lot of scope for learning; during my course of work. I was able to understand the techniques of Sales and Marketing and a better understanding of the need of a Customer, the art of keeping a Customer Satisfied. I would like to thank Mr. MOHD.WAKEEL, Assistant Manager, SHAREKHAN PVT LTD. for always encouraging me to take valuable initiatives during my project and helping in understanding as to what goes on in selling a product and finer points of the Share market. I thank all the employees of SHAREKHAN PVT LTD. Limited, for their continuing support and for providing me information whenever needed during the course of the project
JATIN
Jagan institute of management studies
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Preface
Share trading in India is undergoing a transition and consolidation phase witnessed never before. The competition is likely to become so severe after the entry of many players, retaining a customer is most difficult practice for any service provider. Though India has a very big untapped market but the players will not flourish unless they change the way the customers are being served. Given the awareness level of today customers every player has to treat with care and make the customer feel that he is the king. Number of Online Share trader in India has crossed the line. More and more customers are coming under this umbrella and many of the existing one are changing pavilion. So customer retention and satisfaction is now more important as it was never before. Players keep coming with new schemes in order to attract new customers and retain the existing one. This is being supplemented with increased advertising and brand building efforts. Success of any organization depends upon its being proactive. I am very lucky as I got an opportunity to work with SHARE KHAN LTD which is showing phenomenal growth and success in the Securities. My topic of study was studying the working process of share khan ltd. This project is an effort to do a depth study and analysis of various known and unknown reasons for customer satisfaction and retention. To err is human and I am not an exception, valuable comments are always welcomed since it will motivate to work with greater zeal and efficiency in the future.
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DECLARATION
I undersigned here by stating that the report entitled INVESTORS PREFRENCE IN ONLIE TRADING is a genuine and bonafied work prepared by me under a guidance of Mr. AMIT SHARMA (Branch Head, SHAREKHAN PVT LTD. LTD, NEW DELHI) The empirical findings in this project report are based on the data collected by myself. The matter presented in this report is not copied from any source. I understand that any such copy is liable to the punishment in way the university authorities deem fit. His project report is submitted to JAGAN INSTITUTE OF MANAGEMENT STUDIES in a partial fulfillment of the course Of B.B.A
JATIN (04514001710 )
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TABLE OF CONTENTS
CHAPTER
1
PARTICULARS
INTRODUCTION 1.1. INDUSTRY PROFILE 1.2. COMPANY PROFILE
PAGE
1
2. 3 4. 5. 6.
OBJECTIVES SWOT ANALYSIS RESEARCH METHODOLOGY NEED FOR STUDY COMPETITORS OF SHAREKHAN PVT LTD.
13 14 19 23 24
7.
ANALYSIS & INTERPRETATION
28
8. 9. 10. 11.
FINDINGS & SUGGESTIONS CONCLUSION BIBLIOGRAPHY ANEXURE
44 46 47 48
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EXECUTIVE SUMMARY
1.1 COMPANY: - SHAREKHAN PVT LTD. LTD. 1.2 PROJECT TITLE:INVESTORS PREFRENCE IN ONLIE TRADING.
1.3 SCOPE OF THE PROJECT

The research has been conducted within the geographical area of New Delhi. I have targeted students, businessmen, and other people.
1.4 PRIMARY DATA:-Primary data was collected using the following

techniques Questionnaire Method Direct Interview Method
The main tool used was the questionnaire method. Further direct interview method, where face to face formal interview was taken. Lastly observation method was used continuously with the questionnaire method.
1.5 Secondary DATA:-This data has been gathered from magazines, News Papers
and Websites.
Investment is nothing but the saving of an individual, which is remind after satisfying day-to-day necessity. He invests it somewhere to earn some returns on the saving. The investors has many choices to invest his money e.g. Saving Deposit, Fixed Deposit, Insurance Policy, Company Deposits, Capital Market, Properties and many other among all the option he have to choose one or two to invest his money and take care of not losing the money in whatever he invest. The end result I found after doing the whole exercise is that the investors expectations are very high they want more returns from short and small investment
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CHAPTER 1 INTRODUCTION
1.1 INDUSTRY PROFILE

ORIGIN OF STOCK BROKING IN INDIA
The origin of stock broking in India goes back to a time, when shares, debentures and bonds representing title to property were first issued on the condition of transfer from one person to another. The earliest record of dealings in securities in India is the East India Companys loan securities. The advent of the companies Act 1850 and subsequent introduction of the principle of limited liability, made investments in stocks and shares popular. Though stock broking was practiced in Calcutta as early as 1836, the members of the broking profession had neither any code of conduct for their guidance, nor any permanent place for congregation. The stock brokers obviously, significant role in the stock market. Stock broker means a member of a recognized stock exchange who deals in securities. Until 1988, stock exchanges were more or less self-regulatory organizations. Their regulations covered the entire gamut of operations of stockbrokers. However, they had not been discharging their self-regulatory role well, resulting into malpractices in trading, settlement and transfer of securities. Ever since the Securities and Exchange Board of India (SEBI) assumed the monitoring function of brokers, stock broking is emerging as a professional service in tune with the requirements of mature and sophisticated stock exchanges in the country, replacing its traditional closed character as inherited family business. To act as a broker, certificate of registration from the SEBI is mandatory. It is empowered to impose conditions while granting the certificate that as a member of a stock exchange he has to abide its rules, regulations and bye-laws, pay the prescribed fee and take adequate steps for the redressal of investors grievances within one month of
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the receipt of the complaint and keep the SEBI informed about the number, nature and other particular of such complaints.
DEPOSITORY PARTICIPANT
A Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI. SEBI (D&P) Regulations, 1996 prescribe a minimum net worth of Rs. 50lakh for stockbrokers, R&T agents and non-banking finance companies (NBFC), for granting them a certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in more than one depository, he should comply with the specified net worth criterion separately for each such depository. No minimum net worth criterion has been prescribed for other categories of DPs. However, depositories can fix a higher net worth criterion for their DPs. NSDL requires a minimum net worth of Rs. 100lakh to be eligible to become a DP as against Rs. 50lakh prescribed by SEBI (D&P) Regulations.
ACTING AS A PRINCIPAL
Stockbrokers also sometimes or exclusively trade on their own behalf, as a principal, speculating that a share or other financial instrument will increase or decline in price. In such cases the term broker makes little sense and the individuals or firms trading in principal capacity sometimes call themselves dealers, stock traders or simply traders. [A stock broker is just the main part of being a City Trader. Other types of City Trading include working in the Foreign Exchange.
STOCK BROKER
`Investor requires a Stock Broker to buy and sell shares in stock exchanges (BSE, NSE etc.). Stock Broker is registered member of stock exchange. A stock broker can register to one or more stock exchanges. Only stock brokers can directly buy and sell
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shares in Stock Market. An investor must contact a stock broker to trade stocks. Broker charge A stock broker is a person or a firm that trades on its clients behalf, the customer tells the broker what they want to invest in and they will issue the buy or sell order. Some stock brokers also give out financial advice. It wasnt too long ago and investing was very expensive because the customer had to go through a full service broker which would give them advice on what to do and would charge them a hefty fee for it. Now there are a plethora of discount stock brokers.
STOCK BROKING SERVICES

A transaction on a stock exchange must be made between two members of the exchange an ordinary person may not walk into the Bombay Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker. There are three types of stock broking 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. In addition to actually trading stocks for their clients, stock brokers may also offer advice to their clients on which stocks, mutual funds, etc. to buy.
VARIOUS STOCK BROKING COMPANIES IN INDIA

1. ICICI Direct 2. SHAREKHAN PVT LTD. 3. India bulls 4. Motilal Oswal Securities 5. HDFC Securities 6. Reliance Money 7. IDBIPaisaBuilder
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1.2 COMPANY PROFILE

SHAREKHAN PVT LTD. LTD
SHAREKHAN PVT LTD. is leading India-based financial services group, part of Citi Financial Ltd that offers Institutional Equities and Investment Banking services. SHAREKHAN PVT LTD. deals online trading with products like equities, derivatives, mutual funds and portfolio management. SHAREKHAN PVT LTD.s online trading and investment site www.SHAREKHAN PVT LTD..com was launched in 2000. SHAREKHAN PVT LTD.s ground network includes over SHAREKHAN PVT LTD. has over 679 branches in 234 cities and about six Lakh trading members. SHAREKHAN PVT LTD. has won the prestigious Consumer Vote Awards 2005 for the Most Preferred Stock Broking Brand in India, in the Investment Advisors category. Name of the company was changed from SSKI Investor Services Private Limited to SHAREKHAN PVT LTD. Private Limited on 4th October 2005. SHAREKHAN PVT LTD. has won the prestigious Awaaz Consumer Vote Awards 2005 for the Most Preferred Stock Broking Brand in India, in the Investment Advisors category. SHAREKHAN PVT LTD. Limited was promoted by Mr. Shripal S Morakhia and Mr. Shreyas S Morakhia. It was established in 1999-2000. It is currently amongst India's largest broking house. It is a member of the Stock Exchange, Mumbai. It is a depository participant of the National Securities Depository Limited and Central Depository Services (India) Limited. Its business includes stock broking, depository services, portfolio management and derivatives. The Company's core specialty lies in its retail distribution with a large network of branches and sub-brokers/ authorized persons. Its strength lays in its investment research capabilities. Its research division has several analysts continuously monitoring global, national and regional political, economic and social situations so as to assess their impact on the economy in general, the sectors and companies they research which helps them in offering quality research and advice to Jagan institute of management studies Page 5
clients. Presently Citigroup is holding 75% and IDFC 12% of the paid up equity capital of the Company and the Employees own the rest i.e. 13%
FEATURES OF SHAREKHAN PVT LTD. LTD:

Multiple exchanges on a single screen Intra-day calls and flash news Historical charts with technical tools Streaming quotes 24x7 web enabled back office Auto pay-in of shares Online transfer of funds
E-broking facility is one such effort, which gives you access to state-of-the-art trading platform with multiple exchanges, order and trade confirmations, research reports, econtracts and a 24x7 on-line web enabled centralized back-office system at the click of a button. Portfolio Management Services: SHAREKHAN PVT LTD. offers discretionary PMS to investors in order to assist them in managing their funds amidst continuous changing market dynamics and increase complexities of investing. Investing in equity, markets require in-depth knowledge and thorough analysis coupled with clear understanding of domestic and international economies. Investors need the services of an expert to manage their funds and deliver good returns in diverse market conditions. Continuous wealth creation with an emphasis on capital preservation in todays complex markets. In order to systematically diversify the holdings of clients across varied sectors and with an intention to give them handsome returns.
Mutual Fund Distribution & Advisory:
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To enable clients to diversify their investments in their direction, SHAREKHAN PVT LTD. Ltd has added another product in its range with mutual funds: Customized investments solutions based individual financial goals aligned with your risk appetite Access to in-depth research & proper selection from diversified funds based on your preferred criteria Customized reports at desired frequency Ratings and rankings of all MF from our in-house expert analysts Current and historical performance of different funds enabling comparisons News and alerts for concern Portfolio and performance tracking with watch lists Online MF applications/ online order status tracking/ online updating of unit holdings at latest NAV/ online dividend payout & reinvestment facility.
BROKERAGE:
Some stock trading companies charge direct percentage while others charge a fixed amount per Rs100. SHAREKHAN PVT LTD. charges 0.5% for delivery trading and 0.1% for intraday or one could say SHAREKHAN PVT LTD. charges 50 paisa per Rs 100. To sum up, SHAREKHAN PVT LTD. brings to the customer, a user- friendly online trading facility, coupled with a wealth of content that will help them stalk the right shares. SHAREKHAN PVT LTD.'s equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with SHAREKHAN PVT LTD..com website, SHAREKHAN PVT LTD. has around 679 offices (share shops) in 234 cities around the country.
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SERVICES OF SHAREKHAN PVT LTD.:
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PRODUCTS OF SHAREKHAN PVT LTD.

1. SHAREKHAN PVT LTD. CLASSIC ACCOUNT
Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cell phone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am
c. Integration of: Online trading + Bank + Demat account Jagan institute of management studies Page 9
d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives
2. SHAREKHAN PVT LTD. SPEED TRADE ACCOUNT

This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of Speed Trade account. h. Single screen interface for cash and derivatives i. Real-time streaming quotes with Instant order Execution & Confirmation j. Hot keys similar to a traditional broker terminal k. Alerts and reminders l. Back-up facility to place trades on Direct Phone lines.
WHY YOU SHOULD CHOOSE SHAREKHAN PVT LTD.

Experience: More than Eight decades of trust and credibility in the Indian Stock
Market.
Technology: Buy and sell of shares through online services.

Accessibility: Ground Network of 234 share shops. Knowledge: In a business where the right information at the right time can translate into direct profits, you can access to a wide range of information on our content-rich portal www.SHAREKHAN PVT LTD..Com You will also get a useful set of knowledge based tools that will empower you to take informed decisions. Convenience: You can call our Dial-n-trade number to get Investment advice and execute your transactions (Buy & Sell Orders).We have a dedicated call center to Jagan institute of management studies Page 10
provide this service via a to free number from anywhere in India. Customer service: Our customer service team will assist you for any help that you need relating to transactions, billing, De-mat and other queries. Our customer services can be contacted via a toll-free number, email or live chat on SHAREKHAN PVT LTD..com Investment Advice: SHAREKHAN PVT LTD. has dedicated research teams for fundamental and technical research (like Pre-Market report, Post market reports) Our analyst constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails ,online chat, printed reports and SMS on your phone.
ADVANTAGES OF SHAREKHAN PVT LTD.:

1. Online trading is very user friendly and one doesn't need any software to access. 2. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. 3. SHAREKHAN PVT LTD. has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks. 4. SHAREKHAN PVT LTD. has provided every customer with software called TRADE TIGER, which enables the user to know various things about the market such as market depth, the live market screen need not be refreshed, comparative charts are available for every share etc. 5. One another feature of the trade tiger is the visibility of the commodity market along with the share market.
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6. All accounts in share khan will be opened within three working days, once the customer duly completed the registration procedure.
DISADVANTAGES OF SHAREKHAN PVT LTD.:

1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below Rs.20. 2. Classic account holders cannot trade commodities. 3. The number of branches should increase to cast a wider net.
Bringing together under one site all the relevant factors to enable an informed investment is what online trading is all about. There are several terms which are commonly used for online share trading : 1. DEMAT A/c This is a account where dematerialization takes place. Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities form and credited into the investors account with his/her DP. 2. DP A depository participant is an agent of the depository through which it interfaces with the investor. DP can offer depository services only it gets proper registration from SEBI. 3. DEPOSITORY A depository is an organization which holds securities of investor in electronic form at request at request of the investor through a registered repository participant. It also provides services related to transactions in securities.
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4. SAVING A/c - This is a regular bank a/c which is linked to D Mat a/c and trading a/c. required amount of money is used for trading from saving a/c. 5. TRADING A/c This is a a/c through which actual trading i.e. buying and selling takes place. In online share trading all three accounts are interlinked.
DEMAT ACCOUNT
SAVING ACCOUNT
TRADING ACCOUNT
6. LIMIT ORDER- A price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to avoid buying or selling a stock at order to buy or sell a security at a specific price. A buy limit order can only be executed the limit price or higher. When you place a market, you cant control the price at which your order will be filled. Remember that your limit order may never be executed because the market price may quickly surpass your limit before your order can be filled. But by using a limit order you also protect yourself from buying the stock at too high prices. 7. MARKET ORDER- Market order is an order to buy or sell stock at the current market price. Unless you specify otherwise, your broker will enter your order as a market order. 8. ORDER- Investors have several options when it comes to placing an order to buy or sell the securities. For example, whether you place an order directly with your broker or trade online, you can instruct your broker to buy or sell at a specified price. Or you can place an order that is good for one day only or for an extended period.
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9. STOP ORDER- A stop order is an order to buy to sell a stock once the price of the stock reaches the specified price, know as stop price. When the specified price is reached, your stop order becomes a market order. Buy stop order- Investors typically uses a stop order when buying stock to limit a loss or protect a profit on short sell. The order is entered at a stop price that is always above the current price. Sell Stop order- A sell stop order helps the investors to avoid further losses or to protect a profit that exists if the stock price continues to drop. A stop order to sell is always placed below the current market price. 10. SHORT SELL- A short sell is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will fall. If the price of the stock drops, you can buy the stock at lower price and make the profit. If the price of the stock rises and you buy it back later at higher price, you will incur a loss.
CHAPTER 2 OBJECTIVES
Online share trading is not a new concept for India too.NSE has started it in 1992. Still share-trading is not very popular among middle class people and they think it as risky investment. If we see the growth of the sensex .It has increased more than 15 times in 16 years. In 1992 it was at just 1000 and today it is about15000. It was at 21000 in January 2008. During research it was my aim to find out different aspects of online trading and peoples interest about it . Which companies are popular among them, how much they know about these things, how much are they satisfied etc.? Meanwhile I was also looking for prospect customers also for SHAREKHAN PVT LTD. Ltd. Following are the main objectives of the research:
4.1 PRIMARY OBJECTIVES:
To find out prospective customer by creating awareness among the people for
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opening Demat a/c in SHAREKHAN PVT LTD. LTD.
To study the awareness and interest of customers for online trading services. To find out customers satisfaction level.
4.2 SCOPE OF THE STUDY:
To find out customers overall perception about the system. To

know what motivates prospective customer to think about going for online share trading.
To know what options are used by customer in online trading. To get information regarding the current market share of the company. To know competitors of SHAREKHAN PVT LTD. in the market.
CHAPTER 3 STOCK EXCHANGES

6.1 FUNCTIONS OF STOCK EXCHANGES
The importance of stock exchanges will be clear from the following functions performed by stock exchanges: 1. ENSURES LIQUIDITY OF CAPITAL: The stock exchange provides a place where shares and stock are converted into cash. It provides a ready market for buyers and sellers of securities. If exchanges were not there many persons would have fear of blocking their savings in securities.
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2. CONTINUOUS MARKET FOR SECURITIES: The securities once listed continue to be traded irrespective of the fact that owners go on changing. Exchanges provide regular market for trading in securities. 3. EVALUATION OF SECURITIES: The investors can evaluate the worth of their shares from price quoted at different stock exchanges for those securities. The securities are quoted under free atmosphere of demand and supply and prices are set on the basis of free market. 4. MOBILIZING SURPLUS SAVINGS: Through stock exchanges the investors are given a safe platform to invest their savings. Hence stock exchanges play an important role in mopping up surplus funds of investors. 5. HELPFUL IN RAISING NEW CAPITAL: The new concerns raise capital for first time and the existing units increase their capital for further expansion and diversification purposes. The new concerns get themselves registered so that the shares they issue can be further traded at exchanges. 6. SAFETY IN DEALINGS: The dealings in stock exchanges are governed by well defined rules and regulations of Securities contract act; 1956. There is no scope of manipulating the transactions. Every transaction is done according to the procedure laid done and there is no fear in minds of trading parties. 7. LISTING OF SECURITIES: Only listed securities can be traded in stock exchanges. Every company desires of listing its securities will apply to the exchange authorities. But listing is allowed after critical examination of capital structure, management and prospectus of company. Hence provide security to a limit but it does not guarantee the financial stability, so the investors should make analysis before investing. 8. CLEARING HOUSE FOR BUSINESS INFORMATION: The companies listing securities with exchange have to provide financial statements, annual reports and other reports to ensure maximum publicity of corporations operations and working. The Jagan institute of management studies Page 16
economic and other information provided at stock exchanges help companies to make their policies. 9. PLATFORM FOR PUBLIC DEPTS.: The stock exchanges are also organized market for government securities. However there is no any provision for a separate counter for government securities but these are traded through brokers dealing in these securities. 10. FAIR PRICE DETERMINATION: The prices in the stock market are determined by the interplay of forces of supply and demand. In stock exchange there is active bidding and a two way auction takes place as a result there is a free competition in the stock market. The price is determined where the bargain is stuck. Stock exchanges also perform other functions that are useful for tax purposes and hence protect the investors interest by eliminating dishonest and irregular practices in the brokerage of trade.
6.2 THE BOMBAY STOCK EXCHANGE

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). Jagan institute of management studies Page 17
With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.
6.3 THE NATIONAL STOCK EXCHANGE

The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed Jagan institute of management studies Page 18
several
innovations
in
products
&
services
viz.
demutualization of stock exchange governance, screen based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology.
MISSION NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of:
establishing a nation-wide trading facility for equities, debt instruments and hybrids, ensuring equal access to investors all over the country through an appropriate communication network, providing a fair, efficient and transparent securities market to investors using electronic trading systems, enabling shorter settlement cycles and book entry settlements systems, and Meeting the current international standards of securities markets.
CHAPTER 4 SWOT ANALYSIS

STRENGTH:
1) EMPLOYE MOTIVATION POLICY 2) RESEARCH TEAM 3) GOOD INFRASTRUCTURE 4) HELTHY FINACIAL MARKET 5) USER FRIENDLY WEB SITE Jagan institute of management studies Page 19
WEAKNES
1) INSUFFICIENT ADVERTISEMENT POLICY 2) NO ACCESS TO THE RURAL MARKET
OPPORTUNITY
1-SHAREKHAN PVT LTD. having goog customer relation strategy so that it create good opportunity to create goodwill and capture the market. 2-Growing initial public offer create opportunity to capture the new market 3- Positive outlook of people towards financial product becouse most of investor more about financial instrument and working strategy of stock brokers.
THREATS
1) MARKET UNCERTAINTY 2) STIFF COMPETITION 3) NEW ENTRY IN TO MARKET 4) GOVERNMENT POLICY
CHAPTER 5 RESEARCH METHODOLOGY

DATA SOURCE
There are two types of methods used in data collection i.e. primary data & secondary data.
A) PRIMARY DATA
Those data which are collected at first hand by the researcher especially for the purpose of the study ,are known as primary Data .The data is collected directly from the person in sample population. In this project research the collection of data is directly interviewing customer. In the collection of the primary data, I have used survey method and use the questionnaire methods.
SURVEY METHOD:It is most popular method for the collection of necessary data from the respondents. I have used survey method for the collection of the necessary data. Different types of the survey are given below, Personal interview. Telephonic survey. Mail questionnaires.
PERSONAL INTERVIEW:In the personal interview, the interviewer will personally meet the respondent and will take is interview. The interviewer will ask question in face to face direction to the respondents or group of respondents.
TELEPHONIC SURVEY:In the telephonic interview, the interviewer will make call to respondents, inform the respondents about the purpose of the call and then he will ask the related questions to the respondents. This method is used, when the information to be collected is limited. It is mostly used when information to be collected is limited.
MAIL QUESTIONNAIRE:In the mail questioner the interviewer will mail the questionnaire to the respondents and inform them about the purpose of the survey. Also the time limit for the questionnaire is specified in the mail. This method is used when the area to be covered is large and the survey has to be conducted in the specific limit.In my survey, I have used the personal Jagan institute of management studies Page 21
interview to know customer awareness towards online share trading. I have visited respondents personally.
B) SECONDARY DATA
Any data which had been gathered earlier for other purposes are secondary data in hand of marketing research. These data has been collected from company dealer like Dealer profile, industrial profile, company profile are collected from the internet. The secondary data are collected from the magazines, internet and Web -sites. Different web sites like www.SHAREKHAN PVT LTD..com and GOOGLE Search engine help in collecting the detailed information.
RESEARCH APPROACH
Out of 4 ways of research approaches i.e. 1. Observation research. 2. Survey Research 3. Focus Group research 4. Experimental research. In this project the approach used was survey approach because the main objective of our survey was to study of the market potential and have an idea about the customer awareness.
SAMPLING
Research instruments can be of two types firstly questionnaire methods and secondly mechanical instruments. In this survey the research instrument was questionnaire method.
SAMPLING PLAN:Sampling size Field Work area Random sampling SAMPLING PROCEDURE:The sampling Procedure can be of two types: 1. Probable Samplings 2. Non-probable sampling In this survey expert Judgments sampling method can be used. Jagan institute of management studies Page 22 : 50 : New Delhi
CONTACT METHODS: The method of contacts can be four types 1. Mail Questionnaire 2. Personal Interview 3. Telephonic Interview. 4. Internet
STATEMENT OF PROBLEM
Problem definition is one of the most important parts of the study. It is very important to properly define the problem. If the problem is properly defined then it will provide proper guide line for the further study. The properly defined problem will direct the surveyor on the proper path. And it is truly said that a properly defined problem is a half solve. Here the main problem is to study on the INVESTOR PREFERENCES FOR ONLINE TRADING (IN PUNE). Market potential is nothing but the finding out potential customers for the product of organization; which gives maximum profitability. To find out market potential study of competitors; consumer behavior; brand positioning is must which gives idea about the market scenario. Online share trading share trading is nothing but the buying and selling shares as per the market position, this is done through broker. Broker-broker is the person who brings buyer and seller together. So the problem is to know the market potential of online share trading and the popularity of online share trading among the people. It is also to know which options are preferred by customers.
CHAPTER 6 Competitors of SHAREKHAN PVT LTD.

The Indian retail brokerage market, which is going through a wonderful phase with high growth rate. The total trading volume of the Indian brokerage companies stood at US$ 1239.1 billion in the year 2004, which increased to US$ 1492.1 billion in 2005. It is further expected to reach US$ 6535.7 billion by the year 2015. List of Top 10 Brokerage Firms in India- Competitors for SHAREKHAN PVT LTD. Among all the Indian brokerage companies, the top 10 Brokerage Firms in India can be listed as below:
Name
Terminals Sub Brokers No. of Employees No. of Branches
Kotak Securities Limited

4320 910 4008 350
Name
Karvy Stock Broking Limited

1700 19000 3910 581 2876 NA 5873 522 1644 NA 1900 294 7923 890 2193 63 2428 1494 2037 142
Name
India bulls
Name
IL&FS Investmart Limited
Name
MotilalOswal Securities
Name
Reliance Money
Name
India Infoline
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173 173 NA 605
Name
Angel Broking Limited

5715 NA 284 NA
Name
AnandRathi Securities Limited

1527 320 4566 220 627 247 343 314
Name
Geojit
KARVY:
KARVY, is premier integrated financial services provide, and ranked among the top five in the country all its business segments, services over 16 million individual investors in various capacities, and provide investor services to over 300 corporate, comparing the who is who of corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products Mutual funds, Bonds, Fixed Services, Merchant Banking & Corporate Finance, Placement of equity, IPOs among others. Karvy has various industrial segments.
KOTAK SECURITIES:
Kotak Mahindra is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs. 2000 crore and the AUM across the group is around 120 billion and employs over 6000 employees in its various businesses. With a presence in 216 cities in India and offices New York, Landon, Dubai, and Mauritius, it services a customer base of over Jagan institute of management studies Page 25
10,00,000. The group specializes in offering top class financial services, catering to every segment of the industry.
INDIA INFOLINE:
The India Info line Group comprises the holding the parent company, India Infoline Ltd owns and manages the web properties www.indiainfoline.com and www.5paisa.com. It also undertakes research, customized and off the shelf. Launched on 11 May 1999, www.indiainfoline.com is Indias leading and most comprehensive business and financial information website. The site provides quality information and analysis earlier restricted to a few people to the common man, absolutely free.
INDIABULLS:
The market capitalization of India bulls is around USD 1100 Million and consolidated net worth of the company is around USD 725Million some of the large shareholders of India bulls are the largest financial institutions of the worlds such as Fidelity Funds, Capital international, Goldman Sachs, Merrill Lynch, Lloyd George and Feallon Capital. Revenue of the company grew at a CAGR of 184% from FY06 to FY09 during the same period profit of the co grow at a CAGR of 215%.
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CHAPTER 8 ANALYSIS & INTERPRETATION

TABLE-01 Which is the best investment-option for you?
Investment Option Bank Insurance Post office Mutual-fund others Total
Person
02 16 09 17 06 50
Percent %
04% 32% 18% 34% 12% 100
CHART-01
INTERPRETATION
This shows that most of people, who are observed, are interested in investing in Insurance or Mutual Fund. 20% people are also interested in investing in Post office. Jagan institute of management studies Page 27
TABLE-02 Are you interested in e-broking?

Reply Yes No Total No. of Respondents 48 02 50 Percentage % 96% 04% 100%
CHART-02
INTERPRETATION
Out of the total sample size 97% people found the concept of e-broking interesting and 03% people do not find it interesting.
TABLE-03 what is reason for not entering in E-Broking?

Reasons Relationship with broker Trade rarely Other reasons Total No. of Respondents 27 15 08 50 Percentage % 54% 30% 16% 100%
CHART-03
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INTERPRETATION
55% people do want to do online share trading because they have good relationship with their broker, 30% people trade rarely and 15% have some other reasons.
TABLE-04 Which is better, NSE or BSE?
Option Nse BSE Total
Respondents 44 6 50
Percent %
88.0 12.0 100.0
CHART-04
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INTERPRETATION
This shows that most people like NSE in comparison of BSE.
TABLE-05 Which is the best company according to you for trading?
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Companies ICICI SHAREKHAN PVT LTD. KOTAK HDFC Total
No. Respondents 22 16 07 05 50
Percent % 45% 31% 14% 10% 100%
CHART-05
INTERPRETATION
ICICI was at the top of the mind of 45% people out of 100% and SHAREKHAN PVT LTD. securing second position with 31%, followed by Kotak and HDFC with 14% and 10% respectively.
TABLE-06 Do you know about SHREKHAN PVT LTD.?
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Reply Yes No Total
No. of Respondents 38 12 50
Percentage % 76% 24% 100%
CHART-06
INTERPRETATION
Out of the total sample size only 24% people does not know about sharekhan pvt ltd. It is the biggest advantage for the company.
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TABLE-07 Sources of Advertisement
Sources News papers & magazines Friends Internet & Other media Total
No. of Respondents 32 10 08 50
Percentage % 64% 20% 16% 100%
CHART-07
INTERPRETATION
63% people come to know about online share trading through news paper and magazines whereas 20% people come to know through friends and 17% people come to know through other media like internet, news channel etc.
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TABLE-08 Do you have the DEMAT a/c with SHAREKHAN PVT LTD.?
CHART-08
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INTERPRETATION
Out of the total sample size 70% people have the DEMAT a/c with Sharekhan ltd. and 30% people are not interested in opening a DEMAT a/c with Sharekhan ltd.
TABLE-09 Have you been show the company website?

CHART-09
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INTERPRETATION
Out of the total sample size 43% people have visited the website of any e-broking company and 57% people have not visited any website regarding e-broking.
TABLE-10 Do you collect information which is shows on company website?

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CHART-10
INTERPRETATION
60% people were unfamiliar of the term e-broking and only 40% people aware were with the concept of e-broking.
TABLE-11 Is online trading easy?

Answers Yes No Total Respondents 41 9 50 Percent % 82.0 18.0 100.0
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CHART-11
INTERPRETATION
This proves most of people accept that online trading is easy. This is a plus point for stock trading companies.
TABLE-12 Do you need training?

Answers Yes Respondents 29 Percent % 58 42 100.0 Page 39
No 21 Jagan institute of management studies Total 50
CHART-12
INTERPRETATION
This shows that people need proper training for using online trading although it is easy.
TABLE-13 Basis of trading

Reply Market Tips Newspaper No. of Respondents 21 15 Percentage % 42% 30% 18%
10%
Technical/fundamental Jagan institute of management studies 09 analysis Others 05 Total 50
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100%
CHART-13
INTERPRETATION
Out of the four fascinating basis of online shares trading market tips is at the top as 42% people has voted for it followed by newspaper with 30%, technical/fundamental analysis with 18% and others with 10% respectively.
TABLE-14 Preferred Systems of Share Trading
Page 41
System Online Trade Tiger Dial n Trade Total
No. of Respondents 26 21 03 50
Percentage % 52% 42% 06% 100%
CHART-14
INTERPRETATION
Regarding the preferences towards the different systems of share trading, online share trading emerged as a clear cut winner with 52% people preferring it, followed by Trade Tiger with 42% and Dial n Trade with 06%
TABLE-15 Preference for Investment

Option * Large cap ** Middle cap *** Small cap Total
Respondents 40 8 2 50
Percent % 80.0 16.0 4.0 100.0
Valid Percent % 80.0 16.0 4.0 100.0
CHART-15
INTERPRETATION
By seeing this we can say that people prefer to invest in large cap companies. It may be due to less risk. * Large cap : - Companies worth $5 billion or more. ** Middle cap : - Companies worth $1 billion to $5 billion. *** Small cap : - companies worth $250 million to $1 billion.
TABLE-16
Influencing Factors
Factors Transparency Hassle Free Service Economical Time saving Total No. of Respondents 32 07 06 05 50 Percentage % 64% 14% 12% 10% 100%
CHART-16
INTERPRETATION
Out of the four fascinating factors of online share trading transparency is at the top as 64% people has voted for it followed by hassle free with 14%, economical with 12% and time saving with 10% respectively.
TABLE-17
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Future Planning For Online Trading

Reply Yes No Cant say Total No. of Respondents 26 22 02 50 Percentage % 52% 44% 04% 100%
CHART-17
INTERPRETATION
Out of the total sample size 53% people are planning to go for online share trading and 43% people do not want to go for it while 4% people have not yet decided.
CHAPTER 9
FINDINGS & SUGGESTIONS -FINDINGS

It is found that people who were observed, they are yet investing in Insurance. And mutual funds are also a good option for them. Post office was 3 rd favorable option for investing. It may be due to less knowledge of Share market as well as it is considered risky. ICICI is found to be most popular among all. People are well aware of various services providers like SHAREKHAN PVT LTD..com, kotakstreet.com, hdfcsecurities.com. Professionals and executive category are found to be in favor of the online share trading. They showed interest in going for online share trading. It is also seen that people think that online trading is convenient and easy to operate but they also need initial guidance and training. So it must be provided to them so that they can trade comfortably via online. According to most of the people observed NSE is better than BSE. People prefer to invest in largecap companies because of less risk. News and magazines are found to be of major source of information. 93% people found to be aware of online trading of securities. 43% people said that they have visited at least one of the websites for the online share trading concept. The representative of at least one service provider has visited 24% people. 90% of the total population agrees that the concept is easy, convenient & interesting. Still only 53% people are sure to go for online share trading. 41% people rarely want to go for online trading. People have highly voted for transparency feature of the online trading followed by hassle free service, economical and time saving features. Business class prefer off line share trading as most of them have good relationship with their broker. Business class which can be defined as the people who are self employed entrepreneurs are found to be less interested and would like to stick to the traditional system and are much dependent on their broker regarding investments. Jagan institute of management studies Page 46
-SUGGESTIONS
1. Although people have heard about online trading of securities still people have great doubt about its operational feasibility as they are not clear about the concept. Special awareness programs using various media mixes should be carried out to remove fear from the minds of people and make it familiarize. 2. More emphasis should be laid on the convenience that the trading facilities offer by either introducing kiosks in the centre where the clients could have a demonstration for themselves and understand the various features of the product. This could help them determine how conventional mode of trading is. 3. There are large numbers of prospective customers, who trades in small volume or make infrequent transactions or like to hold the stock as a long term investment. The current price structures are not at all suitable for such population. E- Trading companies should look at such class. 4. Awareness campaigns like giving idea about futures and options, derivatives, dividend policies will create interest in online trading. And this helps organization for market positioning as well as mind positioning. 5. SHAREKHAN PVT LTD..com can go for banking business as it has large customer base. Generally e-trading are not in banking business but this can be done as it will provide convenience. Many times customer faces problem because of lack of coordination between management of e-trading company and bank. 6. 7. Development in public relation management and customer relationship management will lead organization towards strong brand image as well goodwill. Comparative study of customer care and services provide by other companies will help develop business strategies as well business policies. 8. Seminars can be conducted at corporate level so as to increase potential customer base. Corporate people do not go for share trading due to lack of time. This kind of seminar will motivate them and make them aware about e-trading.
CHAPTER 10
CONCLUSION
Shares are the best kind of investment available over a long period of time. And also share market is a place where money earns money. For investing in share market every investor needs to have an agreement with a Depository Participants. Depository Participants are the one who provide the services of DEMAT. SHAREKHAN PVT LTD. is very well known among the investors but from the analysis I found that ICICI Direct Securities is one of the major competitors. During my research I found that there is a large market which is untapped, as most of people find the concept of online share trading very interesting but none of them have been visited by the representative of any company. During my research I also found that many people want to stick with the traditional system of share trading because of lack of computer knowledge and also many people are dependent of their personal broker. In the research I observed that SHAREKHAN PVT LTD. limited is not effective in the advertisement of its products.
CHAPTER 111
BIBLIOGRAPHY
TEXT BOOKS 1. Geoff, Cox, December 2003, How to develop top performers, AskHow2 publication, p.17-28 1. Kotler Philip, 2006, Marketing Management Twelfth Edition, Dorling Kindersley, p.343-350 3. Kothari, C.R., 2004, Research methodology Methods & Techniques, New Age International (P) Ltd, p.58-60 PERIODICAL 1. Icfai journal, 6th edition 2008, p.15-20 Websites 1. www.SHAREKHAN PVT LTD..com
2. www.google.co.in 3. www.speedtrade.com 4. www.strade.SHAREKHAN PVT LTD..com 5. www.5paisa.com 6. www.icicidirect.com 7. www.karvi.com 8. www.kotak.com
ECONOMICS TIMES BUSSINESS MAGZINE
CHAPTER 12
ANNEXURE
QUESTIONNAIRE
Dear Respondent, I am JATIN, B.B.A student of JAGAN INSTITUTE OF MANAGEMENT STUDIES, NEW DELHI. I am doing a project work titled INVESTORS PREFRENCE IN ONLINE TRADING. I kindly request you to fill this questionnaire.
PERSONAL INFORMATION:
1.Name: 2. Gender: 3. Address: 4. Contact No.: 5. Age (a) Between 20-22 years (c) Between 25-30years 6. Are you married? (a) Yes 7. Educational Qualification (a) Postgraduate (c) 12th 8. Are you employed? (a) Yes 9. Occupation: (a) Self Employed (c) Govt. Employee 10. What is your monthly income? (In Rs) (a) Below 10000/(c) Between 20000-30000/(b) Private Employee (d) Student (b) Between 22-25years (d) above 30 years (b) No (b) Graduate (d) below 12th (b) No (a) Male (b) Female
(b) Between 10000-20000/(d) Above 30000/-
RESEARCH-QUESTIONS:
11. Which is the best investment-option for you? Jagan institute of management studies Page 50
(a)Bank (b) Insurance (c)Post office (e) Others 12. Are you interested in e-broking? (a) Yes 13. If no, what is reason for not entering in E-Broking? (a) The Relationship with broker (b) Trade rarely (c) Other reason 15. Which is better STOCK EXCHANGE according to you? (a) NSE 14. Which is the best company according to you for trading? (a)SHAREKHAN PVT LTD. (c)Kotak Securities 16.Do you know about SHREKHAN PVT LTD.? (a) Yes
(d) Mutual Funds
(b) No
(b) BSE
(b) ICICI (d) HDFC
(b) No
17. If, yes, how do you know about SHREKHAN PVT LTD.? (a) News Paper (b) friend (c) Internet & Other media 18.Do you have the DEMAT a/c with SHAREKHAN PVT LTD.? (a) Yes (b) No 19 If no, are you interested to open a DEMAT a/c. with SHREKHAN PVT LTD? (a) Yes (b) No 20. Have you been show the company website? (a)Yes
(b) No
20. If yes, do you collect information which is shows on company website? (a) Yes (b) No
Page 51
21. Do you agree that online trading with SHAREKHAN PVT LTD. is easy & convenient? (a) Yes (b) No 22. If no, do you need training for online trading? (a) Yes 23.On what basis do you trade? (a) Market tips (c) technical/fundamental analysis (b) newspaper (d) Others.
(b) No
24. Which is your preference for share trading with SHAREKHAN PVT LTD. LTD.? (a) Online (c) Dial n Trade 25. Which is your preference for investing? (a) Large-cap (c) Small-cap 26. Which is your Influencing factor? (a) Transparency (c) Hassle free service 27. Do you have future planning for online trading? (a) Yes (c) Cant say 28. Suggestions for future development. _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ ___ (b) Mid-cap (b) Trade Tiger
(b) Economical (d) Time saving
(b) No
THANKU YOU
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SHAREKHAN PVT LTD. LTD.

INVESTORS PREFRENCE IN ONLINE TRADING

JAGAN INSTITUTE OF MANAGEMENT STUDIES NEW DELHI

Jagan institute of management studies

Jagan institute of management studies

Jagan institute of management studies

ANALYSIS & INTERPRETATION

FINDINGS & SUGGESTIONS CONCLUSION BIBLIOGRAPHY ANEXURE

Jagan institute of management studies

1.3 SCOPE OF THE PROJECT

1.4 PRIMARY DATA:-Primary data was collected using the following

Jagan institute of management studies

1.1 INDUSTRY PROFILE

Jagan institute of management studies

Jagan institute of management studies

STOCK BROKING SERVICES

VARIOUS STOCK BROKING COMPANIES IN INDIA

Jagan institute of management studies

1.2 COMPANY PROFILE

FEATURES OF SHAREKHAN PVT LTD. LTD:

Mutual Fund Distribution & Advisory:

Jagan institute of management studies

Jagan institute of management studies

SERVICES OF SHAREKHAN PVT LTD.:

Jagan institute of management studies

PRODUCTS OF SHAREKHAN PVT LTD.

2. SHAREKHAN PVT LTD. SPEED TRADE ACCOUNT

WHY YOU SHOULD CHOOSE SHAREKHAN PVT LTD.

Technology: Buy and sell of shares through online services.

ADVANTAGES OF SHAREKHAN PVT LTD.:

Jagan institute of management studies

DISADVANTAGES OF SHAREKHAN PVT LTD.:

Jagan institute of management studies

Jagan institute of management studies

4.1 PRIMARY OBJECTIVES:

opening Demat a/c in SHAREKHAN PVT LTD. LTD.

To find out customers overall perception about the system. To

CHAPTER 3 STOCK EXCHANGES

Jagan institute of management studies

6.2 THE BOMBAY STOCK EXCHANGE

6.3 THE NATIONAL STOCK EXCHANGE

CHAPTER 4 SWOT ANALYSIS

CHAPTER 5 RESEARCH METHODOLOGY

CHAPTER 6 Competitors of SHAREKHAN PVT LTD.

Kotak Securities Limited

Karvy Stock Broking Limited

Terminals Sub Brokers No. of Employees No. of Branches

Terminals Sub Brokers No. of Employees No. of Branches

IL&FS Investmart Limited

Terminals Sub Brokers No. of Employees No. of Branches

Terminals Sub Brokers No. of Employees No. of Branches

Terminals Sub Brokers No. of Employees No. of Branches

Jagan institute of management studies

Terminals Sub Brokers No. of Employees No. of Branches

173 173 NA 605

Angel Broking Limited

Terminals Sub Brokers No. of Employees No. of Branches

AnandRathi Securities Limited

Terminals Sub Brokers No. of Employees No. of Branches

Jagan institute of management studies

CHAPTER 8 ANALYSIS & INTERPRETATION

Investment Option Bank Insurance Post office Mutual-fund others Total

Option * Large cap Middle cap * Small cap Total