CONTENTS

S.NO TITLE PAGE NO

OBJECTIVE RESEARCH METHODOLOGY 1 INTRODUCTION 5

1.1

INTRODUCTION TO STOCK EXCHANGE

1.2

TYPES OF SHARES

13

1.3

TYPES OF MARKETS

16

1.4

TRADING

18

COMPANY PROFILE

23

2.1

ORGANISATION STRUCTURE

27

SALES AND MARKETING DEPARTMENT

29

3.1

STOCK BROKING DEPARTMENT

31

3.2

FRONT OFFICE WORK

33

3.3

BACK OFFICE DEPARTMENT

35

PRODUCTS & SERVICES OF SHAREKHAN

37

PORTFOLIO MANAGEMENT

44

DEMAT SERVICES

47

TYPES OF CLIENTS

49

MARKETING STRATEGIES

STRATEGIES

AND

PROMOTIONAL

51

REASON TO CHOOSE SHAREKHAN LIMITED

55

10

LEARNINGS

57

11

SWOT ANALYSIS

61

12

CONCLUSION

64

OBJECTIVE Evaluation of preferred investments in various mode and industry & influencing factors affecting the purchase decision. To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e.g. India bulls, Angel broking, India Infoline, Religare, and Unicorn. Analyzing the preferred broking house. Checking the satisfaction level of the customers towards preferred broking house. To make clients and let them know about the different services offered by the SHAREKHAN. To understand the problem faced by customers and finding way to solve the queries.

RESEARCH METHODOLOGY
Market research is often needed to ensure that we produce what customers really want and not what we think they want. Research methodology is a way to systematically solve the research problem. I may be understood as a science of how research is done scientifically understand it be study the various steps that are generally adopted by a researcher in study his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or technique but also research methodology. It refers to a search for knowledge. Research is thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursue of truth with the help of study.

DATA COLLECTION
Data is information in the form of numerical figures. Data obtained in the original form is called raw data.

METHODS OF DATA COLLECTION

Primary Data It involves collecting data from its origin. Primary data is the first hand information collected by the marketer. This method of data collection is expensive and time consuming.

Secondary Data It involves using information that have already put together. When we collect information through published sources, it is known as secondary data collection.

In my project primary as well as secondary data is being used. Mainly the data used in my project is secondary data.

.RESEARCH

DESIGN

It is used in rigid which involves specific guidelines to reach the financial result data is collecting on specific parameter.

TYPES OF RESEARCH There are three types of research Descriptive Explanatory Exploratory

Descriptive research A form of conclusion research that aims to describe a product or market or identify associations among variables.As the name suggests, descriptive research is concerned with describing market characteristics and/or marketing mix characteristics. This type of study can involve the description of the extent of association between variables. Explanatory research It is research in which each and everything is well explained. A style of research in which the primary goal is to understand the nature or mechanism of the relationship between the independent and dependent variable.

Exploratory research This research is conducted into an issue or problem where there are few or no earlier studies to refer. The focus is on gaining insights and familarity for later investigation. Here data is often quantitative and statistics applied. It is used to identify and obtain information on a particular problem or issue. Finally, casual or predictive research seeks to explain what is happening in a particular situation. In my project I have used exploratory research for primary data because it is undertaken to explore an area where little is known or to investigate the possibilities of undertaking a particular research study In my project I have also used descriptive research for secondary data because the main goal of this type of research is to describe the data and characteristics about what is being studied and descriptive research is mainly done when a researcher wants to gain a better understanding of a topic It is quantitative and uses surveys and panels and also the use of probability sampling.

INTRODUCTION TO STOCK EXCHANGE

NTRODUCTION TO STOCK EXCHANGE The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company. Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the Articles of Association of the Exchange. On or about 9th day of July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the Members of such association.

As a meeting held in the broker Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as The Stock Exchange. The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies. 14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are: i. ii. iii. iv. Stockbrokers Sub-broker Market makers Portfolio consultants etc.

1. Stockbrokers: Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is

mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc. 2. Sub-broker: A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation. 3. Market Makers: Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by byelaws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 Crore but not more than Rs. 5 core and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities. 4. Portfolio Consultants: A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients.

Traditionally stock trading is done through stock brokers, personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading.

Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker.

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 Bombay 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. 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. 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. Short selling: This is a reverse cycle of buying & selling process. Traders can directly sell the shares before they buy them at a higher price and after that buying the same quantity of shares at lower price. This normally happens during anticipation of fall of price in a stock. The trader must clear his position before that trading day. This strategy is usually followed by day traders.

Technology and 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.

TYPES OF SHARES Equity shares: These shares are also known as ordinary shares. They are the shares which do not enjoy any preference regarding payment of dividend and repayment of capital. They are given dividend at a fluctuating rate. The dividend on equity shares depends on the profits made by a company. Higher the profits, higher will be the dividend, where as lower the profits, lower will be the dividend. Preference shares: These shares are those shares which are given preference as regards to payment of dividend and repayment of capital. They do not enjoy normal voting rights. Preference shareholders have some preference over the equity shareholders, as in the case of winding up of the company, they are paid their capital first. They can vote only on the matters affecting their own interest. These shares are best suited to investors who want to have security of fixed rate of dividend and refund of capital In case of winding up of the company.

Deferred shares: These shares are those which are held by the founders or pioneer or beginners of the company. They are also called as founder shares. In deferred shares, the right to share the profits of the company is deferred, i.e. postponed till all the other shareholders receive their normal dividends. Being the last claimants of the profits, they have the considerable element of speculation or uncertainty or they have to

bear the greatest risk of loss. The market price of such shares shows a very wide fluctuation on account of wide dividend fluctuations. Deferred shares have disproportionate voting rights. These shares have a small denomination or face value. Deferred shares are not transferable if issued by a private company. Deferred shareholders do not enjoy the right of priority to have shares offered in case of the issue of the shares by the company. If the company goes in to the liquidation the deferred shareholders can get refund of capital and participate in the surplus capital, if any, after the rights of preference and equity shareholders have been satisfied. Bonus shares: The word bonus means a gift given free of charge. Bonus shares are those shares which are issued by the company free of charge as bonus to the shareholders. They are issued to the existing shareholders in proportion to their existing share holdings. It is a kind of gift to the shareholders from the company. It is bonus in the form of shares instead of cash. It is given out of accumulated profits and reserves. These shares have all types of preferences which are available to the existing shares. For example. Two bonus shares for five equity shares. The issue of bonus shares is also termed as capitalization of undistributed profits. Bonus shares are the type of windfall gain to the equity shareholders. They are advantageous to the equity shareholders as they get additional shares free of cost and also they earn dividend on them infuture. 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.

TYPES OF MARKETS
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". 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. Function of the secondary market: 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

TRADING
Trading is the process of buying and selling securities. TYPES OF TRADING: Day Trading :

Day traders buy and sell stocks throughout the day in the hope that the price of the stocks will fluctuate in value during the day, allowing them to earn quick profits. A day trader will hold a stock anywhere from a few seconds to a few hours, but will always square off all of those stocks before the close of each day. The day trader does not own any positions at the close of any day therefore immune to overnight risks. The objective of day trading is to quickly get in and out of any particular stock for a profit on an intra-day basis. Day trading can be further subdivided into a number of styles, including: Scalpers: This style of day trading involves the rapid and repeated buying and selling of a large volume of stocks within seconds or minutes. The objective is to earn a small per share profit on each transaction while minimizing the risk.

Momentum Traders: This style of day trading involves identifying and trading stocks that are in a moving pattern during the day, in an attempt to buy such stocks at bottoms and sell at tops. Online Trading

Online trading is simply a term that refers to the medium used to enter and execute

trades. Online traders, which can include long term investors, as well as day, swing and position traders, use either an Internet connection or a direct access online trading platform to access and execute trades with Web based brokers. Hedging :

Hedging means reducing risk exposure in the market. A hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment. Hedging is a strategy designed to minimize exposure to an unwanted business risk, while still allowing the business to profit from an investment activity. In effect it is similar to purchasing an insurance policy on your financial security. Buying or selling options, along with the buying and selling of the underlying security is a common way to hedge. Spreading: A spread is defined as the sale of one or more futures contracts and the purchase of one or more offsetting futures contracts. A spread tracks the difference between the price of whatever it is you are long and whatever it is you are short. Therefore the risk changes from that of price fluctuation to that of the difference between the two sides of the spread. The spreader is a trader who positions himself between the speculator and the hedger. Rather than take the risk of excessive price fluctuation, he assumes the risk in the difference between two different trading months of the same futures, the difference between two related futures contracts in different markets, between an equity and an index, or between two equities. Delivery based: Delivery based trading is normally considered as a safer approach for trading in shares when compared to day trading. Delivery based trading involves buying shares on a market day and selling them only after receiving the delivery of those

shares in demat account. It is basically in 3 forms. . Medium term: Here, the trading can be done for 6 months. Long term: In long term the trading can be done for above one year. Short term: The trading can be done only for one to three months

ADVANTAGES OF STOCKS TRADING: 1. Better returns Actively trading stocks can produce better overall returns than simply buying and holding. 2. Huge Choice There are thousands of stocks listed on markets around the world. There is always a stock whose price is moving - its just a matter of finding them. 3. Familiarity The most traded stocks are in the largest companies that most of us have heard of and understand - Microsoft, IBM, and Cisco etc.

DISADVANTAGES OF STOCKS TRADING: 1. Leverage With a margined account the maximum amount of leverage available for stock trading is usually 4:1. Meaning a $25,000 could trade up to $100,000 of stock. This is pretty low compared to Forex trading or futures trading. 2. Pattern Day Trader Rules It requires at least $25,000 to be held in a trading account if the trader completes more than 4 trades in a 5 day period. No such rule applies to Forex trading or futures trading. 3. Uptick Rule on Short Selling A trader must wait until a stock price ticks up before they can short sell it. Again there are no such rules in Forex trading or futures trading where going short are as easy as going long.

4. Need to Borrow Stock to Short Stocks are physical commodities and if a trader wishes to go short then the broker must have arrangements in place to borrow that stock from a shareholder until the trader closes their position. This limits the opportunities available for short selling. Contrast this to futures trading where selling is as easy as buying. 5. Costs Although online trading costs for stock trading are low they still add considerably to the costs of day trading. Online futures trading are about 1/4 of the cost for the equivalent value. In the UK 0.5% stamp duty is also levied on all share purchases making trading virtually impossible, hence the popularity of spread betting.

COMPANY PROFILE

COMPANY PROFILE SHAREKHAN LIMITED: Name of the company: Sharekhan ltd. Year of Establishment: 1925 Headquarter: ShareKhanSSKI A-206PhoenixHouse Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA- 400013 Nature of Business : Service Provider Services : Depository Services, Online Services and Technical Research. Number of Employees : Over 3500 Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.). It has one of the largest networks in the country with 704 share shops in 280 cities and Indias premier online trading portal www.sharekhan.com. With their research expertise, customer commitment and superior technology, they provide investors with end-to-end solutions in investments. They provide trade execution services through multiple channels - an Internet platform, telephone and retail outlets. Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family, continues to remain the largest shareholder. It is the retail broking arm of the Mumbai-based SSKI [SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. SSKI which is established in 1930 is the parent

company of Sharekhan ltd. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance over a decade ago. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, and Derivatives. Depository services, online trading, Investment advice, Commodities, etc Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote. It is first brokerage Company to go online. The Company's online trading and investment site www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. Share khan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. One can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. One can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Sharekhan's

lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector. We look forward to providing strategic counsel to Sharekhan's management as they continue their expansion for the benefit of all shareholders." SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players raising equity in the Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the Indian stock markets. If we experience their language, presentation style, content or for that matter the online trading facility, we'll find a common thread; one that helps us make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about! "Sharekhan has always believed in collaborating with like-minded Corporate into forming strategic associations for mutual benefit relationships" says Jaideep Arora , Director - Sharekhan Limited. Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part of the SSKI group, an Indian financial services power

house, with strong presence in Retail equities Institutional equities Investment banking. SSKI Group Companies SSKI Investor Services Ltd (Share khan) S.S. Kantilal Ishwarlal Securities Share khan Commodities Pvt Ltd.

ORGANISATION STRUCTURE

SALES & MARKETING DEPARTMENT The Marketing Department is one of the most important departments in every concern. The effectiveness of this department is the most important factor in the progress of the firm. The whole performance of the company depends on marketing and without the knowledge of this department; the company cannot sell its goods. The sales manager has the right to perform these functions. He has many functions like he has to organize promotional activities and sales events like First Step. The department has a Sales manager, Assistant sales manager, Sales executives and trainees. The department gets databases from various sources but the main source for leads is internet registration by the clients. LEAD MANAGEMENT SYSTEM: Lead management system is the software used by the sales department to manage the leads. Every employee of sales department will have unique user id and password to access this software. Every morning the sales manager will be provided with some leads from the head office. The sales

manager will split this work and assign the leads for assistant sales manger and executives. Assistant sales manger will assign some leads to the trainees of the company and he also assign some personal references to the trainees. Then the employees will work on the leads and they will update the response in the lead management system. STRATEGY ADOPTED BY SALES DEPARTMENT:
TELE-CALLING

AGAIN VISIT FOR TRADING

PERSONAL APPOINTMENTS

OPEN DEMAT ACCOUNT

MAKING ARRANEMENTS

STOCK BROKING DEPARTMENT

STOCK BROKING DEPARTMENT The stock broking department consists of two sub-divisions in it, they are equity and commodity. The department contains only 8 stock brokers. The job profile of a stock broker is, they need to keep in contact with the clients. They need to update the clients with latest trading calls and they supposed to alert the customers if they are prone to risks. The main duty of a stock broker is to place order no matter whether it is buying, selling or short selling. The stock brokers will be updated with latest news and calls by the company before, during and after the market session. Each broker is provided with a separate terminal for placing order and they were provided with a unique id and password to trade. The brokers are motivated by the company to achieve the target through monetary and non-monetary awards. Apart from trading they are supposed to educate the clients with other products also like ETFs, MFs and IPOs.The brokers also have to process the pay-in and pay-out instructions of the clients and submit to the back office people. The brokers in this organization act as customer relationship officers.

BACK OFFICE WORK

BACK OFFICE WORK The back office department plays a major role in this organization. The department consists of four people for clerical work. The main functions of back office employees are as follows, They process pay-in and pay-out requests of the clients.

They track with the credit details of the clients and periodically inform to the respective broker about risks and unclosed positions. They deal with settlement process of stocks taken as delivery by the clients.

They deal with new account openings and updating of existing clients information. They maintain the client master details in the organization. They also deal with legal issues like getting mandate form from the clients.

FRONT OFFICE DEPARTMENT

FRONT OFFICE DEPARTMENT The front office department has only one office assistant who deals with the front office works. The main functions of this department are as follows, They deal with the Customer information system in which they are

supposed to enter the details of the new clients and also they have to update the changes in the existing client details. They receive the new application form of the clients and check the necessary documents with the application form. They deal with the courier generation formalities and receive the couriers for various employees. They maintain the attendance registry for the employees. They deal with utility bills issues of the company. They process the cheque given by clients for collection in banks. They maintain inward courier registry and outward courier registry. They deal with applying for IPO.

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

PRODUCTS: The different financial products available in the company are as follows, SMART TRADE PRODUCT: This is a trading product where Sharekhan's experts aggressively scan the market for short-term opportunities. It consists of fundamentally sound stocks that are expected to move sharply within few days. These stocks may be held for a maximum of one month. We at Advise line will be in constant touch with you via Recorded Messages, SMS and Yahoo Chat and keep you updated on the status of the calls. The recommended initial margin for the Smart Trades Product is of Rs.100000 HAMMOCK: This Basket would consist of around 12 stocks handpicked by team of experts from Sharekhan's Stock Ideas and is reviewed once a month. Stocks in this basket are generally held between 1 month and 1 year. Client will be receiving a Recorded Message, Email and SMS for all updates. Company will review your portfolio during the month for any churn required. The recommended initial capital* for this basket is Rs.120000'' SMART CHART: Smart Charts is a medium term trading product where Sharekhan's highly

experienced Technical Research team recommends positional calls for a time frame of 1 - 2 months and covers the whole gamut of liquid stocks available on the bourses. The recommendation can be on both buy as well as sell side, depending on the market scenario helping client to earn maximum returns irrespective of the trend. These recommendations would be along with a target and a stop loss. DELIVERY IDEAS: This is an aggressive basket of fundamentally sound stocks, which are expected to move within a time span of one month. Client will be given a fresh basket of stocks which will be booked during the month based on opportunities. The stocks have an upside potential of 10 - 15% and a downside risk of 6 - 7%. Client will receive a minimum of 6 series per annum. In order to invest and earn optimum returns in this product company recommend an investment of Rs.100000. Client will have to invest this amount equally in each of the stocks in the basket in equal proportion. HOT CHOCALATE: Experts from Sharekhan would be using their expertise and knowledge on the fundamentals of the economy, industry and companies to shortlist a basket of around 12 stocks with an exposure of 8% in each, which will comprise of stocks from the mid cap segment which have potential to move fast and catch up with the market. It will also consist of stocks which are looking good for the long term. Also, the stocks in this product will be churned regularly based on Market opportunity & Price action in the stocks. In order to invest and earn optimum returns in this product company recommend a minimum investment of Rs.120000. Client will have to invest Rs.10000 in each of the stock recommended in Hot Chocolate.

SERVICES: The different services provided by Sharekhan ltd are as follows, Online services Share shops Mutual funds Commodity Portfolio management service Advice line Demat NFO IPO They also offer personalized wealth management services for High Net worth individuals. ONLINE SERVICES: The online services of Sharekhan include online trading of both equity and derivative products. They provide different online trading account from which individual can chose between according to their trading habits and preferences. Types of trading account available are as follows, First step Classic account Trade tiger FIRST STEP: The Sharekhan First Step is a brand new program designed especially for those who are new to investing in shares. All one have to do is to open a Sharekhan

First Step account and they will guide through the investing process. CLASSIC ACCOUNT: This account enables clients to buy and sell shares through company website. Client will get features like, Streaming quotes (using the applet based system) Integrated Banking, demat and digital contracts Instant credit and transfer Real-time portfolio tracking with price alerts Multiple watch lists

TRADE TIGER: It is a single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual funds, IPOs. Multiple Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies Graph Studies include Average, Band-Bollinger, Know Sure Thing, MACD, RSI, etc Tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator Online fund transfer activated with 12 Banks SHARE SHOPS: Share shops are service outlets of Sharekhan ltd. The company has 1200 share shops around 400 cities in India. A Sharekhan outlet offers the following services: Online BSE and NSE executions (through BOLT & NEAT terminals) Free access to investment advice from Sharekhan's Research team Sharekhan Value Line (a monthly publication with reviews of recommendations, stocks to watch out for etc) Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report (Morning Cuppa) Personalized Advice Depository Services: Demat Transactions Derivatives Trading (Futures and Options)

Live Market Information IPOs & Mutual Funds Distribution Commodities Trading Daily trading calls based on Technical Analysis MUTUAL FUNDS: Sharekhan ltd allows investors to invest in mutual fund through its both offline and online account. Applying for a mutual fund through us is open to everybody, regardless of whether the person is a Sharekhan customer. To invest in mutual funds one has to download its application form, fill it and send it over to the company. COMMODITIES: Sharekhan has launched its own commodity derivatives micro-site. The site is available through the Sharekhan home page www.sharekhan.com. Along with the site Sharekhan has launched several commodity derivatives products (both research and trading) too. The products have been listed below: Commodities Buzz: daily view on precious metals and agro commodities. Commodities Beat: summary of the days trading activity. Traders Corner: Commodity trading calls; there are two types of calls, o Rapid-Fire :( short-term calls. For 1 day to 5 days. updated daily) o Medium-term Plays: (medium- calls. month to 3 term for 1 months. updated weekly or in between if needed) Sharekhan Xclusive: commodity research reports and analysis.

Market Scan: daily commodity market data and statistics (end of day). KEY BENEFITS OF COMMODITIES AT SHAREKHAN: Complete online support. Cutting edge analysis of the most relevant news in commodities. An excellent information facility through SMS messages provides you with appropriate market information as well as buy/sell calls. A team of dedicated Relationship Managers/Dealers provide you nonstop support through messenger. You will be assisted on market information, buy/sell recommendation and other information to guide you through.

PORTFOLIO MANAGEMENT

PORTFOLIO MANAGEMENT Portfolio management service (PMS) is a type of professional service offered by portfolio managers to their client to help them in managing their money in less time. Portfolio managers manage the stocks, bonds, and mutual funds of clients considering their personal investment goals and risk preferences. In addition to money, the portfolio managers manage the portfolio of stocks, bonds, and mutual funds. Sharekhan ltd offers two types of Portfolio management services as follows, PMS Pro prime PMS Protech PMS Pro prime: The product details of pro prime are as follows Minimum Investment: Rs 5 lakhs. Lock in period: 6 Months. Reporting: Online access to portfolio holdings, quarterly reporting of portfolio holdings/transactions. Charges: 2.5% per annum AMC charged every quarter, 0.5% brokerage 20% profit sharing after 15% hurdle is crossed-chargeable at the end of the fiscal year. Profit withdrawal in multiples of 25000 after lock in period. PMS Protech: Protech uses the knowledge of technical analysis and the power of derivatives market to identify trading opportunities in the market. The Protech lines of

products are designed around various risk/reward/volatility profiles for different kinds of investment needs. The product details of Protech are as follows, Minimum Investment: Rs 5 lakhs.

Lock in period: 6 Months. AMC fees: 0% Reporting: Monthly reporting of transactions, brokerage 0.05% for derivatives, and 20% profit sharing on booked profits on quarterly basis. Profit withdrawal in multiples of 25000 after lock in period. ADVISE LINE: With Advise line one does not have to tune into the news or search through endless pages of reports to know about the market movements or to decide on which are the best stock investments to make. They continually keep you updated on the global and local market conditions. Clients are also, specially advised on the portfolio you build through Sharekhan.

DEMAT SERVICES

DEMAT 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 for the investor directly by the Depository. Sharekhan Depository Services offers dematerialization services to individual and corporate investors. They have a team of professionals and the latest technological expertise dedicated exclusively to their Demat department, apart from a national network of franchisee, making their services quick, convenient and efficient. At Sharekhan, their commitment is to provide a complete Demat solution which is simple, safe and secure.

TYPES OF CLIENTS

TYPES OF CLIENTS Sharekhan deals with different types of clients. The different types of clients of Sharekhan ltd are as follows, Retail investor High net worth investors Speculators

RETAIL INVESTORS: They are clients who invest small amount in stocks and bonds. Most of the retail investors are salaried people and middle income people. They usually invest around Rs.5000-25000. They usually prefer delivery ideas provided by the company to invest in. Most of the retail investors involve in cash segment, since the risk in cash segment is relatively lesser than derivatives segment. HIGH NET WORTH INVESTORS: They are clients who buy in bulk amount of stocks and bonds. Most of the high nets worth investors are business people and high income people. They usually invest above Rs.5 lakhs. This type of clients usually prefer between different products provided by the company. Most of the high net worth investors involve in all segments like cash, derivatives, commodities. SPECULATORS: They are clients who also buy bulk amount of stocks and bonds and they take control over their investments. Speculators involve in all market segments like cash, derivatives, commodities and money market. Their investment ranges between Rs.25000-3 lakhs.

MARKETING STRATEGIES AND PROMOTIONAL STRATEGIES

MARKETING STRATEGIES The marketing strategy was mainly focused on reaching to every segment of people SEGMENTATION: Sharekhan segmented the whole market in to three types of clients which are as follows, Retail investors High net worth investors Day traders (or) speculators

Most of the retail investors are salaried persons and middle income class people. They enter with initial capital around Rs.5000-25000. High net worth investors are clients who invest more than Rs.5 lakhs . They are mostly high income group. Day traders are clients who are professional speculators and day traders. TARGETING: As most of clients are middle income people, Sharekhan targets mainly on retail investors such as salaried people and middle income people. POSITIONING: Positioning strategy adopted by Sharekhan is they associated themselves with technology. Standardized procedures are the first thing that comes to mind of a client when he thinks of Sharekhan.

PROMOTIONAL STRATEGIES: Telemarketing: In the organization, database of contact numbers of various category of people are maintained who may or may not know about the services.Sales executives and assistant managers make phone calls to these people and if they are interested, give various details about the services and products.This will make people to opt for Sharekhan in future even if they are not interested to enter stock market currently. Seminars: The sales personnel of Sharekhan prepare seminars depending upon the type of people they are going to meet ie students or coporate people.They go to respective institutions and take seminars giving various details suiting that category people and the contact numbers of Sharekhan sales personnel to contact further if interested. Door steps: The sales personnel also go to domestic homes of people and various institutions(meet every person in person, not like seminars).They explain to them in detail, various schemes, products and services. They also explain about the documents required to open an account with Sharekhan. If the person is interested the sales personnel will acquire the documents and will proceed further. KIOSKS: The sales team puts up stalls in various locations and provide pamphlets

containing details about various products and services of Sharekhan.They also explain orally to people who are interested. Online advertising: Sharekhan has links to various websites through which they market their products and services ie through pop up windows and flash texts which when clicked directly leads to Sharekhans website. Media : Sharekhan also uses advertisements in TV channels like CNBC.

REASON TO CHOOSE SHAREKHAN LIMITED

REASON TO CHOOSE SHAREKHAN LIMITED TECHNOLOGY: With its online trading account one can buy and sell shares in an instant from any PC with an internet connection. One can get access to its powerful online trading tools that will help him take complete control over his investment in shares. ACCESSIBILITY Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through its centers across the country over the internet (through the website www.sharekhan.com) as well as over the Voice Tool. KNOWLEDGE In a business where the right information at the right time can translate into direct profits, one can get access to a wide range of information on Sharekhan limiteds content-rich portal. One can also get a useful set of knowledge-based tools that will empower him to take informed decisions. CONVENIENCE One can call its Dial-N-Trade number to get investment advice and execute his transactions. Sharekhan ltd. have a dedicated call-centre to provide this service via a Toll Free Number 1800-22-7500 & 1800-22-7050 from

anywhere. CUSTOMER SERVICE Sharekhan limiteds customer service team will assist one for any help that one may require relating to transactions, billing, demat and other queries. Its customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com. INVESTMENT ADVICE Sharekhan has dedicated research teams of more than 30 people for fundamental and technical researches. Its analysts constantly track the pulse of the market and provide timely investment advice to its clients in the form of daily research emails, online chat, printed reports and SMS on their mobile phone.

SWOT ANALYSIS

SWOT ANALYSIS

STRENGTHS Cost advantage Effective communication High R&D Innovation Online growth Loyal customers Market share leadership

WEAKNE SS Diseconomies to scale Not innovative Not diversified high employee turnover less small investors less competitive employees not properly skilled infrastructure not up to the mark

Strong management team Strong financial position Pricing Real estate Reputation management Unique products diverse products and offers for the customers strong brand recall strong reach to the masses nationwide reach of the masses among the top 5 brokerage houses in the country

OPPORTUNITIE S

THREAT S

Financial markets (raise money

through debt, etc) Innovation

Competition Cheaper technology Economic slowdown

Online Product and services expansion penetration in developing cities increase in awareness of people about stock market increase in wealth positive market sentiments technolog growth of y and awareness increased internet usage

(governmen External changes t, politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Price wars Global economic slowdown. The Indian capital market is

fluctuating.

LEARNINGS

LEARNINGS

Stock broking companies run with the help of IT. Buying and selling through internet is fast. As soon as the prices of the shares goes up or comes down then they can be sold or purchased instantly within seconds. Customer Relationship is very necessary for the company to retain the customers. In Sharekhan I have learned how to maintain good relations with the customers by giving them the proper service and solving their queries regarding the share market. I have also learned how to maintain good relation with the employees and the co-trainees. In Sharekhan Ltd. I have learned a lot relating to the finance. Learned the meaning of the words that are mostly used in the share market. Learned about various products of the Sharekhan Limited. Learned various aspects regarding Share Market.

 Learned about various products used in the share market especially Demat accounts and Mutual Funds. Learned how to use online trading terminal. Enhanced my communication and convincing skills. Learned how to take appointments. Learned how to approach the customers. Learned how to open and close the calls. Learned how to interact with people, how to convince them and guide them in trading. Learned the various policies of the company. Learned to manage time properly. Learned the importance of the Excel sheet. I maintained all my daily records in the Excel sheet. Got the practical knowledge of the market.

ANALYSIS AND INTERPRETATION

Q1. In which of these Financial Instruments do you invest into?

Financial Instrument Mutual Fund Bond Online trading Derivative

Percentage of respondent 75% 16% 7% 2%

Result of Preference of Investment

Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

Q2. Are you aware of online Share trading? Aware of online share trading Yes No Percentage of respondent 72% 28%

Interpretation: This pie-chart shows that This brand image should be further leveraged by the company to increase its market share over its competitors.

Q4. Do you know about the facilities provided by Sharekhan ltd.? Awareness of Sharekhan ltd. Services Yes No Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness. Percentage of respondent 36% 64%

SUGGESTION

1. Brokers should improve their services. 2. SEBI should imply some mere regulations. So that investors can feel more secure 3. Small investors cannot afford daily trading so script call updating facilities should be improved. 4. Brokerage slabs should be flexible. 5. Compliance department should be more active in companies.

CONCLUSION

On the basis of the study it is found that Sharekhan Ltd is better services provider than the other stockbrokers because of their less brokerage on transaction. Apart from that ShareKhan also provide information for individual customer for investment in different Stocks & Funds. Its keeps high level of customer satisfaction & keeps upgrading their software for easy or better way to do trading. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while its going to be biggest market in India. Here Sharekhan provides free demonstration to those people who are interested or want to get the knowledge of commodity as well as share market. The Sharekhan also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.

BIBLIOGRAPHY Websites: 1. 2. 3. 4. 5. 6. 7. 8. 9. www.bseindia.com www.nseindia.com www.moneycontrol.com www.sharekhan.com www.icicidirect.com www.5paisa.com www.Indiabulls.com www.hdfcsecurities.com WWW.KARVY.COM

NEWSPAPERS: 1. ECONOMIC TIMES 2. TIMES OF INDIA 3. FINANCIAL EXPRESS