COMPARATIVE STUDY OF various share broking firms

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COMPARATIVE STUDY OF various share broking firms

  1. 1. SUBMITTED TO:- SUBMITTED BY:-LECTURER OF MBA ROLL NO-1028270001
  2. 2. DECLARATION I AMIT KUMAR hereby declare that the following documented project report titled “COMPARATIVE STUDY OF MAJOR STOCKBROKING COMPANIES IN INDIA” is an authentic work done by me as a part of my study a particular subject. The Project was undertaken as a part of course curriculum of MBA program (Full Time). (AMIT KUMAR) Place:-Meerut Amit Kumar Date: ROLL NO-10282700012
  3. 3. I take this opportunity to express my deep sense of gratitude to DR. Rajul Dutt Director of J.P SCHOOL OF BUSINESS. For his continuous encouragement, invaluable guidance and help for completing the present project work. He has been a source of inspiration to me and I am indebted to him for initiating me in the field of marketing. I am highly thankful to Mr.IMRAN KHAN(HOD) & MS. VIDISHA GARG for their guidance, valuable suggestions, encouragement, care and concern. He has been the guiding light throughout the study I take this Opportunity as privilege to articulate my deep sense of gratefulness to sir Himanshu Jain Assistant Manager – Market development of SMC GLOBAL SECURITIES for his help and positive encouragement. I wish to express a special thanks to all teaching and non-teaching staff members, J.P INSTITUTE OF ENGINEERING & TECHNOLOGY .Meerut for their forever support, encouragement, valuable guidance are gratefully acknowledged. I would like to acknowledge my Family members and friends for their support, love, help and encouragement.3
  4. 4. Experience is not what happens to a man; it is what a man does with what happens to him. -- ALDOUS HUXLEY Many students may have done work on this project in different ways/styles. I have also tried to work on this project in a different way. It was for the first time I got the opportunity to work in such a prestigious and well known organization. And things which I have experienced in my training time are going to help me through out my life time. I have worked on this project with great enthusiasm and zeal. I have tried to cover almost all the things which I have experienced and learned from the company’s management. No doubt at present working atmosphere is fine but it needs some alternations, keeping in mind this view; I have also suggested some improvements/suggestions. The title which is: ―COMPARATIVE STUDY OF MAJOR STOCK BROKER COMPANY’S” The main goal of my project is to find out the frequency, uses, modifications ,improvements and appropriate suggestions .It would be my great pleasure , if this project can help this company to achieve its goal higher any way.4
  5. 5. S. No. Contents Page no. 1. Industry Profile --  History 1  What is Stock? 3  Stock Exchange of India 11 2. Company Profile 21  Introduction 22  Key People 26  Product and Service provided by SMC 34 3. SWOT Analysis 53 4. Other On-Line Stock Broker 56 5. Introduction Of The Topic 88 6. Objective Of the Study 89 7. Research methodology of the project 90  Source of data 91 8. Data Analysis 92 9. Limitation 99 10. Suggestion & Recommendation 100 11. Conclusion 101 12. Bibliography 102 13. Annexure5
  6. 6. History Braudel suggests that in Cairo in the 11th century Muslim and Jewish merchants had already set up every form of trade association and had knowledge of every method of credit and payment, disproving the belief that these were invented later by Italians. In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers. In late 13th century Bruges commodity traders gathered inside the house of a man called Van dyer Bourse, and in 1309 they became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting. The idea quickly spread around Flanders and neighboring countries and "Beurzen" soon opened in Ghent and Amsterdam.6
  7. 7. In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds. The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first stock exchange to introduce continuous trade in the early 17th century. The Dutch"pioneered short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them" (Murray Sayle, "Japan Goes Dutch", London Review of Books XXIII.7, April 5, 2001). There are now stock markets in virtually every developed and most developing economies, with the worlds biggest markets being in the United States, Canada, China (Hong Kong), India, UK, Germany, France and Japan7
  8. 8. WHAT IS STOCK ? The word stock simply refers to a supply. You may have a stock of T-shirts in your closet or a stock of pencils in your desk. In the financial market, stock refers to a supply of money that a company has raised. This supply comes from people who have given the company money in the hope that the company will make their money grow. A market is a public place where things are bought and sold. The term "stock market" refers to the business of buying and selling stock. Or "Stock Market" is a term that is used to refer both to the physical location for buying and selling stocks, and to the overall activity of the market within a certain country. When you hear "The stock market was down today," it refers to the combined activity of many stock exchanges. The correct term for the physical location for trading stocks is the "Stock Exchange." A country may have many different stock exchanges. Usually a particular companys stocks are traded on only 1 exchange, although large corporations may be listed in several.8
  9. 9. Why Companies Issue Stock.. If a company wants to grow—maybe build more factories, hire more people, or develop new products—it needs money. It could get a loan from a bank. But then it would owe money. By issuing stock, a company can raise money without going into debt. People who buy the stock are giving the company the money it needs to grow. Not every company can issue stock. A business owned by one person (a proprietorship) or a few people (a partnership) cannot issue stock. Only a business corporation can issue stock. A corporation has a special legal status. Like a school, its existence does not depend on the people who run it. Under the law it is separate from the people associated with it, and has special legal rights and responsibilities as well as its own unique name. ...And Why People Buy It? Owning stock in a company means owning part of that company. Each part is known as a share. If a company has issued 100 shares of stock, and we bought one, we own 1% of that company. People who own stock are called stockholders, or shareholders. Stockholders hope the company will earn money as it grows. If a company earns money, the stockholders share the profits. Over time, people usually earn more from owning stock than from leaving money in the bank, buying bonds, or making other investments.9
  10. 10. WHY DO INVESTORS BUY STOCKS? Generally, investors buy stocks because they believe that the company will continue to grow - and thus the value of the stock will rise too. Buying the stocks of already well-known companies is relatively safe, but investors who acquire stock in a new company are facing a much more substantial risk… but they have much more to gain too. For instance, those people who bought Microsoft shares in the 80s and kept them for a long time saw an exponential rise in their value - something most investors only dream of.10
  11. 11. WHAT IF IT ISN’T LISTED ON AN EXCHANGE? Buying partial ownership in a smaller company can still be done of course, but that will be entirely different kind of investment, one that has nothing to do with stocks. These types of investment are much less liquid and are much riskier. This is called a ―Private Placement‖ while stock on an exchange is called ―Publicly Traded‖. Theoretically, publicly traded stock provides more protection because the transaction is monitored by the Securities and Exchange board of India (SEBI). Because publicly traded stocks must be traded on a stock exchange, an individual investor always needs a broker who makes transactions for him. Basically, brokers are people who take orders to buy or sell a certain stock in exchange for a small commission on the sale. (In other words they are just glorified sales people).Stock orders may include instructions to buy or sell stock at a certain price (Limit orders) or simply to trade them for whatever the present price is (market orders). When the order arrives to a broker, he executes it (or rather, tries to execute it) by finding a buyer or seller willing to trade for the ordered price. As you probably see, the other side of transactions is represented by another broker acting on some instructions, too.11
  12. 12. ADVANTAGES OF STOCKS Stocks have several advantages over savings investments. Since each share equals partial ownership in a company, they give the holder some influence over every major decision the company faces. The decisions are made on one share - one vote basis and shareholders are often asked to vote on all important decisions that company is to make. What is more, being a shareholder entitles you to take part in any profits the company makes. They are issued as a dividend once or twice a year, depending on the decision made by company the directors. As the company grows the value of the stock rises and the profits distribution along with that. When the company suffers losses you arent asked to give anything in, but the value of the stocks you have will almost surely fall. If you compare the stocks with classical savings investments like bonds, bank certificates of deposit etc., you will quickly notice that they have greater potential to earn more money quickly -- but they are much riskier investment, as the chances of loss is real. However if you know your share about how the stock market works and what the various investment strategies are, you can minimize losses. Most investors find out that they do much better business on the stock market than would be ever possible with any kind of savings investment.12
  13. 13. One Man, 5,000 Votes? Stockholders in a company usually have voting rights. They vote on such issues as who will be elected to the board of directors—the group of people who oversee company decisions—and whether to buy other companies. Stockholders typically have one vote for each share they own. Every vote counts, but a stockholder with 5,000 shares will have more influence on the company than someone with only one share. Most companies have annual meetings, where stockholders cast votes and ask questions of the companys leaders. If they cannot attend, stockholders may use an absentee ballot to vote. Shareholders also receive quarterly and annual reports that tell them how the company is doing.13
  14. 14. What Goes Up Earns Bucks When the price of a particular stock rises, that stock is said to be "up," meaning up in price. When the price falls, the stock is said to have gone "down." The terms "up" and "down" are also used to describe the rise and fall of the market as a whole. As a company makes money, the value of its stock goes up. For instance, pretend you bought some shares of stock for Rs10 each. Since you share the companys profits, if it does well the shares might later be worth Rs15 each. You could then sell your stock and make Rs5 on each share. If the company loses money, however, you would also share its losses. Those Rs10 shares might each be worth Rs3 if the company fell on hard times14
  15. 15. Of Bears and Bulls Bears are cautious animals who dont like to move too fast. Bulls are bold animals who might charge right ahead. An investor is said to be "bearish" if he or she believes the stock market will go down. A "bearish" investor will buy stock cautiously. A "bullish" investor believes the market will go up. He or she will charge ahead and put more money into the market. An investor can be bearish or bullish about a particular kind of stock. Likewise, the term "bear market" describes a time when stock prices have been falling on the whole. A "bull market" is a period when stock prices are generally rising15
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  17. 17. STOCK EXCHANGE OF INDIA 1 Ahmedabad Stock Exchange 2 Bangalore Stock Exchange 3 Bhubaneswar Stock Exchange (BhSE) 4 Bombay Stock Exchange (BSE) 5 Calcutta Stock Exchange 6 Cochin Stock Exchange 7 Coimbatore Stock Exchange 8 Delhi Stock Exchange Association 9 Gawahati Stock Exchange 10 Hyderabad Stock Exchange (HSE) 11 Inter-connected Stock Exchange of India 12 Jaipur Stock Exchange 13 Ludhiana Stock Exchange Association17
  18. 18. 14 Madhya Pradesh Stock Exchange 15 Madras Stock Exchange 16 Mangalore Stock Exchange 17 National Stock Exchange of India (NSE) 18 OTC Exchange of India 19 Pune Stock Exchange 20 Saurashtra-Kutch Stock Exchange 21 Uttar Pradesh Stock Association 22 Vadodara Stock Exchange 23 Meerut Stock Exchange 24 Magadh Stock Exchange 18
  19. 19. 19
  20. 20. National Stock Exchange of India National Stock Exchange Limited Type: Stock exchange Founded: November 1992 Headquarters: Mumbai, India Website: www.nse-india.com The National Stock Exchange of India Limited (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.20
  21. 21. In March 2006, the NSE had a total market capitalization of 4,380,774 crore INR making it the second-largest stock market in South Asia in terms of market- capitalization. Origins The National Stock Exchange of India was promoted by leading financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax- paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives. Innovations NSE has remained in the forefront of modernization of India’s capital and financial markets, and its pioneering efforts include: Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India.21
  22. 22. Co-promoting and setting up of National Securities Depository Limited, first depository in India. Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the broker community. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives three days after the BSE. The first exchange to trade ETFs (exchange traded funds) in India. Markets Currently, NSE has the following major segments of the capital market: Equity Futures and Options Retail Debt Market Wholesale Debt Market22
  23. 23. Bombay Stock Exchange The Bombay Stock Exchange Limited (Marathi) (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India. The Bombay Stock Exchange was established in 1875. There are around 3,500 Indian companies listed with the stock exchange, and has a significant trading volume. At October 2006, the market capitalization of the BSE was about Rs. 33.4 trillion (US $ 730 billion). The BSE SENSEX (SENSITIVE INDEX), also called the "BSE 30", is a widely used market index in India and Asia. As of 2005, it is among the five biggest stock exchanges in the world in terms of transactions volume.23
  24. 24. BSE Broadcast NDTV Profits Screen at BSE The BSE Broadcast is a large ticker on the wall of the BSE, which continuously displays the latest stock quotes from the market. It will also display – on what is described as Indias and South Asias largest video screen – Indias leading business-news channel: NDTV Profit. This new system was unveiled on December 15, 2006, when Dr Prannoy Roy, the Managing Director of New Delhi Television (NDTV) Ltd, struck the BSEs opening bell. Mr. Damodaran, the Chairman of the Securities and Exchange Board of India (SEBI), said that the ticker would provide information and analysis of the financial world. Market Capitalization At 17 April 2007 BSE had 2,630 companies which were being actively traded. The cumulative market capitalization of all these companies on the same day was INR 3,588,734 Crore. The biggest company was Reliance Industries with a market capitalization of INR 205,688 Cr.24
  25. 25. BSE indices The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of thirty scrips, with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last twenty years. These companies account for around one-fifth of the market capitalization of the BSE. Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock indices as well: · BSE 500 · BSE 100 · BSE 200 · BSE PSU · BSE MIDCAP · BSE SMLCAP · BSE BANKEX · BSE Teck · BSE Auto · BSE Pharma · BSE Fast Moving Consumer Goods (FMCG) · BSE Consumer Durables (SYMBOL: Cons Dura) · BSE Metal25
  26. 26. 26
  27. 27. Introduction SMC GROUP, FOUNDED IN 1990, IS INDIA’S BEST EQUITY BROKING HOUSE AND THE LARGEST DISTRIBUTION NETWORK , PROVIDING A WIDE RANGE OF FINANCIAL SERVICES AND INVESTMENT SOLUTIONS . A BLEND OF EXTENSIVE EXPERIENCE , DIVERSE TALENT AND CLIENT FOCUS HAS MADE US ACHIEVE THIS LANDMARK . OVER THE YEARS , SMC HAS EXPANDED ITS OPERATIONS DOMESTICALLY AS WELL AS INTERNATIONALLY . EXISTING NETWORK INCLUDES REGIONAL OFFICES AT M UMBAI , KOLKATA, CHENNAI, COCHIN, AHMEDABAD, JAIPUR, HYDERABAD, BANGALORE PLUS A GROWING NETWORK OF 2500+ OFFICES SPREAD ACROSS 460 CITIES/TOWNS IN INDIA. WE OFFER A DIVERSE RANGE OF FINANCIAL SERVICES WHICH INCLUDES INSTITUTIONAL AND RETAIL BROKERAGE OF EQUITY , CURRENCY , COMMODITIES , DERIVATIVES , ONLINE TRADING , DEPOSITORY SERVICES , FIXED DEPOSITS , IPO S AND MUTUAL FUNDS DISTRIBUTION , DEDICATED DESK FOR NRI AND INSTITUTIONAL CLIENTS , INSURANCE BROKING , CLEARING SERVICES , MARGIN FUNDING , INVESTMENT BANKING, PORTFOLIO MANAGEMENT , WEALTH ADVISORY & RESEARCH . WE HAVE A HIGHLY EFFICIENT WORKFORCE OF OVER 4000 EMPLOYEES AND OVER 9000 FINANCIAL ADVISORS SERVING THE FINANCIAL NEEDS OF MORE THAN 7,00,000 SATISFIED INVESTORS .27
  28. 28. WE ARE ALSO AMONGST THE FIRST FINANCIAL FIRMS IN INDIA TO EXPAND OPERATIONS IN THE LUCRATIVE GULF MARKET, BY ACQUIRING LICENSE FOR BROKING AND CLEARING MEMBER WITH D UBAI G OLD AND C OMMODITIES EXCHANGE (DGCX). T HE SMC ADVANTAGE : THE SMC ADVANTAGE: LARGE AVENUES OF INVESTMENT SOLUTIONS AND FINANCIAL SERVICES UNDER ONE ROOF PERSONALIZED SOLUTION AND ATTENTION OFFERED TO EACH INVESTORS RESEARCH SUPPORT AND TIMELY ADVICE BY OUR HIGH - TECH RESEARCH WING AN EXTENSIVE NETWORK OF BRANCH OFFICES A PERFECT BLEND OF LATEST TECHNOLOGY AND RICH EXPERIENCE OF OVER 20 YEARS HONESTY, TRANSPARENCY AND FAIRNESS IMBIBED IN ALL OUR DEALINGS PROVIDERS OF ONE OF THE BEST TRADING PLATFORMS IN TERMS OF SPEED, CONVENIENCE AND RISK MANAGEMENT TO TRADE IN NSE, BSE, F&O, NCDEX, MCX,, MCX-SX, NMCE, ICEX, ACE & DGCX28
  29. 29. 29
  30. 30. SMC BRANCH LOCATER 130
  31. 31. KEY PEOPLE Mr. S C Aggarwal (Chairman & Managing Director, SMC Group) Co-founder and promoter of the SMC Group, Mr Aggarwal has rich and extensive experience of more than 23 years. He has an in-depth knowledge and strong understanding of various intricacies of Securities Market and Financial Services. It is through his exceptional leadership skills and outstanding commitment towards the company that SMC today has become the Best Equity Brokerage and the Largest Distribution houses of India. His efforts have led to the diversification of group business from Stock Broking and Arbitrage to Commodity Broking, IPOs & Mutual Funds distribution, Insurance Products, Merchant Banking, Wealth Management and Advisory Services. Mr Aggarwal is the Co- Chairman of Capital Market Committee of ASSOCHAM. He is also a fellow member of the Institute of Chartered Accountants of India.31
  32. 32. Mr. Mahesh C Gupta (Vice Chairman & Managing Director, SMC Group) Mr. Mahesh C Gupta is a Co-founder and Promoter of the SMC Group with more than 23 years of widespread experience in Securities Market. He is also a fellow member of the Institute of Chartered Accountants of India. His extraordinary leadership skill, astute business acumen and disciplined life style have helped SMC strongly diversify to a fully fledged financial services firm with a Pan India presence across 425+ cities providing Brokerage services in equity, commodity, currency & derivatives, depository services, clearing services, Investment banking, portfolio & wealth management, distribution of Insurance, IPOs, Mutual Funds, Fixed Deposites and other 3rd party products. His principles of honesty, transparency and moral integrity have given SMC strong foundation based on which it has become the Best Equity Broker and the Largest Distribution House in India. Mr. Gupta has also given his vital contribution in various conferences & seminars on securities market.32
  33. 33. Mr. D K Aggarwal (Chairman & Managing Director – SMC Comtrade Limited & SMC Capitals Limited; Chairman - SMC Wealth Management Services Limited) Mr. DK Aggarwal is one of the key architects of success of the SMC Group. Innovation in offerings, Branding, Research and Arbitrage are his forte. He has more than 20 years of wide and rich experience in Equity and Commodity Broking and Arbitrage. He is the Chairman of SMC Wealth Management Services Limited, a joint venture with Sanlam Group of South Africa. He is an eminent speaker and regularly presents his views and expertise on various market related issues through print and television media. He is also a fellow member of the Institute of Chartered Accountants of India. He is the Alternate National President of Commodity Participants Association of India. Mr. Pradeep Kumar Aggarwal Director- SMC Global Securities Limited; Jt. Managing Director- SMC Comtrade Ltd.) Mr. Pradeep Aggarwal is a self motivated person having a professional approach emphasising on ethics and integrity. He possesses excellent communication and inter- personal skills & operates collaboratively with his team members to achieve a common goal. With an experience of more than 17 years in equity and commodity market, he innovates, develops and effectively implements new ideas for the growth and progress of the Arbitrage business of the company’s Securities and Commodities business. Mr Aggarwal is a person with unmatched sharp calculative skills and analytical bent of mind.33
  34. 34. Mr. Ajay Garg (Director- SMC Global Securities Limited & SMC Insurance Brokers Pvt Ltd.) Mr. Ajay Garg is a fellow member of the Institute of Chartered Accountants of India (ICAI). He has a wide experience of more than 15 years in the Capital Market. Mr. Garg leads the Broking Operations of SMC Group including, Back office operations, entire technological functioning of the business, Risk Management & Surveillance, Legal & Compliance, Corporate Communications & Brand Management and IT & Software Development. His roles and responsibilities also include Business Development of Corporate Client Group (CCG) and handling of Corporate Hedging Desk (SCHD). He is responsible and instrumental for Internet Based Trading and Mobile Trading. Under his able guidance within last few years, SMC has evolved into a well known and a preferred brand in the Indian Capital Market.34
  35. 35. Mr Anurag Bansal (Director- SMC Global Securities Limited) Mr. Anurag Bansal has extensive experience of more than 12 years in Securities and Commodities market. His role and responsibilities include management and supervision of Business Development, Risk Management, Technological Development and administration of SMC Group in the Western regions of the country. His rich experience has given him a keen understanding of the market pulse which helps him in analyzing market behaviour. His efforts in Western India have helped SMC establish itself as a reliable name. He is a fellow member of Institute of Chartered Accountants of India and Institute of Costs and Works Accountants of India. Mr Rakesh Gupta (Executive Director – SMC Global Securities Ltd) Mr. Rakesh Gupta has varied experience of more than 13 years in the Capital Market. He possesses a result oriented professional approach. His ability to understand the business dynamics, coupled with his sound financial and accounting background and knowledge of marketing channels has enabled him to manage the Business Development activity of SMC. Presently he is taking care of the distribution and channel management, retail broking and sub-broker development of SMC. He is also a fellow member of the Institute of Chartered Accountants of India.35
  36. 36. Mr. Ravi Aggarwal (Director- SMC Insurance Brokers Pvt. Ltd.) Mr. Ravi Aggarwal has more than 10 years of experience in Equity and Commodity Market. An innovative mind having a rich academic and professional background, his roles and responsibilities include the establishment and development of Insurance Broking venture, developing pan-India branch network, designing of systems and processes and innovative marketing programs. He possesses excellent communication and inter-personal skills & operates collaboratively with his team members to achieve a common goal. He is also a member of Institute of Chartered Accountants of India.36
  37. 37. Mr. Lalit Aggarwal (Director- Moneywise Financial Services Pvt. Ltd.) Mr. Lalit Aggarwal has a rich working experience of more than 17 years in Securities and Commodities market. He is actively involved in the development and functioning of SMC’s Arbitrage business His great dedication and devotion to his work is an inspiration for his team. A man of great intellect, his ideas have helped SMC in the introduction of new services in the Arbitrage business. His style of working is highly motivational to his team members. Mr Aggarwal is a person with unmatched sharp calculative skills and analytical bent of mind. Ms. Shweta Aggarwal (Director- SMC Capitals Limited) Ms. Aggarwal joined the SMC group in 2005 and in a short span of time, she has successfully handled multiple critical assignments. In her very first assignment at SMC, she was the catalyst in successfully setting up of the Human Resource function. Her efforts in the identification of a new global partner lad to the creation of SMC’s Joint Venture with Sanlam Investments of South Africa. Currently, she represents SMC in the JV and oversees the working of both the Companies. She is heads the investment banking vertical of SMC.37
  38. 38. Mr. Pravin Agarwal (Director- SMC Insurance Brokers Pvt. Ltd.) Mr. Pravin Agarwal possesses a result oriented professional approach towards the functions of the organization. With more than a decade of work experience in Insurance and Financial Industry, he is actively involved in the development of insurance broking venture, devising strategies for insurance broking and undertaking business development responsibilities. He is a man with a vision to create a wide-spread business of excellence, he is the inspiration as he spearheads the company’s management and operations; strategizing and directing it through its next phase of growth 38
  39. 39. 1. BROKING A. Equities & Derivatives Overview Our experienced team of Research Analysts and Advisory Managers guide you with appropriate solutions, backed by in-depth research, knowledge and expertise on a regular basis. We constantly help you with strategies for equity and derivatives investment, recommendations for trading on futures & options, hedging with Nifty and other products and opportunities of near risk free arbitrage between various segments. Our Offerings Online trading: SMC Trading Platform offers online equity & derivatives trading facilities for investors who are looking for the ease and convenience of a hassle free trading experience. We provide ODIN application, which is a high-end, integrated trading application for fast, efficient and reliable execution of trades. You can now trade in NSE and BSE simultaneously from any destination at your convenience. You can access a multitude of resources like live quotes, charts, research, advice and online assistance to help you take informed decisions. You can also avail our state-of-art mobile trading application "SMC mobitade"39
  40. 40. Offline trading: You can also trade through our branch network by registering as our client. We also provide trade through us on phone by calling our designated representatives in the branches where you are registered as a client. Trading in Equities with SMC truly empowers you for your investment needs. We ensure that you have a superlative trading experience through: A highly process driven, diligent approach Powerful research & analysis support. One of the "best-in-class" dealing rooms Equity advisory team with highly trained equity professionals, who act as your Equity Advisor and pro-actively help you take informed equity and derivatives investment decisions and build a healthy portfolio Pan India coverage Powerful research support by a pool of highly skilled research analysts Focused services which make investments in equities simple . SMS service providing intraday research support to the clients. Competitive brokerage rates Call & Trade facility through a simple phone call A superior trading platform Prompt news on stock results, earnings, bonus, share holding patterns, etc. Online trading account which provides exposure against the cash margin as well as shares lying idle in clients DP account40
  41. 41. A TRADING ACCOUNT STATEMENT SMC GLOBAL SECURITIES LTD 11/6B,Shanti Chamber,Pusa Road, New Delhi-110005 HQM0688 AMIT KUMAR J P IET RAJPURA MEERUT Telephone: 7471266465 email:ameetjaishwal@gmail.com (Client ID BSE:HQM0688 NSE:HQM0688) (CDSL ID: NSDL DP/ID: IN300708/10594692 Group:GZB GZB PAN:AWBPK6430D Client Margin Information From 27/05/2011 To 03/06/2011 Date -------Narration-------- Debit Credit Balance 27/05/2011 Opening Balance 7.62 7.62 Dr Sett.R1112038/Sett. 27/05/2011 31507.82 31500.20 Cr R1112038 25/05/2011 SMCGTransfer to SMCG 64500.20 27/05/2011 33000.00 BANK/008 Cr Sett.R1112040/Sett. 31/05/2011 64000.35 499.85 R1112040 27/05/2011 499.85 CLOSING BALANCE 64000.35 65000.22 Cr ---------------------------------------------------------------------------------------------------- T T-1 Actual Margin Used Nil Nil Fixed Margin Nil Balance with the memeber/due from client 499.8541
  42. 42. B. Currency Overview Currently in India, there are 3 major exchanges offering Currency future trading – NSE, MCX- SX & USE . SMC Global Securities is a trading cum clearing member of all these exchanges for the currency segment. We believe in the tremendous potential of currency future to become a dominant force of the Indian financial market with a turnover which can outperform even equity and commodity segment. We firmly believe that wider market participation will bring more strength to the market & this can be achieved through disseminating education & information among various market participants. For us, currency is not just any other segment of business; it is "the business of future".42
  43. 43. Our Offerings Offline trading: This is the most traditional way of carrying out trading in financial markets. Clients can place their orders with our nearest branch by visiting them personally or on the phone. Online trading: Online trading offers the convenience to trade from the comfort of your home / office. We provide trading software which can be downloaded by the client on any system. Through their user ID & password, clients can start trading online. Alternatively, we also provide the facility to trade through our browser based application. Corporate advisory: We believe that corporate participation is the key to growth of this segment. We understand that corporates have a very special set of requirements for hedging as well as investment. Every business needs customized solutions to its requirements and that is what we deliver - hedging / investment solutions based on what is best-suited to the business dynamics. Our dedicated team of Relationship Managers ensures that our deliverables exceed the expectations & a long-lasting relationship is built.43
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  45. 45. c . Commodities Overview SMC Comtrade Limited, a key constituent of SMC Group of Companies, came into existence at the very start of Commodity Exchanges in India. With nationwide presence, it enables the retail & corporate investors to diversify their portfolio and enjoy the benefits of commodity trading in MCX, NCDEX, NMCE, ACE & ICEX. Our highly appreciated research team guides the investors to make wise investment decisions for agri -commodity market as well as international commodities trading. SMC Comex International DMCC (part of SMC Group) is one of the initial, leading & experienced clearing and broking members of Dubai Gold and Commodities Exchange (DGCX). It offers commodity trading in Gold, Silver, Crude (WTI & Brent), Forex (INR, Euro, Do llar & Sterling) and Steel Rebar Contracts. For more information, visit www.smccomex.com Our edge Pan India presence Offline & online trading facilities Arbitrage expertise Strong delivery handling team Dedicated research team having experienced and skilled research analysts45
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  48. 48. 2. DISTRIBUTION Overview SMC offers distribution services of IPO, Mutual Funds, Public Issues, Company Fixed Deposits, Bonds, Acquisitions and Mergers through its mammoth network of branches across India. SMC also provides retail application financing in IPOs , FPOs & Bonds. We assure you a hassle free and pleasant transaction experience through us. Our focus is to offer integrated solutions for your investment needs of our investors. Our offerings Mutual funds: The range of products includes liquid, gilt, debt, equity and balanced funds. Moreover, the setup of a legal structure safeguards investors’ interests & ensures that they are not cheated out of their hard -earned money. Click here to access complete information on Mutual Funds. Public issues: It is the first sale of a companys common shares to public investors. This paves the way for listing and trading o f their securities on the stock exchange. W ith expert analysis and timely advice, it can prove to be a highly profitable investment.48
  49. 49. Click here to know more about public issues. Fixed deposits: Company Fixed Deposit is an attractive option for regular income with option to receive monthly, quarterly, half yearly & annual interest income. Fixed Deposits in companies earn a fixed rate of return for specified time period. Deposits mobilised are governed by the Companies Act under Section 58A. It may be noted that deposits are unsecured, and hence in of any default by of company, the investor cannot sell the documents to recover his capital, thus making it a risky investment option. Click here to access complete details of Company Fixed Deposits Bonds: We also deal in Capital Gain Bond Issues which facilitates tax exemption against long term capital gain as per Sec 54EC of Income Tax Act. Besides this we all deal in GOI 8% Bonds and Bonds issued by Companies from time to time. Click here to access currently available schemes. Our edge Being one of the leading distribution houses, we aim at helping you in financial planning and achieving long-term goals through our widespread network and team of financial advisors49
  50. 50. 3. RESEARCH Overview With the EIC (Economy, Industry, Company) approach, our Research team offers timely Research reports covering investment summary, trend of world markets, sector trends, commodity trends. The same is covered in our esteemed weekly magazine “Wise Money”. We have a team of highly experienced analysts, who cover stocks, commodity, currency, mutual funds and special reports. All our research reports, estimates and enhanced analytics are available on our website www.smctradeonline.com Our offerings Equity Reports: Morning Mantra Evening Buzzer Derivatives IPO Reports Wise Money equity content.50
  51. 51. Commodities Reports: Morning Mantra- Agri Morning Mantra- metals & energy Afternoon Metals & Energy Evening Buzzer- Agri & Metals Special Commodities Updates Trading opportunity report Currency Reports: Currency Daily Afternoon Currency Buzzer Mutual fund Reports: NFO Analysis Mutual Fund Tracker Mutual Fund Weekly update Portfolio Monitor51
  52. 52. Special reports: Result Updates Pre-Budget Analysis Post-Budget Analysis Newsletters: Wise Money SMS service Chat rooms Our edge We specialize in five core product areas. These are Equities, Commodities, Currencies, Derivatives and Mutual Funds. Our views are purely based on analysis and are independent, unbiased and balanced.52
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  56. 56. 4. ONLINE TRADING Overview SMC Online is your single gateway for all your financial needs. Now, you can invest online in Equities, Commodities, IPOs, Mutual Fund Schemes and Currency Futures anywhere anytime. You can access a multitude of resources like live quotes, charts, research, advice and online assistance to help you take informed decisions. You can also access your account from anywhere using our Call-N-Trade services. So get empowered and enrich your experience of online trading, which opens the door to a whole new world of possibilities to get convenient & hassle-free online stock trading experience. Our offerings SMC Trading Platforms offer investors the ease and convenience of an uninterrupted trading experience. SMC offers seamless Online Trading experience with freedom to opt for a product that meets your needs: SMC SELECT - Easy to use simple web-based trading platform for beginners SMC EXCLUSIVE - Advanced web-based trading platform with live streaming quotes SMC PRIVILEGE - Software-based trading platform for active traders. SMC Mobitrade - state-of-art mobile trading application.56
  57. 57. Clients opting for above mentioned products get facility to invest in IPOs & Mutual Fund schemes at no extra cost. Our edge Convenience of integrating the Bank, Trading and Demat accounts with attractive brokerage options Designed for better speed for instant order & trade confirmation Lifetime free AMC option User friendly platforms 24 X 7 online back office access Pan-India presence Dedicated customer care Excellent research & advisory support A range of trading options State-of-the-art technology57
  58. 58. STRENGTHS58
  59. 59. STRENGTH • Employees are highly empowered. • Strong communication network. • Management philosophy and commitment to maximize shareholders returns • Upgraded product design and development facilities to develop new products and aid diversification. • Ongoing activities to support up gradation of operational performance and rise in productivity • Team of talented and committed professionals available to improve company’s performance weakness. • Good co-operation between employees. • Number 1 registrar and transfer agent in India. • Number 1 dealer of investment products in India WEAKNESS • Competition from cheap imports • Low customer base. • High employee turnover.59
  60. 60. OPPORTUNITIES • Growth rate of mutual fund industry is 40 to 50% during last year and it expected that this rate will be maintained in future also. • Marketing at rural and semi-urban areas. ____ Threats, Risks & Concerns • Increasing number of local players. • Constant pressure to be cost competitive to meet customer expectations. • Relentless pressure to maintain profitability due to rising input/raw material prices.60
  61. 61. ABOUT INDIABULLS India bulls is India’s leading Financial Services Company having over 640 branches all over India. It assists in the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, India bulls help its clients to satisfy their customized financial goals. India bulls through its group companies have entered Indian Real Estate business in 2005.61
  62. 62. MARKET CAPITALIZATION AND WORTH India bulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of India bulls is around USD 2500 million (29th December 2006). Consolidated net worth of the group is around USD 700 million. India bulls and its group companies have attracted USD 500 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital. Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 184% from FY03 to FY06. During the same period, profits of the company grew at a CAGR of 268%. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. India bulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. In April 2006, Indiabulls announced demerger of its real estate division to a separate entity. Indiabulls is a diversified company. It is in the following fields:62
  63. 63. 1. Securities 2. Consumer Finance 3. Mortgages 4. Real Estate Development Consumer Finance Indiabulls is a retail focused organization fulfilling the credit need of a large percentage of population in India. The key aspect of Indiabulls business model is to provide an extremely unique customer experience. The blend of power of the Internet with personalized services allows Indiabulls to expand its geographical coverage and capture a greater share in the highly competitive retail market. They offer consumer loans, home loans, personal loans, securities brokerage, and other financial products and services to retail customers from across 640 Indiabulls offices in 127 leading cities of the country. Mortgages Indiabulls has commenced lending of Mortgage Loans to prospective customers under the flagship of Indiabulls Housing Finance Ltd. They enable home-seekers to access finance to buy their homes.63
  64. 64. They also provide plot loans, Loan against Residential, Commercial and Rental Property, thereby enabling the borrower to leverage the property owned to fund any legitimate needs be it Business Expansion, Childs Education, Childs Marriage or for Holiday Abroad Real Estate Development Indiabulls Real Estate Limited (IREL) is poised to be one of the largest listed real estate companies in India. A leading player across residential and commercial real estate projects, IREL is partners with internationally acclaimed consultants, for its developments. Currently, its projects at various stages of execution are valued at nearly 5 billion dollars and they include high end office and commercial spaces, premium residential developments, and Special Economic Zones, covering a land area in excess of 7730 acres. Major Stake Holders in Indiabulls LN Mittal and Farallon Capital buy 13.33% in Indiabulls Infrastructure Development Limited for 447 crores valuing subsidiary at Rs 3,350 crore. Mr. L N Mittal, the famous steel magnate and world’s third richest man, and a wholly owned unit of San Francisco based Farallon Capital, the world’s largest investment fund, have together acquired a 13.33% stake in Indiabulls Infrastructure Development Limited, the majority owned subsidiary of Indiabulls Financial Services64
  65. 65. Limited, for Rs 447 crores. The deal values Indiabulls Infrastructure Development Limited at Rs 3,350 crores. Indiabulls Infrastructure Development Limited would be undertaking large scale infrastructure projects and development of Special Economic Zones to cater to Fortune 500 companies that are interested in setting up manufacturing units in India to leverage advantages of vast skilled workforce of India. Mr. L N Mittal has been an investor in Indiabulls Financial Services, the listed company since the year 2000 when he had originally bought 61.3 lac shares representing approx 7.52% stake in the company at an average price of Rs 6 per share. Mr. Mittal’s original investment in Indiabulls Financial Services has appreciated by more than 90 times in 6 years, and he continues to be a large shareholder in the company. Around 6 months back Mr L N Mittal had invested approx Rs 90 crores to buy 8.4 % stake in Indiabulls Credit Services Ltd, an unlisted subsidiary of Indiabulls Financial Services that focuses on consumer loans. Farallon Capital has been an investor in Indiabulls Financial Services since the IPO of the company in year 2004, when it invested at Rs 19 per share and has seen its initial investment multiply over 25 times. The firm continues to be one of the largest shareholders of the Company.65
  66. 66. Indiabulls Infrastructure Development Limited is focused on infrastructure development in India and plans to build world-class facilities and infrastructure to promote the business activities for SEZs. IIDL will be part of the group of real estate subsidiaries and associates that will form Indiabulls Real Estate Limited subsequent to the implementation of the Scheme of Demerger. The demerger is expected to be completed during the current fiscal quarter, band will result in the Company’s equity shareholders owning one equity share of Indiabulls Financial Services Limited, comprising of the financial services business, and one equity share of Indiabulls Real Estate Limited, comprising of the real estate and construction-development related business, for each share of the Company they currently own. ―India is a rapidly growing economy and provides a unique opportunity to create world- class infrastructure and development. Indiabulls group is well positioned in construction- development and infrastructure market to leverage Indiabulls strong pan-India presence, strong execution skills, proprietary deal pipeline, and strong track record. The confidence of Mr. Mittal, a world renowned entrepreneur and investor, and Farallon Capital, one of the world’s top most funds, in Indiabulls Infrastructure Development Limited is a testament to the huge opportunity in front of the company,‖ : Sameer Gehlaut, Chairman & CEO of Indiabulls Group. About Farallon66
  67. 67. San Francisco based Farallon is a registered investment adviser with the US Securities and Exchange Commission (SEC) and manages over $ 23 billion in equity capital invested across the world in many different asset classes. Farallon has a long and successful track record of investing in financial services. In 2002, Farallon had outbid UK’s Standard Chartered bank to buy Bank Central Asia from the Indonesian Government during the privatization of the bank. The Institutional Investor ranks Farallon at No 1 position in the world in their annual rankings of funds. Growth Story Indiabulls has emerged as one of the leading and fastest growing financial company in less than two year, since its initial public offering in September 2004. It has a market capitalization of around 2,350 million (25th April 2007) and consolidated net worth of the group is around USD 510 million.2000-01 Indiabulls Financial Services Ltd. established India’s one of the first trading platforms with the development of an in house team.67
  68. 68. 2001-03 Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt, Mutual fund, IPO distribution and Equity Research. 2003-04 Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and franchise model. 2004-05 Indiabulls came out with its initial public offer (IPO) in September 2004.Indiabulls started its consumer finance business. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. Indiabulls won bids for landmark properties in Mumbai. 2005-06 Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, Farallon Capital and its affiliates, the world’s largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries Viz. Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd. Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2% stake in Indiabulls Credit Services Ltd. 2006-07 Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development68
  69. 69. Authority through a competitive bidding process for Rs 450 crore to develop residential apartments. Indiabulls Financial Services Ltd. is included in the prestigious Morgan Stanley Capital International Index (MSCI). Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd. Indiabulls ventured into commodity brokerage business. Indiabulls has received an ―in principle approval‖ from Government of India for development of multi product SEZ in the state of Maharashtra. Dev Property Development plc has subscribed to new shares and has also acquired a minority shareholding from the Company. Indiabulls Financial Services Ltd. Board resolves to Amalgamate Indiabulls Credit Services Limited and demerge Indiabulls Securities Limited.69
  70. 70. ICICI direct.com India’s leading share trading website, with over 1 lakh customers. ICICIdirect.com comes from ICICI, an organization that millions of Indians trust. ICICIdirect.com offers hassle free share trading. It places you in charge of your investments, with its unique 3-in-1 account. You can check stock prices online, place a buy/sell order almost instantly, verify orders and get order confirmations online. And you not need to chase your broker for share transfers and payments, it all happens electronically. Services With ICICIdirect.com unique 3-in-1 account, your e-broking, banking and demat accounts are completely integrated. So when we punch in a buy or a sell trade on your computer, the system checks the limit available in your bank account, the demat portfolio and then executes the trade on the exchange online. The bank account and the demat account automatically get debited or credited on settlement date. Thus, you are in charge of your own investments. You do not need to follow up your broker for payments and for share transfers.70
  71. 71. What are the charges for your product? ICICIdirect.com account can be opened for a one-time non-refundable fee of Rs 750/-. The brokerage rates are very reasonable. The rates vary according to the volume of trades done by you. The brokerage rates of ICICIdirect.com are inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.03% to 0.1% for margin trades, 0.2% to 0.425% for squared off trades and 0.25% to 0.75% on delivery based trades. To give an idea, an investor having a daily average trading volume of Rs 65000/- will be paying an effective brokerage of 0.50% only , and that too inclusive of all charges. Demat account charges: For all trades done through ICICIdirect.com, there are NO separate charges. However, for all other trades and services like demat, pledge etc, the charges shall be as per the existing rate card of ICICI demat. An annual maintenance fee of Rs.500/- (Rs.450/- for customers receiving statement by e-mail) per account is charged. However, the first year annual maintenance charges are waived for on all accounts opened through ICICIdirect.com.71
  72. 72. For bank account, a minimum quarterly average balance of Rs 5000/- needs to be maintained. Why should one open an account with ICICIdirect.com? The reasons are as follows: The brokerage rates of ICICIdirect.com are inclusive of demat transaction charges, service taxes and courier charges for contract notes. Brokerage rates on ICICIdirect.com is dependant on the volume of transactions done and also the type of trade put in by you. As mentioned earlier, investors with reasonable trading volumes anyways get less than 0.5% brokerages (all inclusive). Even if we assume very low volumes of trading and that too only on Delivery based trading, brokerage rates are still economical. Let us take an example72
  73. 73. ICICIdirect Other broker Normal brokerage 0.85% max Lets say 0.50% A Transaction value 10000 10000 B Brokerage (Rs.) 85.00 50.00 C Service Tax (5% of B) NIL 2.50 D Other charges (0.03% of A) NIL 3.00 E Demat charges NIL 25.00 F Total charges (Rs.) B+C+D+E 85.00 80.50 How much do we pay for an average demat transaction? ICICI demat has a Market Buy rate of 0.03% or Rs 25/-, whichever is higher, for EVERY trade. If we calculate, an investor has to buy at least up to Rs 83333/- worth of shares to pay 0.03% in EVERY Trade. Obviously not many people pay 0.03%. They pay Rs 25/- instead. Suppose an average person trades in Rs10000/- in every trade, he shall pay Rs 25/- for demat charges. This comes to 0. 25% of his trade amount.73
  74. 74. So he pays at least 0.75% and not 0.50%. Add other charges to this and it will go up to at least 0.80%. On top of it, one may incur the local conveyance directly or indirectly in collecting/sending cheques/TIFDs with the broker concerned. Add to this, ICICIdirect credits the funds to your bank account on the pay-out day itself (one can even withdraw it on the same day). To summarize, ICICIdirect.com ensures a hassle free, fast, transparent, easy and trustworthy service at reasonable rates. More it also gives you latest market updates, live quotes and market charts to help you GET CONTROL of your own trade. Motilal Oswal Financial Services is a well diversified financial services group having businesses in securities, commodities, investment banking and venture capital With 1160 Business locations and more than 2, 00,000 investors in over 360 cities. Motilal Oswal is well suited to handle all our wealth creation and wealth management needs. The company has in the last year placed 9.48% with two leading private equity investors  New Vernon Private Equity Limited74
  75. 75.  Bessemer Venture Partners At post money company valuation of Rs. 1345 crore. (Rs. 13.45 billion). Motilal Oswal Financial Services Ltd., consists of four companies. 1. Motilal Oswal Investment Advisors Pvt. Ltd. 2. Motilal Oswal Commodities Broker (P) Ltd. 3. Motilal Oswal Venture Capital Advisors Private Limited 4. Motilal Oswal Securities Ltd. (Most) is a leading research and advisory based stock broking house of India, with a dominant position in both institutional equities and retail wealth management. Their services include equities, derivatives, e-broking, portfolio management, mutual funds, commodities, IPO’s and depository services. Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled them to blossom into an almost two thousand-member team. Their institutional business unit has relationships with almost all leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. Most EAG75
  76. 76. In keeping with its tradition of personalized service, Motilal Oswal Securities Limited set up Most EAG to provide customized and integrated equity solutions to High Net worth Investors like you. Equity Research is an inherent strength of Most. They believe in picking investment opportunities where the underlying value is higher than the market price. Most EAG team has highly trained equity professionals, who act as your Relationship Managers (RMs). Most RMs proactively help you take informed equity investment decisions and build a healthy portfolio. 1Paisa Trading Online trading just got better with My Broker - the online trading service from Motilal Oswal. We can trade in derivatives for a brokerage fee as low as 1 paisa per Rs.100. (0.01%).76
  77. 77. Kotak Securities Ltd. is Indias leading stock broking house with a market share of close to 9 % as on 31st March 2007. Kotak Securities Ltd. has been the largest in IPO distribution. The accolades that Kodak Securities has been graced with include Euro money Award (2006 & 2007) - Best Provider of Portfolio Management : Equities Asiamoney Award (2006)- Best Broker In India. Euromoney Award Finance India Asia Award (2005)-Best Broker In India (2005)-Best Equities House In India Finance Asia Award (2004)- Indias best Equity House Prime Ranking Award (2003-04)- Largest Distributor of IPO’s77
  78. 78. Other achievements The company has a full-fledged research division involved in Macro Economic studies, Sect oral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. Kotak Securities has 813 outlets servicing more than 3, 15,000 customers and coverage of 277 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets around 2300 crores of Assets under Management (AUM) .The portfolio Management Services provide top class service, catering to the high end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert.78
  79. 79. Kotak Securities has the following areas of business:  Institutional Stock Broking  Private Client Services  Client Money Management  Retail distribution  Depository Services Trading Gateway Kotak Securities Gateway Account opens the gateway to a world of investing opportunities. We may be anywhere, anytime and still manage to place your trades using the Internet or our Call and Trade Facility. Open the Kotak Securities Gateway Account and get started.79
  80. 80. Special service charges: Access K.E.A, T Desktop free of cost and K.E.A.T Premium for Rs.500/- per month. Get kotak securities SMS alerts @Rs100/- per month. Call and trade free for first 20 calls. From the 21call, we pay Rs20/-per call. Margin finance at 20%. The brokerages charged are as per the volumes that are achieved. Based on these volumes a client can be either debited or credited an amount, which is as per the volumes he/she may achieve at the end of the month80
  81. 81. S h a r e k h a n Share khan, one of Indias leading brokerage houses, is the with over 510 share shops in 170 cities, and Indias premier online trading portal www.sharekhan.com.81
  82. 82. Services offered Personalized Advice Live Market Information Depository Services: Demat Transactions Derivatives Trading (Futures and Options A Share khan outlet also offers the following services:  Online BSE and NSE executions (through BOLT & NEAT terminals)  Free access to investment advice from Share khan’s Research team Share khan Value Line  Daily research reports and market review (High Noon & Eagle Eye)  Pre-market Report (Morning Cuppa)  Daily trading calls based on Technical Analysis  Cool trading products (Daring Derivatives and Market Strategy)  IPO’s & Mutual Funds Distribution  Internet-based Online Trading: Speed Trade82
  83. 83. Charges Account Opening Nil Annual Maintenance Charges Rs.300 p.a Brokerage Minimum Brokerage of Rs. 20/ Account Closing Nil Off market transfer transaction. (Min.Rs.30) Dematerialization Rs.5 per certificate Pledge Creation 0.02% of the value of the transaction (Min Rs.50) Freeze/De-freeze Rs.25 Per request Advance Rs.500 Advance which will be adjusted83
  84. 84. India Info line Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Info line group, comprising the holding company, India Info line Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites, www.indiainfoline.com and www.5paisa.com India Infoline Investment Services Ltd India info line investment services ltd is also a 100% subsidiary of India info line ltd. It has an NBFC license from the reserve bank of India (RBI) and offers margin funding facility to the broking customers.84
  85. 85. India Infoline Securities Pvt Ltd India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. India Infoline Distribution Co Ltd (IILD) India Infoline Insurance Services Ltd India Infoline Insurance Brokers Ltd85
  86. 86. Equities Over the last five years, India Infoline sharpened its competitive edge through the following initiatives: The company is among the few financial intermediaries in India to offer a complement of online and offline broking. The company’s network of branches allows customers to place orders on phone or by visit. The customer can trade on the BSE and NSE, in the cash as well as the derivatives segment all through the available multiple options of Internet, phone or branch presence. The Company harnessed technology to offer services at among the lowest rates in the business. Membership: The Company widened client reach in trading on the domestic and international exchanges. The Company provides a prudent mix of proprietary and outsourced technologies, which facilitate business growth without a corresponding increase in costs.86
  87. 87. The Company has leveraged its research capability to provide regular updates and investment picks across the short and long-term. Clients can access the customer service team through various media like toll-free lines, emails and Internet- messenger chat for instant query resolution. The Company’s customer service executives proactively contact customers to inform them of key changes and initiatives taken by the Company. Business World rated the Company’s customer service as ‘Best’ in their survey of online trading sites carried out in December 2003. Key features  Membership on the Bombay Stock Exchange Limited and the National Stock Exchange  Registered with the NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market  Broking services in cash and derivative segments, online as well as offline under the brand of 5paisa.com  Presence across 19 states through a 177 strong branch network, with 75,000 online registered users  Provision of free and world-class research to all clients.87
  88. 88. 5paisa Trader terminal Trader Terminal is almost a substitute for NSE NEAT terminal and VSAT. In fact, it has many more powerful features that only a premium trader can appreciate. Target customer segments are It is for dedicated day traders, who churn their portfolio on minor movements in the market, sometimes several times a day. Their rapid and high volume trading requires a powerful interface for lightening fast order execution. High Net worth Individuals with large and active equities portfolio who need to monitor and action swiftly. Large corporate or trusts who have dedicated staff to monitor, analyze and shuffle their portfolios88
  89. 89. SCHEDULE OF CHARGES: Broking Services Lifetime Scheme One time registration fees Rs 555 Annual membership fees NIL Quarterly membership fees NIL Monthly membership fees NIL BROKERAGE (CASH) Intra Day 0.10% Delivery; Normal settlement 0.50% Delivery: Trade for Trade and Z group scrip 0.10% BROKERAGE (FUTURE) 0.10% Brokerage (option) 1%of premium or RS 50/-per lot which ever is higher89
  90. 90. DEPOSITORY SETRVICES Lifetime Scheme Annual maintenance NIL Credit transaction NIL Debit Transactions 0.05% Pledge creation (per/instruction) Rs 50 ================================================================ =90
  91. 91. One time registration fees Rs 750 Annual membership fees 500 Quarterly membership fees NIL Monthly membership fees NIL BROKERAGE (CASH) Intra Day 0.03% Delivery; Normal settlement 0.30% Delivery: Trade for Trade and Z group scrip 0.03% BROKERAGE (FUTURE) 0.03%91
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  93. 93. This Report is a summary of the work done as a summer trainee in SMC Global Securities‖ I divided this project report into following phases as mentioned in the project proposal. The report is about the comparative study of online stockbrokers. The project report begins with the detailed introduction of the study in which basis of comparison has been discussed. Then detailed introduction of share market has been given. Then information regarding SMC GLOBAL SECURITIES LTD has been given. The basic schemes and services offered by the BPL to its customers have been included in the project report. The project report contains the information about other online brokers (Religare securities limited, ICICIdirect, Kotak securities, Motilal Oswal, share khan, India Info line) also like what is their brokerage rate, information regarding their branch network etc. From these company’s description it is clear what these brokers provide and what is their brokerage. Then primary data has been collected has been filled up by the people. The main focus of the questions is on the comparative analysis of the different online brokers. This comparison has been made on the basis of the different things like services, brokerage, product, and branch network, tie up with banks etc. Then recommendations and conclusion have been made on the basis of primary data, which has also been described in detail in the project report.93
  94. 94. The first objective of the study is to compare the different online brokers on different parameters.  Services.  Product.  Price.  Ease of use. Assessing consumers point of view in  Returns  Services  charges Finding the strengths and weaknesses of the company. Future prospects of the company in comparison with other competitors. Finding the most preferred company by Delhi Investo94
  95. 95. Design of questionnaire The questionnaire is designed in a structured manner keeping in mind all the basic steps for construction of a questionnaire and considering all the scales. Samplle Pllan:: Samp e P an Information is gathered from various sampling plan: Offices Shopping malls Samplle siize:: Samp e s ze Sample size of 100 customers is taken. Sttep 2:: S ep 2 Data for comparison is collected from online websites of the comparison and also by personnel visit to different branches.95
  96. 96. Personnel visit to different branches of the concerned companies. Magazines and newspapers. Web-site of the companies and other online data providers. 0Questionnaire filled up by DELHI region Investors. TolL-free-numbers…. 1 SMC 1800-11-0909 2 GEOJIT 1800-425-5501 3 INDIA INFOLINE 1800226555 4 SHARE KHAN 1-800-22-7500 5 KARVY 1800 425 8282 6 SBI CAP 1800112211 7 AXIS DIRECT 1800 103 080896
  97. 97. Brokerage for Brokerage for Online Broker MMC* Delivery Intraday trading SBICAP Securities 0.50% 0.10% NIL brokerage charges Sharekhan 0.03% - 0.50% 0.03% - 0.10% NIL brokerage charges Motilal Oswal 0.30% - 0.50% 0.03% - 0.15% brokerage charges 5 paisa 0.25% - 0.85% 0.07% brokerage charges Angel Broking 0.50% 0.02% - 0.03% brokerage charges ICICI direct 0.75% 0.15% brokerage charges Indiabulls 0.25% - 0.50% 0.05% - 0.10% brokerage charges HDFC Securities 0.50% 0.15% brokerage charges UTI Securities 0.80% 0.15%97
  98. 98. brokerage charges Religare 0.20% - 0.30% 0.02% - 0.03% brokerage charges Reliance Money 0.01% 0.01% card system brokerage charges Geogit 0.30% 0.03% brokerage charges Indiainfoline 0.50% 0.10% - brokerage charges98
  99. 99. Market Shair as per public Prefence a) NSE b) BSE c) MCX d) NCDEX NCDEX MCX Sales BSE Column1 NSE 0 20 40 60 8099
  100. 100. . Awareness regarding online trading 30% or 70%Sales AWARE UNAWARE Survey shows that of the people those who are aware of share market 90% peoplehave knowledge of online share trading & 10% people have no proper knowledge ofonline share trading. . Security in which people invest a. Equity 28% b. Mutual Fund 20% c. Fixed Deposit 13% d. Insurance 31% e. Others 8% People like to invest more in insurance sector rather than share market.10 0
  101. 101. Preferred mode of trading A. Online 40% B. Offline 60% Preferred mode of trading Online Offine Best brokerage house a. Share khan 09% b. India Bulls 20% c. ICICI Direct 21% d. SMC 25% e. Angel Broking 16% f. Others 09%10 1
  102. 102. Satisfaction level of the customers. a. yes 72% Sales YES NO UNCERTAIN b. no 6% c. uncertain 22% 72% people are satisfied with their broking house where as 22% of the people are not sure as they are first time investors and the remaining 6% are not satisfied.10 2
  103. 103. Investment decisions a. Self 19% b. Brokers 9% c. Economic Policies 45% d. Friends/Relatives 27% 45% of the investment decisions of the people are influenced by the economic policies of the government followed by friends/relatives, self brokers. Sales SELF BROKER ECONOMIC POLICIES FRIENDS & RELATIVE10 3
  104. 104. Data collected is limited to the DELHI region. Study is limited to the leading companies in stock broker market. Information given by employees or general public might be influenced by personal bias Lack of cooperation of the people was also a big limitation while conducting the study Due to limitation of time a sample size of only 50 respondents were chosen. The survey was carried through questionnaire and the questions were based on perception. The sample for research was chosen only from a limited area. Some of the respondents may be biased in giving responses. Complete data was not available due to company privacy and secrecy.10 4
  105. 105.  _ The facility of free demonstrations should be provided for all.   _ Improvement in the opening of De-mat & contract notice procedure is required.  _ There should be a limited number of clients under the relationship manger, so  that he can handle new as well as old customer properly.  _ Some promotional activities are required for the awareness of the customer,  seminars should be held for providing information to prospective and present customers.  _ People at young age should be encouraged to invest in stock market.  There is high potential market for mutual fund in Mumbai city, but this market needs to be explored as investors are still hesitated to invest their money in mutual funds.  _ Investors have inadequate knowledge about mutual funds, so proper marketing of various schemes is required; company should arrange more and more seminars on mutual funds.10 5
  106. 106. Conclusion  On the basis of the study it is found that SMC GLOBALSECURITIES L.T.D is provide better services than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell.  provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPO’s 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 it’s going to be biggest market in India.  The company should 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.  In online trading ―SMC‖ have mainly competition with INDIA INFOLINE,  Indiabulls. Angel Broking has an advantage of being in this industry for more than 8 decades. It has launched its website in 2000 and was among the first player in the online share trading.  The ―SMC GLOBALSECURITIES L.T.D‖ has decided to spend its advertisement budget through four media i.e. Television, Print, Web and Outlets.  SMC GLOBALSECURITIES L.T.D is only broker in which no margin needs to keep.10 6
  107. 107. • http://smcindiaonline.com/Key-management.aspx • www.valueresearchonline.com • www.computronicsindia.com • www.money control.com • www.India earning.com • www.msfinancialsavvy.com • www.mfea.com • www.amfiindia.com NEWSPAPERS THE ECONOMIC TIMES BOOKS & MAGAZINES BUSINESS STANDARD MARKETING MANAGEMENT (KOTLER)10 7
  108. 108. QUESTIONNAIRE APPENDIX 1. Do you invest in equity? Yes No 100 90 80 70 60 50 yes 40 no 30 20 10 010 8

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