presentation on sharekhan ltd.Presentation Transcript
EQUITY TRADING IN INDIA & THE FUTURE OF ONLINE TRADING & DEMAT ACCOUNTS Under the supervision of Mr. Sachin Kumar (Assistant manager) Sharekhan Ltd. By: Suhaib Azeem Khan 10-MBA-59
Products and Services provided
Terms of stock exchange
Online trading and Demat account
Analysis and interpretation
Objective of the study
To understand the concept of equity market
To know the current position of equities trading in India and how much it is successful and what is its future.
To know the investors perception towards investment in equity market
Introduction to the stock market A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. A stock market, or equity market is a public entity. Stock Exchanges in India (Secondary Market): 1) NSE (National Stock Exchange) 2) BSE (Bombay Stock Exchange)
To be the best retail brokering brand in the retail business of stock marketing.
To educated and empower the individual investor to make better investment better decision through the quality advise and superior services.
EQUITIES & DERIVATIVES DEPOSITORY SERVICES Your Guide to the Financial Jungle Sharekhan PORTFOLIO MANAGEMENT AND STRUCTURED PRODUCTS IPO, MUTUAL FUND RESEARCH COMMODITIES
Brief about Sharekhan
Sharekhan is one of the top retail brokerage houses in India with 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 1288 share shops in 325 cities.
It is the retail broking arm of the Mumbai-based SSKI [SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group.
Sharekhan brings a user- friendly online trading facility, coupled with a wealth of content that will help to stalk the right shares.
Different types of Products and Services offered by Sharekhan Ltd.
Achievement of company
A rated among the top 20 wired companies along with Reliance, Infosys, etc by ‘Business Today’, January 2004 edition.
Awarded ‘Top Domestic Brokerage House’ four times by Euro money and Asia money.
Pioneers of online trading in India amongst the top 3 online trading websites from India.
Most preferred financial destination amongst online broking customers.
Winners of “Best Financial Website” award.
India’s most preferred brokers within 5 years. “Awaaz customers Award
Hierarchy In Sharekhan
It is a pioneer in online trading with a turnover of Rs.400crores and more than 3000 peoples working in the organization.
Employees are highly empowered and strong communication network.
Number 1 registrar and transfer agent and dealer of investment products in India
Good co-operation between employees.
Localized presence due to insufficient investments for country wide expansion.
High brokerage charges but now they have overcome this by a new prepaid scheme in which brokerage is reduced to half.
High employee turnover
Lack of awareness among customers because of non-aggressive promotional strategies (print media, newspapers, etc).
With the booming capital market it can successfully launch new services and raise its client’s base.
Marketing at rural and semi-urban areas.
Increasing usage of online trading may boost a whole new breed of investors for trading in securities.
As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market.
Lack of sufficient branch-offices for speedy delivery of services.
Increasing number of Competitors.
Constant pressure to be cost competitive to meet customer’s expectations.
Aggressive promotional strategies by close competitors may hamper ShareKhan’s acceptance by new clients.
Tied up banks
Terms used in Report
The Sensex is an "index". An index is basically an indicator.
It gives general idea about whether most of the stocks have gone up or most of the stocks have gone down.
The Sensex is an indicator of all the major companies of the BSE.
If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up and visa versa.
“ Nifty” means National Index for Fifty Stocks.
The Nifty is an indicator of all the major companies of the NSE.
Sensex represent the top stocks of the BSE, the Nifty represents the top stocks of the NSE.
The NSE-50 comprises 50 companies that represent 20 broad Industry groups with an aggregate market capitalization of around Rs. 1,70,000 crs. All companies included in the Index have a market capitalization in excess of Rs 500 crs.
Besides Sensex and the Nifty there are many other indices. There is an index called the “BSE Mid-cap Index”. that gives an idea about whether the mid-cap stocks go up or down.
Index for small or large cap
Index for the metal stocks.
Index for the FMCG stocks.
Index for the Automobile stocks etc.
The Bombay Stock Exchange ( BSE ) located on Dalal Street, Mumbai
the oldest stock exchange in Asia.
The equity market capitalization US $1.63 trillion - 2010,
4th largest SE in Asia and the 8th largest in the world
largest number of listed companies in the world.
As of June 2011, over 5,085.
The National Stock Exchange located at Mumbai, Maharashtra, India.
Incorporated in November 1992 as a tax-paying company. In April 1993, recognized as a stock exchange
It is the 9th largest stock exchange in the world by market capitalization.
NSE has a market capitalization of around US $1.59 trillion and over 1,552 listings.
How Sensex is Calculated
It is calculated using the “free-float market capitalization” method.
First: Find out the “free-float market cap” of all the 30 companies that make up the Sensex!
Second: Add all the “free-float market cap’s” of all the 30 companies!
Third: Make all this relative to the Sensex base. The value you get is the Sensex value!
“ free-float market cap” of Rs.100,000 Cr... the Sensex value is 4000…
Then, for a “free-float market cap” of Rs.150,000 Cr... the Sensex value will be..
the Sensex value will be 6000 if the “free-float market cap” comes to Rs.150,000 Cr!
The term Demat account, refers to a dematerialized account.
The Securities Exchange Board of India (SEBI) requires the investor to maintain a Demat account.
Shares and securities are held in electronic form instead of taking actual possession of certificates.
Purchases and sales of securities on the Demat account are automatically made once transactions are executed and completed .
A safe and convenient way to hold securities.
Immediate transfer of securities.
No stamp duty on transfer of securities (0.5 % on physical shares).
Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, theft etc.
Reduction in paper work.
No odd lot problem, even one share can be sold.
Reduction in transaction cost.etc…
Buying and Selling securities using the Internet or broker-provided proprietary software that works through the Internet .
It reduces paper work
It reduces various costs involve (like Transaction cost).
The online trading brings data to the investor online and net broking enables him to trade on a click.
Objectives of Internet Trading
Increase transparency in the markets.
Enhance market quality through improved liquidity, by increasing quote continuity and market depth.
Reduce settlement risks due to open trades, by elimination of mismatches.
Provide Management Information System (MIS).
The data has been collected through primary and secondary sources.
Method of data collection:-
Face to face and telephonic conversation
The data for study has been collected from various sources:
Q. In which all Financial Instruments do you invest?
Q. Are you aware of online Share trading?
Q. Heard about Sharekhan ltd.?
Q. Do you know about the facilities provided by Sharekhan ltd.
Q. Which company provide a less Brokerage rate ?
Q . Which company provide you a large number of product and services?
Q. Are u satisfied with the current level of brokerage?
Q. According to your perspective which investment gives you maximum return?
Q. What kind of risk do you perceive while investing in the stock market?
Q. How frequently you do training?
From the survey it was found that most of them are aware equity trading.
People generally prefer to invest in mutual funds and other less risky investments
The maximum amount of awareness, which has been generated, is through newspaper and TV. Therefore, the company should take care of it, as it can be one of the potential media for advertisements.
Suggestions & Recommendations
MORE BRANCHES -Need to open more branches to be a topper in market Because it has a low distribution network.
LESS TIME –They should try to make some arrangements to reduce account opening time by verifying documents at branch it selves.
LINK-BANK A/Cs –Linked as many accounts as client wants to its online account.
NEW BANKS IN THE KITTY –Need to tie up with major banks like SBI, Allahabad Bank, Bank of Baroda etc.
CUSTOMER SATISFACTION –The company should focus on the customer satisfaction not on just taking money from their Pocket.
Lack of awareness of capital market
People are comfortable with traditional system
The lack of information sources for the analysis part
Lack of Techno Savvy people and poor internet penetration
Sample size of the survey was 50 which cannot determine the investment behavior of all investors.