A study of consumer behaviour towards equities and derivatives market in udaipur city

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A study of consumer behaviour towards equities and derivatives market in udaipur city

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A study of consumer behaviour towards equities and derivatives market in udaipur city

  1. 1. Projectsformba.blogspot.com A Project Study Report On Training Undertaken at INDIABULLS SECURITIES LTD. UDAIPUR “A STUDY OF CONSUMER BEHAVIOUR TOWARDS EQUITIES AND DERIVATIVES MARKET IN UDAIPUR CITY” Submitted in partial fulfillment for the Award of degree of Master of Business Administration Submitted By: - MBA-II SEM 2008-2010Projectsformba.blogspot.com
  2. 2. Projectsformba.blogspot.com Submitted To:-Projectsformba.blogspot.com
  3. 3. Content given in this format.Cover PageCertificate from the Company/OrganizationPreface/PreludeAcknowledgementExecutive SummaryContents:1. Introduction to the Industry2. Introduction to the Organization3. Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Sample Size and method of selecting sample 3.6 Scope of Study 3.7 Limitation of Study4. Fact & Finding5. Analysis and Interpretation6. SWOT7. Conclusion8. Recommendation and Suggestions9. Appendix10. Bibliography
  4. 4. PREFACEThe main motive behind the summer training of the MBA program is to providethe practical aspect of the organizations working environment. The study is theoutcome of my project that has been produced as partial fulfillment of theMasters of Business Administration from Advent Institute of ManagementStudies, Udaipur.This training has helped to visualize and realize about the congruency betweenthe theoretical learning in the college and the actual practices of management.This overall project has given me an insight into the actual corporate world apartfrom the theoretical environment. It has allowed me to face the world full of upsand downs and to get a glance of the future corporate world in which we aregoing to enter.My summer training project at IndiaBulls Securities Ltd. Is a completeexperience in itself and it has become an inspirable part of my knowledge ofmanagement being learned in MBA programme.
  5. 5. AcknowledgementI express my sincere thanks to my project guide …………….(Director) AdventInstitute Of Management, Udaipur for guiding me right from the inception tillthe successful completion of the project. I sincerely acknowledge him forextending their valuable guidance, support for literature, critical reviews ofproject and the report and above all the moral support he had provided to mewith all stages of this project.I would also like to thank the supporting staff ………………………………………………………….……………….. Advent Institute Of Management,Udaipur for their help and cooperation throughout our project.
  6. 6. EXECUTIVE SUMMARYTITLE"A STUDY OF CONSUMER BEHAVIOUR TOWARDS EQUITIES AND DERIVATIVESMARKET IN UDAIPUR CITY”1. BACK GROUND OF THE STUDYThis study is conducted for Indiabulls Securities Ltd. at Udaipur, by ………….…………… first year of Master in Business Administration (MBA) student asrequirement for partial fulfillment for MBA.Indiabulls is lead by a highly regarded management team that has invested ThousandLac of Rupee into a World class Infrastructure that provides their clients with real-timeservice & around Clock i.e.24 Hrs. access to all information and products.2. Objectives  The objectives of the study include… A) To study customers trading behavior B) To know what major factors effects or influence customer’s trading behavior. C) To know the satisfaction level of customers towards INDIABULLS services.
  7. 7. 3. Research MethodologyThe methodology includes collection of data with the help of structured questionnaire;the data has been collected by interviewing around 100 clients.4. Data collection & InterpretationIt includes cross tabulation of questionnaire by classification of responses andfrequency distribution and appropriate graphical representation question withcomments.5. Observations & FindingsObservation is related those issues only, which are not included and explored throughthe questionnaire, it may not require a data support.Findings are strictly based on the collected data, attempting to answer the objectives.6. Limitation of the studyThe study can be biased to the extent of personal perception, historical nature of datacollection and of the time limit.7. SuggestionBased on findings, suggestions were given in order to improve the communicationstrategy and widen company’s market.
  8. 8. CHAPTER -1Introduction to the Industry
  9. 9. INTRODUCTION TO INDIABULLS LTD.Indiabulls is India’s leading Financial Services and Real Estate Company having over640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000customers with its wide range of financial services and products from securities,derivatives trading, depositary services, research & advisory services, consumersecured & unsecured credit, loan against shares and mortgage & housing finance. Witharound 4000 Relationship Managers, Indiabulls helps its clients to satisfy theircustomized financial goals. Indiabulls through its group companies has entered IndianReal Estate business in 2005. It is currently evaluating several large-scale projectsworth several hundred million dollars.Indiabulls Financial Services Ltd is listed on the National Stock Exchange, BombayStock Exchange and Luxembourg Stock Exchange. The market capitalization ofIndiabulls is around USD 2,350 million (25th April 2007). Consolidated net worth of thegroup is around USD 510 million (31st March 2007). Indiabulls and its group companieshave attracted USD 500 million of equity capital in Foreign Direct Investment (FDI) sinceMarch 2000. Some of the large shareholders of Indiabulls are the largest financialinstitutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, MorganStanley and Farallon Capital.Business of the company has grown in leaps and bounds since its inception. Revenueof the company grew at a CAGR of 159% from FY03 to FY07. During the same period,profits of the company grew at a CAGR of 184%.Indiabulls became the first company to bring FDI in Indian Real Estate through a JV withFarallon Capital Management LLC, a respected US based investment firm. Indiabullshas demonstrated deep understanding and commitment to Indian Real Estate marketby winning competitive bids for landmark properties in Mumbai and Delhi.
  10. 10. Group Companies of Indiabulls INDIABULLS LTD. INDIABULLS INDIABULLS SECURITIES LTD. REAL ESTATE INDIABULLS CONSUMER FINANCE LTD.INDIABULLS SECURITIES LTD.Indiabulls Securities, the retail equity broking arm of the Indiabulls group, hasexperienced strong growth over the last two financial years. Currently, it has a clientbase of 75000 (29000 as at March 31, 2004) and enjoys a market share 3 of about 4per cent. Its widespread network, (79 offices in 60 cities) a strong technology base, andthe facility of loan against shares provided to clients (through Indiabulls FinancialServices) for purchasing equity shares has enabled it to gain market share. Its clientdiversity reduces its dependence on any single client.
  11. 11. These strengths are, however, partially offset by the fact that it operates in a high-volume, price-sensitive business segment. Retail brokerage rates are significantly lowerthan institutional brokerage rates primarily because of an institutional broker’s expertiselevel and on account of its offering of value-added services.However, CRISIL believes that the leadership position of Indiabulls in the retail equitybrokerage segment places it in a better position to weather the inherent risk in thesegment.Indiabulls securities ltd. is the retail broking house that caters to the needs of individualinvestors. While the investment world abounds with ‘jack of all trades’, the co. chose tobuild the business by focusing on what it knows best – market driven investmentavenues like equities and derivatives. The co. facilitate the investment process for itsclients and also provide value added services like research, stock ideas, online trading,demat, etc. to make the investment experience rewarding.CORE SERVICES 1. Equity and derivatives trading on NSE 2. Depository services 3. Online trading 4. IPO services 5. Portfolio management services 6. Technical analysis 7. Research reports
  12. 12. INDIABULLS CONSUMER FINANCE LTD.Indiabulls, a retail focused organization fulfills the credit need of a large percentage ofpopulation in India. The key aspect of Indiabulls business model is to provide anextremely unique customer experience. The blend of power of the Internet withpersonalized services allows Indiabulls to expand its geographical coverage andcapture a greater share in the highly competitive retail market. It offer consumer loans,home loans, personal loans, securities brokerage, and other financial products andservices to retail customers from across 640 Indiabulls offices in 127 leading cities ofthe country.Indiabulls Fast LoansThe company offers the shortest route to a loan with minimum paperwork andprocedures. With Indiabulls Fast Loans, one can avail easy loans for a minimum ofRs.10, 000 to a maximum amount of Rs.1, 00,000.1. Features of Personal Loan • Flexible loan tenure of up to 4 years (i.e. 1 month to 48 months). • Loans available from a minimum of Rs.10, 000 up to a maximum of Rs.100, 000. • Easy monthly repayment through equated monthly installments (EMI). • Easy documentation and quick disbursal.2. Commercial Vehicle LoansIndiabulls started Commercial Vehicle Finance under the flagship of Indiabulls CreditServices Ltd. in April 2006 to provide refinance to its commercial vehicle clients. It havesound fundamentals, competent management and expertise in financing thetransporters. The companys reach gives it a unique market position enabling it to excelin customer satisfaction, quick service and growth-led profitability.
  13. 13. The Commercial Vehicle Finance provided by helps the small and medium operators toacquire vehicles with minimum hassle and documentation. Co.’s strength lies in thequick completion of transactions, long association with transporters and the intimateknowledge of the market and its nuances.3. Mortgage LoansIndiabulls has commenced lending of Mortgage Loans to prospective customers underthe flagship of Indiabulls Housing Finance Ltd. Here it enable home-seekers to accessfinance to buy their homes. The co. also provide plot loans, Loan against Residential,Commercial and Rental Property, thereby enabling the borrower to leverage theproperty owned to fund any legitimate needs be it Business Expansion, ChildsEducation, Childs Marriage or for Holiday Abroad.4. Indiabulls Home Loans Indiabulls Housing Finance Company helps to realize a long cherished dream ofowning home through hassle free and customer friendly home loans. A person can availof the Home Loans purchasing a ready built house/flat, residential plot and even for re-financing existing loans of other banks or housing finance companies.INDIABULLS REAL ESTATEThe Indiabulls group has recently made an investment in real estate. Though thearticulated purpose of the investment is to acquire fixed assets for office space,nevertheless it is an equity exposure in real estate and is thus exposed to the inherentrisks in real estate to the extent of the equity capital that would be invested by thegroup.
  14. 14. Growth StoryIndiabulls has emerged as one of the leading and fastest growing financial company inless than two year, since its initial public offering in September 2004. It has a marketcapitalization of around 2,350 million (25th April 2007) and consolidated net worth of thegroup is around USD 510 million. • Indiabulls Financial Services Ltd. established India’s one of the2000-01 first trading platforms with the development of an in house team. • Indiabulls expands its service offerings to include Equity, F&O,2001-03 and Wholesale Debt, Mutual fund, IPO distribution and Equity Research. • Indiabulls ventured into Insurance distribution and commodities2003-04 trading. • Company focused on brand building and franchise model. • Indiabulls came out with its initial public offer (IPO) in Sep.2004. • Indiabulls started its consumer finance business.2004-05 • Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. • 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 fund2005-06 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.
  15. 15. • Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crore to develop residential apartments. • Indiabulls ventured into commodity brokerage business. 2006-07 • Indiabulls has received an “in principle approval” from Government of India for development of multi product SEZ in the state of Maharashtra. • Indiabulls Financial Service Ltd. Board resolves to Amalgamate Indiabulls Credit Services Ltd. and demerge Indiabulls Securities Ltd.Board Of DirectorsManagement TeamBoard of DirectorsName DesignationMr. Rajiv Rattan Whole Time DirectorMr. Aishwarya Katoch DirectorMr. Saurabh K Mittal DirectorMr. Gagan Banga DirectorMr. Shamsher Singh DirectorMr. Karan Singh DirectorMr. Sameer Gehlaut Chairman & Wholetime DirectorMr. Prem Prakash Mirdha Independent Director
  16. 16. CHAPTER -2Introduction to the OrganizationCOMPANY / ORGANIZATION PROFILE
  17. 17. Indiabulls is India’s leading Financial Services and Real Estate Company having over640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000customers with its wide range of financial services and products from securities,derivatives trading, depositary services research & housing finance. With around 4000Relationship Managers, Indiabulls helps its clients to satisfy their customized financialgoals.Indiabulls Financial Services Limited was established in the year2000 by threepromoters all of whom are engineers from Indian Institute of Technology, New Delhi,and has attracted over Rs. 700 million of investments from venture capital firms, privateequity funds and institutional investors. The investors include the proprietary fund of Mr.L.N. Mittal-LNM India Internet Venture Limited, Transatlantic Corporation Ltd., FarallonCapital Partners LP and Infinity Technologies Trustee Private Limited.Indiabulls headquarter are co-located in Mumbai and Delhi, allowing us to access thetwo most important regions for Indian financial Markets, the Western region includingMumbai, rest of Maharashtra Gujarat and the Northern region, including the NationalCapital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab;and access the highly skilled and educated workforce in Delhi; and back office, riskmanagement and internal finance are headquartered out of one central location in NewDelhi, allowing us to scale these process efficiently for the nationwide network. All theback office work, transaction processing work and issuance of cheques takes placefrom the New Delhi office enabling us to have better control and efficiency in the supportfunctions.Promoters and Their Background
  18. 18. The company was established by three engineers from IIT Delhi, and has attractedsignificant amount of investment from venture, private equity and institutional investors.The details are as follows:-Sameer Gehlaut, Chairman, CEO & Whole Time DirectorSameer, aged 30 years graduated with a Mechanical Engineering degree from theIndian Institute of technology, Delhi. He has gained extensive experience in theFinancial Services sector and developed in-depth knowledge and strong understandingof all aspects of the Securities Industry and Financial Services Business. Under hisLeadership, Indiabulls group has grown from one office, 310 clients, and 8 employees inFY 2000 to 32,359 clients, 70 office and 606 employees as on April 30, 2004.Rajiv Rattan, President CFO & Whole Time Director:Rajiv, aged 30 years, an NTSE Scholar, graduated with and Electrical EngineeringDegree from the Indian Institute of Technology, Delhi. He gained extensive experiencein international best practices, process management and risk management, which hebrought to Indiabulls Group as one of the founders of the company.Saurabh Mittal, Director:Saurabh, aged 30 years, graduated with and Electrical Engineering Degree from theIndian Institute of Technology, Delhi. He worked a citigroup Asset Management as aninvestment analyst, and is currently a senior portfolio manager at Farallon Capital. Hehas developed and understanding of International financial markets and extensiveexperience in the securities industry Saurabh is responsible for strategic decision-making and is the director of the company.
  19. 19. BUSINESSOVERVIEW Indiabulls Financial Services LimitedIndiabulls Securities Indiabulls Commodities Indiabulls Insurance Limited Advisors Pvt. Limited Pvt. Limited 1. Equity & Debt Stock Insurance Product Broking Commodities Trading Distribution 2. Depository Services 3. Derivative Broking Services 4. Equity Research Services 5. Mutual Fund Distribution 6. IPO Distribution Competitors: • Karvy Computer share Private Ltd. • G S Raheja Finance • ICICI Securities Limited • India Infoline Ltd. • Indbank Merchant Banking Services Ltd. • Share Khan Securities • Zuari Investments Kotak Mahindra SHCL • Others………. Equity Broking Account
  20. 20. A passport size photograph.Proof of Demat Account. If you intend to get a Depository account opened withIndiabulls as well, please see the relevant requirements for that.Proof of Bank Account - A cancelled cheque would be sufficient.Photocopy of Income Tax Permanent Account Number (PAN) Card - If you do not havea PAN, then you would be required to give a declaration to that effect.Identity Proof - Photocopy of any of the following :-  Passport  PAN Card  Voter ID  Driving License  Ration CardAddress Proof - Photocopy of any one of Driving License / Passport/Ration Card/VoterCard/ Telephone Bill / Electricity Bill/ Bank Statement.A Partnership firm desirous to open an account would require the following as well -A certified true copy of the partnership deedCopy of last Income Tax Returns filed.Corporate desirous of opening an account would require the following additionaldocuments -Certified true copy of a resolution passed by the Board of Directors naming theauthorized officials to sign the Member constituent agreements.Regardless of how the market is performing or which way the economic winds areblowing, you, as a trader, are researching, charting, crafting a strategy, buying andselling. You are getting in, getting out and moving on to the next trade.Choose from a comprehensive offering of accounts, platforms and products. Customizeour technology and services to support the way you work.Features of Power India bulls :
  21. 21. • Live Streaming Quotes • Fast Order Entry • Tic by Tic Live Charts • Technical Analysis • Live News and Alerts • Extensive Reports for Real-time Accounting Introduction About Demat MarketWhat is Demat accountThe depository converts your physical holding of securities (backed by paper certificatesas evidence of ownership) to electronic balances held in a Demat account with aDepository Participant (DP). A Demat account holder (also called a beneficiary owner)can have securities balances either by converting his existing physical certificates or bybuying in Demat form.Benefits of Demats :-• Electronic settlement of trades• No stamp duty on transfer of securities• Elimination of risks associated with physical certificates such as bad delivery, fake Securities• Reduction in paperwork involved in transfer of securities• Reduction in transaction cost• Nomination facility Change in address recorded with DP gets registered electronically With all companies in which investor holds securities eliminating the need to Correspond with each of them separately• Transmission of securities is done by DP eliminating correspondence with
  22. 22. Companies• Investments in Equity, Debt instruments, Mutual Funds, Kisan Vikas Patras, National Saving Certificates and other Government Securities can be held in a single account• Automatic credit of shares, arising out of split / consolidation / merger, bonus, IPO allotments etc., into demat account.What is a stock market?The stock market is a central market place for raising funds by Governments andvarious corporations to expand their businesses and shareholding base. This is usuallydone by issuing shares in a company which can then be bought and sold.What is a stock exchange?The fundamental role of a stock exchange is to provide a fair and internationallycompetitive market place for the trading of financial securities for the benefit of allparticipants (Listed Companies, Institutions and small investors).All countries who have a local stock exchange aim to provide a market place whereby: • Companies and Governments can raise funds, and • Investors can invest surplus funds in anticipation of receiving dividends and capital gain from their share investments.What is a share market?The share market comprises of two markets:The first is a primary market whereby companies or Governments issue new shares inorder to raise capital to expand their operations (for whatever reason) and take on awider range of shareholders. This is done by issuing an investment statement and/or aprospectus through an organizing or underwriting broker.The second is the secondary market, which is the central market place provided by thestock exchange, where investors trade existing securities/shares.What is a share and what is their use?
  23. 23. • A share is a basic unit of ownership in a company. When you buy a share, you become a part-owner of a company. Ownership of that company is divided into millions of parts. These parts are called shares and each person who buys a share is a shareholder. • The directors of the company are employed to manage the business, but the company is wholly owned by its shareholders. • When a company is founded, it often progresses and develops and often to expand, it requires financial help. The company can opt to borrow funds from the bank and pay interest like a loan or they can opt to raise funds by becoming a listed company on the share market. There are many Rules and Regulations that a company must abide by and comply with, if they wish to list and issue securities on the New Zealand Stock Exchange. These Rules are administered and enforced by an independent Market Surveillance Panel Once a Company has become a Listed Company on the NZX, it can raise funds by offering shares in return for cash. A share of ownership is what the investor gets in exchange for their financial support. PRODUCT PORTFOLIO / PRODUCT BUCKETIndiabulls Securities Ltd works in three market :- 1. Equity 2. Derivatives 3. CommoditiesEquityEquity is a term whose meaning depends very much on the context. In general, you canthink of equity as ownership in any asset after all debts associated with that asset arepaid off. For example, a car or house with no outstanding debt is considered the ownersequity since he or she can readily sell the items for cash. Stocks are equity becausethey represent ownership of a company, whereas bonds are classified as debt becausethey represent an obligation to pay and not ownership of assets.To support its investment, a firm must find means to finance them. Equity and debtrepresent two broad sources of finance for a business firm.Derivatives
  24. 24. Derivatives as a term conjures up visions of complex numeric calculations, speculativedealings and comes across as an instrument which is the prerogative of a few ‘smartfinance professionals’. In reality it is not so. In fact, a derivative transaction helps coverrisk, which would arise on the trading of securities on which the derivative is based anda small investor, can benefit immensely.A derivative security can be defined as a security whose value depends on the values ofother underlying variables. Very often, the variables underlying the derivative securitiesare the prices of traded securities.Let us take an example of a simple derivative contract:Ram buys a futures contract.He will make a profit of Rs 1000 if the price of Infosys rises by Rs 1000.If the price is unchanged Ram will receive nothing.If the stock price of Infosys falls by Rs 800 he will lose Rs 800.As we can see, the above contract depends upon the price of the Infosys scrip, which isthe underlying security. Similarly, futures trading has already started in Sensex futuresand Nifty futures. The underlying security in this case is the BSE Sensex and NSE Nifty.Derivatives and futures are basically of 3 types:Forwards and FuturesOptionsSwaps( i ) Forward contractA forward contract is the simplest mode of a derivative transaction. It is an agreement tobuy or sell an asset (of a specified quantity) at a certain future time for a certain price.No cash is exchanged when the contract is entered into.What is an Index?
  25. 25. To understand the use and functioning of the index derivatives markets, it is necessaryto understand the underlying index. A stock index represents the change in value of aset of stocks, which constitute the index. A market index is very important for the marketplayers as it acts as a barometer for market behavior and as an underlying in derivativeinstruments such as index futures.The Sensex and NiftyIn India the most popular indices have been the BSE Sensex and S&P CNX Nifty. TheBSE Sensex has 30 stocks comprising the index which are selected based on marketcapitalization, industry representation, trading frequency etc. It represents 30 large well-established and financially sound companies. The Sensex represents a broad spectrumof companies in a variety of industries. It represents 14 major industry groups. Thenthere is a BSE national index and BSE 200. However, trading in index futures has onlycommenced on the BSE Sensex.While the BSE Sensex was the first stock market index in the country, Nifty waslaunched by the National Stock Exchange in April 1996 taking the base of November 3,1995. The Nifty index consists of shares of 50 companies with each having a marketcapitalization of more than Rs 500 crore.Futures and stock indicesFor understanding of stock index futures a thorough knowledge of the composition ofindexes is essential. Choosing the right index is important in choosing the right contractfor speculation or hedging. Since for speculation, the volatility of the index is importantwhereas for hedging the choice of index depends upon the relationship between thestocks being hedged and the characteristics of the index.Choosing and understanding the right index is important as the movement of stockindex futures is quite similar to that of the underlying stock index. Volatility of the futuresindexes is generally greater than spot stock indexes.Every time an investor takes a long or short position on a stock, he also has an hiddenexposure to the Nifty or Sensex. As most often stock values fall in tune with the entiremarket sentiment and rise when the market as a whole is rising.
  26. 26. Retail investors will find the index derivatives useful due to the high correlation of theindex with their portfolio/stock and low cost associated with using index futures forhedging.Understanding index futuresA futures contract is an agreement between two parties to buy or sell an asset at acertain time in the future at a certain price. Index futures are all futures contracts wherethe underlying is the stock index (Nifty or Sensex) and helps a trader to take a view onthe market as a whole.Index futures permits speculation and if a trader anticipates a major rally in the markethe can simply buy a futures contract and hope for a price rise on the futures contractwhen the rally occurs. We shall learn in subsequent lessons how one can leverage onesposition by taking position in the futures market.In India we have index futures contracts based on S&P CNX Nifty and the BSE Sensexand near 3 months duration contracts are available at all times. Each contract expireson the last Thursday of the expiry month and simultaneously a new contract isintroduced for trading after expiry of a contract.( ii ) OptionsStock markets by their very nature are fickle. While fortunes can be made in a jiffy moreoften than not the scenario is the reverse. Investing in stocks has two sides to it –a)Unlimited profit potential from any upside (remember Infosys, HFCL etc) or b) adownside which could make you a pauper.Derivative products are structured precisely for this reason -- to curtail the risk exposureof an investor. Index futures and stock options are instruments that enable you to hedgeyour portfolio or open positions in the market. Option contracts allow you to run yourprofits while restricting your downside risk.Apart from risk containment, options can be used for speculation and investors cancreate a wide range of potential profit scenarios.What are options?
  27. 27. Some people remain puzzled by options. The truth is that most people have been usingoptions for some time, because options are built into everything from mortgages toinsurance.An option is a contract, which gives the buyer the right, but not the obligation to buy orsell shares of the underlying security at a specific price on or before a specific date.‘Option’, as the word suggests, is a choice given to the investor to either honour thecontract; or if he chooses not to walk away from the contract.To begin, there are two kinds of options:Call Options and Put Options.A Call Option is an option to buy a stock at a specific price on or before a certain date.In this way, Call options are like security deposits. If, for example, you wanted to rent acertain property, and left a security deposit for it, the money would be used to insurethat you could, in fact, rent that property at the price agreed upon when you returned. Ifyou never returned, you would give up your security deposit, but you would have noother liability. Call options usually increase in value as the value of the underlyinginstrument rises.When you buy a Call option, the price you pay for it, called the option premium, securesyour right to buy that certain stock at a specified price called the strike price. If youdecide not to use the option to buy the stock, and you are not obligated to, your onlycost is the option premium.A Put Options are options to sell a stock at a specific price on or before a certain date.In this way, Put options are like insurance policiesIf you buy a new car, and then buy auto insurance on the car, you pay a premium andare, hence, protected if the asset is damaged in an accident. If this happens, you canuse your policy to regain theinsured value of the car. In this way, the put option gains in value as the value of theunderlying instrument decreases. If all goes well and the insurance is not needed, theinsurance company keeps your premium in return for taking on the risk.With a Put Option, you can "insure" a stock by fixing a selling price. If somethinghappens which causes the stock price to fall, and thus, "damages" your asset, you canexercise your option and sell it at its "insured" price level. If the price of your stock goesup, and there is no "damage," then you do not need to use the insurance, and, once
  28. 28. again, your only cost is the premium. This is the primary function of listed options, toallow investors ways to manage risk.Technically, an option is a contract between two parties. The buyer receives a privilegefor which he pays a premium. The seller accepts an obligation for which he receives afee.There are two types of options: • Call Options • Put OptionsCall optionsCall options give the taker the right, but not the obligation, to buy the underlying sharesat a predetermined price, on or before a predetermined date.Put OptionsA Put Option gives the holder of the right to sell a specific number of shares of anagreed security at a fixed price for a period of time.eg: Sam purchases 1 INFTEC (Infosys Technologies) AUG 3500 Put --Premium 200This contract allows Sam to sell 100 shares INFTEC at Rs 3500 per share at any timebetween the current date and the end of August. To have this privilege, Sam pays apremium of Rs 20,000 (Rs 200 a share for 100 shares).The buyer of a put has purchased a right to sell. The owner of a put option has the rightto sell.Commodities
  29. 29. A commodity is something that is relatively easily traded, that can be physicallydelivered, and that can be stored for a reasonable period of time. It is a characteristic ofcommodities that prices are determined on the basis of an active market, rather than bythe supplier (or other seller) on a "cost-plus" basis. Examples of commodities includenot only minerals and agricultural products such as iron ore, crude oil, ethanol, sugar,coffee, aluminium, rice, wheat, gold, diamonds, or silver, but also so-called"commoditized" products such as personal computers.Linguistically, the word commodity came into use in English in the 15th century, beingderived from the French word "commodité", meaning todays (2000) "convenience" interm of quality of services. The Latin root meaning is commodities, referring variously tothe appropriate measure of something; a fitting state, time or condition; a good quality;efficaciousness or propriety; and advantage, or benefit. The German equivalent is dieWare, i.e. wares or goods offered for sale. The French equivalent is "product de base"like energy, goods, or industrial raw material TARGETS/TASKSI am doing my Executive Training with INDIABULLS SEDCURITIES LIMITED inUdaipur Branch. INDIABULLS SEDCURITIES LIMITED provides an online tradingaccount in which three type of facilities are provided to customers.These are: • Demat account. • Trading account. • Margin FundingMy task in the company is to meet with the customers and convince them to open theiraccount with the company. Daily my company guide tells us the areas where we have totarget for achieving the target .For this period of four months training our company has provided us not specific targetfor each month.
  30. 30. Targets mentioned above are the minimum targets which we are expected to achieve.Only after achieving these targets, our path to get Pre Placement Offer and FinalPlacement Offer.Through focused guidance of my company guide and by my ability to work hard, I amconfident that I will be able to achieve my targets on time and that would be help me outto give edge of my carrier.Out of four months training period, I have completed my one month of training and thesecond month is about to complete. In this month, I have learned many things. Thefollowing table depicts the target I have done to achieve in this period of one month andwhat I actually achieved.
  31. 31. CHAPTER -3 Research MethodologyTitle of the Study "A Study on significance and relevance of internal & interactive
  32. 32. marketing for financial marketing with special reference to INDIA BULLs"Duration of the ProjectThe project is Submitted in partial fulfillment for the Award of degree of Master ofBusiness Administration & The duration of the project is ………………………Objective of studyThe main objectives of the study are as follows :-  To know more about the Company / Organization  To find strength & weakness of the Company / Organization  To know significance and relevance of internal & interactive marketing  To know what major factors effects or influence internal & interactive marketing for financial marketing RESEARCH METHODOLOGY“A Research is careful investigation or inquiry, especially through search for new factsin any branch of knowledge. It is a systemized effort to gain more knowledge.”
  33. 33. Research methodology is a way to systematically solve the research problem. It maybe understood as a science of studying how research is done scientifically. We studythe various steps that are generally adopted by a researcher in studying his researchproblem along with the logic behind them. It is necessary for the researcher to know notonly the research methods or techniques but also the methodology. Researcher alwaysneeds to understand the assumptions underline various technique and they need toknow the criteria by which they can decide that certain technique and procedures will beapplicable to certain problems and other will not.The predefined objective can be achieved by following ways: o Studying the buying behavior of customer. o Comparing sales of different players.TYPE OF RESEARCH:Personal interview approach was adopted for the project. In this type of research, theresearcher has to contact the person directly to know the available information andanalyze the data was available in interviewer’s statements. This was one of the mainsources for the project.The other approach was PERSONNEL RESEARCH. It is based on the personalknowledge. It is applicable to phenomenon that can be expressed in terms of words.RESEARCH PROCESS:
  34. 34. Research Process consists of a series of action or steps necessary to effectively carryout the research and the desired sequencing of these steps. The various steps, whichprovided guidelines to the research process pertaining to the project, are as follows: 1) Formulating the research problem Formulation of research problem involves understanding the problem thoroughly and rephrasing the same into meaningful terms from an analytical point of view. 2) Extensive literature survey It is necessary for the researcher to conduct an extensive survey connected with the problem. For the purpose manual, company records, journals, published data can be used. 3) Development of working hypotheses Working hypotheses is a tentative assumption made in order to draw out and rest its logical or empirical consequences. 4) Preparing the research design The researcher will be required to prepare a research i.e. he will have to state the conceptual structure within which research would be conducted. The function of research design is to provide the collection of relevant evidence with minimum expenditure of efforts, time and money. 5) Determining the sample design The researcher must decide a way of selecting a sample or what is popularly known as sample design. The types of sample design are: o Simple Sampling
  35. 35. o Random Sampling o Systematic Random Sampling o Stratified Sampling o Quota Sampling o Cluster and Area Sampling o Multistage Sampling o Sequential Sampling o CensusFor this project, Random Sampling was used among the above-mentioned types.Since the time period was limited to 2 months, the sampling size was limited to 75. 6) Collection of data While deciding the methods of data collection to be used for study the researcher should keep in mind two types of data viz. Primary Data The Primary Data are those, which are collected a fresh and for the first time and thus happen to be original in character. Secondary Data Secondary data means data that are already available i.e. they refer to the data which have already been collected and segregated by someone else. The researcher has to determine the various sources of obtaining secondary data. Secondary data may be published or unpublished in nature.
  36. 36. Published data are available in: Publications of central, state and local newspapers • Publication of foreign government or of international bodies • Technical or trade journals • Books, magazines and newspaper and Internet • Public record and statistics, historical documents and sources of public information. Data Collection Data used for the project was the secondary and primary data. Methods of Data Collection • Personal Interview • Questionnaire & • Telephonic Interview. 7) Analysis of data Analyses of data can of two types: • Quantitative analysis • Qualitative analysisThus analysis of data require a number of closely related operations such asestablishment of categories, the application of these categories into raw data throughtabulation, chart and then draw inferences. Analysis work is generally based on thecomputation of various percentage, co-efficient etc. by applying various statisticalformulae.
  37. 37. Preparation of ReportsAfter analysis, the next step is in the preparation of the report. The report has beenprepared according to the report writing principles.The Objective, clarity in presentation of ideas and the uses of charts have beenmaintained throughout the report.Once the data has been collected, the researcher has to process, analyze and interpretthe same. It was emphasized that the researcher should exercise good care to ensurethat reliable data are not properly processed and analyzed. Sufficient attention is oftennot given to these aspects, with the result that the quality of the report suffers.Editing – The first task in data is editing. It is the process by which data are preparedfor subsequent coding. As it is very subjective process, editing is the process ofexamining errors and omission in the collected data and making necessary in the samethis is desirable when there is more inconsistency in the responses.Coding – Coding is the procedure of classifying the answers to a question inmeaningful categories the symbol used to indicate the categories are called codes.Coding is necessary to carry out the subsequent operation of tabulation and analyzingdata.Coding involves two steps:Tabulation: Tabulation comprises of sorting of data into different categories andcounting the number of cases that belongs to each categories.One is unvaried tabulation. This includes the numbers of responses to one question orto count. It’s very simplest way to tabulate where two or more variables are involved intabulation. It is called vicariate or multivariate tabulation. In marketing research project,generally both type of tabulation is used.
  38. 38. INDIAN Capital Market-Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200years ago. The earliest records of security dealings in India are meager and obscure.The East India Company was the dominant institution in those days and business in itsloan securities used to be transacted towards the close of the eighteenth century.By 1830s business on corporate stocks and shares in Bank and Cotton presses tookplace in Bombay. Though the trading list was broader in 1839, there were only half adozen brokers recognized by banks and merchants during 1840 and 1850.The 1850s witnessed a rapid development of commercial enterprise and brokeragebusiness attracted many men into the field and by 1860 the number of brokersincreased into 60.In 1860-61 the American Civil War broke out and cotton supply from United States ofEurope was stopped; thus, the Share Mania in India begun. The number of brokersincreased to about 200 to 250. However, at the end of the American Civil War, in 1865,a disastrous slump began (for example, Bank of Bombay Share which had touched Rs2850 could only be sold at Rs. 87).At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,found a place in a street (now appropriately called as Dalal Street) where they wouldconveniently assemble and transact business. In 1887, they formally established inBombay, the "Native Share and Stock Brokers Association" (which is alternativelyknown as " The Stock Exchange "). In 1895, the Stock Exchange acquired a premise inthe same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombaywas consolidated.GROWTHThe working of stock exchanges in India started in 1875. BSE is the oldest stock marketin India. The history of Indian stock trading starts with 318 persons taking membershipin Native Share and Stock Brokers Association, which we now know by the nameBombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition fromthe Government of India. National Stock Exchange comes second to BSE in terms ofpopularity. BSE and NSE represent themselves as synonyms of Indian stock market.The history of Indian stock market is almost the same as the history of BSE.
  39. 39. The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex iscompiled based on the performance of the stocks of 30 financially sound benchmarkcompanies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000,3000 and 4000 figures in 1992. The reason for such huge surge in the stock market wasthe liberal financial policies announced by the then financial minister Dr. Man MohanSingh. The up-beat mood of the market was suddenly lost with Harshad Mehtascam. It came to public knowledge that Mr. Mehta, also known as the big-bull of Indianstock market diverted huge funds from banks through fraudulent means. He played with270 million shares of about 90 companies. Millions of small-scale investors becamevictims to the fraud as the Sensex fell flat shedding 570 points.To prevent such frauds, the Government formed The Securities and Exchange Board ofIndia, through an Act in 1992. SEBI is the statutory body that controls and regulates thefunctioning of stock exchanges, brokers, sub-brokers, portfolio managers investmentadvisors etc. SEBI oblige several rigid measures to protect the interest of investors.Now with the inception of online trading and daily settlements the chances for a fraud isnil, says top officials of SEBI. • Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. • The 7000 mark was crossed in June and the 8000 mark on September 8 in 2005. • Sensex crossed the 10000 mark in 2006. • Many foreign institutional investors (FII) are investing in Indian stock markets on a very large scale. • The liberal economic policies pursued by successive Governments attracted foreign institutional.
  40. 40. Future of Indian stock marketsThe stock market is booming in spite of the low agriculture output. The Monsoon is goodin an overall sense but still the question remains about who will take the credit for it. Theanswer is the karma of the people. I would like to appreciate the Indian politicians andthe industrialists who are pawns of destiny for doing many things positive andproductive. India as a country is running a very good period and the very position of theplanets in transit are giving wonderful result. • Only less than 1 per cent of the population own stocks and less than 1,000 individuals control the market, the majority being the FIIS, the promoters of the company. The credit should go to the media for making stock markets the headlines. First of all, Indian bourses in the future will be one of the best investments in the world.There will be a time when it can even reach 3000 points in the Nifty. India will begin oneof the best data of sun which will work in its favor. So before 2009 Indian boursesshould go from high to high from time to time. • Now this bull run will continue. • There can be some correction in the BSE Sensex at the 7500 points level. • The market will hover between the 6000-7000 till mid-August. • There will be huge fluctuations. • Better for many investors and new entrants for the market to cool down a bit and let it come well below 7000. • In any case, if you are long-term players, then step in and buy now and forget for another 10 years. You will make a killing in the Indian markets. • Most of the tech companies and the main index will do well but slightly on the lower side of expectations.
  41. 41. National Stock Exchange (NSE)With the liberalization of the Indian economy, it was found inevitable to lift the Indianstock market trading system on par with the international standards. On the basis of therecommendations of high powered Pherwani Committee, the National Stock Exchangewas incorporated in 1992 by Industrial Development Bank of India, Industrial Credit andInvestment Corporation of India, Industrial Finance Corporation of India, all InsuranceCorporations, selected commercial banks and others.Trading at NSE can be classified under two broad categories:(a) Wholesale debt market and(b) Capital market.Wholesale debt market operations are similar to money market operations - institutionsand corporate bodies enter into high value transactions in financial instruments such asgovernment securities, treasury bills, public sector unit bonds, commercial paper,certificate of deposit, etc.There are two kinds of players in NSE:(a) trading members and(b) participants.Recognized members of NSE are called trading members who trade on behalf ofthemselves and their clients. Participants include trading members and large playerslike banks who take direct settlement responsibility.Trading at NSE takes place through a fully automated screen-based trading mechanismwhich adopts the principle of an order-driven market. Trading members can stay at theiroffices and execute the trading, since they are linked through a communication network.The prices at which the buyer and seller are willing to transact will appear on thescreen. When the prices match the transaction will be completed and a confirmation slipwill be printed at the office of the trading member.
  42. 42. NSE has several advantages over the traditional trading exchanges. They are asfollows: • NSE brings an integrated stock market trading network across the nation. • Investors can trade at the same price from anywhere in the country since inter- market operations are streamlined coupled with the countrywide access to the securities. • Delays in communication, late payments and the malpractice’s prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network.Unless stock markets provide professionalized service, small investors and foreigninvestors will not be interested in capital market operations. And capital market beingone of the major sources of long-term finance for industrial projects, India cannot affordto damage the capital market path. In this regard NSE gains vital importance in theIndian capital market system. Bombay Stock Exchange (BSE)
  43. 43. Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a richheritage. Popularly known as "BSE", it was established as "The Native Share & StockBrokers Association" in 1875. It is the first stock exchange in the country to obtainpermanent recognition in 1956 from the Government of India under the SecuritiesContracts (Regulation) Act, 1956.The Exchanges pivotal and pre-eminent role in thedevelopment of the Indian capital market is widely recognized and its index, SENSEX,is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now ademutualised and corporatized entity incorporated under the provisions of theCompanies Act, 1956, pursuant to the BSE(Corporatization and Demutualization)Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).With demutualization, the trading rights and ownership rights have been de-linkedeffectively addressing concerns regarding perceived and real conflicts of interest. TheExchange is professionally managed under the overall direction of the Board ofDirectors. The Board comprises eminentprofessionals, representatives of Trading Members and the Managing Director of theExchange. The Board is inclusive and is designed to benefit from the participation ofmarket intermediaries.In terms of organization structure, the Board formulates larger policy issues andexercises over-all control. The committees constituted by the Board are broad-based.The day-to-day operations of the Exchange are managed by the Managing Director anda management team of professionals.The Exchange has a nation-wide reach with a presence in 417 cities and towns of India.The systems and processes of the Exchange are designed to safeguard market integrityand enhance transparency in operations. During the year 2004-2005, the tradingvolumes on the Exchange showed robust growth.The Exchange provides an efficient and transparent market for trading in equity, debtinstruments and derivatives. The BSEs On Line Trading System (BOLT) is a proprietarysystem of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing& settlement functions of the Exchange are ISO 9001:2000 certified.Demat account, short term for dematerialized account is a type of banking accountwhich dematerialize the paper-based physical shares.The idea of dematerialized account is to avoid the need to hold physical shares--theshares are virtually being bought and sold through the banking account.
  44. 44. Report card of Indiabulls Financial Ltd.
  45. 45. PE ratio25.9628/03/07EPS TTM (Rs)15.81Mar, 06Sales (Rs crore)610.29Mar, 06Face Value (Rs)2Net profit margin (%)41.32Mar, 06Last dividend (%)10031/01/07
  46. 46. Relevance of Internal & Interactive MarketInternal marketing (IM) is an ongoing process that occurs strictly within a companyor organization whereby the functional process aligns, motivates and empowersemployees at all management levels to consistently deliver a satisfying customerexperience.Key concepts of internal marketing include: o IM functioning as a continual internal up skilling process. o Alignment of the organization’s purpose with employee behavior. o Employees internalizing the core values of the organization. o Motivation, reframing and empowerment of employee attitude. o Inside-out management approach. o Retaining a positive customer experience throughout the business objectivesInternal marketing is an important implementation tool. It aids communication andhelps us to overcome any resistance to change. It informs, ands involves all staff in newinitiatives and strategies. It is simple to construct, especially if you are familiar withtraditional principles of marketing.If not, it would be valuable to spend some time considering marketing plans. Internalmarketing obeys the same rules as, and has a similar structure to, external marketing.The main differences are that your customers are staff and colleagues from your ownorganization.In previous lessons, you will have seen that the process of marketing follows a familiarpattern for which we use the acronym AOSTC - Analysis, Objectives, Strategies,Tactics, and Control. In the diagram above, Jobber (1995) uses a similar approach as astructure for the implementation of internal marketing. The process is straightforward. • Set objectives for internal marketing e.g. to persuade 100 staff to join a new Performance Related Pay (PRP) scheme. • Your strategy is internal marketing. • Tactics would include an internal application of the marketing mix, and could include staff forums, presentations, an intranet, away days, videos, personal visits by company directors or newsletters.
  47. 47. • Evaluation would consider the take up of PRP against your objectives, attendees at away days, visits to an intranet page, and so on..Lets have a look a closer look at the practicalities of internal marketing Internal marketingIn previous lessons, you will have seen that the process of marketing follows a familiarpattern for which we use the acronym AOSTC - Analysis, Objectives, Strategies,Tactics, and Control. In the diagram above, Jobber (1995) uses a similar approach as astructure for the implementation of internal markefrom your own organization. • Set objectives for internal marketing e.g. to persuade 100 staff to join a new Performance Related Pay (PRP) scheme. • Your strategy is internal marketing. • Tactics would include an internal application of the marketing mix, and could include staff forums, presentations, an intranet, away days, videos, personal visits by company directors or newsletters.Implications of marketing • Who are our existing / potential customers? • What are their current / future needs? • How can we satisfy these needs? • Can we offer a product/ service that the customer would value? • Can we communicate with our customers? • Can we deliver a competitive product of service? • Why should customers buy from us?The marketing concept • choosing and targeting appropriate customers • positioning your offering • interacting with those customers • controlling the marketing effort • continuity of performance
  48. 48. Successful marketing requires: • Profitable • Offensive (rather than defensive) • Integrated • Strategic (is future orientated) • Effective (gets results) Hugh Davidson 1972Marketing management process • Analysis/Audit - where are we now? • Objectives - where do we want to be? • Strategies - which way is best? • Tactics - how do we get there? • (Implementation - Getting there!) • Control - Ensuring arrivalWhy is marketing planning necessary? • Systematic futuristic thinking by management • better co-ordination of a company’s efforts • development of performance standards for control • sharpening of objectives and policies • better prepare for sudden developmentsWhy is marketing planning necessary? • Systematic futuristic thinking by management • better co-ordination of company efforts • development of better performance standards for control • sharpening of objectives and policies • better prepare for sudden new developments • managers have a vivid sense of participationCriticisms of marketing planning • Formal plans can be quickly overtaken by events • Elements of the plan my be kept secret for no reason • gulf between senior managers and implementing managers
  49. 49. • the plan needs a sub-scheme of actionsObjectives of the marketing plan • Acts as a roadmap • assist in management control and monitoring the implementation of strategy • informs new participants in the plan of their role and function • to obtain resources for implementation • to stimulate thinking and make better use of resources • Assignment of responsibilities, tasks and timing • Awareness of problems, opportunities and threats • Essential marketing information may have been missing • if implementation is not carefully controlled by managers, the plan is worthless!The contents and structure of the marketing plan • The executive summary • table of contents • situational analysis and target market • marketing objectives • marketing strategies • marketing tactics • schedules and budgets • financial data and controlScope of studyThe scope of the study are as follows :-Limitation of study
  50. 50. However, I was able to achieve my targets assigned to me in this period of one month,but there are some roadblocks that hinders me in achieving my targets or to excel meabove my targets. These are as follows: - 1. Competitors :- In security market there are lot many player which are being emerged as a competitors and they are giving the tough competition to the Indiabulls Securities Ltd. The competitors’ products are very attractive to create new customer and grab the existing customer. 2. Lack of Knowledge:- Lack of knowledge is hamper on our target because by this people are not aware about the share market and they are having same mind set and they do not want to change their mind. 3. Conventional Ideas:- People are having conventional idea and they do not want to be changed their account because they believe in maintaining the relationship whether they are on risk cause of they are having their account in local brokers so it is also hassle to complete the target. 4. Misconception:- In the mind of the people they are having misconception because they think that the share market is like gamble so the word to mouth publicity is going in negative way. 5. Time Constraint:- Time limit is one of the most hassle in the way of achieving the target because time can not be in hand and some times customers give the time when we are on other work so it is the lost of customer. 6. Unknown Location:- We are not familiar with the Udaipur city so sometimes we cannot reach out the customer and that is why customer are switching their idea to open demat account from Indiabulls to another. 7. Conveyance Problem:- We are out sider in Udaipur so we are not having proper conveyance so we cannot reach out to last or inside of the city.
  51. 51. 8. Irregularity of Market:- It is also one of the most hassle by that investors fear to invest although they are having good knowledge so we cannot help them out to break their thinking. DATA COLLECTION & ANALYSIS 1. INVESTMENT CRITERIA OF CUSTOMERS FIELDS EQUITIES DERIVATIVES OTHERS NO. 40 52 8RESPONDENTS
  52. 52. INTERPRETATION: From the above graph we can analyze the priority level of the customers ininvesting different markets. 52% customers gave priority to do investment in derivativesmarker, 40% liked to invest in equities, but a very low % showed their interest to investin others like: funding etc. 2. TYPE OF TRADING Response Intraday Cash Margin No. of 33 49 18 respondents
  53. 53. INTERPRETATION:The above graph shows the comparison between different types of trading. The mass %of customers shows their interest to trade in cash as it is 49%. The 33% of customersliked to trade in intra day but very less % was seen to do trading on margin. 3. AGE FACTOER INFLUENCING INVESTMENT IN EQUITIES AND DERIVATIVESAGE GROUP 18-25 25-40 40-55 ABOVE 55 NO.OF 10 55 25 10RESPODENTS
  54. 54. INTERPRETATION:INTERPRETATION:The above analysis shows that 55% of people invest between the age group of 25-40,which indicates that the age is big factor which influence the customer’s tradingbehavior. 4. PURPOSE OF TRADINGResponse Investmen Earning Financial Professio Others t support n No. of 38 17 27 9 9Responden ts
  55. 55. INTERPRETATION:From the above graph it is seen that ‘purpose’ of trading is an another major factorwhich influence the customer’s trading behavior.We can see that  38% of people do trade for the purpose of earning.  27% people like to trade for the purpose of investment  17% want financial support.  Rests 9% do trade for professionalism. 5. FREQUENCY OF TRADING Response Daily Alternative day Twice a week Weekly Monthly No. of 20 25 13 15 27Respondents
  56. 56. INTERPRETATION:  25% people like to trade alternative day,  20% daily,  13% twice a week,  15% weekly,  But major %( i.e. 27) shows their interest to trade monthly. 6. SATISFACTION LEVEL OF CUSTOMERS Response Yes No No. of Respondents 67 33
  57. 57. INTERPRETATION:This diagram shows the satisfaction level of customers about the services provided bythe Indiabulls,67% people were satisfied with the services provided by the Indiabulls & a very least %of customers i.e. 33% were unsatisfied. FACT AND FINDINGSFindings:  52% of customers prefer to invest in derivatives, 40% in equities & rest in others.  49% of customers like to trade in cash, 33% in intra day & rest in margin  The above analysis shows that 55% of people invest between the age group of 25-40.  38% of people do trade for the purpose of earning, 27% people like to trade for the purpose of investment, 17% want financial support and 9% do trade for professionalism.
  58. 58.  Almost 67% of customers are satisfied with the services provided to them by India bulls securities limited.Observations:  In Udaipur most prospects trust brand, which are i.e. local broker for trading of Equities and Derivatives.  There are problems in availability of services regarding to the tips, which is given to the customers.  In some areas like: small customers, Relatives of the brokers etc. the demand of the service provided by Indiabulls is very low.  Services (Tipping/ Funding/ A/c information) for Customer is more important as compared to make them Customer.  After giving the good departments in one office there is always a conflict between both the departments. (Because the work of both departments is same in Online and Offline.)  There is also no proper database for the employee about the customers so it derives conflict between the employees about their prospective customers.SWOT AnalysisSTRENGTH & OPPORTUNITY • Inflation • Employment • Disposable income • Business cycles • Energy availability and cost • Others?
  59. 59. WEAKNESS & THREATS • Demographics • Distribution of income • Social mobility • Lifestyle changes • Consumerism • Levels of education • Others?Conclusion After studying all the aspects of the "A Study on significance and relevance ofinternal & interactive marketing for financial marketing with special reference toINDIA BULLs" including the theoretical aspects we can conclude that internal &Interactive is applicable to the Indian stock market but to an extend. It can benefit tostock market.
  60. 60. As far as financial marketing is very necessary for Indian stock market is concerned,which is constantly monitored and upgraded to pre-empt market failures. It can betermed as good but it is not enough to reduce the risk of broking house. Broking housesitself have to take actions for reducing the risk bears by itself and its customers.As far as Indiabulls securities ltd. is concerned, its internal & interactive marketing forfinancial marketing system is good. The company has instituted a specialized internal &interactive marketing for financial marketing management team and its systems aremanaged centrally to ensure that it can, at all times, measure and manage the financialmarketing on online and offline transactions on a real-time basis. Marketing dept. of theco. is doing well to increase the trading and settlement process.As we all are very well aware that stock market is so much volatile and unpredictablethat nobody can trace the behavior of the market. In this situation risk managementsystem provides effective tools to reduce the risk of investors and broking houses.RECOMMENDATION & SUGGESTION  Exiting customers should be provided better response & services so that by there good Word Of Mouth Company will get more customers.  Advertisements should be given in the magazines related to Business, Management service, Electronics media, and business world or by installing stalls in different-different areas etc.  Awareness should be created among the prospective clients.  Interest rate on funds provided to investors should be reduced.  Company should focus on the age group of 25-40.
  61. 61. D-MAT ACCOUNT--- QUESTIONNAIRE
  62. 62. Question1. Pleaseshare somebasicinformationon dmat a/cinvesting.Question2. Howshould Idecide in d-mat a/cinvestmentis right forme?Question3. Howshould Istudy d-mata/c before Imake myselection?
  63. 63. Question4. In whichmannershould Imanage myd-mat a/c?Question5. Whenshould I buyto minimizemy costsand sell tomaximizethe profits?Question6. What arethe risksinvolvedsharemarketinvesting?
  64. 64. Question7. How do Igo aboutinvestingsharemarket?Question8. What arethe costs ofopening d-mat a/c?
  65. 65. Question9. How isincome fromsharetradingtaxed?Question10. Whichcategory ofshare isbest forinvestment?Question11. What isthegrievanceredressalfacilityavailable forsharetradinginvests.
  66. 66. QUESTIONAIRE Demographic DataContact Person: ________________________________________Address:_____________________________________________Designation: ________________________________City:____________________Phone No.:_________________ Fax:_______________ E-mail:__________________Website: ______________________1. Existing broker: i ISL g ICICI Other (Local Broker)2. In which you prefer to do investment? n Equities i Derivatives a Other3. What type of trading you prefer to do? a Intraday d Delivery Based e F&O
  67. 67. 4. What age group is best for the investment according to you? a 18-25 a 25-40 a 40-55 a Above 555. What is your purpose of trading? Investment Financial Support Earning n Profession s Other6. What is the frequency of your trading? Daily Alternative Day Twice a Week Weekly y Monthly7. Are you satisfied with the service provided by the Indiabulls? r Yes r No8. Are you planning to attach with Indiabulls? e Yes e No Can’t Say
  68. 68. BibliographyBooks referred  Investment management: V.K. Bhalla  Options, Futures and other Derivatives : John C. Hull  Financial management: M.Y. Khan, Jain  Financial Management : Prasana Chandra  Research Methodology: C.R. Kothari.Websites Referred  www.indiabulls.com  www.nseindia.com  www.bseindia.com  www.equityresearch.com

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