A STUDY OF INVESTORS OPINIONABOUT ON LINE TRADING:CASE OF         M-SOLL LTD.                             A               ...
Batch 2009-2011                CANDIDATE’S DECLARATIONI hereby certify that work which is being presented in the dissertat...
CONTENTS1. Acknowledgement2. Objective of the study3. Research methodology4. Company Profile5. Indian Stock Market Overvie...
9. Marketing Strategies of Company10. Competitive Analysis      a) 5paisa      b) Kotakstreet      c) Indiabulls      d) I...
ACKNOWLEDGEMENTBehind every study there stands a myriad of people whose helps andcontributions make it successful. I would...
OBJECTIVE OF THE STUDYIt is said that the well defined objective is half attained. In order tomake sure that a proper rese...
RESEARCH METHODOLOGYAn exploratory research has been carried out to study the behaviorof customers. To meet the research o...
COMPANY PROFILEM-SOLL is driven by ethical and dynamic process for wealthcreation. Based on this, the company started its ...
which M-SOLL are empanelled as an approved broker is a reflectionof the high level service standard maintained by the comp...
M-SOLL COMMODITIES LIMITEDM-SOLL is a member of NCDEX and MCX and provides platform fortrading in commodities, which is an...
M-SOLL INSURANCE BROKING LTD.M-SOLL has been taking care of financial services for long but there was amissing link. Finan...
M-SOLL TodayAn ISO 9001:2000 CompanyMember of National Stock Exchange (NSE) since November 1994, first depositbased member...
Mission and VisionMissionTo be Indias first Multinational providing complete financial servicessolution across the globe.V...
ProductsThe main products which are dealing by M-SOLL securities Ltd areas follows:-1. Equity(Shares)2. Mutual Funds3. Der...
Indian Stock Market OverviewThe Bombay stock exchanges (BSE) and the National Stock Exchange of IndiaLtd (NSE) are the two...
The OrganizationThe National Stock Exchange of India Limited has genesis in thereport of the High Powered Study Group on E...
NSE MissionNSEs mission is setting the agenda for change in the securitiesmarkets in India. The NSE was set-up with the ma...
NSE has been promoted by leading financial institutions, banks,insurance companies and other financial intermediaries:•   ...
Corporate StructureNSE is one of the first de-modularized stock exchanges in thecountry, where the ownership and managemen...
ABOUT BSEThe Stock Exchange, Mumbai, popularly known as "BSE" wasestablished in 1875 as "The Native Share and Stock Broker...
Turnover on the Exchange  •   The average daily turnover of the Exchange during the      financial year 2008-2009 and 2009...
The Surveillance Department monitors exposure of the members ona daily basis. It also scrutinizes the prices and volumes o...
Inspection of the broker’s booksIn terms of the instructions issued by the Ministr y of Finance,Government of India, Stock...
Indian ScenarioStrengthsThe `do-it-yourself framework of online share trading offers retailinvestors the three benefits of...
•   Lack of Internet penetration  •   Bandwidth infrastructure  •   Poor quality of ISP infrastructure.”OpportunitiesYou h...
investors with misleading information. Prices of scripts can also beinfluenced to the advantage of vested interests, court...
Volatility of India’s Stock MarketsRecent market developments have once more focused attention onthe volatility that has c...
investors, who, in herd-like fashion tend to follow the FIIs whenmaking their investment decisions.Rampant SpeculationThe ...
Effect of technologyThe growth in technology and communications has impacted everyaspect of business in some or the other ...
The exhibit below shows the percentage of demat shares in the total value ofshares traded at NSE over a period of 6 years....
Trading via Internet was an instant hit, with 18 members beinggranted licenses and trades touching 767 Cr.Although securit...
Adverse impacts of IT on stock marketsSome other interesting observations about impact of technology onstock markets –The ...
Broking….personalizedIf you prefer the assurance and reliability of trading through abroker, you can use our network of 25...
•   Yellow Pages     Yellow pages are used to gather data for making calls so that    customer who did not fine time and a...
•     Competitiveness:- The company is innovative and       uses the latest technology to improve the product to fulfill t...
Brokerage      Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable)      Exposure: -4 to10 times (For Intraday)...
(C) For residential proof:- Bank statement/ Voter ID Card/                     Ration Card/ Driving License/ Passport/ Tel...
5paisa.comCompany BackgroundIndiainfoline was founded in 1995 and was positioned as a research firm. In2000 e-broking was ...
Limited ground network, present in 20 CitiesOnline Account Types•   Investor Terminal : Investors / Students•   Trader Ter...
•Account Opening: Rs 500•Demat 1st Yr: Rs 250•Initial Margin: Rs 5000(Compulsory)•Min Margin Retainable: Rs 1000•Brokerage...
Similarly limit released for shares sold under BTST is manualDelay in receiving pay-out of clear funds from trading to Ban...
•Account Opening: Rs 500•Demat: Rs 22.5 p.m•Initial Margin: Rs 5000(Compulsory)•Min Margin Retainable: Rs 1000•Brokerage S...
No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)No flexibility in Brokerage, driven by slab ...
INDIABULLSCompany BackgroundIndiaBulls is a retail financial services company present in 70 locationscovering 62 cities. I...
Power IndiaBulls•Account Opening: Rs 750•Demat: Rs 200 if POA is signed, No AMC for this DP•Initial Margin: NIL•Brokerage:...
ICICI Direct.comCompany BackgroundICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is anAffiliate of ICICI B...
•Brokerage: All brokerage is inclusive of stamp duty and exclusive of othertaxes.            Deal Clinchers v/s ICICIDirec...
HDFC SecuritiesCompany BackgroundHDFC Securities Ltd, is promoted by the HDFC Bank, HDFC and Chase CapitalPartners and the...
Deal Clinchers v/s HDFC Securities•Poor online InterfaceApart from having no product to cater to Day-Traders, the hdfcsec....
FINDINGS OF COMPETITIVE ANALYSIS• M-SOLL has the unique product in the market related to the  expectations desired by the ...
LIMITATIONS OF COMPETITIVE ANALYSISServices of competitors:We cannot give proper comment on competitor’s services till we ...
MARKET RESEARCH ANALYSIS1.    Tick the age category to which you belong ?                   Age                           ...
2. Please tick the gender to which you belong ?               (A)Male                   (B)Female           Female, 18    ...
3. Tick the occupation to which you belong ?               Occupation                    Percentage               Servicem...
4. Please tick your monthly income ?            Monthly Income              Percentage             Up to 10000            ...
5. Please tick your preference for trading ?                 (A) Broking Firm          (B) Sub Broker                     ...
6. Please tick where do you invest ?                   Area of Invest                     Percentage              Fixed De...
7:- Please rank the factors that influences your decisions to open a DMAT    Account ?           Factor influencing for op...
relationship with manager get IInd higher priority factor which influenceopening of DMAT A/C is 14%.      7. Pick tick the...
8. In which of these financial instruments do you invest in to?        (A) Shares                              (B) Mutual ...
Awareness of online share trading                                                       yes--40%                          ...
Awareness of Religare as a Brand                                                           Yes-- 63%                      ...
Demat account market          Share                                                Religare                  15%          ...
LEARNINGS1. I learned to apply a lot of theoretical knowledge into practical   use.2. As my work included the sales, I lea...
FINDINGS1. People prefer more trading through sub brokers as they are   personally attached with them.2. The most of the p...
CONCLUSIONIn spite of these optimistic numbers, online trading in India is at avery nascent stage (about 2 percent of tota...
BIBLIOGRAPHYNewspaper and magazinesThe Economic TimesBusiness WorldBooks:* Stock exchange & investments - V Raghunathan* S...
• Websites: www.investmartindia.com www.indiabulls.com www.bseindia.com www.nseindia.com www.equityresearch.com www....
ANNEXUREQUESTIONNAIRE1. Please tick the age category to which you belong.  A) 20-29   B) 30-39    C) 40-49    D) 50-602. P...
7. Please Rank, The factor that influences your decision to open aDMAT Account.   1 = Most Preferable     7 = Least Prefer...
10. Which type of trading you prefer? (i) Online     (ii) Offline       (iii) Not Applicable11. If you prefer Online Tradi...
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A study of investors opinion about on line tradingcase of m soll ltd.

  1. 1. A STUDY OF INVESTORS OPINIONABOUT ON LINE TRADING:CASE OF M-SOLL LTD. A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENTOF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE’S OF MASTER OF BUSINESS ADMINISTRATION Of Uttrakhand Technical University, DehradunUnder the guidance of: Submitted by: RANARATNAKAR Mrs. INDU GAUTAM (Asst. Professor) (MBA) MARKETING OMKARANANADA INSTITUTE OF MANAGEMENT & TECHNOLOGY RISHIKESH-249201
  2. 2. Batch 2009-2011 CANDIDATE’S DECLARATIONI hereby certify that work which is being presented in the dissertation report,entitled “A Study of Investors Opinion About On Line Trading: Case ofM-SOLL Ltd.” for partial fulfillment of the requirement for the award of thedegree of “Master Of Business Administration” in “Finance” Submitted inOmkarananda Institute Of Management And Technology (OIMT), ofUttrakhand Technical University is record of my own work, under theguidance of Mrs. Indu Gautam , Asst. Professor in OIMT, RISHIKESH.DATE: MBA (Finance)This is to certify that the above statement made by the candidate iscorrect to the best of our knowledge.Dr. ADITYA GAUTAM Mrs. Indu GautamDirector, Asst. ProfessorOIMT, Rishikesh OIMT, Rishikesh RANA RATNAKAR
  3. 3. CONTENTS1. Acknowledgement2. Objective of the study3. Research methodology4. Company Profile5. Indian Stock Market Overview6. About NSE7. About BSE8. Indian Scenario (a) SWOT (b) Hurdles for Online Share Trading (c) Effect of Technology
  4. 4. 9. Marketing Strategies of Company10. Competitive Analysis a) 5paisa b) Kotakstreet c) Indiabulls d) ICICI Direct e) HDFC Securities11. Findings of Competitive Analysis12. Limitations of Competitive Analysis13. Market Research Analysis14. Learnings15. Findings16. Conclusion17. Bibliography18. Annexure
  5. 5. ACKNOWLEDGEMENTBehind every study there stands a myriad of people whose helps andcontributions make it successful. I would like to express my sinceregratitude towards Omkarananda Institute of Management andTechnology (OIMT) for having provided me an opportunity to workand learn through this report.I am extremely grateful to my project guide Mrs. Indu Gautam,Assistant Professor, Omkaranada Institute of Management andTechnology, Rishikesh, for guiding me in preparing my dissertationreport a memorable learning experience. Her constant support as well asthe confidence which she showed in me helped me tide over thedifficulties. RANA RATNAKAR M.B.A.{MARKETING}
  6. 6. OBJECTIVE OF THE STUDYIt is said that the well defined objective is half attained. In order tomake sure that a proper research has been taken ensures definingclear cut objectives and outlines is a prerequisite. The researchobjectives of the study are: • To understand about online trading. • To know about the stock market. • To know the prevalence of on line trading and its significant impacts on the trading patterns of investors, trading volume, transaction costs, securities service industry and overall market operation. The speed and lower transaction costs of online trading encouraged investors to trade frequently in pursuit of short swing profits making a day trading prevalent on the market.
  7. 7. RESEARCH METHODOLOGYAn exploratory research has been carried out to study the behaviorof customers. To meet the research objective a research formats, tocollect information from the respondents was made & theinformation was collected through individual interaction with theresearcher. The data was collected using scientific method as perthe questionnaire sample elements have been chosen byobservation techniques.Research DesignResearch was conducted to know the scope of on line trading, so itwas designed as Analytical.1. Sample Design: Data for this study has been collected fromprimary sources. For the collection of data CONVENIENCESAMPLING has been used.2. Sample Size: Sample size for the study was 100 for theuniverse of the urban area, Haridwar.Primary data: Primary data was collected with the help of:1. Questionnaire2. Personal Interviews
  8. 8. COMPANY PROFILEM-SOLL is driven by ethical and dynamic process for wealthcreation. Based on this, the company started its endeavor in thefinancial market.M-SOLL enterprises limited (a Ranbaxy promoter group company)through M-SOLL securities limited, M-SOLL finvest limited, M-SOLLcommodities limited and M-SOLL insurance broking limited providesintegrated financial solutions to its corporate, retail and wealthmanagement clients. Today, we provide various financialservices which include investment banking, corporate finance,portfolio management services, equity & commodity broking,insurance and mutual funds. Plus, there’s a lot more to comeyour way.M-SOLL is proud of being a truly professional financial serviceprovider managed by a highly skilled team, who have proven trackrecord in their respective domains. M-SOLL operations are managedby more than 3000 highly skilled professionals who subscribe to M-SOLL philosophy and are spread across its country wide branches.Today, we have a growing network of more than 300 branches andmore than 580 business partners spread across more than 300cities/towns in India and a fully operational international office atLondon.Unlike a traditional broking firm, M-SOLL group works on thephilosophy of partnering for wealth creation. We not only executetrades for our clients but also provide them critical and timelyinvestment advice. The growing list of financial institutions with
  9. 9. which M-SOLL are empanelled as an approved broker is a reflectionof the high level service standard maintained by the company.M-SOLL Enterprises Limited group comprises of M-SOLL SecuritiesLimited, M-SOLL Commodities Limited, M-SOLL Finvest Limited andM-SOLL Insurance Broking Limited which deal in equity, commodityand financial services business.M-SOLL SECURITIES LIMITEDRSL is one of the leading broking houses of India and are dealinginto Equity Broking, Depository Services, Portfolio ManagementServices, Internet Trading, Institutional Equity Brokerage & Research,Investment Banking, Merchant Banking and Corporate Finance.To facilitate free and fare trading process M-SOLL is a member ofmajor financial institutions like, National Stock Exchange of India,Bombay Stock Exchange of India, Depository Participant withNational Securities Depository Limited and Central DepositoryServices (I) Limited, and a SEBI approved Portfolio Manager.RSL serves a platform to all segments of investors to avail theopportunities offered by investing in Indian equities either on theirown or through managed funds in Portfolio Management.
  10. 10. M-SOLL COMMODITIES LIMITEDM-SOLL is a member of NCDEX and MCX and provides platform fortrading in commodities, which is an online facility also.RCL provides platform to both agro and non-agro commodity tradersto derive the actual price of the commodity and also to trade andhedge actively in the growing commodity trading market in India.With this realisation, M-SOLL Commodities is coming up with itsbranches at mandi locations. It is a flagship effort from our teamwhich would be helpful in facilitating trade and speculating price ofcommodities in future.M-SOLL FINVEST LIMITEDM-SOLL Finvest Limited (RFL), a Non Banking Finance Company(NBFC) is aggressively making a name in the financial services arenain India. In a fast paced, constantly changing dynamic businessenvironment, RFL has delivered the most competitive products andservices.RFL is primarily engaged in the business of providing financeagainst securities in the secondary market. It also provides financefor application in Initial Public Offers to non-retail clients in theprimary market
  11. 11. M-SOLL INSURANCE BROKING LTD.M-SOLL has been taking care of financial services for long but there was amissing link. Financial planning is incomplete without protective measure i.e.structured products to take care of event of things that may go wrong.M-SOLL Insurance Broking Limited. As composite insurance broker, deals inboth insurance and reinsurance, providing our clients risk transfer solutions onlife and non-life sides.
  12. 12. M-SOLL TodayAn ISO 9001:2000 CompanyMember of National Stock Exchange (NSE) since November 1994, first depositbased member of BSE.Depository Participant with - National Securities Depository Limited (NSDL) since July 2000 - Central Depository Services (India) Limited (CDSL) since Feb 2003.- SEBI Approved Portfolio ManagerWorking on the Philosophy of being “Financial Care Partner”Among the leading service provider in Capital Market In a span of less than fiveyears of its retail operations, RSL recorded a healthy growth rate both inbusiness volumes and profitability.M-SOLL is among the very few stock market intermediaries to having verysound based capital and healthy net worth.M-SOLL aims to have its footprint all across the country by the end of year sothat it may add value to the investing community in the country.ManagementM-SOLL team is led by a very eminent Board of Directors who providepolicy guidance and work under the active leadership of its CEO &Managing Director and support of its Central Guidance Team.
  13. 13. Mission and VisionMissionTo be Indias first Multinational providing complete financial servicessolution across the globe.VisionProviding integrated financial care driven by the relationship of trustand confidence.
  14. 14. ProductsThe main products which are dealing by M-SOLL securities Ltd areas follows:-1. Equity(Shares)2. Mutual Funds3. Derivatives(F&O)4. Commodities5. Portfolio Management Services(PMS)
  15. 15. Indian Stock Market OverviewThe Bombay stock exchanges (BSE) and the National Stock Exchange of IndiaLtd (NSE) are the two primary exchange in India. In addition, there are22Regional Stock Exchanges However, the BSE and NSE have establishedthemselves as the two leading exchanges and account for about 80% of theequity volume traded in India.The average daily turnover at the exchanges has increased from Rs. 851 crorein 1997-98 to Rs. 1,284 crore in 1998-99 and further to Re. 2273 crore in 1999-2000 (April- August 1999). NSE has around 1500 shares listed with a totalmarket capitalization of around Rs. 921500 crore (Rs. 9215 Bln). The BSE hasover 6000 stocks listed and has a market capitalization of around Rs. 968000crore (9680 Bln). Most key stocks are traded on both the exchanges and hencethe investor could buy them on either exchange. Both exchanges have adifferent settlement cycle, which allows investors to shift their positions on thebourse. The primary index of BSE is BSE Sensex comprising 30 stocks. NSEhas the S&P NSE 50 index (Nifty) which consists of fifty stocks.The BSE Sensex is the older and more widely followed index. Both theseindices are calculated on the basis of market capitalization and contain theheavily traded shares from key sectors. The markets are closed on Saturdaysand Sundays. Both the exchanges have switched over from the open outcrytrading system to a fully automated computerized mode of trading known asBOLT (BSE On Line Trading) and NEAT (National Exchange AutomatedTrading) System. It facilitates more efficient processing, automatic ordermatching, faster execution of trades and transparency.The Scripts traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’and ‘Z’ groups. The ‘A’ group shares represent those, which are in the carryforward system (Badla). The ‘F’ group represents the debt market (fixed incomesecurities) segment. The ‘Z’ group scripts are the blacklisted companies. The ‘C’group covers the odd lot secutities in ‘A’, ‘B1’& ‘B2’ groups and Rightsrenunciations. The key regulator governing Stock Exchanges, Brokers,Depositories, Depository participants, Mutual Funds, FIIs and other participantsin Indian secondary and primary market is the Securities and Exchange Boardof India (SEBI) Ltd. About NSE
  16. 16. The OrganizationThe National Stock Exchange of India Limited has genesis in thereport of the High Powered Study Group on Establishment of NewStock Exchanges, which recommended promotion of a NationalStock Exchange by financial institutions (FIs) to provide access toinvestors from all across the country on an equal footing. Based onthe recommendations, NSE was promoted by Leading FinancialInstitutions at the behest of the Government of India and wasincorporated in November 1992 as a tax-paying company unlikeother stock exchanges in the country.On its recognition as a stock exchange under the SecuritiesContracts (Regulation) Act, 1956 in April 1993, NSE commencedoperations in the Wholesale Debt Market (WDM) segment in June1994. The Capital Market (Equities) segment commencedoperations in November 1994 and operations in Derivativessegment commenced in June 2000. NSE Group NSCCL IISL NSE.IT DotEx Intl. NSDL Ltd.
  17. 17. NSE MissionNSEs mission is setting the agenda for change in the securitiesmarkets in India. The NSE was set-up with the main objectives of: • establishing a nation-wide trading facility for equities, debt instruments and hybrids, • ensuring equal access to investors all over the country through an appropriate communication network, • providing a fair, efficient and transparent securities market to investors using electronic trading systems, • enabling shorter settlement cycles and book entry settlements systems, and • meeting the current international standards of securities markets.The standards set by NSE in terms of market practices andtechnology have become industry benchmarks and are beingemulated by other market participants. NSE is more than a meremarket facilitator. Its that force which is guiding the industrytowards new horizons and greater opportunities. Promoters
  18. 18. NSE has been promoted by leading financial institutions, banks,insurance companies and other financial intermediaries:• Industrial Development Bank of India Limited• Industrial Finance Corporation of India Limited• Life Insurance Corporation of India• State Bank of India• ICICI Bank Limited• IL & FS Trust Company Limited• Stock Holding Corporation of India Limited• SBI Capital Markets Limited• Bank of Baroda• Canara Bank• General Insurance Corporation of India• National Insurance Company Limited• The New India Assurance Company Limited
  19. 19. Corporate StructureNSE is one of the first de-modularized stock exchanges in thecountry, where the ownership and management of the Exchange iscompletely divorced from the right to trade on it. Though theimpetus for its establishment came from policy makers in thecountry, it has been set up as a public limited company, owned bythe leading institutional investors in the country.From day one, NSE has adopted the form of a demutualisedexchange - the ownership, management and trading is in the handsof three different sets of people. NSE is owned by a set of leadingfinancial institutions, banks, insurance companies and otherfinancial intermediaries and is managed by professionals, who donot directly or indirectly trade on the Exchange. This hascompletely eliminated any conflict of interest and helped NSE inaggressively pursuing policies and practices within a public interestframework.The NSE model however, does not preclude, but in factaccommodates involvement, support and contribution of tradingmembers in a variety of ways. Its Board comprises of seniorexecutives from promoter institutions, eminent professionals in thefields of law, economics, accountancy, finance, taxation, etc, publicrepresentatives, nominees of SEBI and one full time executive ofthe Exchange.While the Board deals with broad policy issues, decisions relatingto market operations are delegated by the Board to variouscommittees constituted by it. Such committees includerepresentatives from trading members, professionals, the publicand the management. The day-to-day management of the Exchangeis delegated to the Managing Director who is supported by a teamof professional staff .
  20. 20. ABOUT BSEThe Stock Exchange, Mumbai, popularly known as "BSE" wasestablished in 1875 as "The Native Share and Stock BrokersAssociation". It is the oldest one in Asia, even older than theTokyo Stock Exchange, which was established in 1878. It is avoluntary non-profit making Association of Persons (AOP) and iscurrently engaged in the process of converting itself intodemutualised and corporate entity. It has evolved over the yearsinto its present status as the premier Stock Exchange in thecountry. It is the first Stock Exchange in the Country to haveobtained permanent recognition in 1956 from the Govt. of Indiaunder the Securities Contracts (Regulation) Act, 1956.The Exchange, while providing an efficient and transparent marketfor trading in securities, debt and derivatives upholds the interestsof the investors and ensures redressal of their grievances whetheragainst the companies or its own member-brokers. It also strives toeducate and enlighten the investors by conducting investoreducation programmes and making available to them necessaryinformative inputs.A Governing Board having 20 directors is the apex body, whichdecides the policies and regulates the affairs of the Exchange. TheGoverning Board consists of 9 elected directors, who are from thebroking community (one third of them retire ever year by rotation),three SEBI nominees, six public representatives and an ExecutiveDirector & Chief Executive Officer and a Chief Operating Officer.The Executive Director as the Chief Executive Officer isresponsible for the day-to-day administration of the Exchange andhe is assisted by the Chief Operating Officer and other Heads ofDepartments.The Exchange has inserted new Rule No.126 A in its Rules, Bye-laws & Regulations pertaining to constitution of the ExecutiveCommittee of the Exchange. Accordingly, an Executive Committee,consisting of three elected directors, three SEBI nominees or publicrepresentatives, Executive Director & CEO and Chief OperatingOfficer has been constituted.
  21. 21. Turnover on the Exchange • The average daily turnover of the Exchange during the financial year 2008-2009 and 2009-10 (April-March), was Rs. 2978.81 crores and Rs. 3150.26 cores respectively. • The average number of daily trades recorded during the above period was 8.98 lakhs and 10.38 lakhs respectively.The ban on all deferral products like Borrowing & Lending ofSecurities Scheme (BLESS) and Automated Lending & BorrowingMechanism (ALBM) in the Indian capital markets by SEBI w.e.f.July 2, 2009, abolition of account period settlements, introductionof Compulsory Rolling Settlements in all scrips traded on theExchanges w.e.f. December 31, 2009, etc. have adversely impactedthe liquidity in the market and consequently there is a considerabledecline in the average daily turnover at the Exchange as reflectedin above statistics. Safety of the marketOne of the objectives of the Exchange is to promote and inculcatehonorable and just practices of trade in securities transactions andto discourage malpractices.The surveillance function at the Exchange has assumed greaterimportance in the last few years. The Securities and ExchangeBoard of India (SEBI) had directed the Stock Exchanges in August1995 to set up a separate Surveillance Department with staffexclusively assigned to surveillance functions. The Exchange hasaccordingly set up a separate Surveillance Department to keep aclose watch on price movement of scripts, detect marketmanipulations like price rigging, etc., monitor abnormal prices andvolumes which are not consistent with normal trading pattern andmonitor the member-brokers position to ensure that defaults do notoccur. This Department, which is headed by a General Manager,reports directly to the Executive Director.
  22. 22. The Surveillance Department monitors exposure of the members ona daily basis. It also scrutinizes the prices and volumes of thescripts on a daily basis.As per the guidelines issued by SEBI, the Exchanges are requiredto apply a daily Circuit Filter of 20% on all the scripts except on thescripts on which derivative products are available or are included inthe indices on which derivative products are available. On thesescripts Exchange has imposed dummy circuit filters to avoidpunching error by members, if any. The imposition of circuit filterson scripts ensures that the price of the scrip cannot move upwardor downward beyond the limit set for a day.The large variations in the prices as well as the volumes of thescripts are scrutinized and appropriate actions are taken. Thescripts which reach new high or new low and companies which havehigh turnover are watched. Also the prices and volumes in thenewly listed scripts are monitored. In case certain abnormalities arenoticed, then circuit filters are reduced to make it difficult for theprice manipulators to increase or push down the prices of a scripwithin a short period of time. The Exchange imposes special marginin the scripts where it is suspected that there is an attempt to rampup the prices by creating artificial volumes.Brokerage and other transaction costsBrokerage is negotiable. The Exchange has not prescribed anyminimum brokerage. The maximum brokerage is subject to a ceilingof 2.5 percent of the contract value. However, the averagebrokerage charged by the members to the clients is much lower.Typically there are different scales of brokerages for deliverytransaction, trading transaction, etc.The Stamp Duty on transfer of securities in physical form is to bepaid by the seller but in practice it is paid by the buyer whileregistering the shares in his name. In case of transfer of shares,the rate is 50 paise for every Rs.100/- or part thereof on the basisof the amount of consideration and that for transfer of debenturesthe rate of stamp duty varies from State to State, where theregistered office of a Company issuing the debentures is located.
  23. 23. Inspection of the broker’s booksIn terms of the instructions issued by the Ministr y of Finance,Government of India, Stock Exchanges are required to inspect the booksof accounts of at least 10% of their active members in a financial year.T he Inspection Department of the Exchange has been entrusted with thisresponsibility. Notably, ever y year, the number of inspections carried outby the Exchange, far exceeds the level prescribed in this regard by theMinistr y of Finance.T he Exchange has also constituted a panel of Chartered Accountants toconduct inspection of the book and accounts of the members. Thepurpose of involving independent Chartered Accountants in this work isto inspect the books of accounts of ever y members at least once inever y three years.T he Exchange has also prepared a detailed "Guidance Manual forinspection of member-brokers" to assist the Chartered Accountants inthe inspection of the books of accounts of members.T he purpose of the inspection is to verif y whether the member hasmaintained the required books of accounts as per the SecuritiesContracts (Regulation) Rules, 1957, whether the member has issuedcontract notes in the proper format prescribed by the Exchange, whetherbrokerage has been indicated separately therein, whether the memberhas adhered to the Rules, Regulations and By- laws of the Exchange andguidelines issued by the Exchange and SEBI from time to time, etc.T he findings of the inspection are conveyed to the members and follow-up action is taken based on the responses/clarifications provided by themembers. If the violations are of serious nature, the matter is referred tothe Disciplinary Action Committee of the Exchange.T he members are required to get their annual accounts audited from aChartered Accountant and submit an Audit Certificate as well as theProfit & Loss Account and Balance Sheet to the Exchange. T he membersare also required to submit net worth certificates as at the end of Marchand September ever y year. Filing of these documents by the members isalso monitored by the Inspection Department.
  24. 24. Indian ScenarioStrengthsThe `do-it-yourself framework of online share trading offers retailinvestors the three benefits of transparency, access and efficiency.Paperwork diminishes significantly, and no more painful trips toyour broker to check if everythings in order. Online trading hasmade it possible to universalize access to retail investors. This wasearlier very difficult, as the cost of servicing often-outweighedtransaction volumes. Online brokerage ranges between 0.05-0.20per cent of the value of transactions for non-delivery-based trades,and between 0.25-0.95 per cent for delivery-based trades. Oncemajor investments in online infrastructure are over and done with -and with the economies of scale coming into play - it is expectedthat brokerage rates would head further downwards.Access to online trading and latest financial happenings, apart fromquotes and unbiased investment analyses, all consolidate into avalue-added product mix in tandem with evolving markets that arefreer and fairer. The Net result: An inquisitive, informed anddemanding investor.Todays investor is more involved in managing his or her assetsand Sanalyzing a vast array of investment options. Technology andtodays enabled investor have, in turn, driven competition, resultingin reduced costs of trading, transparency in dealings, and pricinginfo that is accurate and real-time. More and more investors nowwant to know how their trades are executed, and whether they havereceived the best possible price.WeaknessesEvery thing in the world has a flip side to it - Transaction velocity iscrucial. And more often than not, connections are lousy. Theresalso a degree of investor skepticism about online payment andsettlement mechanisms in spite of all the encryption and firewalling brought into play. Time and technology will soon assuagethese concerns, which hark back to the `physical days.“The three main technology obstacles which have preventedInternet broking from taking off are:
  25. 25. • Lack of Internet penetration • Bandwidth infrastructure • Poor quality of ISP infrastructure.”OpportunitiesYou have some money to dabble with. Trading shares on BSE/NSEhas always been your dream. When will you ever find the time? Andbesides, the hassle of finding a broker is not easy. This is yourmain opportunity.Realizing there is untapped market of investors who want to beable to execute their own trades when it suits them, brokers havetaken their trading rooms to the Internet. Known as online brokers,they allow you to buy and sell shares via Internet.There are 2 types of online trading service: discount brokers andfull service online broker . Discount online brokers allow you totrade via Internet at reduced rates. Some provide quality research,other don’t. Full service online brokerage is linked to existingbrokerages. These brokers allow their clients to place online orderswith the option of talking/ chatting to brokers if advice is needed.Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com,IndiaBulls.com, M-SOLL.in, Geojit securities.com, HDFCsec.com,Tatatdw.com, Kotaksecurities.com are some of the online brokingsites in India.And daily trading turnover is estimated in the vicinity of 0.75 percent of the combined BSE and NSE daily turnover of about RS11,000 crore!!! The point is, theres tremendous scope for growth.Especially when you consider the US, where trading over the Netaccounts for about 55 per cent of the total volumes. And, I believe,in some Asian markets the figures as high as 70 per cent.ThreatsOn to some threat perception - Domestic funds, foreign institutionalinvestors and operators comprise the three main marketconstituents. And all three include term investors as well asopportunists in their pecking order. Some, for instance, hitch theirfate with what the FIIs are up to. All this spells spurting volumes.But nobody gives a damn about the resultant volatility. And some,not all, offer free investment advice over the Net to lure rookie
  26. 26. investors with misleading information. Prices of scripts can also beinfluenced to the advantage of vested interests, courtesy the Net.Unlike in the US, stockbrokers out here willingly (or under the forceof circumstance) assume the role of `advisors, sans the neutral,non-vested stance. So, how does all this impinge on the ordinaryguys ordinary dreams Hurdles for online share tradingInternet fraudIn India, we see this kind of frauds happening in different way dueto nature of our society. Here when you talk to brokers staff whilebuying or selling, he will usually advise you to buy share which hehas bought and plans to dump when price goes up.We have seen enough of PUMP and DUMP even without help ofinternet in cases of Harshad Mehta boom of 1992 and Ketan Parekhboom of 2000 (he even had cult following with Index of 10 sharescalled K-10).Today lot of investor’s depending on TV channel forrecommendation about stocks to sell, or buy or hold. Channels likeCNBS offer array of experts from economist to brokers to analyst.Most of these people have vested interest in stocks theyrecommend and promote.One of the most common forms of securities fraud on the Internetinvolves an imposter who attempts to manipulate the price of astock by disseminating phony press releases or information, orcreating phony websites. A recent example of this scheme is thehoax perpetrated against US based, PairGain Technologies.
  27. 27. Volatility of India’s Stock MarketsRecent market developments have once more focused attention onthe volatility that has come to characterise India’s stock markets.Movements in the Sensex during the two years have clearly beendriven by the behaviour of foreign institutional investors (FIIs), whowere responsible for net equity purchases of as much as $6.6 and$8.5 billion respectively in 2008 and 2009. These figures comparewith a peak level of net purchases of $3.1 billion as far back as1996 and net investments by FIIs of just $753 million in 2009. Insum, the sudden FII interest in Indian markets in the last two yearsaccount for the two bouts of medium-term buoyancy that theSensex recently displayed.Given the presence of foreign institutional investors in Sensexcompanies and their active trading behaviour, their role indetermining share price movements must be considerable. Indianstock markets are known to be narrow and shallow in the sense thatthere are few companies whose shares are actively traded. Thus,although there are more than 4700 companies listed on the stockexchange, the BSE Sensex incorporates just 30 companies, tradingin whose shares is seen as indicative of market activity. Thisshallowness would also mean that the effects of FII activity wouldbe exaggerated by the influence their behaviour has on other retail
  28. 28. investors, who, in herd-like fashion tend to follow the FIIs whenmaking their investment decisions.Rampant SpeculationThe Indian stock markets are perhaps the only place in the worldwhere you can buy shares without having to put money on the tableand sell shares you do not own. This extraordinary situation hasfacilitated rampant speculation by all sorts of operators – theindigenous variety, FIIs and even our own native financialinstitutions (FIs) as the massive UTI scandal of recent years hasdemonstrated. So, when the stock markets were made to collapseby a record 800-plus points on May 17 under the pretext that theLeft is opposed to divestment, the profits reaped by short sellerswere astronomical and incalculable.Could this situation have been avoided? As aforesaid, the answeris yes. The electronic monitoring system in both the Bombay StockExchange and the bigger National Stock Exchange automaticallystopped trading for half-an-hour when the two markets respectivelycollapsed by 10 percentage points. Thereafter when tradingresumed and the markets fell further to another stipulated lowerlevel, the electronic system automatically stopped all trading againfor another two hours.A similar situation had occurred on Tuesday, September 11, 2009,the day of the terrorist attacks in New York City. At the end of theday the stock exchange authorities of both the New York StockExchange and the heavily- weighted software exchange calledNASDAQ suspended all trading for the remainder three workingdays during that fateful week to safeguard investor interests. So,advanced capitalism does know how to intervene "politically" in themarkets when fundamental interests are in danger of violation byshort sellers.
  29. 29. Effect of technologyThe growth in technology and communications has impacted everyaspect of business in some or the other form. These effects areenduring and have changed the very way in which business iscarried out.The stock market, is one such institution whose very existence hasbeen challenged by the growth in information technology. IT hasturned the very idea of a stock market on its head.Technology has impacted the working of stock markets in everysense. However, a useful starting point for this study would be thestudy of dematerialization, or demat as it is popularly known as.This is simply because demat has changed the way stocks are heldand traded and therefore has effect on every other function of themarket.Dematerialization in simple terms means the conversion of sharesfrom physical to electronic form.Demat, enabled by the use of technology is probably is single mostimportant factor which has repercussions on every aspect of thestock markets.Demat in India started with the creation of NSDL (National stockdepository limited) in 1996. UTI, was one of the first institutions touse demat when it decided to dematerialize 50% of its holdings in1997. SEBI gave a boost to demat, with compulsory trading onshares in demat form in specified scrips by institutional investorsfrom Jan 15, 1998.Consequently, an increasing percentage of the share trading is done in dematform.
  30. 30. The exhibit below shows the percentage of demat shares in the total value ofshares traded at NSE over a period of 6 years.Dematerialization has benefited the market and the market playersin more than one way.Demat is instrumental in  Abolition of market lots  Introduction of rolling settlements  Enhancing liquidity  Bringing stamp duty to zero  Reducing chances of bad delivery  Increased lending by banks and other FIsSEBI extended demat to IPOs during capital reforms in capitalmarkets in 2002. The premise being elimination of problems due toloss of allotment letters, share certificates etc., encouragingshareholders to opt for demat credit of allotments, tradingcompulsorily in demat form with an option of holding shares inphysical form for retail investors.BSE, the first exchange to be set up in India, started as a floor-based exchange. However, NSE, setup as an alternative to BSE,was an electronic (computerized) exchange. With advancements intechnology, both these exchanges moved to SBTS (Screen BasedTrading System) in 1997.While NSE introduced NEAT (NSE’s Online Trading System) in May1997, BSE introduced BOLT (BSE’s Online Trading System) inSeptember 1997 in Mumbai.The outcome has phenomenal with respect to the number of tradestaking place on these two exchanges.Further, trading in stocks has reached retail investors’ home via theInternet. In 1999-2000, SEBI proposed Internet based trading underORS (Order Routing System)
  31. 31. Trading via Internet was an instant hit, with 18 members beinggranted licenses and trades touching 767 Cr.Although security concerns still exist regarding the safety of datatransfer over the Internet, companies like VERISIGN and RSA, whospecialize in security algorithms and data encryption ensure highdegree of authenticity and trust in trades.Information FlowAny trading system disseminates data to market constituents, inother words, information is freely available. This has twodisadvantages - • It makes easier for off-exchange transactions to occur because of availability of information. • It makes off-exchange transactions attractive due to absence of trading costs.On the other hand rapid flow of information has also meantincreased volatility in the markets. In financial terms, volatility is:The degree to which the price of a security, commodity, or marketrises or falls within a short-term period. An obvious reason formarket volatility is technology. This includes more timelyinformation dissemination, improved technology to make trades andmore kinds of financial instruments. The faster information isdisseminated, the quicker markets can react to both negative andpositive news. Improved trading technology makes it easier to takeadvantage of arbitrage opportunities, and the resulting pricealignment arbitrage causes. Finally, more kinds of financialinstruments allow investors more opportunity to move their moneyto more kinds of investment positions when conditions change.
  32. 32. Adverse impacts of IT on stock marketsSome other interesting observations about impact of technology onstock markets –The vintage capital model teaches us that technological changedestroys old capital. We have gone further and argued that majortechnological change—like the IT revolution— destroys old firms. Itdoes so by making machines, workers, and managers obsolete.Product-market entry of new firms and new capital takes time, andtheir stock-market entry takes even longer. In the meantime, thestock market declines. We have argued that aggregate valuationcan fall below the present value of dividends because capital may"disappear" right after a major technological shift, as new capitalforms in small, private companies. Later, these companies areIPO’d, and only then does their value become a part of stock-market capitalization.Indeed, the innovation may, at first, reduce the market’s valuebecause some firms, usually large or old, will cling to oldtechnologies that have lost their momentum. (a) the marketdeclined in the late 1960’s because it felt that the old technologieseither had lost their momentum or would give way to IT, and that(b) IT innovators boosted the stock market’s value only in the1980’s. To sum up, we can say that computerization and automationare not to be avoided. Technology has been able to make the stockmarkets accessible to every individual. It has also led to positivedevelopments in terms of reduced costs and fewer errors. But, assome experiences have indicated, IT cannot be applied as apanacea for all problems. Regulation and knowledge disseminationare still important. The use of technology should be preceded by adetailed study and assessment of all other alternatives. The key tosuccessful use to technology is the appreciation of its constraints.
  33. 33. Broking….personalizedIf you prefer the assurance and reliability of trading through abroker, you can use our network of 250 branches and 157 businesspartner outlets in over 123 cities to trade in equities as well asderivatives. We will help you with the investment process, give youadvice based on extensive research and provide you with relevantand updated information to help you make informed investmentdecisions. MARKETING STRATEGIES OF COMPANYMarketing Strategy:A strategy that focuses on developing a unique long-run competitive position inthe market by assessing consumer needs and the firms potential for gaining acompetitive advantage. • A business’ approach to marketing its products/ services expresses in broad terms, which forms the basis for developing a marketing plan. • Marketing starts with market research, in which needs and attitudes and competitors products are assessed, and continue through into advertising, promotion, distribution, and, where applicable, customer servicing and repair, packaging, and sales and distribution. • The broad marketing thinking that will enable an organization to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives. • : Tele Calling The company uses the tele calling/ phone calling to reach the customer, which are interested. This is the most important technique to save time and giving demo of the companies product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc. • LMS :It is Leads Management System Which means leads are generated by the customers who want to purchase the product of the company? Company provides facility to the customer online to fill the registration form through which the company’s executives can provide more information to the customer.
  34. 34. • Yellow Pages Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.• Canopy’s: This is the most important technique used by M-SOLL securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides these companies executives ask customer to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main markets, cinema s, hotels, ATM or etc where people come in good numbers.• Direct Marketing: M-SOLL executive’s reaches to the does of the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better. • Advertising:- Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. M-SOLL uses banners, distribution of pamphlets, and advertisement in newspapers, magazines.• References M-SOLL strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funds by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advise and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company.
  35. 35. • Competitiveness:- The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. M-SOLL make it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer. • Internet:- Company has provided detailed information about the products on Internet so that customer can know about the product easily and completely. How M-SOLL deals with equity trading and the services provided to the customers?M-SOLL Securities Ltd Provides best services to its customers for equity tradingin comparison to other Financial Securities Companies.These services are as follows-Online trading facilities with Odin terminal.Odin terminal is wave based software. Client can easily download the terminalthrough M-SOLL web site. No extra charges are taken for the use of thisterminal. Through this terminal/software you execute your order within 2seconds. In this terminal we get both NSE&BSE On-line at same time. And theclients can do trading in both NSE&BSE at the same time.Individual Client: Demat A/c opening charges: Rs 500/- (maintenance Charges Rs 250/-) Trading A/c free for life time Trading through offline or website. (www.M-SOLL.in) NSE & BSE both are online. Live applet for watching prices & trading purposes.
  36. 36. Brokerage Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable) Exposure: -4 to10 times (For Intraday) 2 times (For Delivery) F&O Brokerage: - Buy & Sell 0.05% (Negotiable)Other featuresFor the fund transfer and withdraw, we have tie up with two banks ICICIBank and HDFC Bank.If you are having bank account in one of them, you can transfer the funds andwithdraw the funds online same day.Settlement of trades follows T+2 transaction cycle.Freedom from paperwork, trading facilities is completely online.SMS alerts on your mobile phones.Apart of that we have our dedicated team to look after your Portfolio, MutualFunds, and Commodities.Document Photocopies Required (A) Two coloured Photographs (self signed). (B) For identification Proof- Voter ID Card/ Driving License/ Passport/ PAN Card (Compulsory) any one.
  37. 37. (C) For residential proof:- Bank statement/ Voter ID Card/ Ration Card/ Driving License/ Passport/ Telephone or Electricity Bill statement (any one) (D) One cancelled cheque leaf (For MICR No. record) (E) Later Bank Statement/ Front page of passbook (Showing Name, Address, A/c No.) (F)You can also deposit the initial margin money at the time of opening of account. Competitive AnalysisThe Major competitors are:• 5paisa.com• Kotak Securities.com• IndiaBulls.com• ICICI Direct.com• HDFC sec.com
  38. 38. 5paisa.comCompany BackgroundIndiainfoline was founded in 1995 and was positioned as a research firm. In2000 e-broking was started under the brand name of 5 paisa.com. Apart fromoffering online trading in stock market the company offers mutual funds online.It also acts as a distributor of various financial services i.e. GOI securities,Company Fixed Deposits, Insurance.
  39. 39. Limited ground network, present in 20 CitiesOnline Account Types• Investor Terminal : Investors / Students• Trader Terminal : Day Traders / HNI’s PRICING FOR RETAIL CLIENTS Investor Terminal•Account Opening: Rs 500•Demat 1st Yr: Rs 250•Initial Margin: Rs 2500(Compulsory)•Min Margin Retainable: Rs 1000•Brokerage: Trading 0.10% each side + ST+ STT Delivery 0.50% each side + ST+ STT PRICING FOR HNI CLIENTS Trader Terminal
  40. 40. •Account Opening: Rs 500•Demat 1st Yr: Rs 250•Initial Margin: Rs 5000(Compulsory)•Min Margin Retainable: Rs 1000•Brokerage: Trading 0.10% each side + STT+ST Delivery 0.50% each side + STT+ST ( Negotiable to 0.05% each side & 0.25%)•Account Access Charges Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage Deal Clinchers v/s 5 Paisa•Company BackgroundNot having a very positive image, relatively new in the broking arena, limitednetwork•DowntimeRecent past 5 paisa Trader Terminal (T.T) is experiencing high frequencydowntime between 3 – 3:30 p.m due to server load ( as their T.T is featureheavy compared to Speetrade charting)•Manual AccountingThe 5 paisa accounting system is manual, Online fund transfer through bank isnot credited instantly.Limit is provided EOD for shares sold from DP, or call
  41. 41. Similarly limit released for shares sold under BTST is manualDelay in receiving pay-out of clear funds from trading to Bank Account•Min Account BalanceConcept of Min Rs 1,000 to be maintained in form of cash / securities to keepaccount active. This can be withdrawn only on closure of account. Kotak securitiesCompany BackgroundA Kotak security is the retail arm of Kotak securities. Kotak Securities limited isa joint venture between Kotak Mahindra Bank and Goldman SachsOnline Account Types•Twin Advantage / Green Channel: 2 DP’s, Limit against shares•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction•High Trade: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55•Cash Expressway: Spot payment, additional 0.5% chargesFor Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces. KeatDesktop with advanced tools comes at a charge of Rs 500 p.m, Non-refundablePRICING OF KOTAK
  42. 42. •Account Opening: Rs 500•Demat: Rs 22.5 p.m•Initial Margin: Rs 5000(Compulsory)•Min Margin Retainable: Rs 1000•Brokerage Slab wise: Higher the volume, lower the brokerage. Even oldercustomers (on 0.25% & 0.40%) have been moved to the slab wise structure. For intraday trading- .05% For Delivery trading- .50% (Brokerage is negotiable and it based on the volume of client)Exposure:-For intraday trading - 5 – 10 timesFor delivery trading - 2 timesFunding:-Interest rate is 19% per month for fundingServices:- 1. No SMS alert provide 2. A trader can find out the information about share market only by to call dealers 3. Account opening time- One Weak 4. Online & offline trading facilities are different. Deal Clinchers v/s Kotak securities•Rigid Account Opening TermsNo Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/-Account opening free with Rs 10,000 Margin OR competitor Contract Note.•No Customization of commercial Terms
  43. 43. No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)No flexibility in Brokerage, driven by slab structure•Many Other ChargesRs 22.5 p.m towards DP AMC chargesDP incoming charges extra, 0.02%Rs 1,000 as retainable Margin to keep account activeRs 25 per call after 20 calls for the month•Restricted Access to Terminal Like productKEAT Desktop restricted distribution on payment of Rs 500, Non refundable
  44. 44. INDIABULLSCompany BackgroundIndiaBulls is a retail financial services company present in 70 locationscovering 62 cities. It offers a full range of financial services and Productsranging from Equities to Insurance. 450 + Relationship Managers who act aspersonal financial advisorsOnline Account Type•Signature Account: Plain Vanilla Account with focus on Equity Analysis. Theequity analysis is a paid service even for A/c holders.•Power Indiabulls: Account with sophisticated trading tools, low commissionsand priority access to R.MPricing of IB AccountsSignature Account•Account Opening: Rs 250•Demat: Rs 200 if POA is signed, No AMC for this DP•Initial Margin: NIL•Brokerage:Negotiable
  45. 45. Power IndiaBulls•Account Opening: Rs 750•Demat: Rs 200 if POA is signed, No AMC for this DP•Initial Margin: NIL•Brokerage: Negotiable PAID ResearchSCHEME FACILITYWebBased-1-Month-500: View & Print on websiteWebBased-1-Year-6000 View & Print on websitePrintReport-1-Month-750: View & Print on website + 10 ReportsDeliveredPrintReport-1-Year-9000: View & Print on website + 10 ReportsDelivered Deal Clinchers v/s India Bulls•POA for Clients DMATAll shares held by client trading with IB are moved to IB Pool Account and thesame is shown as a reflection in client DP account. Charges are levied to moveshares from IB pool Account to client DP account•Paid Research ServicesAccess to an research even for an IB trading account holder is charged a min ofRs 500 a month•Margin Funding hoaxThe interest on funding starts on leveraged delivery trades from T+1 day itself@21% p.a, on a daily basis•The role of Relationship ManagerEach RM is looked upon as a revenue generator and he gets a % on businessgenerated from client. This can lead to over leveraged (Interest) & highfrequency(Brokerage) trading, which may not be in the best interest of the client.
  46. 46. ICICI Direct.comCompany BackgroundICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is anAffiliate of ICICI Bank Limited and the Website is owned by ICICI BankLimitedAccount Types•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1advantage. Differentiated in services within the account1. Cash on spot2. Margin PlusPremium Trading interface of ICICI Direct Link is given to DBC partners andHNI’s•Account Opening: Rs 750•Schemes: For short periods Rs 750 is refundable against brokerage generatedin a qtr. These schemes are introduced 3-4 times a year.•Demat: NIL, 1st year charges included in Account Opening Plus a facility toopen additional 4 DP’s without 1st yr AMC•Initial Margin: Nil
  47. 47. •Brokerage: All brokerage is inclusive of stamp duty and exclusive of othertaxes. Deal Clinchers v/s ICICIDirect•Poor online InterfaceSlow website interface with no real-time quotes creates dissatisfaction amonghigh frequency traders•Margin trading restrictionThe margin trading system is available up to 2:45 p.m, with outstanding netpositions under margin segment automatically squared off at any time between2:45 – 3:30 p.m. Thus no control of square off price.
  48. 48. HDFC SecuritiesCompany BackgroundHDFC Securities Ltd, is promoted by the HDFC Bank, HDFC and Chase CapitalPartners and their associates. Pioneers in setting up Dial-a-share services withthe largest team of Tele-brokers.Online Account TypeHDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1advantagePricing of HDFC Account•Account Opening: Rs 750•Demat: NIL, 1st year charges included in Account Opening•Initial Margin: Rs 5000/- for non HDFC Bank customers (AQB)•Brokerage:Trading 0.15%* each side + STDelivery 0.50%** each side + ST* Rs 25 Min Brokerage per transaction** Rs 8 Min Brokerage per transaction
  49. 49. Deal Clinchers v/s HDFC Securities•Poor online InterfaceApart from having no product to cater to Day-Traders, the hdfcsec.com websiteis plagued with downtime. The same is currently being revamped.•Lack of focus on BrokingThe core business of HDFC is Housing Finance and that of HDFC Bank isBanking. Broking as a business is a small part of the portfolio of financialservices and hence the commitment to resources is limited.•No LeverageNo leverage is available to clients even for Intra-Day trades, effectively allclients are on cash and carry system.
  50. 50. FINDINGS OF COMPETITIVE ANALYSIS• M-SOLL has the unique product in the market related to the expectations desired by the customers.• The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers• M-SOLL strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funds by giving tips for investment advises• Brokerage charged by the company is less and competitively better according to the services provided to the customers.
  51. 51. LIMITATIONS OF COMPETITIVE ANALYSISServices of competitors:We cannot give proper comment on competitor’s services till we useit. But I try to collect as accurate information as possible. As we allknow services are intangible and we cannot predict its quality, it is athing to feel not to see.No proper assurance of right information:The main data sources are websites, telephonic information andoffices visit. • The data on websites might be possible, not get updated. • The marketing person might be possible, is not through with all concepts to which I contacted. • Sometimes, they try to hide information.Lack of awareness of Stock market: -- Since the area is notknown before it takes lot of time in convincing people to startinvesting in shares primarily in IPO’s. Mostly people comfortable with traditional brokers: As people are doing trading from there respective brokers, they arequite comfortable to trade via phone. Inaccurate Leads: Sometimes leads are provided which had error in it which variesfrom only 5 digit phone number to wrong phone numberMisleading concepts: Some people think that Shares are too risky and just another nameof gamble but they don’t know its not at all that risky for longinvestors.
  52. 52. MARKET RESEARCH ANALYSIS1. Tick the age category to which you belong ? Age Percentage 20-29 10% 30-39 15% 40-49 50% 50-59 10% Above 60 15%Data Interpretation :-As the graph shows that most of the respondents belong upto the age groupof 40-49 with 50% of the total share whereas other respondensts belongingto the other age groups constitue of merely 20%.
  53. 53. 2. Please tick the gender to which you belong ? (A)Male (B)Female Female, 18 Male Female Male, 82Data Interpretation:- As the graph shows that most of the respondentsbelong to the male category i.e. 82% male ; 18% female.
  54. 54. 3. Tick the occupation to which you belong ? Occupation Percentage Serviceman 70 Business 20 Professional 2 Student 5 Housewife 3 Others 0Data Interpretation:-The table and graph indicates that most ofrespondents are serviceman constituing 70% share whereas businesspeople and students are next in the cadre with low percentage such as 20%and 5% respectively, which means that regular income holder are moreprone towards faster and easy trading.
  55. 55. 4. Please tick your monthly income ? Monthly Income Percentage Up to 10000 2 10000-15000 5 15000-20000 13 20000-25000 20 Above 25000 60Data Interpretation:- In this graph we can see that most of the peoplebelong to income category of above 25000 with 60% share where as thelowest percantage (2%) of people belong to the income group upto 10000.
  56. 56. 5. Please tick your preference for trading ? (A) Broking Firm (B) Sub Broker Broking Broking Firm Sub Broker, Firm, 45 55 Sub BrokerData Interpretation:-In this graph we can see that most of the people preferences are 45% for BrokingFirm ; 55% for Sub Broker.
  57. 57. 6. Please tick where do you invest ? Area of Invest Percentage Fixed Deposit with banks 35 Mutual Funds 7 Stocks 27 Insurance 8 Real State 18 Govt. Bonds 5Interpretation Above chart shows that most of the people are interested to investtheir money in fixed deposits due to low risk and whereas very few peopleare interested in Govt. Bonds due to its low rate of return.
  58. 58. 7:- Please rank the factors that influences your decisions to open a DMAT Account ? Factor influencing for opening DMAT A/c Percentage Proximity to Trading Firm 12 Facility Provided by the trading firm 48 Relationship with manager 14 Advertisement 6 Recommendation by friend 10 Brand Name 8 Branch Timing 2Data Interpretation:-With the help of this graph we came to understand that facility provided bythe trading firm is the very crucial aspect which influences the customer’sattitude towards opening DEMAT A/C with the highest percentageconstituting almost 48% share. In spite of this we can observe that
  59. 59. relationship with manager get IInd higher priority factor which influenceopening of DMAT A/C is 14%. 7. Pick tick the importance of the following trading firm Facility for the customer’s? Importance of trading firm Most Less Un facility Important Important Important Products 48 11 41 Brokerage Charge 58 24 18 Annual Maintenances 51 37 12 DMAT opening Charges 29 54 17 Relationship with Manager 62 15 23
  60. 60. 8. In which of these financial instruments do you invest in to? (A) Shares (B) Mutual Funds (C) Bonds (D) Others 6 24 38 Shares Mutual Funds Bonds Others 32Data Interpretation:-As the pie chart above shows that 38% of investor invest in shares , 32% in mutualfunds , 24% in bonds and 6% in others.
  61. 61. Awareness of online share trading yes--40% No-- 60%Interpretation:This shows that although the mutual funds market is on the riseyet; the most favored investment continues to be in the ShareMarket. So, with a more transparent system, investment in theStock Market can definitely be increased.
  62. 62. Awareness of Religare as a Brand Yes-- 63% No-- 37%Interpretation: This pie chart shows that M-SOLL has areasonable amount of Brand awareness in terms of a premier Retailstock broking company. The company to increase its market shareover its competitors should further leverage this brand image.
  63. 63. Demat account market Share Religare 15% 20% Icici direct 10% kotak 18% india bulls 25% share khan 12% othersInterpretation: This shows that even with sufficiently highBrand Equity, M-SOLL ranks only 3 rd amongst the Demat accountproviders. This is probably because of two main reasons: 1. Lack of promotion and unfocussed approach towards Product awareness 2. Non – transparent marketing policies of the companyHence, the company should crystallize its products and shouldindulge in aggressive marketing and promotion
  64. 64. LEARNINGS1. I learned to apply a lot of theoretical knowledge into practical use.2. As my work included the sales, I learnt some of the ground rules of selling my product.3. I also learnt to handle the month end stress when it is time to complete the targets.4. I also came to know the various work culture rules and ethics that are required to be followed in the organization.5. I also found that it is very important to build a relationship with a client as it brings more business.
  65. 65. FINDINGS1. People prefer more trading through sub brokers as they are personally attached with them.2. The most of the people are interested to invest their money in fixed deposits due to low risk and but behind 27% people are interested to take risk and earn high returns.3. Facility provided by the trading firm is the very crucial aspect which influences the customer’s attitude towards opening DEMAT A/C with the highest percentage constituting almost 48% share. In spite of this we can observe that relationship with manager get IInd higher priority factor which influence opening of DMAT A/C is 14%.4. People really concerned with product in which they are going to invest keeping amount of brokerage to be charged.5. People are unaware about the online trading practice and pattern6. M-SOLL is not strategically planning for its promotion.
  66. 66. CONCLUSIONIn spite of these optimistic numbers, online trading in India is at avery nascent stage (about 2 percent of total traded volumes)compared to countries like South Korea (60 percent), US (40percent) and UK (20 percent). Online trading in the year 2000-2001accounted for only Rs. 50,170 crore out of total traded volume ofRs. 25,08,445 crore. Brand building, assurances of security, developing multipledelivery channels with anytime telephonic grievance redressaloptions is some directions which may be of use for the immediatefuture. Online trading firms can also market themselvesaggressively to students who are entering the professional arena,ensuring that their entry into equity happens online. One of themajor issues governing trading is the prevailing uncertainty in themarket. Hence, notwithstanding the current sentiment in themarket, potential for online trading is still immense in India. With amore transparent system, increased awareness, and a sustainedbullish market we would surely be heading to become the largestonline stock trading country by the turn of the next decade.
  67. 67. BIBLIOGRAPHYNewspaper and magazinesThe Economic TimesBusiness WorldBooks:* Stock exchange & investments - V Raghunathan* Security analysis - Punithavathy Pandian* Management of financial Institution, By: Khan & Jain* Security Analysis By: Fisher & Jordan • Securities Market (Basic) Module :--NCFM • “Security Analysis and Portfolio Management”, Fischer and Jorden • “Investment Management: Security Analysis and Portfolio Management”, V. K. Bhalla • Economic Times. • Training Kit Provided by the M-SOLL.
  68. 68. • Websites: www.investmartindia.com www.indiabulls.com www.bseindia.com www.nseindia.com www.equityresearch.com www.incrediblecharts.com www.indiainfoline.com www.google.com www.investopedia.com www.sharekhan.com www.5paisa.com www.equitymaster.com www.icicidirect.com www.ncfm.com www.investopedia.com www.valuenotes.com www.M-SOLL.in
  69. 69. ANNEXUREQUESTIONNAIRE1. Please tick the age category to which you belong. A) 20-29 B) 30-39 C) 40-49 D) 50-602. Please tick the gender to which you belong. A) Male B) Female3. Please tick the occupation to which you belong. A) Serviceman B) Business C) Professional D) Student E) Housewife 4. Please tick your monthly income. A) 10000-15000 B) 15000-20000 C) 20000-25000 D) ABOVE 250005. Please tick your preference for trading A) Broking Firm B) Sub- broker6. Please tick where do you invest.A) Fixed deposit with Banks B) Mutual FundC) Stocks / Shares D) InsuranceE) Real Estates F) Govt. Bonds
  70. 70. 7. Please Rank, The factor that influences your decision to open aDMAT Account. 1 = Most Preferable 7 = Least Preferable A) Proximity to Trading Firm B) Facility Provided by the Trading Firm C) Relationship Manager D) Advertisement E) Recommendation by Friend F) Brand Name G) Branch Timing 8. Please tick the importance of the following Trading Firmfacility for customer ‘s. SERVICES Not Important Important Very Important Products ------------ ------------ ------------- Brokerage ------------ ------------ ----------- Annual Maintenance ----------- ----------- ----------- DEMAT opening charges ----------- ------------ ------------ Exposure Money ----------- ------------ ------------ Relationship Manager ----------- ------------- ------------9. In which of these Financial Instruments do you invest into? (i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others
  71. 71. 10. Which type of trading you prefer? (i) Online (ii) Offline (iii) Not Applicable11. If you prefer Online Trading then the reasons for it? (i) Privacy (ii) User friendly & Time Saving (iii) Convenience (iv) All The Above12. What factors motivates you to invest in securities? (i) New IPOs (ii) Entry of FIIs (iii) More returns in less time (iv) Others13. Does online trading system motivate you to deal in securities? (i) Yes (ii) No14. Have you heard about M-SOLL? (i) Yes (ii) No15. Which Brokerage Firm do you prefer for Online Trading? (i) ICICI Direct (ii) M-SOLL (iii) India bulls (iv) Kotak Securities (v) 5paisa (vi) Any other

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