AN OBSERVATIONAL STUDY ON FINANCIAL JUNGLE WITHSHAREKHAN AS YOUR GUIDE ANUJ DIWAKAR
OVERVIEW OF INDUSTRY AS A WHOLE A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. Indian stock markets are one of the oldest in Asia. In 1860-61 the American civil war broke out and supply of cotton from the United States to Europe was stopped. At the end of the American civil war, the brokers who thrived out of civil war in 1874, found a place in the street [now appropriately known as Dalal Street] where they would conveniently assemble and transact the business. In 1920, the Demure city of Madras had the maiden thrill of a stock exchange functioning in its midst, under the name “The Madras Stock Exchange” with 100 members. However, when boom faded, the number of members stood, reduced from 100 to 3, by 1993, and so it went out of existence. From 1921-1990, more than twenty one recognized stock exchanges were established.
NATIONAL STOCK EXCHANGE (NSE) It is the largest stock exchange in INDIA in terms of daily turnover and number of trades, for both equity and deratives. It is mutually owned. It is the third largest Stock Exchange in the world in terms of the number of trades in equities.BOMBAY STOCK EXCHANGE (BSE) It is the oldest stock exchange in Asia and has the greatest number of listed companies in the world. With over 4700 Indian companies list on the stock exchange, and it has a significant trading volume.
MISSION To educate and empower the individual investor to make better investment decisions through quality advice and superior service. VISSION To be the best retail broking brand in the Indian Stock Market. OBJECTIVE To increase the number of accounts. SWOT ANALYSIS Strenghts It charges low and negotiable brokerage. It has been able to maintain high level of accuracy in its terminal, leaving all the organizations behind. Most experienced organization and possess high level of technology.
Instant cash transformation and tie ups with eleven banks; too much more than its competitors. Is the only organization in this business which has its own research and development centre. Good brand image helps to strengthen the customer base. Weaknesses Most of the people do not know about Sharekhan and its features. It takes 7 to 10 days to open an account. Opportunities They can provide new schemes to attract new customers. Still a large customer base is available. They can change the mind set of customer towards the risk in the market. Threats Aggressive promotional Strategies by close competitors may hamper Sharekhan’s acceptance by new clients. Downturn or volatility of securities and commodities market.
Slowdown of Indian and global economy Change in government and economic policies including personal taxation may affect our volume and fund mobilisation. New competitors SEBI guidelines
RESEARCH METHODOLOGY• Primary Data Data collection method: Questionnaire Sampling technique: Convenience sampling Research design: Descriptive Location: Delhi Research duration: 2 months Respondents: 350 people• Secondary Data Newspaper. Internet. Books.
DATA ANALYSISQ.1 Where do you invest your money? Postal Savings Mutual Fund 7% Bank 18% Deposit 46% Shares 29% This figure shows investment made by the respondents in different fields. It can be clearly seen that respondents prefer bank deposit more, as followed by share market, mutual fund and postal savings.
Q.2 How much return do you expect on your investment? 0-5% 5-10% 10-15% 15-20% This figure shows that most of the respondents expect more and more returns on their investment. So we can see that investors main motive is to earn more and more money.
FINDINGS From the survey it was found that most respondents invest either in banks or in share market. It can be clearly seen that most respondents expect maximum return on their investment. From the survey it was found that most respondents prefer long term investment than short term investment. Most respondents do not invest or do not like to invest much amount into share market. A large number of respondents are aware of the brand Sharekhan. It can also be seen that nearly all the respondents prefer online trading. From the survey it was found that most respondents like to trade on a daily basis. It can also be seen that Sharekhan, Religare, ICICIDirect almost share the same amount of preferences as compared to other broking firms.
RECOMMENDATIONS To identify regions where promotions are required. Try to reduce cost, so that benefits can be passed on to customers. If charges can’t be reduced because of costs involved, make the services customized. Concept of margin funding should be introduced, as more and more people are asking for it. Share Khan should contact their clients regularly for knowing the problems faced by them. To launch slab wise brokerage structure as Share Khan has fixed brokerage structure which can not be negotiated.
It must also tap the rural sector where penetration is poor; it can be made possible by better offer with its product i.e. margin level, loan on low percentage. It must also improve its brand awareness through shelling out more expenditure on advertisement and other promotional tools.