E marketing of financial product services of sharekhan(gaurav kumar)mr.vinay k srivastava


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E marketing of financial product services of sharekhan(gaurav kumar)mr.vinay k srivastava

  1. 1. A SUMMER TRAINING PROJECT REPORT On E-MARKETING OF FINANCIAL PRODUCT & SERVICES AtSHAREKHAN LTD, CANNAUGHT PLACE, NEW DELHI - 110001 Submitted to Mahamaya Technical University, Noida For the pursuing degree of MASTER OF BUSINESS ADMINISTRATIONExternal Guide Submitted By:JAIPAL SINGH GAURAV KUMARAssistant Manager ROLL No.-1163970029Sharekhan, New Delhi MNo.- +919760775355 [MBA, Batch: 2011-13] RAJKUMAR GOEL INSTITUTE OF TECHNOLOGY (MBA) College Code: 639 5 Km. Stone, Delhi –Meerut Road, Ghaziabad – 201003, INDIA (2012) Page 1
  2. 2. Table of ContentS. N. Topics PAGE NO. Acknowledgement i Certificate issued by organization ii Certificate issued by institute iii Declaration iv Executive summary v1 Introduction 1-592 Objective of study 603 Literature review 614 Research methodology 805 Data presentation and analysis 836 SWOT Analysis 917 Learning & Finding 93-968 Limitations of The Study 979 Conclusion & suggestions 99 Bibliography 100 Annexure-1 101 Annexure-2 102 Page 2
  3. 3. ACKNOWLEDGEMENTEvery project big or small is successful largely due to the effort of a number of wonderfulpeople who have always given their valuable advice or lent a helping hand. I sincerelyappreciate the inspiration; support and guidance of all those people who have beeninstrumental in making this project a success.I, (GAURAV KUMAR), the student of RKGIT(MBA), am extremely grateful to―SHAREKHAN LTD.‖ for the confidence bestowed in me and entrusting my project entitled“E-Marketing of Financial Product & Services at SHAREKHAN LTD” with specialreference to SHAREKHAN LTD., New Delhi.At this juncture I feel deeply honored in expressing my sincere thanks to Mr. JAIPALSINGH (Assistant Manager) for making the resources available at right time and providingvaluable insights leading to the successful completion of my project.I express my gratitude to Dr. ARVID SINGH, Principal, RKGIT for arranging the summertraining in good schedule. I also extend my gratitude to my Project Guide Mr. JAIPALSINGH, who assisted me in compiling the project.I would also like to thank all the faculty members of RKGIT, Ghaziabad for their criticaladvice and guidance without which this project would not have been possible.Last but not the least I place a deep sense of gratitude to my family members and my friendswho have been constant source of inspiration during the preparation of this project work. DATE – PLACE - GAURAV KUMAR Page 3
  4. 4. Raj Kumar Goel Institute of echnology(MBA) 5th KM. STONE, DELHI-MEERUT ROAD, GHAZIABAD (U.P)-201003 Date: ………………. TO WHOM SOEVER IT MAY CONCERNThis is to certify that Mr. GAURAV KUMAR has prepared SummerTraining Project Report on “E-Marketing of Financial Product &Services at SHAREKHAN LTD.” for the pursuing the degree ofMaster of Business Administration (MBA) affiliated to MahamayTechnical University, Noida. His performance during the project has beensatisfactory.I wish him all the best for him future endeavors. Dr. Arvind Singh Principal Page 4
  5. 5. DeclarationI GAURAV son of Shri RAMNIVAS pursuing Master of Business Administration(MBA) 2nd year from Raj Kumar Goel Institute of Technology (MBA Institute).Ghaziabad in the session 2012-13. I hereby declare that the summer training projectreport on titled ―E-MARKETING OF FINANCIAL PRODUCT & SERVICESAT SHAREKHAN LTD‖ is the outcome of my own effort under the guidance ofDr.Vinay kumar srivastava.The same report has not been submitted earlier to any Institute/University forawarding the degree of MBA or any other professional course. If there will be anyviolation of IPR than I will be solely responsible to that and Institute/University hasright to cancelled my degree.Date…………………….. ……………………… GAURAV KUMARPlace RKGIT, Ghaziabad RollNo.1163970029EXECUTIVE SUMMARY Page 5
  6. 6. The good news is that E-MARKETING is inexpensive, fast, and easy to carry out.And it can be more effective than any other marketing channel available today ifyou‘re smart.Being smart is to be strategic. And for email marketing for financialservices to be strategic means to be sure you have everything in place so that youremail message is welcome.New ideas and innovations have always been the hallmark of progressmade by mankind. At every stage of development, there have been twocore factors that drive man to ideas and innovation. These are increasingreturns and reducing risk, in all facets of life. The financial markets areno different. The endeavor has always been to maximize returns andminimize risk. A lot of innovation goes into developing financialproducts centered on these two factors. It has spawned a whole new areacalled financial engineering.Derivatives are among the forefront of the innovations in the financialmarkets and aim to increase returns and reduce risk. They provide anoutlet for investors to protect themselves from the vagaries of thefinancial markets. These instruments have been very popular withinvestors all over the world.In this report, first the overview of Currency & Derivative Market inIndia has been given. Now, investors are more cautious before investingtheir money into any derivative segment as they fear losses. as well asclient of different brokerage house which clearly depicted that even tilltoday there are only few investors who are willing to invest in derivativemarket as it carries an element of risk and uncertainty with it. Other thanthat the real servings come when one moves ahead. Apart from secondarydata analysis, I have done primary data analysis: i.e. Study of investmentpattern of general public among currency derivatives and the conclusionsays that most of the people are not willing to participate in the derivativemarket because they consider it highly risky. Also during the survey,findings showed that general public is optimistic that market conditionwill improve soon and they also thought that this is the right time toinvest as prices are at all time lows.The study has been done to know the different types of currency &derivatives and also to know the currency &derivative market in India.This study also covers the recent developments in the derivative markettaking into account the trading in past years. Page 6
  7. 7. 1.E- Marketing:- Page 7
  8. 8. The good news is that E-MARKETING is inexpensive, fast, and easy to carry out.And it can be more effective than any other marketing channel available today ifyou‘re smart.Being smart is to be strategic. And for email marketing for financialservices to be strategic means to be sure you have everything in place so that youremail message is welcome.First there were websites and we pictured them as online brochures. People found ourwebsites mainly because they saw them printed in our adverts and on our businesscards. We delighted in the immediacy of sending and receiving email.Just over ten years ago we still thought it was pretty cool marketing to have a site thatcould also collect the email addresses and contact details of users. We sentnewsletters to our customers and prospects with great effect.As websites multiplied beyond anyone‘s imagination, searching for them becameincreasingly important. Websites became the first contact many of our customers hadwith the company, so we added articles and content to interest and persuade them.They stopped being static brochures.Statistics allowed us to analyse how traffic moved around our web pages and weworked to improve our marketing funnels and enquiry conversion rates.Google became the dominant search engine and Search Engine Optimisation wasborn. SEO specialists interpreted the Google search algorithm and built websites thatcomplied with the way their spiders wanted to assess the quality of content.Google assessed the authority of links from a website by grading it from 0-10 andgiving it a PR rank. Links to a website increased its authority, pushing it further upGoogle‘s search results. An SEO market in links emerged and thrived. High PR linksbecame valuable commodities.Financial Product & Services:-A financial market is a market in which people and entities can trade financialsecurities, commodities, and other fungible items of value at low transaction costs andat prices that reflect supply and demand. Securities include stocks and bonds, andcommodities include precious metals or agricultural goods.There are both general markets (where many commodities are traded) and specializedmarkets (where only one commodity is traded). Markets work by placing manyinterested buyers and sellers, including households, firms, and government agencies,in one "place", thus making it easier for them to find each other. An economy whichrelies primarily on interactions between buyers and sellers to allocate resources isknown as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. Page 8
  9. 9. In finance, financial markets facilitate: The raising of capital (in the capital markets) The transfer of risk (in the derivatives markets) Price discovery Global transactions with integration of financial markets The transfer of liquidity (in the money markets) International trade (in the currency markets)Financial planningTrue financial planning is a comprehensive, ongoing approach that starts with helpingyou define your dreams, developing a plan to help you get there, then tracking yourprogress along the way, recommending changes where needed.Banking and cash managementFind the solutions you need to streamline your financial life today — investment andcash management accounts, credit and debit cards, CD, savings and checkingaccounts.Insurance and annuitiesLife can surprise you. So help protect your family and your assets and meet yourretirement needs with your choice of products: life insurance, disability income, autoand home and long-term care, as well as annuities for retirement income.InvestmentsAmeriprise financial advisors give you access to numerous investment options andbrokerage account types, so you can build a portfolio designed to help you achieveyour financial goals.LendingGet the funds you need to make a purchase, buy a home or consolidate debt with anarray of credit cards, mortgages and home equity lending solutions. We offercompetitive rates, quick approvals, and convenient options.INDUSTRY DETAIL:- Page 9
  10. 10. Securities market has essentially three categories of participants namely the issuer ofsecurities, investors in securities and the intermediaries and two categories ofproducts, the services of the intermediaries the securities including derivatives.The securities market has two interdependent and inseparable segments the new issue(primary market) and the stock (secondary market). The primary market provides thechannel for sale of new securities while the secondary market deals in securitiespreviously issuedCOMPANY PROFILE: Page 10
  11. 11. Sharekhan is one of the top retail brokerage houses in India with a strong onlinetrading platform. The company provides equity based products (research, equities,derivatives, depository, margin funding, etc.). It has one of the largest networks in thecountry with 1200+ share shops in 400 cities and India‘s premier online trading portalwww.sharekhan.com. With their research expertise, customer commitment andsuperior technology, they provide investors with end-to-end solutions in investments.They provide trade execution services through multiple channels - an Internetplatform, telephone and retail outlets.Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family,continues to remain the largest shareholder. It is the retail broking arm of theMumbai-based SSKI [SHRIPAL SHEWANTILAL KANTILAL ISWARNATHLIMITED] Group. SSKI which is established in 1930 is the parent company ofSharekhan ltd. With a legacy of more than 80 years in the stock markets, the SSKIgroup ventured into institutional broking and corporate finance over a decade ago.Presently SSKI is one of the leading players in institutional broking and corporatefinance activities. Sharekhan offers its customers a wide range of equity relatedservices including trade execution on BSE, NSE, and Derivatives. Depositoryservices, online trading, Investment advice, Commodities, etc.Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 andnow it is having all the rights of SSKI. The company was awarded the 2005 MostPreferred Stock Broking Brand by Awaaz Consumer Vote. It is first brokerageCompany to go online. The Companys online trading and investment site -www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives access tosuperior content and transaction facility to retail customers across the country. Knownfor its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because ofits steadfast dedication to offering customers best-of-breed technology and superiormarket information. Page 11
  12. 12. Sharekhan has one of the best states of art web portal providing fundamental andstatistical information across equity, mutual funds and IPOs. One can surf across5,500 companies for in-depth information, details about more than 1,500 mutual fundschemes and IPO data. One can also access other market related details such as boardmeetings, result announcements, FII transactions, buying/selling by mutual funds andmuch more.Sharekhans management team is one of the strongest in the sector and has positionedSharekhan to take advantage of the growing consumer demand for financial servicesproducts in India through investments in research, pan-Indian branch network and anoutstanding technology platform. Further, Sharekhans lineage and relationship withSSKI Group provide it a unique position to understand and leverage the growth of thefinancial services sector. We look forward to providing strategic counsel toSharekhans management as they continue their expansion for the benefit of allshareholders.SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investmentbank with strong research-driven focus. Their team members are widely respected fortheir commitment to transactions and their specialized knowledge in their areas ofstrength. The team has completed over US$5 billion worth of deals in the last 5 years- making it among the most significant players raising equity in the Indian market.SSKI, a veteran equities solutions company has over 8 decades of experience in theIndian stock markets.If we experience their language, presentation style, content or for that matter theonline trading facility, well find a common thread; one that helps us make informeddecisions and simplifies investing in stocks. The common thread of empowerment iswhat Sharekhans all about."Sharekhan has always believed in collaborating with like-minded Corporate intoforming strategic associations for mutual benefit relationships" says Jaideep Arora,Director - Sharekhan Limited. Page 12
  13. 13. Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.Sharekhans expertise lies in stocks and thats what he talks about with authority. Sowhen he says that investing in stocks should not be confused with trading in stocks ora portfolio-based strategy is better than betting on a single horse, it is something thatis spoken with years of focused learning and experience in the‘ stock markets. Andthese beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part ofthe SSKI group, an Indian financial services power house, with strong presence inRetail equities Institutional equities Investment banking.In Ahmedabad, It is having the branch at Dynamic house, opp. Child care hospital,Navrangpura road and over 40 franchisees in Ahmedabad. We have been given thecentre at Navrangpura road, Ahmedabad. INDIAN FINANCIAL SYSTEM Page 13
  14. 14. Formal (organized) Informal (organized) Financial system Financial system Financial markets Capital market Money market Derivatives Equity market  Future  Option  SwapPrimary market Secondary  Forwards market  Public issue  Rights issue  NSE  Private  BSE placement  Preferential allotmentIn Sharekhan, under demat account there are two types of terminals.TYPE OF DEMAT DEPOSIT (Refundable) CHARGES (nonrefundable) Page 14
  15. 15. ACCOUNT TERMINALCLASSIC Rs.5000 Rs.750 Rs.10000 NilTRADETIGER Rs.5000 Rs.1000 Rs.10000/25000 Nil  Its core services are: Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE), Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), Depository services, Online trading services, IPO Services, Dial-n-Trade Portfolio management services, Fundamental and Technical Research services, In addition to this they also provide advisory services and distributions for mutual funds. Sharekhan ValueLine (a monthly publication with reviews of recommendations, stocks to watch out for etc.) Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice Live Market Information Sharekhan First StepSharekhan First StepThe Sharekhan FirstStep is a brand new program designed especially forthose who are new to investing in shares. All one have to do is open aSharekhan FirstStep account and they guide us through the investingprocess.Market Share Page 15
  16. 16. Sharekhan enjoyed about 20 per cent market share in Web business (Internettrading) in stock markets. Three years ago, Web trading showed lot ofpromise but with the market witnessing a downturn, there was not muchinterest among retail customers.ProfitsThe share of Web trading constituted 22 per cent of the revenue. AsSharekhans daily trading volume was over Rs 200 crore, the share of Webtrading at about Rs 40 crore a day was substantial and a larger part of thevolume was coming from day traders.Features of Trading With Sharekhan:1. Freedom from paperwork2. Instant credit and money transfer3. Trade from any net enabled PC4. After hour orders5. Online orders on the phone6. Timely advice and-research reports7. Real-time Portfolio tracking8. Information and Price alerts.FINANCIAL CAPABILITYTaking in to consideration all its assets and liabilities company is valued ataround Rs. 750-850 crores.MISSION: To educate and empower the individual investor to make better investment decisions through quality advice and superior service. VISION: To be the best retail brokering Brand in the retail business of stock market. Page 16
  17. 17. ACHIEVEMENTS OF SHAREKHAN: A wired company along with Reliance, Hll, Infosys, etc by ‗Business Today‘,January 2004 edition. It was awarded ‗Top Domestic Brokerage House‘ four times by Euro and Asiamoney. It was Winner of ―Best Financial Website‖ award. India‘s most preferred brokers within 5 years. ―CNBC Awaaz customers Award2005‖.STRATEGY: The main strategies used in our training were as follow. Page 17
  18. 18. DATA CALLING In data calling we were provided data of mobile numbers and our job was to generate appointments. After that we were required to convert that appointment into closure. Apart from given data we also brought latest business directory. We called to different business people and tried to generate appointments. CALLED CALLING Called calling means to go at different corporate houses and to meet different People and to get their visiting card by it we get lead and our immediate task Was to call them & to fix appointment.REFERENCE Another important strategy was to use our reference means our family, friends, relatives etc. In marketing or selling we can never neglect references & they always play a major role. STALL ACTIVITY:- Stall activity means to make stall at public place. Then our job was to give them a newspaper with brochures and to take their name and contact number. So it was another process of generating lead. After that our job was to follow up and try for appointment and closure. Page 18
  19. 19. HIERARCHY IN SHAREKHAN: Sales Side Dealing Side  Trainees  Junior Dealer  Super Trainees  Dealer  Sales Executives  Relationship manager  Senior sales executives  Senior Relationship manager  Business development  Equity advisor executive  Assistant sales manager  Assistant Branch Manager  Deputy manager  Branch Manager  Territory manager  Cluster Head  Area sales manager/ Cluster  Directors manager  Regional sales manager  CEO  Regional Head  Vice president  Directors
  20. 20. OFFERING OF THE COMPANY  Sharekhan provides 4 in 1 account. 1. De-mat a/c 2. Trading a/c [for cash calculation] 3. Bank a/c [for fund transfer] 4. Dial and Trade [for offline trading/for query relating trading] [1] Dematerialization account:- Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialized form are held in a De-mat account Sharekhan is a depository participant. This means that we can keep the shares in dematerialized form in Sharekhan. But for this one has to purchases the Demat account in Sharekhan. .  Sharekhan provides no opening charge.  Sharekhan provide de-mat account free of charge for first year, Rs.400/ year from the next year (year continued from the day of opening).  Auto pay-in & Auto pay-out of securities.  Waver of pay-in and pay-out charges (Due to link De-mate account). FOR OPENING AN ACCOUNT:  2 passport size photograph  Identity proof (PAN card is compulsory)  Residence proof  Cheque ( Min Rs.10,000 margin balance)
  21. 21.  Proofs of Identity:- Customer can submit a photo copy of any one of the following o Voter ID o Passport o PAN Card o Driving License o Photo I card issued by Employer registered under MAPIN o Copy of Ration cardAddress Proof Customer can submit a photo copy of any one of the following o Voter ID Card o Driving License o Passport o Ration Card o Telephone Bill o Electricity Bill o Leave-License o Bank Passbook o Latest Bank Statement
  22. 22. [2] Trading Account: It is an electronic account which enables customers to trade in share through internet without help to broker. 1) NSE/BSE/F&O/Commodity terminal live screen:- Provides online fluctuations rate on computer screen 2) Online Daily Tips:-  Sharekhan is providing tips through mails in 4 sessions Pre market Noon session Post market Late evening  Sharekhan is provide tips through SMS (chargeable)  Sharekhan is provide tips through Yahoo Messenger Online 3) IPO/MF Online :- Sharekhan provide IPO and MF facility for the customer.[3] Saving Account:In Sharekhan, a customer can have a saving account for trading online with netbanking facility; Sharekhan have a tie ups with following Banks. Page | 22
  23. 23. 1. HDFC Bank2. CITI Bank3. OBC Bank4. YES Bank5. UTI Bank6. IDBI Bank7. ICICI Bank8. Union Bank9. Indusind Bank10. Bank of India11. Deutsche BankA customer can allocate and transfer fund from your respective bank account to yourSharekhan account for trading and transfer back to link bank account when and whereneeded.[4] Dial-N-Trade:-Sharekhan provide Dial-N-Trade facility to the customer.AMC PLAN:- ( Annual Maintenance Cost Plan)Different Plans for Purchasing of Demat Accounts for Equity:- Page | 23
  24. 24.   Different Plans for Purchasing of Demat Accounts for Derivatives:-  PRODUCTS & services:-Sharekhan ltd. Provide different Product as follows:-  Share online & offline  Derivatives  Mutual fund online  Commodities online  IPO online  Portfolio Management Services  Insurance  Fixed deposits Page | 24
  25. 25.  Advisory products Currency trading Page | 25
  26. 26.  Share online:- SHARE ONLINE:Sharekhan provide online facilities.  BENEFIT I. Freedom from paperwork:-Integrated trading, bank and de-mat account with digital contracts removers all paperwork. II. Instant credit and transfer:-instant transfer of funds from bank account of the choice to Sharekhan trading account. Page | 26
  27. 27. III. Trade anywhere:-enjoy the ease of trading from any part of the world in a completely secure environment.IV. Dial n Trade:-call toll free number (1-800-22-7050) to place orders through telebrokers. V. Timey advice:-make informed decisions with expert advice, investment calls and live market commentary.VI. Real-time portfolio tracking:-benefit from real-time information for investment and current portfolio value.VII. After-hour orders:-place order after market hours, which get executed as soon as the markets opens.Sharekhan provide two different accounts: 1) Classic account 2) Trade TigerCLASSIC ACCOUNT:-The Classic Account enables customers to trade online on the NSE and the BSE,invest in IPO and Mutual Funds and access all the research and transaction reportsthrough Sharekhan‘s website. This account is suitable for the retail investors.In this account Shown the maximum script are 25 in the terminal and the technicalchart are not shown in this account.The life time registration charge for this account is 750 rupees.Features  Online trading account for investing in Equities and Derivatives  Free trading through Phone (Dial-n-Trade) o Two dedicated numbers for placing your orders with your cell phone or landline. Page | 27
  28. 28. o Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) o Simple and Secure Interactive Voice Response based system for authentication o Get the trusted, professional advice of our telebrokers. o After hours order placement facility between 8.00 am and 9.30 am  Integration of: Online trading + Bank + Demat account  Instant cash transfer facility against purchase & sale of shares  IPO investments  Instant order and trade confirmations by e-mail  Single screen interface for cash and derivatives  ADVANTAGES OF SHAREKHAN: 1. Online trading is very user friendly and one doesnt need any software to access. 1. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc.Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct,HDFC Sec, etc., so investor not really needs to open an account with aparticular bank as it can establish link with most modern banks.HIERARCHY IN SharekhanThere are 14 main hierarchical levels in Sharekhan: 1) Trainees 2) Super trainees 3) Sales executives 4) Assistant sales manager 5) Area sales manager 6) Assistant branch manager 7) Branch manager 8) Regional head Page | 28
  29. 29. 9) Directors 10) CEO FAST TRADE: Features  Streaming quotes.  Personalized market watch.  Single screen interface for cash, derivatives and Commodities.  New FastTrade is platform independent will support by all Operating System.  New FastTrade will support all browsers in the market.  New FastTrade is independent of existing website and can work even if content website is down.  Fast trade is web base product and it‘s a shown fluctuation rate. LiveTerminal An Option By Which Bulk Trading Can Be Done. Page | 29
  30. 30. TRADE TIGER:Trade tiger is a next-generation online trading product that brings the power ofbroker‘s terminal to customer pc. It is session to capitalize on intra-day pricemovement. Trade tiger is an internet –based application available on a CD, whichprovides everything a trader needs on one screen.Key Features:- A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs Multiple Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD, RSI, etc Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines User can save his own defined screen as well as graph template, that is, saving the layout for future use User-defined alert settings on an input Stock Price trigger Tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator Shortcut key for FAST access to order placements & reports Online fund transfer activated with 11 Banks Page | 30
  31. 31. Advantages:- Live Streaming Quotes Access all Trading Calls Advanced Charting features Create your own technical rules for trading A Single Trading Screen for all segmentsTHE PLATINUM CIRCLE:-  The HNI product.  Personalized portfolio tracking & restructuring advice.  Monthly stock valuation statements, report profitability statement.  Daily report on transaction sent in printed format as well as available online.  Research-based investment advice tailored for different investment approaches  Share offline:-As the internet has taken over the physical trade, the same is the situation in trading inshares. Even the internet has not spared trading in shares and still the conventionalsystem of offline trading continues in today‘s world. Page | 31
  32. 32. Merits of offline trading  Low brokerage  Less margin  Flexibility in credit period  Customized advice Demerits of offline trading  Problems in getting in touch with the broker  Limited clientele  Problem of attention from the broker due to load  Reliance on the broker‘s information  Customer has to believe what the broker says  Broker Might not give the best price  Reconciliation of account and cash settlements  Paperwork  Geographical Restriction  DIAL-N-TRADE:Sharekhan provides complete trading facility like they are giving Toll free numbersthe phone trading facility as an alternative of net trading where a customer can call―n‖ number of times.Toll Free numbers: 1800-22-7500 1800-22-7050Local number : 079-30307600 (chargeable) Page | 32
  33. 33. Exposure: For Intraday = 10 timesFor Delivery = 04 timesSharekhan is also providing the Margin on DP balance.  Indexes of Equity market online NSE:The national stock exchange of the India was the promoted by leading financialinstitutions at the behest of the government of India, and was incorporated inNovember 1992 as a tax paying company. In April 1993, it was recognized as a stockexchange under the securities contracts( Regulation) Act, 1956. NSE commenced itsoperation in the wholesale Debt Market (WDM) segment in June 1994. The capitalmarket (Equities) segment of the NSE commenced operation in November 1994. BSE:The Bombay stock exchange is the oldest stock exchange in Asia. It is located atDalal Street, Mumbai, India.The Bombay stock exchange was established in 1985. There are around 3500 Indiancompanies listed with stock exchange, and has the significant stock volume. As of 29may 2007, the market capitalization of the BSE is about Rs. 40.5 trillion. The BSESENSEX (SENSitive indEX), also called the “BSE 30”, is a widely used market index inIndia and Asia. As of 2005, it is among the five biggest stock exchanges in the worldin terms of transactions volume.  Derivatives Derivatives are financial contracts whose value/price is depends on the behavior of price of one or more basic underling assets. These contracts are Page | 33
  34. 34. legally binding agreement, made on the trading screen of stock exchange, buy or sell an asset in future. The assets can be share, index, interest rate, bond, rupee- dollar exchange rate, sugar, crude oil, soybean, cotton, coffee etc. EQUITY FUTURE AND OPTION: Future:-An agreement between two parties to buy or sell an asset at a certaintime in the Future at a certain price. Stock futures on certain specified securities andinternet rate futures are available for trading at NSE (NATIONAL STOCKEXCHANGE).All the futures contracts are settled in cash.  Options:-An Options is a contract which gives the right, but not but or sell the underlying at astated price, which a buyer of an option pays the premium and Options are of twotypes – calls and put.Callsgive the buyer the right but not the obligation to buy a given quantity of theunderlying asset, at a given price on or before a given future date. Calls also known asbulls.Putsgive the buyer the right, but not obligation to sell a given quantity of the underlyingasset at a given price on or before a given date. Puts also known as bears. Page | 34
  35. 35.  Commodities online:- COMMODITIES ONLINE:Commodities are agreements to buy and sell virtually anything except, for somereason, onions. The primary commodities that are traded are oil, gold and agriculturalproducts. Commodity derivatives comprise of raw materials and products that can betraded on special commodity exchanges across the country. Commodities expandscustomer investing horizon from investing in a metal company to trading in the metalitself. Trading in commodity derivative provides unique market opportunities for awider section of participants like: investor, hedgers, arbitragers, traders, manufacturesplanters, exporters and importers. While trading commodities through an exchange,there are no transportation charges, no insurance costs, no storage charges andcomplete security when customer trade though an exchange. Customer can trade incommodities at nominal costs and carry the investment in paper from as customerwant. The fundamentals for commodities are quite simple: price is a function ofdemand and supply.Sharekhan provides commodity facility. Sharekhan trades on two major commodityexchanges in India. 1) MCX 2) NCDEX Indexes of commodities MCX:MCX (MULTI COMMODITY EXCHANGE OF INDIA LTD) is a state-of-the-artelectronic commodity futures exchange.MCX is an independent commodity exchangebased in India. It was established in 2003 and is based in Mumbai. The turnover of theexchange for the period Apr-Dec 2008 was INR 32 Trillion.MCX offers futurestrading in Agricultural Commodities, Bullion, Ferrous & Non-ferrous metals, Pulses, Page | 35
  36. 36. Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX hasalso setup in joint venture the National Spot Exchange a purely agriculturalcommodity exchange and National Bulk Handling Corporation (NBHC) whichprovides bulk storage and handling of agricultural products. NCDEX:National Commodity & Derivatives Exchange Limited (NCDEX) is a professionallymanaged online multi commodity exchange promoted by ICICI Bank Limited (ICICIBank), Life Insurance Corporation of India (LIC), National Bank for Agriculture andRural Development (NABARD) and National Stock Exchange of India Limited(NSE). Punjab National Bank (PNB), CRISIL Limited (formerly the Credit RatingInformation Services of India Limited), Indian Farmers Fertiliser Cooperative Limited(IFFCO) and Canara Bank by subscribing to the equity shares have joined the initialpromoters as shareholders of the Exchange.NCDEX is the only commodity exchange in the country promoted by national levelinstitutions. This unique parentage enables it to offer a bouquet of benefits, which arecurrently in short supply in the commodity markets. The institutional promoters ofNCDEX are prominent players in their respective fields and bring with theminstitutional building experience, trust, nationwide reach, technology and riskmanagement skills. NCDEX is a public limited company incorporated on April 23,2003 under the Companies Act, 1956. It obtained its Certificate for Commencementof Business on May 9, 2003. It has commenced its operations on December 15, 2003.NCDEX is a nation-level, technology driven de-mutualized on-line commodityexchange with an independent Board of Directors and professionals not having anyvested interest in commodity markets. It is committed to provide a world-class Page | 36
  37. 37. commodity exchange platform for market participants to trade in a wide spectrum ofcommodity derivatives driven by best global practices, professionalism andtransparency.NCDEX is regulated by Forward Market Commission in respect of futures trading incommodities. Besides, NCDEX is subjected to various laws of the land like theCompanies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Actand various other legislations, which impinge on its working. NCDEX is located inMumbai and offers facilities to its members in more than 390 centers throughoutIndia. The reach will gradually be expanded to more centers.NCDEX currently facilitates trading of thirty six commodities - Cashew, Castor Seed,Chana, Chilli, Coffee, Cotton, Cotton Seed Oilcake, Crude Palm Oil, ExpellerMustard Oil, Gold, Guar gum, Guar Seeds, Gur, Jeera, Jute sacking bags, Mild SteelIngot, Mulberry Green Cocoons, Pepper, Rapeseed - Mustard Seed ,Raw Jute, RBDPalmolein, Refined Soy Oil, Rice, Rubber, Sesame Seeds, Silk, Silver, Soy Bean,Sugar, Tur, Turmeric, Urad (Black Matpe), Wheat, Yellow Peas, Yellow Red Maize& Yellow Soybean Meal. At subsequent phases trading in more commodities wouldbe facilitated. Page | 37
  38. 38. Insurance Page | 38
  39. 39. INSURANCE:What is insurance?Insurance is a policy from a large Financial Institution that offers a person, company,or other entity reimbursement or financial protection against possible future losses ordamages.Life insurance ensures that your family will receive financial support in your absencePut simply; life insurance provides your family with a sum of money shouldsomething happen to you. It protects your family from financial crises. In addition toserving as a protective cover, life insurance acts as a flexible money-saving scheme,which empowers you to accumulate wealth-to buy a new car, get your childrenmarried and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance.Currently Sharekhan has tie up with ICICI Prudential Life Insurance. So Under ICICIprudential life insurance, the key benefits would be……Life insurance, especially tailored to meet your financial needs Need for Life InsuranceToday, there is no shortage of investment options for a person to choose from.Modern day investments include gold, property, fixed income instruments, mutualfunds and of course, life insurance. Given the plethora of choices, it becomesimperative to make the right choice when investing your hard-earned money. Lifeinsurance is a unique investment that helps you to meet your dual needs - saving forlifes important goals, and protecting your assets. Asset Protection Page | 39
  40. 40. From an investors point of view, an investment can play two roles - asset appreciationor asset protection. While most financial instruments have the underlying benefit ofasset appreciation, life insurance is unique in that it gives the customer thereassurance of asset protection, along with a strong element of asset appreciation.The core benefit of life insurance is that the financial interests of one‘s family remainprotected from circumstances such as loss of income due to critical illness or death ofthe policyholder. Simultaneously, insurance products also have a strong inbuilt wealthcreation proposition. The customer therefore benefits on two counts and life insuranceoccupies a unique space in the landscape of investment options available to acustomer. Goal based savingsEach of us has some goals in life for which we need to save. For a young, newlymarried couple, it could be buying a house. Once, they decide to start a family, thegoal changes to planning for the education or marriage of their children. As one growsolder, planning for ones retirement will begin to take precedence.Clearly, as your life stage and therefore your financial goals change, the instrument inwhich you invest should offer corresponding benefits pertinent to the new life stage.Life insurance is the only investment option that offers specific products tailor-madefor different life stages. It thus ensures that the benefits offered to the customer reflectthe needs of the customer at that particular life stage, and hence ensures that thefinancial goals of that life stage are met. Page | 40
  41. 41. The table below gives a general guide to the plans that are appropriate for differentlife stages.Life Stage Primary Need Life Insurance ProductYoung & Single Asset creation Wealth creation plansYoung & Just Asset creation & protection Wealth creation and mortgagemarried protection plansMarried with kids Childrens education, Asset Education insurance, mortgage creation and protection protection & wealth creation plansMiddle aged with Planning for retirement & Retirement solutions & mortgagegrown up kids asset protection protectionAcross all life- Health plans Health Insurancestages  Life insurance plan:Life insurance products assure your family will receive financial support, even in yourabsence. Put simply, when you buy insurance you provide your family with a sum ofmoney, should something happen to you. It thus permanently protects your familyfrom financial crises.In addition to serving as a protective cover, when you buy insurance you create aflexible money-saving scheme, which empowers you to accumulate wealth to buy anew car, get your children educational solutions, and even retire comfortably.Today, there is no shortage of investment options for a person to choose from. Giventhe plethora of choices, it becomes imperative to make the right choice wheninvesting your hard-earned money and online insurance is an ideal choice in today‘stechnology driven world. Buying Life insurance online is a way to make a unique Page | 41
  42. 42. investment that helps you to meet your dual needs - saving for lifes important goals,and protecting your assets.From an investors point of view, an investment can play two roles - asset appreciationor asset protection. While most financial instruments have the underlying benefit ofasset appreciation, buying life insurance online gets you the unique reassurance ofasset protection, along with a strong element of asset appreciation.When you buy life insurance online the core benefit is that the financial interests ofone‘s family remain protected from circumstances such as loss of income due tocritical illness or death of the policyholder. Simultaneously, buying life insuranceonline gives a strong inbuilt wealth creation proposition. The customer thereforebenefits on two counts and online insurance products occupy a unique space in thelandscape of investment options available to a customer.As your life stage and therefore your financial goals change, the instrument in whichyou invest should offer corresponding benefits pertinent to the new life stage. Onlineinsurance products are the only investment option that offer specific products tailor-made for different life stages. You are thus ensured that the benefits offered to thecustomer reflect the needs of the customer at that particular life stage, and henceensures that the financial goals of that life stage are met.On the basis of which life stage you are in and the corresponding insurance needs,ICICI Prudential plans can be categorized into the following three types:  Education Insurance Plans  Wealth Creation Plans  Protection Plans Page | 42
  43. 43. Educational Insurance Plans Wealth Creation Plan Protection PlansICICI Pru Smartkid Assure ICICI Pru Life Stage Wealth Pure ProtectICICI Pru Smartkid Maxima ICICI Pru ACE Life GuardICICI Pru Smartkid Regular ICICI Pru premier Wealth Save n ProtectPremiumICICI Pru assure Wealth CashbakICICI Pru Life Time Maxima Home assure Page | 43
  44. 44.  Mutual fund:- MUTUAL FUNDS:Mutual Fund is an investment company that pools money from shareholders andinvests in a variety of securities, such as stocks, bonds and money marketinstruments. Most open-end mutual funds stand ready to buy back (redeem) itsshares at their current net asset value, which depends on the total market value ofthe funds investment portfolio at the time of redemption. Most open-end mutualfunds continuously offer new shares to investors.Security exchange board of India is the regulatory body for all mutual fund.All mutual funds must get registered with the SEBI.Benefits of investing in mutual funds: Small investment Professional fund management Page | 44
  45. 45. Spreading risk Transparency Choice regulationOnline Mutual Fund  Initial publi offering Page | 45
  46. 46. IPO:-Initial Public Offering, the first sale of stock by a company to the public.Companies offering an IPO are sometimes new, young companies, or sometimescompanies which have been around for many years but are finally deciding to gopublic. IPOs are often risky investments, but often have the potential for significantgains. IPOs are often used as a way for a young company to gain necessary marketcapital.From an investor point of view, IPO gives a chance to buy shares of a company,directly from the company at the price of their choice (In book build IPOs). Many atimes there is a big difference between the price at which companies decides for itsshares and the price on which investor are willing to buy share and that gives a goodlisting gain for shares allocated to the investor in IPO.From a company prospective, IPO help them to identify their real value which isdecided by millions of investor once their shares are listed in stock exchanges. IPOsalso provide funds for their future growth or for paying their previous borrowings.Sharekhan provides to their customer the Online IPO facility. In this facility, Thecustomer has to feel only the bid price and the quantity for which he/she wants to buythe stock. Page | 46
  47. 47. STEPS FOR IPO:- Steps for Applying IPO Online Portfolio management service:- Page | 47
  48. 48. PMS: -PORTFOLIO MANAGEMENT SERVICES (PMS):-Sharekhan unfolds for customer an enable of PMS to choose from that helps customersit back, relax and see customer money grow without worrying about the ups anddowns at the stock market. Talks to Sharekhan specialists and they‘ll help customerchoose a PMS plan that suits customer ‗ risk taking appetite‘ and ‗expectation fromthe market‘.There are two types of PMS in Sharekhan Limited A) PRO PRIME B) PROTECH A) PROPRIME (FUNDAMENTAL):-ProPrime uses in-depth independent fundamental research through primary analysis inhigh-quality companies. The ProPrime line is designed for varying risk-return profilesand investment. Ideal for investors looking at steady and superior returns with low tomedium risk appetite. This portfolio consists of a blend of quality blue chip andgrowth stocks ensuring a balanced portfolio with relatively medium risk profile. Theportfolio will mostly have large capitalization stocks based on sectors & themes thathave medium to long term growth potential.  PRODUCT APPROACH Page | 48
  49. 49. Investment are based on 3 tenets:i] Consistent, steady and sustainable returnsii] Margin of Safetyiii] Low VolatilityPRODUCT CHARACTERISTICS:-  Bottom up stock selection  In-depth, independent fundamental research  High quality companies with relatively large capitalization.  Disciplined valuation approach applying multiple valuation measures  Medium to long term vision, resulting in low portfolio turnover  Why Invest?  PMS proprime uses the expertise of 35 financial analyst to get the best possible returns.  Fundamental research based on in-depth analysis of companies including past performance, management, growth potential of sector etc. Page | 49
  50. 50.  How to Invest?  Minimum investment = Rs. 5.00 Lakhs  Lock in period: 06 months  Reporting: Access to website showing client holding & quarterly reporting of portfolio holdings/transactions  Charges: 2.5% p.a., AMC fees charged every quarter, 0.5% brokerage, 20% profit sharing after 15% hurdle crossed end of every fiscal.  How to check? You can access your portfolio through branches of franchisees for services.  Daily NAV can be viewed online  Quarterly reporting of portfolio holding/transaction B) PROTECH (TECHNICAL):-Protech uses the knowledge of technical analysis and the power of derivativesmarket to identify trading opportunities in the market. The Protech lines ofproducts are designed around various risk/reward/volatility profiles for differentkinds of investment needs. Protech is based on (1)Long short strategies (2)Focus on absolute returns (3)Timing the marketPRODUCTS OFFERED Page | 50
  51. 51. 1.Nifty Thrifty 2.Beta Portfolio 3.Trailling StopsProduct Approach:-  Superior performance can be achieved through sheer market timing, by picking Stocks/Nifty before the infection points in their trading cycles.  Linear returns are possible from having sell market positions in downtrends and by using the options market to change the portfolio beta.  Money management rules will be in place.Product Characteristics:-  Using swing based index -trading systems, stop and reverse, trend following and momentum trading techniques.  Nifty based products for low impact cost and low product volatility.  To earn return both in rising & falling market.  Trading in futures market to allow for active risk protection using trailing stop losses.  Why Invest?Different product based on risk-reward for different types of investor having different Page | 51
  52. 52. time horizon of investment & return expectation.Aspect from fundamental analysis, a successful investor can take a market view basedon technical analysis & power of derivatives for ‗Timing the market’.If customer wants to be ahead in the race of timing the market correctly, then ProTechPMS is the option for customer. So far Sharekhan is the first company to came outwith this kind of PMS in India based on Technical Analysis.  How to invest?Lock in: 6 months.Reporting: fortnightly reporting of portfolio net worth, monthly reporting of portfolioHoldings/ transactions.Charges: 0% AMC fees, 0.05% brokerage for derivatives, 20% profit sharing onbooked profits on a quarterly basis.  Fixed deposits Page | 52
  53. 53. FIXED DEPOSITES:-Fixed deposits are loan arrangements where a specific amount of funds is placed ondeposit under the name of the account holder. The money placed on deposit earns afixed rate of interest, according to the terms and conditions that govern the account.The actual amount of the fixed rate can be influenced by such factors at the type ofcurrency involved in the deposit, the duration set in place for the deposit, and thelocation where the deposit is made.The most unusual characteristic of a fixed deposit is that the funds cannot bewithdrawn for a specified period of time. In most cases, fixed deposits carry durationof five years. During that time, the money remains in the account and cannot bewithdrawn for any reason. Individuals, corporate entities, and even non-profitorganizations that wish to set aside funds and limit their access to the funds for aperiod of time often find that fixed deposits are a simple way to accomplish this goal.As an added benefit, the monies in the account will earn a fixed rate of interestregardless of any fluctuations in interest rates that apply to other types of accounts.However, both these benefits can also turn into disadvantages under certaincircumstances. Because the money cannot be withdrawn until the duration iscomplete, the funds cannot be used even in emergency situations. Changes in thegoing interest rate may also rise to a point above and beyond the interest rate appliedto existing deposits. This means account holders are actually earning less interest withfixed deposits than with other types of loans and accounts.While the interest rate on fixed deposits cannot be changed, there is sometimes a wayto work around the issue of obtaining use of funds in an emergency situation. At Page | 53
  54. 54. times, the lending institution where the fixed deposit is placed may be willing toextend a separate loan to the account holder, using the fixed account as collateral.While not ideal, this can at least make it possible to deal with the current financialcrunch.Fixed deposits are a credible way to make a return on investment that is somewhathigher than a standard savings account. The use of fixed deposits can also be helpfulwhen working with various types of currency. By establishing what is known as aForeign Currency Fixed Deposit or FCFD, it is possible to choose the type ofcurrency involved in the deposit and lock in a rate of interest. If the choice ofcurrency is a good one, this means the investor can enjoy a healthy fixed depositcurrency rate for the duration of the deposit and earn more than with a standard fixeddeposit strategy. However, going with an FCFD does contain a slightly higher amountof risk, since the funds deposited must be converted to the currency of choice and thenconverted back when the deposit is fulfilled. If the currency did not fare well in theinterim, there is some chance of obtaining a loss, due to the changes in the rate ofexchange from the time the fixed deposit was activated until the time the deposit isconsidered complete. Sharekhan has tie up with Unitech Limited and HDFCcorporations limited. Page | 54
  55. 55.  Advisory produc ADVISORY PRODUCT:Sharekhan provide Advisory Products by which customer can get proper advise forinvesting their money in proper way by which they can earn more profit. .Need of Advisory Products:-  Wide product range to meet diverse needs of clients  Disciplined Approach  Dedicated Product manager backed by Research  Performance track recordADVISORY PRODUCTS:- Top picks Portfolio Page | 55
  56. 56. 123 portfolios Smart Trade Portfolio Derivatives Portfolio Nifty Portfolio Portfolio Doctor(1) Top Picks Portfolio:A Compilation of the best stock market ideas from the Sharekhan basket.  Released Monthly  Ideal for Every Investor.  Picked by the highly acclaimed Sharekhan Research Team  Quality Stock Selection.  Effective for long term and medium term.  Excellent Track Record.  Good Strike Record. Page | 56
  57. 57. Top Pick Portfolio Performance Top Picks Performance 67.80% Sensex Performance 25.60% Portfolio period 1st April 2007-31st March 2008 Top Pick Portfolio Performance Top Picks Performance -4.10% Sensex Performance -15.90% Portfolio period 1st April 2008 - 31st Aug 2008(2)123 Portfolio:What is it? 123 portfolio is a cash market delivery portfolio. In this Portfolio, calls will be generatedby Advisory team in Consultation with Research Team in both Fundamental andTechnical Term. 123 Portfolio is for short term delivery clients with the time frame of 1-3months. 123 Portfolio - RulesTicket size Rs. 3 lacs & aboveNo of stocks in portfolio Max.5Upside returns potential 10-20%Downside risk 5-10%Stop loss No stop loss will be given Shall be done to clients at the End of day & also a MonthlyReporting report will be sentProduct draw down 25% of clients corpus Page | 57
  58. 58. (3) Smart Trade Portfolio: A Model portfolio runs by the Sharekhan advisory Team centrally. Delivery calls are generated by the Advisory based on the market pulse (not based on the Fundamental Research). ideal for short term investor looking for aggressive returns with medium risk Aggressive No leverage Actively Managed STP: Trading Rules Portfolio Rules Call for Segment Only Cash Segment calls Min Investment per call 10 % of corpus Time frame of call Max : 1 month Min : 1 day Monitoring Advisory Team Portfolio Performance Portfolio Returns 51.10% (Net of Costs) Sensex performance 25.60% Portfolio period 1st April 2007-31st March 2008 Page | 58
  59. 59. (4) Derivatives Portfolio:A Model portfolio runs by the Sharekhan advisory Team centrally. Ideal for Traderslooking for aggressive returns with medium risk.  Aggressive  Leverage  Actively managed  Super strike Rate Portfolio Rules Call for Segment Only Derivative Segment calls 20-25 % of corpus as Margin Min Investment per call (Quantity also specified) Time frame of call Max : 1 month Min : 1 day Monitoring Derivative Team Portfolio Performance Returns (Absolute) 102% (Costs**) Returns (Relative) 17.69% Portfolio period 1st August 2007-31st March 2008 ** Costs Net of Brokeage & doesn’t not considers other charges Portfolio Performance Portfolio Returns 95.54% Sensex performance -15.90% Portfolio period 1st April 2008- 16th Sep 2008 Page | 59
  60. 60. (5) Nifty Portfolio:  It is a trading portfolio managed by Sharekhan‘s technical team which generated calls in Both (BSE &NSE) Index.  This portfolio is meant for traders who want to trade for short and long index.Why Nifty Portfolio?  Historically 1/3 of F&O turnover is in NIFTY.  Ample Liquidity and Low impact cost.  Predefined method and rules. Nifty PortfolioTicket Size Rs. 3 lakhsMax EOD Exposure 6 LotsMin Exposure 0 LotsExpected Upside 1-8%Stop Loss 1-4%Reporting Shall be done to clients at the End of day & also a Monthly report will be sentDrawdown 30% Nifty PortfolioTime Frame Intraday-30 DaysStop Loss 1-4%Target 1.5-10%Strike Rate 60-65%Risk Reward 1:2.5Underlying Nifty Futures,Bank Nifty, Nifty Options,CNX IT(If Liquid) Page | 60
  61. 61. Dividend DistributionPositive Return on investment will be consider for monthly dividend(6) Portfolio Doctor:  It is a tool for the comprehensive analysis of your existing portfolio.  Recommendations for improvement on a continuous basis based on ―Market Outlook‖.  Analysis of your existing portfolio  Recommendation from Sharekhan  Creation of Model Portfolio Page | 61
  62. 62.  Currency Trading: Page | 62
  63. 63. Currency trading means to trade in currency of different countries and price varies because of supply and demand. Currency trading is mostly done by large companies or by people who is import-export business. In price of currency there is always fluctuation. So it can be dangerous for people who have import-export business. So they make reverse position or it is also known as hedging. So by this way people minimize their risk with the help of currency trading. Currency trading is not much useful to individual investors. Sharekhan is providing offline currency trading to interested customers. Online currency trading is not given because individual investors still not prefer currency trading. Major Challenges for the OrganizationNEW DELHI: A combination of factors, such as rising macro challenges, policyparalysis, muted quarterly results and monsoon expectations, have turned the marketbias negative, according to Sharekhan Ltd."For investors, any correction in the near term (due to macro concerns or tacticalfactors) would be a summer discount sale as the risk reward ratio for long-terminvestors has turned quite attractive," according to a report by the brokerage.The governments proposal to review Indias exclusive tax avoidance treaty withMauritius rattled the markets which were already reeling under the negative impact ofa weakening rupee.The rising current account and fiscal deficits are putting pressure on the rupee againstthe major currencies as well as causing structural liquidity issues in the domesticbanking system despite the fund infusion by the RBI through CRR cuts and openmarket operations. Page | 63
  64. 64. On Friday, the Sensex fell below the 17,000 mark for the first time since January 24,2012, closing at 16,831, down 320.11 points, or 1.87%. The 50-share Nifty fell101.55 points, or 1.96%, to close at 5,086.85.Investors worry that revising the terms of the pact could discourage overseasinvestments in India as a sizeable chunk of foreign fund inflows into the country inthe last few years has been through Mauritius.The BSE Mid-cap Index, which underperformed the Sensex in the October 2011 toJanuary 2012 period, actually outperformed the index in the past three months. Goingahead, the monsoons are expected to be normal this year (as forecast by the IndiaMeteorological Department) which would be crucial in shaping the market.In India, corporate earnings have come under pressure due to the high input cost,rising financing costs and uncertainty in the external environment. In the past threequarters, earnings of the Sensex companies grew in single digits -- 7% in Q1FY2012,8.1% in Q2FY2012, and 4.1% in Q3FY2012.However, the earnings downgrades picked up again after a lull for a couple of months.The Sensexs consensus earnings estimate for FY2013 has been downgradedsubstantially (by 15%) over the last 15 months and largely factors in most of thenegatives. Introduction of Problem Sharekhans Server is damn slow at 9.55 AM and after 2.45 pm. When NSE begins at 9.55 AM you get Zeros all over for full 5 mins; sometimes even for 20 mins. If you call up the nearest Sharekhan Office you are sure to get an answer " Everything is OK. Your broadbands speed is very slow." First I believed them. Switched Sify to MTNL(2Mbps). Same problem. Changed over to Airtel (2Mbps). Problem continues. Very often you are looking at past. Shares rate is for example Rs 100.00. You buy 150 shares. Later you find that these shares were bought actually at Rs 115.00. Why?? Because the time next to share rate is 15 mins behind the actual. The Page | 64
  65. 65. server has not updated your scren at all. You have to shutdown and restart theSharekhans programme ( not the compute) to get the current rate. The situationbecomes horrible if you were to buy to cover a Shortsold Day Trading Deal andtime shown is 3.20 pm. I bought some shares and later realised that I didnot buy atall as the market was closed because the actual time was 3.35 pm. So you paypenalties.Another thing happens infrequently. You do Day Trade for 200 shares of BHEL atRs 1300 per share. Buy shares at Rs1250.oo and settle the deal. You think you arebuying shares in NSE but actually you end up buying in BSE and you are inserious trouble - auction. On day T+2 the closing price has shot up to Rs1570.00and you have to this price plus 20% penalty. While you were glad that you madeRs 50/- profit it has now become a nightmare with a loss of overRs500/share or Rs1 lac. When you take it up with Sharekhan they would say nothing is wrong withtheir software and you must have press the wrong keys on the keyboard. Theirpolicy is "CUSTOMER IS ALWAYS WRONG.The staff at the Sharekhan branches just donot know at what rate you are chargedSTT, Education cess and a host of other taxes. Even emails to mysharekhan.comonly frustrate you. Though you get a prompt reply and the rate of taxes they canotexplain how it is worked out. They try to use jargons to escape any responsibility.I asked them what the jargon Traded Value means. Is it my purchase/ sold rate ordoes it include brokerage or is it to be multiplied by the no of shares traded. Noreply for 45 days. I am still waiting. Page | 65
  66. 66. (2) OBJECTIVE OF STUDYTo project Sharekhan as an authority in the retail stock tradingbusiness.To execute business for the company by selling demat accounts andmutual funds.To study the various products of the company.To know how to open and close the calls. Page | 66
  67. 67. To learn the online terminal used for trading. To know the various policies of the company. To know how to handle various types of customers. To know various reasons for market fluctuations. To learn to manage time. To gain practical knowledge of the market.To have a practical experience of working in a reputed organization (3) Literature ReviewPurpose – The purpose of this paper is to organize and take stock of the presentsituation of research on stock market integration by reviewing the available literature,to provide quick and easy access for future researchers. Another objective of thepresent study is to classify the literature and to provide the comprehensivebibliography on stock market integration and to analyse the findings and results of thestudies taken into consideration for review. Black-Litterman model: The Black-Litterman model enables investors to combine their unique views regarding the performance of various assets with the market equilibrium in a manner that results in intuitive, diversified portfolios. This paper consolidates insights from the relatively few works on the model and provides step-by-step instructions that enable the reader to implement this complex model. A new method for controlling the tilts and the final portfolio weights caused by views is introduced. The new method asserts that the magnitude of the tilts should be controlled by the user-specified Page | 67
  68. 68. confidence level based on an intuitive 0% to 100% confidence level. This is an intuitive technique for specifying one of most abstract mathematical parameters of the Black-Litterman model. Portfolio Selection with Transaction Costs: In this paper, optimal consumption and investment decisions are studied for an investor who has available a bank account paying a fixed rate of interest and a stock whose price is a log-normal diffusion. This problem was solved by Merton and others when transactions between bank and stock are costless. Here we suppose that there are charges on all transactions equal to a fixed percentage of the amount transacted. It is shown that the optimal buying and selling policies are the local times of the two-dimensional process of bank and stock holdings at the boundaries of a wedge-shaped region which is determined by the solution of a nonlinear free boundary problem. An algorithm for solving the free boundary problem is given. A Shrinkage Approach to Model Uncertainty and Asset Allocation: This paper takes a shrinkage approach to examine the empirical implications of aversion to model uncertainty.Portfolio Optimization, Heuristics, and the ―Butterfly Effect‖: The ―Butterfly Effect‖ has been an interesting concept in the development of chaos theory. Given a complex system like the global weather system, the butterfly effect is rather intriguing. It says that the flapping of a butterfly‘s wings in Beijing will work its way through the system and result in a tornado in Oklahoma. The same effect is at work with portfolio optimizers that perform asset allocation and portfolio allocation chores. A small change to an input works its way through the system of equations and results in a large change in allocations. As a result, it is very easy to arrive at a set of ―non-intuitive‖ allocations.  Data presentationCOMPANY PERCENTAGE THAT SHOWS ALSO BY DIAGRAMWITH % WAYS. N. Name % SHAREKHAN 38 INDIAINFOLINE 20 ICICI DIRECT 14 Page | 68
  69. 69. INDIA BULLS 12 KARVY 9 Others 7TOTAL 100 Company Percentage IndiaInfoline Sharekhan ICICI Direct Indiabulls Karvy OthersCOMMENTIn Sharekhan 38% respondents have de-mat & trading account because ofbetter services and no annual maintenance and other charges. Page | 69
  70. 70. FUNDMENTAL RESEARCH:- Page | 70
  71. 71.  STOCK IDEAS:Aimed at investors. Presents our stock pick and discusses reasons for the same. Itcomes with a price target and a time frame over which gains can be materialized.EvergreenThese stocks are steady compounders, churning out steady growth rates year on year.They are typically significant players in their markets, with sound strategies that will Page | 71
  72. 72. help them achieve and sustain market dominance in the long run. They have strongbrands, management credentials and a consistent track record of achieving supernormal shareholder returns. We expect stocks in this category to compound atbetween 18-20% per annum for the next five to ten years Also called ownershipstocks, Evergreen stocks are the brightest jewels in any portfolio.Apple GreenThese are stocks that have the potential to be steady compounders and are attemptingto move upwards, to turn Evergreen. They rank a shade below the Evergreencompanies, only because their potential in the five to ten years time is still not veryclear, although they might grow at rates faster than that of the Evergreen stocks in thenext year or two. They could grow at 25-30% per annum over the next two to threeyears. Page | 72
  73. 73. Ugly DucklingThese are companies that are trading below their fair value or at values which are at asignificant discount to that of their peer group, due to a combination of circumstances.But things are now starting to happen in these companies or in their markets that arelikely to cause a re-evaluation of their prospects. These stocks could double in two tothree years time. Buy into an Ugly Duckling now and youd have a beautiful whiteswan on your hands two to three years down the line. Page | 73
  74. 74. Emerging starThese are typically young companies, often in niche businesses, that have thepotential to grow and dominate their niches. Even better, they might turn out to be Page | 74
  75. 75. real giants, if their niches explode into full-blown markets in their own rights. Thesestocks are potential ten-baggers but you need to be patient. Buy into these stocks andwatch your personal star ascend.Vultures PickThese are companies with valuable assets or brands that have been trashed toridiculously low prices. Buy a Vultures Pick and wait for a predator who finds itsassets undervalued to come along. This could be a long wait but the returns could bestartlingly high. The key is to be patient. The vulture after all is a patient bird. Page | 75
  76. 76. Cannon BallThey are fast gainers in a rising market, which could give returns of 20-40% withinthree months. Based on a combination of sound market information, technical chartsand available fundamentals for investors with an appetite for high risk and highreward. Page | 76
  77. 77.  INVESTERS’EYES: A daily fundamental newsletter to help the customer for taking right decisions. Contents Views on most important news reports of the day Recos using the bottom-up approach Stock Update reports Special reports Other reports  SHAREKHAN TOP PICKS: A model portfolio comprising of 12 stocks for investors with a horizon of more than a year. Portfolio is updated with new stocks replacing existing stocks as and when required to optimize performance.  VIEW POINT: Views on companies we dont track. Views on economy, policy changes and government initiatives  SPECIAL REPORTS: Specialized reports on unique market opportunities. Reports like - Selectivity pays, monetary policy review, Hurricane gains, Dividend yield stocks, etc. Page | 77
  78. 78.  IPO FLASH:Report on forthcoming IPOs - only those IPOs which are covered by our researchteam.  SECTOR’REPORTS:View on various sectors and its constituents (eg sugar and Balrampur Chini, KCPSugar Industries, Upper Ganges)  MARKET OUTLOOK: Bi-monthly Fundamental view on the market. TECHNICAL RESEARCH:-Punter CallA daily view on how the market and major indices are expected to trade for the daythe closest support and resistance levels are provided to help traders take decisions. Page | 78
  79. 79. Smart chartsIt presents the best positional trading calls in the market. Each call is introduced alongwith a reco (Go Long/Go Short), a price target, a stop loss and a chart depicting thetrend in the stock.Derivative CallsToolkit for derivative tradersDay Traders Hit ListIt captures the trading ranges of all the stocks that are currently the markets flavour. Itis meant for day trading. All positions need to be squared off by 3.30. The listcontains 20 liquid stocks.Pivot TablePivot Table is an intra-day product and it covers mainly mid-cap and small-capcompanies. The Buy and Sell targets are given for each stock in this list.Momentum SwingMomentum Swing tries to capture the dynamic picture of price movements in stocks.This product can be used to gauge the sentiments in stocks at a future date as reflectedin the charts. Page | 79
  80. 80. Derivative Toolkit Toolkit for derivative traders Eagle Eye Eagle Eye is a daily newsletter based on technical research. It is aimed at traders. It contains Looking trendy (short term) Smart chart Day traders hit list Medium term target and reversal High Noon Toolkit for derivative traders By tradetiger software, customer can see the market depth and volume of the particular company. Page | 80
  81. 81. Page | 81
  82. 82.  Depository servicesDepository Services:A Depository is like a bank wherein the deposits are securities. ( i.e. shares,debentures, bonds, government securities, units, etc.) in electronic form. Besidesholding securities, a depository also provides service related to transaction insecurities.Depository provides its services to investors through its agents called depositoryparticipants (DPs).Sharekhan is one of the depositories.NSDL-DP ID- IN300513CDSL-DP ID- 12036000It provides services as follow. Page | 82
  83. 83.  Account Opening De-mat/ Re-mat/ Repurchase/ Redemption Account Transfer Instructions Inter Depository Transfer Instructions Client Master Changes Freezing/ De-freezing/ Account closing Transmission Pledge Creation/ Closure/ Invocation Stock leading & Borrowing SPEED-e & IDeAS/ easi & easiest. Customer supporter:- Page | 83
  84. 84. Call Center:There is a call center at Bombay, where more than 200 employees are workingefficiently. Their work is as powerful that they complete every call within twominutes. So customers are satisfied with them. Page | 84
  85. 85. Relationship Manager:Sharekhan provides personal relationship manager to its customer. The work ofrelationship manager in Sharekhan ltd is as follow:  Punching in trades for clients.  Communicating intra-day trading calls and investment ideas to customers.  Conducting business development activities in branches.  Monitoring day to day operations at branch.  Maintaining regular relations with clients.Alerts: Variety of Alerts for equities, Mutual Funds, IPOs and Traders ON YOUR MOBILE Get customize Daily Updates IN YOUR MAIL Trade Execution Alerts will be set by default for trading customers IN MYINBOX Be the first to get Research updates Setting Alerts was never easier Get the advantage of new alerts being added in the futureSeminar:Sharekhan organizes seminars across the country fromtime to time in order to educate investors in various Page | 85
  86. 86. subjects related to the stock, derivatives and commoditiesmarkets. These exclusive Seminars are organized bySharekhan for its Online Trading Customers for FREE.These Seminar will equip and customer to take aninvestment decision.It is also doing for first step customers who have never invested his share before.SHAREKHAN SHOPS:All you have to do is walk into any of our 1200 share shops across 400 cities inIndia to get a host of trading and investment related services. Our friendly customerservice staff will also help you with any account related queries you may have.After hour OrdersSharekhan‘s customer also enjoy the facility of placing orders even after trading hoursand the orders are executed as soon as the market opens.Value guide:-Sharekhan‘s customers also enjoy the facility of value guide for the detail of stockideas, investment insight, company detail etc.Mobile n trade facility:- Page | 86
  87. 87. Sharekhan lunches new facility for their customer to mobile n trade facility but still itworking process. Page | 87
  88. 88. 4. RESEARCHMethodology Page | 88
  89. 89. Objective of the Research:  The objective of the research is to know how many people are aware about the share market.  To know about how many people are eager to know about stock market.  To know the company awareness among the people.Research Source:In this research we have used primary sources for data collection.Sample Size:In this research 100 respondents are there included.Research Instrument:In this research we have used telephonic and face to face conversation for getting theresult. Page | 89
  90. 90. (5)Que.: Do you invest into stock market?Objective: To know how many people are doing investment in stockmarket.Finding :YES 57%NO 43% 60% 50% 40% 57% 30% 43% 20% 10% 0% yes noINTERPRETATION:From the above chart we can conclude that there are 57% people aredoing investment in stock market and 43% people are not doinginvestment in stock market. Page | 90
  91. 91. Que: If yes, where do you investing?Objective: To know in which area people are interested to doinginvestment.Findings:Equity 59%Mutual Fund 21%Commodity 7%Other 13% 70% 60% 50% 40% 30% 59% 20% 10% 21% 13% 7% 0% Equity Mutual Fund Commodity OtherINTERPRETATION:From the above chart we can see there are from 57% people, 59% inequity, 21% in mutual fund, 7% in commodity and 13% in other doinginvestment. Page | 91
  92. 92. Que.:- If yes, from which brokerage house you do trading?Objectives: - To know which company has taken priority place inCustomers mind.Findings:- Indiabulls 16% Angel 29% Shah investors 12% Sharekhan ltd. 36% Others 7% 40% 35% 30% 25% 20% 36% 15% 29% 10% 16% 5% 12% 7% 0% Indiabulls Shah Sharekhan Angel investors ltd. OthersINTERPRETATION:We can know from above chart that most of the people are doing tradefrom Sharekhan as 36% and 29% from angel, 16% from Indiabulls, 12%from shah investment, 7% from other private sub brokers. Page | 92
  93. 93. Que.: Which way you prefer for trading?Objectives: To know how many people are doing trade online and offline.Findings:Online 46%Offline 54% 54% 52% 50% 54% 48% 46% 46% 44% 42% Online OfflineINTERPRETATION:Here we can conclude that now people are aware with internet facilities.So 46% traders prefer online trading. And 54% people are prefer offlinetrading because of low availability of internet facility and busy in routinework. Page | 93
  94. 94. Que.:-Have you ever heard about Sharekhan broking firm?Objective:-to know how many people aware with Sharekhan ltd.Finding:-Yes 39%No 61% 70% 60% 50% 40% 61% 30% 39% 20% 10% 0% Yes NoINTERPRETATION:From the above graph we can conclude that 39% people from 64% areaware with the Sharekhan ltd and 61% are not.Que.:- Are you interested because we have scheme going on? Page | 94