1. A PROJECT REPORT ON SUMMER TRAINING
UNDERTAKEN AT KOTAK SECUIRITIES LTD.
TITLED
“FUTURE OF EQUITY MARKET IN INDIA”
SUBMITTED IN PARTIAL FULFILMENT FOR THE
AWARD OF DEGREE OF MBA
BY
PRIYANKA KUMARI JHA
SEMESTER – III (MBA 2013-15)

2. ROLLNO– 27700913049
DECLARATION
I, Priyanka Kumari Jha, student of NSHM Business School,
Kolkata, hereby declare that, the project report titled “Future of
Equity Market in India” submitted in partial fulfillment of
requirement for the award of degree of Master of Business
Administration (MBA), is my own original work and has not
been submitted to any other University/ Institute for the award
of any degree or diploma.
Place: Kolkata
Date: 12-08-14
Name of student: Priyanka Kumari Jha
Roll no: 27700913049

3. TABLE OF CONTENTS
 Acknowledgement
Company Profile
Outlook to the Indian Equity Market
Objective of the project
Current scenario in the Indian Equity Market
Reasons for the poor participation of the investors in
the equity market
How to enhance investors participation in equity
market
 SWOT Analysis of Kotak Securities
Suggestions & Recommendations
Bibliography

4. ACKNOWLEDGEMENT
Talent and capabilities are of coursenecessary butopportunities and right
guidance is two very important back-ups withoutwhich any person cannotclimb
the ladder to success.
Firstof all, I would like to express my deep and sincere gratitude to KOTAK
SECURITIES PVTLTD. for providing me the exciting opportunity to be one of them
and giving me the thorough guidance and opportunities to moveahead with my
internship objectives.
I ,would like to extent my gratitude to Mr. Bidyut Senapati- Manager( Franchisee
Acquisition & Servicing ) and the entire team of BrabourneRoad Branch for
trusting me and providing me the guidance and motivation for the projectand
also by sharing their knowledge. A special thanks to him for training me and giving
me the opportunity to learn about the company, its product and services and also
for his kind co-operation during this two months training programme.
I would also like to thank Mr. Naveen Das, Director, NSHMKnowledgeCampus,
Kolkata and Miss Nilanjana Sinha, Faculty Guide and My Mentor for guiding and
helping me in each and every stage of the training period.
I would like to further thank NSHMKnowledge Campus, Kolkata for providing
students with such an opportunity to experience the organizationalculture and
gain practical knowledgein the professionalworld.
Finally, I would also like to thank My Parents, friends and relatives for their
physical, psychologicaland moral supportextended by them at all time.

5. COMPANYPROFILE
Corporate Identity:
The logo of Kotak Securities is very unique. The symbol of ka
reflects the global Indian personality of Kotak Securities. The
ka is uniquely Indian while its curve forms the infinity sign,
which is universal. One of the basic tenets of the economists is that
mans need are unlimited. The infinite ka symbolizes that we
have infinite number of ways to meet those needs.
PROFILEOF KOTAK SECURITIES LTD.
KotakSecurities Limited, a subsidiary of Kotak MahindraBank, isthe stock
broking and distribution arm of the Kotak MahindraGroup. Oneof the oldest
broking housesin India, its operationsincludestock broking and distribution
of variousfinancialproducts. It is a corporate member of both the Bombay
Stock Exchange and the National Stock Exchange of India. Kotak Securities
was founded in 1994and isheadquartered in Mumbai, India.

6. Kotak services morethan 9 lakh customers. The firm has a wide network of
morethan 1147 branches, franchisees representativeoffices and satellite
offices across 367 cities in Indiaand offices in New York, London, Dubai,
Mauritiusand Singapore.
Kotak processes over 500,000 secondarymarkettradeseveryday whichis
much higher than someof the renowned internationalbrokers. Their
operationsincludestock broking services for trading in stock markets
through branches and Internetand distribution of variousfinancialproducts
includinginvestmentsin IPOs, mutualfundsand currency derivatives.
Currently, Kotak securities is one of the largest broking houses in Indiawith
substantial geographical reach to Asia Pacific, MiddleEast and the United
States of America.
Kotak Securities Limited has Rs 373 croresof Assets Under Management
(AUM)as of 31st March, 2014. Kotak Securities have been the pioneersin
providingmany productsand serviceswhich have become industry standards
for stock brokingin India. Some of them include:
 Mobile stock trading application to keep track of your
investments even on the go
 Facility of Margin Finance to the customers foronline stock
trading
 Investing in IPOs and Mutual Funds on the phone
 SMS alerts before executionof depositorytransactions
 Auto Invest - A systematic investing plan in Equities and
Mutual funds
 Provision of margin against securities automatically against
shares in your Demat account

7. Kotak Securities specialize in Fundamentaland Technical analysis backed by a
team of highly trained and qualified individuals.
The full-fledged researchdivision is involved in Macro Economicstudies,
Sectoral research and Company SpecificEquity Research which publishes in-
depth stock market analysis. This is combined with a strong and well
networked sales force which helps deliver currentand up to date market
information and news.
Kotak Securities is also a depository participantwith National Securities
Depository Limited (NSDL) and CentralDepository Services Limited (CDSL).
By being a stock broker and depositary participant, we providedualbenefitin
our services wherein the investors can avail our stock broking servicesfor
executing the transactions and the depository servicesfor settling them.
Kotak Securities Portfolio ManagementService comes as an answer to those
who would liketo grow exponentially on the crest of the stock market, with
the backing of an expert.

8. OUTLOOK TO THE INDIAN EQUITY MARKET
The Indian Equity Market is more popularly known as the Indian Stock Market. The Indian
equity market has become the third biggest after China and Hong Kong in the Asian region.
According to the latest report by ADB, it has a market capitalization of nearly $600 billion.
As of March 2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh
crores) which is one-tenth of the combined valuation of the Asia region. The market was
slow since early 2007 and continued till the first quarter of 2009.
A stock exchange has been defined by the Securities Contract (Regulation) Act, 1956 as an
organization, association or body of individuals established for regulating, and controlling
of securities.
The Indian equity market depends on three factors -
 Funding into equity from all over the world
 Corporate houses performance
 Monsoons
The stock market in India does business with two types of fund namely private equity fund
and venture capital fund. It also deals in transactions which are based on the two major
indices - Bombay Stock Exchange (BSE) and National Stock Exchange of India Ltd. (NSE).
The market also includes the debt market which is controlled by wholesale dealers,
primary dealers and banks. The equity indexes are allied to countries beyond the border as
common calamities affect markets. E.g. Indian and Bangladesh stock markets are affected
by monsoons.
The equity market is also affected through trade integration policy. The country has
advanced both in foreign institutional investment (FII) and trade integration since 1995.
This is a very attractive field for making profit for medium and long term investors, short-
term swing and position traders and very intraday traders.
The Indian market has 22 stock exchanges. The larger companies are enlisted with BSE
and NSE. The smaller and medium companies are listed with OTCEI (Over The counter
Exchange of India). The functions of the Equity Market in India are supervised by SEBI
(Securities Exchange Board of India).

9. The two major stock exchanges in India are National Stock Exchange (NSE) and Bombay
Stock Exchange (BSE).
THE BSE & NSE
Most of the trading in the Indian stock market takes place on its two stock
exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE). The BSE has been in existence since 1875. The NSE, on the other hand, was
founded in 1992 and started trading in 1994. However, both exchanges follow the
same trading mechanism, trading hours, settlement process, etc.
Settlement Cycle and Trading Hours
Equity spot markets follow a T+2 rolling settlement. This means that any trade
taking place on Monday gets settled by Wednesday. All trading on stock exchanges
takes place between 9:55 am and 3:30 pm, Indian Standard Time (+ 5.5 hours
GMT), Monday through Friday. Delivery of shares must be made in dematerialized
form, and each exchange has its own clearing house, which assumes all settlement
risk, by serving as a central counterparty.
Market Indexes
The two prominent Indian market indexes are Sensex and Nifty. Sensex is the
oldest market index for equities; it includes shares of 30 firms listed on the BSE,
which represent about 45% of the index's free-float market capitalization. It was
created in 1986 and provides time series data from April 1979, onward.
Another index is the S&P CNX Nifty; it includes 50 shares listed on the NSE, which
represent about 62% of its free-float market capitalization. It was created in 1996
and provides time series data from July 1990, onward.
Market Regulation
The overall responsibility of development, regulation and supervision of the stock
market rests with the Securities & Exchange Board of India (SEBI), which was
formed in 1992 as an independent authority. Since then, SEBI has consistently
tried to lay down market rules in line with the best market practices. It enjoys vast
powers of imposing penalties on market participants, in case of a breach.

10. CURRENT SCENARIO IN THE INDIAN EQUITY MARKET
Over the past ten years Indian Stock Market has witnessed many changes
which are in line with the economic development of the country. Trading and
settlement procedures have been improved and many new instruments have
been introduced with an objective of meeting the varied preferences and
risk appetite of Indian investors. Disclosure levels have been enhanced and
market transparency has improved. Measures to protect investors’ interest
have also attained greater importance during the last few years. Lots of
investor education programs are also been initiated by market regulators
with a view to encourage more and more capital market activities in the
country. A code of corporate governance has been put in place and steps
were taken to change the organizational structure of the stock exchanges.
Considering all these factors along with the current economic development of
the country, growth of Indian Stock would be tremendous in the coming years.
However the market has to become further more transparent and reliable with
lesser volatility to attract more and more investment in the equity market.
Particularly, after the results of recent elections, investor’s confidence on Indian
capital markets has increased due to a decisive government after winning by a
majority. Recently, the stock market rallied due to huge FII money getting
pumped in last two months. However, a lot of foreign investor’s money is still
lying on the sidelines along with the domestic money. In last 10 years on an
average, FIIs have put in around USD 20 billion in each calendar year ( baring a
couple of years ) in Indian equity market, thereby signaling a lot more to come.

11. OBJECTIVE OF THE PROJECT
 To study the IndianEquity Market and its current
scenario
 To study the reasons for low growth in the Equity
Market
 To analyse the future prospects of Equity Market in
India
 To analyse and recommend ways to enhance
investors participationin Equity Market.

12. Reasons for the poor participation of the investors in
the equity market
 Lack of awareness among retail investors. Half of the population does not have any
idea and knowledge about the stock market.
 The lengthy documentation is a major hurdle in opening the Demat account. In
order to open a Demat account along with trading accounts, customers are required
to sign four agreements - Demat, National Stock Exchange (NSE), Bombay Stock
Exchange (BSE) and power of attorney (for debiting the shares). Earlier,
approximately 52 signatures were required for signing these agreements. SEBI has
combined all these terms and conditions in the recent past and the investors now
need to sign around 20 signatures to open Demat and trading account.
 The knowledge level of bank staff is also very limited in sphere of stock market
which is one of hurdle for promoting Demat business through a strong network of
bank branches in the country.
 In the last two decades, too many scams not only in the capital market but also in
general have left the investors very nervous. Recent spate of scams like
Satyam,2G and coal allocation scam to name a few have robbed retail investors of
the confidence to invest continually.
The NACER survey tried to find out the major reasons for not investing in secondary
markets.
Below is a chart, which gives the major reasons for not investing in secondary
markets for middle class, middle upper class and upper class Indians.

14. How to enhance investor’s participation in
equity market
The introduction of depositories in India has changed the market
mechanism drastically. The National Securities Depository Limited
(NSDL) was formed in the year 1996 while Central Depository Services
(India) Limited (CDSL) came to existence in 1999. It has brought
transparency in the market for traders as well as investors. Both the
depositories are working through its Depository Participants (DPs). The
DPs include public and private sector banks, Co-op Banks and big
brokers who assist general investors in opening Demat and trading
accounts. However, in spite of large network of banks operating
throughout the country, the numbers of Demat accounts have not been
increased and large number of investors are yet to be part of the stock
market. There are several reasonsfor the low growth of Demat accounts
across the country. Securities and Exchange Board of India (SEBI) has
taken several measures to improve the retail investors’ participation.
The measures taken by the regulator will yield the expected results only
with the change of mind set of the investors towards stock market.
The following are some of the ways to enhance investor’s participation
in equity market:
 The role of Investor education is very important in order to
educate the retail investors about the various dynamics of the
stock market.
 There is not much market information available to the investors
after opening the accounts. It has been observed that the
intermediaries chase clients till the Demat and trading account is
opened. However, the investors are neither offered post opening
account services nor the required information on the stock
market. This leads to the account becoming dormant. The free
newsletter through email by the market players is one of the
remedy which can fill up this gap. Since this is a cost effective
method, the investors having email addresses can be sent

15. information about market by the bank DPs which will assist them
opening more number of Demat accounts.
 The investor education seminars conducted by depositories in
association with various DPs get good response only when
promoted through popular newspapers. However, there is a
heavy cost attached for doing such programs, which is not
affordable for most of the DPs. The programs done without
newspaper tie up cannot gather sizeable audience and thus
purpose of reaching to masses is defeated. In order to promote
stock market knowledge among the retail investors, there is a
need for promotional activities like TV shows, AD
campaigns, documentaries providing information about scheme
such as Rajiv Gandhi Equity Savings Schemes (RGESS) wherein
new investors can be attracted towards the capital market.
However, depositoriesand exchanges have to take the lead now to
prepare such promotional material which can be seen by general
investors across India.
 Holding of trade fairs for promoting capital markets in tier II &
tier III cities is required. This is another method wherein most of
the banks, Non-Banking Financial Corporation’s (NBFC) and
broking companies can put up their stalls and large number of
investors can be attracted for such fairs through media
campaigns.
 The social media platforms especially Face Book, Twitter,
LinkedIn along with e-groups and websites can spread awareness
about various options available for the investors in the present
market situation.

16. SWOTAnalysisofKotakSecurities
Strengths:
Kotak securities Ltd. is one of the largest and oldest
broking house in Indiawith substantialgeographical reach
to Asia Pacific, MiddleEast and the United States of
America.
It services more than 9 lakh customers.
Highly co-operative and skilled staff.
Sales oriented organization.
Aggressiveness of sales force in selling products.
Effective and wider distributionnetwork.
It hasa wide network of more than 1400 branches,
franchisees representative’s offices and satellite offices
across 367 cities in India and offices in New York, London,
Dubai,Mauritiusand Singapore.
It processes more than 500,000 secondary market trades
everyday which is much higher than some of the
renowned internationalbrokers.
The company enjoysa very high brand loyalty and recall
value among its customers.

17. The company has its presence in all metro cities as well as
in most of the major cities in the country.
The office hours of the company for the customers are
9am to 6pm.
Both onlineand offline trading facility is given to the
clients.
Unlike most other competitors Kotak securities has its own
in house research team, which is among the best in the
industry and they have years of experience in the financial
markets.
The company has developedits own proprietary trading
platform which is robust and among the best in the
industry.
Online chat facility is availableto support customer.
Weaknesses:
No presence in rural and semi-urban segment.
Lack of customer services and promotionalactivities.
Lack in making follow ups.
Low publicityand marketing as compared to other
premium broking firms in the urban areas.
 The company is prone to market risk since; equity market depends
on overall macroeconomic condition and market scenario.
Lack of awareness among the people.
Opportunities:

18. There is continuous growth in this sector.
People have started turning towards the organization as
they know that facilities are far better than the others.
Threats:
 Competitionin this sector is increasing day by day with the
entry of lots of private companies with the collaborationof
foreign giants.
 The company has to pass through tough competition, as almost all
the companies are providingwith samekind of productsandservices.
 Themarket scenarioischanging day-by-day i.e.the marketis fluctuating,so
this makesinvestorshard to invest.
 Economic conditionin the country as well as in the world.
 Political scenario in the country
COMPETITORS OF KOTAK SECURITIES
Edelweiss Financial Services Ltd
India Infoline Ltd
ICICI Securities Ltd
Motilal Oswal Securities Ltd
Angel Broking Ltd
Sharekhan
Indiabulls
Peerless securities Ltd.

19. SUGGESTIONS & RECOMMENDATIONS
Some of the suggestions and recommendations for improving the present
image as well as the services of Kotak Securities Ltd. are as follows:
1. More branches: Some more branches should be opened so it becomes
more easy and approachable for the people to do their transactions. The
branches should have well trained employees.
2. Customer awareness: The customers should be regularly updated with
the new products and schemes launched by the organization. The
customers should be informed about the newly issued scrip’s as well as
be given daily basis tips/news for profitable transactions. Regular
contact with the customers through telephone and e-mail can be
maintained for smooth running of the business.
3. Feedback: A proper feedback system should be designed to take care of
the dissatisfied customers and solving their queries and issues
respectively.
4. Well trained customer care staff: A well trained customer care staff
should be maintained for satisfactorily handling queries of the
customers to establish more good standards in providing services to the
customers.
5. Higher penetration in the untapped market: Strong emphasis should be
given on approaching all the potential clients and making them aware
about various instruments and convincing them.
6. Use of social media platform: The social media platform especially
Facebook, Twitter, LinkedIn along with e-groups and websites can
spread awareness about various options available for the investors in
the present market situation.
7. Investor education seminars/programs: The investor education can
play a vital role in improving the active participation of the investors in

20. the market which can help them in making right investment decisions
and in getting good returns.
8. Promotional activities: In order to promote investment in stock market
and increase the knowledge among the retail investors, there is a need
for promotional activities like TV shows, AD campaigns, documentaries
providing information about various schemes wherein new investors
can be attracted towards the capital market.
9. Post opening account services: It has been observed that the
intermediaries chase clients till the Demat and trading account is
opened. However, the investors are neither offered post opening
account services nor the required information on the stock market. This
leads to the account becoming dormant. The free newsletter through e-
mail by the company is one of the remedy which can fill up this gap.
10. Newspapers and Agents: These are most effective tools for awareness
and so, Kotak securities should use these tools more for advertising their
products and services.

21. BIBLIOGRAPHY
BOOKS:
1. Marketing Research by Sunanda Eswaran & Sharmila. J. Singh.
2. Research Methodology by Uma Sekeran.
3. Research Methodology by C.R.Kothari.
MAGAZINES:
1. Business and Economy.
2. Business World.
3. Financial Times.
4. Money Life.
5. Money Today.
WEBSITES:
1. www.kotaksecurities.com
2. www.moneycontrol.com
3. www.nse.com
4. www.cdsl.com
5. www.nsdl.com
6. www.bloomberg.com