BBA Sharekhan Project

1. Summer Training Report
On
Investor Awareness towards Equity Market Investment
Completed in
Sharekhan Ltd.
Submitted In Partial Fulfillment of the Requirement
Of Bachelor of Business Administration
Corporate Mentor: Submitted By:
Mr.Alok Khanna Karan Saraf
Senior Manager Enrolment No: 01550501717
Sharekhan Ltd. Batch: 2017 – 2020
Submitted To:
Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)

2. BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled “Investors Awareness
towards Equity Market Investment” is the bonafide research work carried out by Karan
Sarafstudentof BBA, BCIPS, Dwarka, New Delhi during June-July 2019, in partial fulfillment
of the requirements for the Summer Training Project of the Degree of Bachelor of Business
Administration.
He has worked under my guidance.
Ms. Deepali
ProjectGuide (Internal)
Date: / /2019
Counter signed by
--------------------------------
HOD/ Director
Date: / /2019

3. DECLARATION
I hereby declare that this Summer Training Project Report titled “Investors Awareness
towards Equity Market Investments” submitted by me to Banarsidas Chandiwala Institute
of Professional Studies, Dwarka is a bonafide work undertaken during the period from 1st
June,2019) to 31st July, 2019 by me and has not been submitted to any other University or
Institution for the award of any degree diploma / certificate or published any time before.
(Signature of the Student) Date: / / 2019
Name: Karan Saraf
Enroll. No.: 01550501717

4. ACKNOWLEDGEMENTS
I Karan Saraf, Student in BCIPS, Sector-11, Dwarka would like to express my profound
gratitude to all those who have been guided me in the completing of my project interim report.
To start with, I would like to thank the organization ShareKhanLtd. for providing me the chance
to undertake this internship study and allowing me to explore the area of finance a well as
marketing in stockmarket. Which was totally new to me and which would prove out to be very
beneficial to me in my future assignments, my studies and my career ahead.
I wish to place on records, my deep sense of gratitude and sincere appreciation to my company
guide and mentor. Who suggested and prepared the frame work of the project. I would also like
to thank him for his continuous support, advice and encouragement, without which this report
could never have been completed.
I would also like to thank my entire team of ShareKhan LTD, as all of us have together worked
towards the common organizational objective, shared our experiences and aided each other in
times of need.

5. INDEX
SL
NO.
CONTENTS PAGE
NO.
1 Executive summary 1
2 Chapter 1 – Introduction 2
3 Objectives & Scopeofthe Study 18
4 Chapter 2 – Company Profile (SWOT Analysis) 19
5 Chapter 3 – Literature Review 25
6 Chapter 4 – Research Methodology 27
7 Population 27
8 Sampling Technique & Sample size 27
9 Sources of Data 27
10 Methods of Data Collection 27
11 Instrument used 27
12 Chapter 5 – Data Analysis 28
13 Chapter 6 – Findings 35
14 Conclusions 36
15 Suggestions 37
16 Bibliography 38
17 Annexure 40

6. 1
EXECUTIVE SUMMARY
This project attempts to know the preferences and analyze the significance of demographic factors that influence
the investor's decision towards making investments. This study attempts to find out the significance of
demographic factors of population such as gender, age, education, occupation, income, savings and family size
over several elements of investment decisions like priorities based on characteristics of investments, period of
investment, reach of information source, frequency of investment and analytical abilities. The hypotheses have
been developed considering its relevancy to the research objectives. Investment decision making behavior in
risky situation has been taken as dependent variable. Demographic factors (age, gender and education) are
considered as independent variables.
Just 2 percent of India's household savings are exposed to equity, less than 1.5 percent of the population invests
in securities, compared with almost 10 percent in China and 18 percent in the U.S.
An increasing trend has been observed in demand for the services of Non-Banking Financial Institutions
nowadays. This project focuses on the stock market as a whole and comparative study of equity and derivatives.
There has also been emphasis on brokerage industry in general and competitive position of ShareKhan Ltd. in
particular.
The researcher’s journey in ShareKhan LTD. start with overview about the stock market, at Jhandewalan
branch. On frequently basis the researcher get training sessions on different products and functions of Share
market and various sessions relating to the skills and product knowledge of ShareKhan LTD.
The researcher’s work profile in ShareKhan is management trainee where he has learned about market and
broking firm then apply this knowledge in dealing with the clients and solve their queries. Aware people about
share market.
The researcher learnt how to operate website and mobile application of ShareKhan. The researcher collected all
the information about different products of ShareKhan.
The researcher studied behavior of different industries, sectors and impact of global market in Indian market.
As the company is a brokerage firm so we had few sessions on costing of trades, which is very important part
of share market trading functions.

7. 2
Chapter 1 - INTRODUCTION
STOCKMARKET
“An equity market, stock market or share market is the place in which shares of stock are bought and sold.”
“Stock markets refer to a market place. Where investors can buy and sell stocks. The price at which each buying
and selling transaction takes is determined by the market forces (i.e. Demand and supply for a particular stock).”
“A stock market is where shares in corporations are issued and traded”
The security contracts(Regulation)Act 1956 defines, a stock exchange as “an association,organization or body
of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling,
business in buying, selling and dealing in securities.
HISTORY OF STOCK MARKET IN INDIA
The first organized stock exchange in India was started in 1875 at Bombay.
Indian Stock Market is one of the oldest Stock Market in Asia. East India Company used to transact Loan
Securities by the end of 18th
Century. In the 1830s, trading on corporate stocks and shares in Bank and Cotton
presses took place in Bombay.
In 1874, with the rapidly developing share trading business, brokers used to gather at a street (now well known
as "Dalal Street") for the purpose of transacting business.
In 1875 The Native Share and Stock Brokers' Association" (also known as "The Bombay Stock Exchange")
was established in Bombay.
In 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textile mills there.
The Calcutta stock exchange was started in 1908 to provide a market for shares of plantations and jute mills.
Then the madras stock exchange was started in 1920.Madras witnessed boom and business at "The Madras
Stock Exchange" was transacted with 100 brokers. When recession followed in 1923, number of brokers came
down to 3 and the Exchange was closed down
Post-Independence Scenario
The depression witnessed after the Independence led to closure of many exchanges in the country. Lahore stock
Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange.

8. 3
Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other
Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts
(Regulations) Act, 1956. The Exchanges that were recognized under the Act were:
1. Bombay
2. Calcutta
3. Madras
4. Ahmedabad
5. Delhi
6. Hyderabad
7. Bangalore
8. Indore
At present, there are twenty two recognized stock exchanges in India which does not include the Over the
Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).
Indian Capital Markets are regulated and monitored by the Ministry of Finance, The Securities and Exchange
Board of India and The Reserve Bank of India.
The Ministry of Finance regulates through the Department of Economic Affairs – Capital Markets Division.
The division is responsible for formulating the policies related to the orderly growth and development of the
securities markets (i.e. share, debt and derivatives) as well as protecting the interest of the investors. In
particular, it is responsible for
Institutional reforms in the securities markets,
Building regulatory and market institutions,
Strengthening investor protection mechanism, and
Providing efficient legislative framework for securities markets.
The Division administers legislations and rules made under the
 Depositories Act, 1996,
Securities Contracts (Regulation) Act, 1956 and
Securities and Exchange Board of India Act, 1992.

9. 4
KEY FEATURES OF STOCK MARKET
Equity Market: Equity or cash market which includes intraday trading and delivery.
It also includes BIGTRADE of SHAREKHAN which provides 10 times exposure to the customers for
trading but it works for intraday trading only.
 Derivatives Market : derivatives includes two types
A. Futures
B. Options
A. Futures:
 In futures customer can carry forward his position for three months which is called contract.
 Last Thursday of every month is called expiry.
 In futures you cannot select the number of shares to buy. There is always a lot size defined for every
stock which trades in futures.
 M2M (mark to market) is also an important feature of future trading.
 Highest margin is 20% in stock market for future trading.
B.Options:
 This trading is available only in National stock exchange.
 Criteria for OPTIONS trading:
Lot Size
Premium
M2M
Strike Price
 Brokerage of SHAREKHAN is 100 rupees per lot.

10. 5
STOCKEXCHANGE IN INDIA
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two major exchanges in
India.
1. National Stock Exchange (NSE)
The National Stock Exchange (NSE) was established in 1992 and trading began in 1994.
The NSE is used mainly for spot trading, or cash trading. When you conduct a spot trade, you are completing
the buy/sell immediately. When you sell, you get the price for the stock at that moment in time; the same goes
for selling.
Another large component of the NSE is the trading of futures and options, also called derivative trading...Other
stocks that are traded on the NSE include mutual funds, public offerings, and wholesale debt. Like the BSE, the
NSE has its own index of stocks that traders and investors watch. There are 50 diverse stocks from 13 areas of
the economy.
The index is known as the NIFTY 50.
FUNCTIONS OF NSE
The primary function of the NSE is
 To facilitate listing of companies and the whole process of trading the same as stocks listed on the
exchange.
 Apart from companies, NSE also has products such as derivatives listed which can be traded.
FEATURES OF NSE
Features of NSE are as follows
 Nationwide coverage i.e., investors from all over country.
 Ringless i.e., it has no ring or trading floor.
 Screen-based trading i.e., trading in this stock exchange is done electrically.
 Transparency i.e., the use of computer screen for trading makes the dealings in
 Securities transparent.
 Professionalization in trading i.e., it brings professionalism in its functions.

11. 6
2. Bombay Stock Exchange (BSE)
It is oldest and first stock exchange of India established in the year 1875. First, it was started under banyan tree
opposite to town hall of Bombay over 22 stockbrokers. There are 23stock exchanges in the India.
Bombay stock exchange is the largest, with over 6000 stocks listed. The BSE accounts for over two thirds of
the total trading volume in the country.
Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two stock exchanges recognized
by the government of India under the securities contracts(Regulation)Act,1956, it was the first one to be
recognized and it is the only one that had the privilege of getting permanent recognition.
Vision & Missionof BSE
Vision
Our vision is to be the most sought after learning provider in the world in areas of financial and leadership
learning, by pioneering the generation and dissemination of knowledge of the enhancement of skills and
capabilities of professionals and aspiring professionals.
Mission
As a centre of learning, our mission is to promote an open learning environment that brings people together,
cultures and ideas from around the world, changing lives and helping transform organizations through
innovative learning programs.
Through our learning programs, we develop responsible thoughtful leaders and entrepreneurs who create value
of their organizations and their communities.

12. 7
THE REGULATORS
1. Securities & Exchange Board of India (SEBI)
The Securities and Exchange Board of India (SEBI) was formed after the Indian parliament passed the securities
and exchange board of India Act, 1992 in response to the financial Services Assessment Program. SEBI Actually
established in the year 1988 and given statutory power in 1992. With the growth in the dealings of the stock
markets, lots of malpractices also started in stock markets such as price rigging, ‘unofficial premium on new
issue, and delay in delivery of shares, violation of rules and regulations of stock exchange and listing
requirements.
Due to these malpractices the customers started losing confidence and faith in the stock exchange. So
government of India decided to set up an agency or regulatory body known as Securities Exchange Board of
India (SEBI).
Function Of SEBI
 Regulating the business in stock exchange and any other securities markets.
 Promoting and regulating self-regulatory organization.
 Registering and regulating the work of collective investment scheme, including
 Mutual funds.
 Prohibiting fraudulent unfair trade practices relating to securities market.
 Promoting education, and training of intermediaries of securities market.
Purpose and Role of SEBI
 Issuers: For issuers it provides a marketplace in which they can raise finance fairly and easily
Investors: For investors it provides protection and supply of accurate and correct information.
Intermediaries: For intermediaries it provides a competitive professionals market.
2. Reserve Bank of India (RBI)
Reserve Bank of India (RBI) is governed by the Reserve Bank of India Act, 1934. The RBI is responsible for
implementing monetary and credit policies, issuing currency notes, being banker to the government, regulator
of the banking system, manager of foreign exchange, and regulator of payment & settlement systems while
continuously working towards the development of Indian financial markets.
The RBI regulates financial markets and systems through different legislations. It regulates the foreign exchange
markets through the Foreign Exchange Management Act, 1999.

13. 8
THE BROKERAGE INDUSTRY
Indian stockbroking industry is the oldest trading industry that has been around even before the establishment
of BSE in 1875. Despite passing through a number of changes in post liberalization period, the industry has
found its way towards sustainable growth. With the purpose of gaining deeper understanding about the role of
Indian stock broking industry, in the country’s economy, let us have a look at the
 3% of firms started broking operations before 1950, 65% between 1950-1995, and 32% post 1995.
 On the basis of terminals 40% are located in Mumbai, 12% in Delhi, 8% in Ahmadabad, 7% in Kolkata,
4% in Chennai, and 29% in other cities.
 From the study it was found that 36% of firms trade in cash, 27% in derivatives, and 20% in cash,
derivatives and commodities.
 In the cash market, 34% trade in NSE, 14% in BSE, 45% in both. Whereas in debt market, 31% trade in
NSE, 26% trades in BSE, and 43% in both.
 Majority branches are located in North, i.e. 40%, 31% in West, 24% in South, and 5% in East.
 In terms of sub-brokers, around 55% are located in South, 29% in West, 11% in North, and 4% in East.
 Trading, IPOs and Mutual Funds are the top three products offered by 90% of firms offering trading,
67% IPOs, and 53% offering Mutual Fund transaction.
 In terms of various areas of growth, 84% of firms have shown their interest in expanding their
institutional clients, 66% firms intend to increase FIIs, and 34% are interested in setting up Joint
Ventures in India and abroad.
 In terms of IT penetration 62% firms provide their website, and 90% have email facility.
The brokerage industry is currently characterized by a large number of companies (private or unorganized). In
effect it is a fragmented industry with a large number of participants. The industry thus has ‘monopolistic
competition’, i.e. a large number of firms selling a slightly differentiated product.
DEMAND AND SUPPLY DRIVERS OF THE INDUSTRY
Demands for financial products are driven by risk-reward assessment, which considers:
 Potential yield
The expectation of financial incentives or return on investment is a great demand driver which tempts people
to invest or engage into transactions of the financial markets.
 Risk Rating
Higher risks assumes higher profits and vice versa. Risk ratings are a vital point when making a decision to
park ones resources into this industry.
 Liquidity
To maintain strong and flexible liquidity position people tend to invest in financial markets, in order to meet
their contingencies.
 Availability of information
The more disclosure, the more is information symmetry, and so will be visibility and access to returns and
so will be the expectation from this market increase along with investment.

14. 9
 Access to alternatives
More the disclosure in the market more will be the competition with more profits, so more will be the choices
and access to alternatives to park ones resources.
The major supply drivers are:
 Money supply
The supply of money has a big role to play in this industry, the more the supply of money in this industry;
more will be the availability of financial services and products.
 Interest rates
Interest rate determines the terms of trade, fluctuations in interest rates can entirely fluctuate this industry.
Higher interest rate= will give higher returns, with great supply no doubt but borrowing or ascertaining the
real market value may become difficult.
 Inflation
Value of a currency appreciates and depreciates with the rates of inflation. Inflation thus serves as a great
supply driver in this market. As in high inflation with higher supply of money there will be higher supply
and vice versa.
 Economic conditions
Rates of inflation, the upsurge or downturn in the domestic and global economy is another supply driver
which is beyond the control of any business firm.
 Government Regulations
The attitude of the government towards the trade policies and various other financial firms and industry
matters a lot. Various restrictions or duties or taxes may restrict the supply and may hinder the growth of
this industry. And will flourish with the ease of trade.
Critical Success Factors of the Industry
Source: Wikipedia
Seeing the overall brokerage as a single unit, the key success factors or the winning strategy of Indian Brokerage
Industry is a mixture of:
 People
 Process
 Technology

15. 10
There are the three ingredients that together create value for both international and domestic customers.
By people it indicates to the service providers or the employees of the various firms of this industry, who day
in and day out interact with the customers and provide them services and satisfy them.
Transparency of the process followed and disclosure method is yet another success factor. The settlement of
transactions is generally done in a process of T+2 days. And the government support even still plays a very vital
role in forming the rules and norms of such processes.
Technology enables to stay competitive and on edge with the competitors; facilitating the ease of processes and
speed and to maintain and be up to date. This serves as a great success of the brokerage industry.
All these factors together help create value to the customer.
PHASES OF INDIAN BROKERAGE INDUSTRY
Indian Brokerage Industry-Pre 2000
 Post liberalization period.
 Business restricted to friends and relatives.
 Settlement T+15 days.
 Low trade volumes- No derivatives trading allowed.
 Lack of investment in technology- No front or back office software.
Indian Brokerage Industry 2000-2008
 Venture capital funding for brokerage businesses.
 Investment in technology- Front end and back end.
 National presence.
 Integrated risk management system.
 Significant increase in trade volumes- Derivatives trades play a major role.
 Margin funding for the retail clients.
Indian Brokerage Industry 2009 onwards
 Paradigm shift from transaction oriented to research/ portfolio based advisory.
 Focus on franchisee based business model.
 Dematerialized accounts access for international trade.
 Access to international stock exchange.
 Trading on hand held platform (mobile phones etc) allowed.

16. 11
PESTELANALYSIS OF BROKERAGE INDUSTRY
PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental and Legal analysis"
and describes a framework of macro-environmental factors used in the environmental scanning component of
strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market
research, and gives an overview of the different macro environmental factors that the company has to take into
consideration. It is a useful strategic tool for understanding market growth or decline, business position,
potential and direction for operations.
 Political factors are how and to what degree a government intervenes in the economy. Specifically,
political factors include areas such as tax policy, labour law, environmental law, trade restrictions,
tariffs, and political stability.
 Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These
factors have major impacts on how businesses operate and make decisions. For example, interest rates
affect a firm's cost of capital and therefore to what extent a business grows and expands.
 Social factors include the cultural aspects and include health consciousness, population growth rate, age
distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a
company's products and how that company operates.
 Technological factors include technological aspects such as R&D activity, automation, technology
incentives and the rate of technological change. They can determine barriers to entry, minimum efficient
production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs,
quality and lead to innovation.
 Environmental factors include ecological and environmental aspects such as weather, climate, and
climate change, which may especially affect industries such as tourism, farming, and insurance.
 Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and
safety law. These factors can affect how a company operates, its costs, and the demand for its products.
SHAREKHAN BROKERAGE STRUCTURE FOR EQUITY MARKET:
Particulars BUY SELL
STT (Delivery) 0.125% 0.125%
STT (Intraday) 0.024% Nil
Brokerage (Delivery) 0.50% / 10 Paisa 0.50% / 10 paisa
Brokerage (Intraday) 0.10% / 5 paisa 0.10% / 5 paisa
GST 18% 18%

17. 12
ONLINE TRADING
Online trading involves investment activity which takes place over the Internet and it does not require physical
inclusion of the broker. An investor has to register with an online trading portal like ICICIdirect.com,
motilaloswal.com and Sharekhan.com and many companies like that and investor gets into an agreement with
the firm to trade in different securities according to the terms and conditions given on the agreement. As the
servers of the online trading portal are connected all the time to the stock exchanges and designated banks the
order processing is done in real time and investors can also have updates on the trading. They can also check
the status of their orders either through e-mail or through the interface that it cannot be accessed by a third party.
Some options are usually given to users such as to link their bank account, Demat accounts and brokerage
accounts into a single interface. A single window is also there for all exchanges and a single screen is there for
the complete order routing mechanism. The hardware used comprises Web and application servers, switches,
routers, firewalls and security devices, and specialized appliances. There are two broad models in play in the
online brokerage space-
1. Bank-backed firms
2. Entrepreneur-floated firms.
Bank-backed brokerages such as ICICI direct and HDFC Securities have expanded on the basis of their brand
name and the trust of investors in them. The integrated 3-in-1 accounts offered by these bank-backed brokerages
help their parent bank by giving it accounts along with float income.
In second case i.e. Entrepreneur-backed companies like Sharekhan, Indiabulls, Religare andmotilaloswal
have expanded by offering customers a mix of online and offline accounts, highermargin finance amounts and
lower brokerage rates. Though the bank based has performed better but the latter have not lagged too far behind.
The reason why online trading has developed over conventional offline brokerage firms is that this conventional
method struggled with unfavorable economies. Staff cost is just one example of it. As the markets opens for
330 minutes a day one dealer can at best execute 500 trades in a day while online company like ICICI direct
executes 150,000-200,000 trades a day on the National Stock Exchange alone accounting for 3-4% of NSE
trades of 5 million a day. It would require a large amount of dealers to service this demand. Besides the salary
costs it would also demand huge expenses in real estate and support systems.
The offline model has got a downfall in the form of lower bandwidth and IT costs and the cost of bandwidth
has fallen to one-eighth of what it was in year 2000 giving online broking an advantage especially in the case
of lower-volume retail investors.
Today 30% of volumes on the NSE come from this and it may go up to 50% in three-four years providing
explosive growth for online broking in India.
To be a successful trading portal it will definitely depend on bouquet of services provided by it for an end-user.
Most of the portals charge a small registration fee and brokerage based on various conditions but it's important
for the organization to keep focused on customer-centric services and delivery models to actually enjoy the most
attention.

18. 13
Emergence of E-Broking in India
The Indian trader is being fancied by the democratized world of online trading or also known as e-broking.
The regular and attractive advertisements in the print media and electronic media have added to this fancy
world.
But as we compare to the Western countries, in India online trading has not still grasped the market, but has
done a very important amount of progress in the past years and the future of online trading is bright. That is
why many new companies are coming into this form of business structure and the existing companies are
changing to this new format besides offline and other traditional forms of business. With only a mere share of
10% online trading a combined gross turnover of around Rs. 9000-10,000 crores handled by the BSE and NSE
together there is a much greater scope for online trading. At present some of the dominant players in the online
trading market of share market are:-
1.Sharekhan.com 9. Angel Trade
2.Icicidirect.com 10. Reliance Money
3.Unicon 11. Religare
4.5paisa.com 12. Karvy
5.Indiabulls 13. ILandFS
6. tak Securities
7.Motilal Oswal
8.Geojit Securities
Earlier the share market was not safe enough to invest but some of the changes in the past ten years in the Indian
share market have created the interest of trading in the shares by the people. Broadly, we can classify three
important factors, which have contributed to the development of online trading in India-
Firstly the major step was taken by the National Stock Exchange (NSE) in the year 1994 which allowed the
electronic trading and seeing to this various other stock exchanges in India followed soon. This helped in making
the fast .accurate and transparent transactions saving a lot of time then the traditional method of trading. The
investors were also saved by the clutches of the fraud brokers at the times when the clients were not aware of
the true prices of the shares.
Secondly, in the year 1996 the dematerialization of the shares came (also known as DEMAT) which avoided
the online presence of shares in an electronic form avoiding them from theft, pilferage or from other losses like
counterfeiting and frauds regarding share transfer.

19. 14
The third reason was the rapid growth of computer education and learning of internet by the people. With the
evolving of internet the online trading became a hit and the investors became confident in investing just with a
click of a mouse.
Advantages of Online Trading
1. Provides with the Freedom of Information
The Internet provides a new sense of controlling our financial future as the amount of investment information
available online is truly outstanding. An investor can-
 Know the price of any stock he desires at any point time on the internet.
 An investor can review the price history of any stock in chart format online.
 An investor can follow in-depth the events happening in the market
 Helps an investor to conduct an extensive financial research of any company he desires.
 He may also consult with other investors online present around the world
2. Provides Control to Investors Money
When an investor wants to buy or sell stock he no longer needs to call his broker on the phone thus helping in
the execution of the order instantly on the internet.
3. Provides access to the market
Through the sophisticated information streams, dedicated trading platforms and sophisticated tools the investor
can access the markets which provides more agility in buying and selling stocks.
4. Ensures the best price for investors
Some companies like Invest smart (ILandFS) specialize in the techniques which offers the best price deals for
the buy and sell orders of the investors and traders providing the high level of transparency by displaying of
information relating to the specific stocks and company profiles which helps in getting the best quote for the
orders.
5. Online trading offers greater transparency
Online trading offers the investors with greater transparency by providing with an audit trail. The process
involves a complete integrated electronic chain starting from order placement, to clearing and settlement and
finally ending with a credit into the depository account of the investor. All these stages are inspected which
brings the transparency into the system.

20. 15
6. Provides hassle free trading
Online trading provides an integration of the bank account, trading account and demat accounts, which leads to
easy and paperless trading for the client.
7. Online trading allows instant trade execution
Online transactions helps in the quick execution of the entire trading transaction right from logging to the traders
site and to the settlement of the bank account in a very short period of time.
8. It provides a level playing field
Trading online gives even the smallest retail investor access to information which was earlier available only to
the big traders. It has provided with a level playing field for all investors in the securities market.

21. 16
EQUITY V/S DERIVATIVES
1. Ownership
When you buy shares in the cash market and take delivery, you are the owner of these shares or you are a
shareholder, until you sell the shares. You can never be a shareholder when you trade in the derivatives segment
of the capital market. This is because you just hold positional stocks, which you have to square-off at the end
of the settlement.
2. Holding period
When you buy shares in the cash segment, you can hold the shares for life. This is not true in the case of the
futures market, where you have to settle the contract within three months at the very maximum. In fact, when
you buy shares in the cash segment they can also be trans-generational, that is they can be transferred from one
generation to the other.
3. Risk
Both, cash and futures markets pose risk, but the risk in the case of futures can be higher, because you have to
settle the contract within a specified period and book losses. In the case of shares bought in the cash market,
you can hold onto them for an indefinite period and can hence sell when prices are higher.
1. Investment objective differs
You buy a contract in the derivatives market to hedge risk or to speculate. Individuals buying shares in the
cash market are investors.
2. Lots vs shares
In the derivatives segment you buy a lot, while in the cash segment you buy shares.
3. Margin money
In the derivatives segment you pay only margin money for example, if you buy 1 lot of Punjab National
Bank (4000 shares) you just pay 15 to 20 per cent of the cost of the 4,000 shares and not the entire amount.
That is not true in the case of cash segment, where you have to pay the entire amount and not only margin

22. 17
Analysis between equity and derivative
Basis Equity Derivative
Return Capital appreciation
Dividend Income
Capital gain
Price Fluctuation
Risk Company Specified
Sector specified
Global risk
General Market Risk
Market risk
Credit risk
Liquidity risk
Settlement risk
Types of margin VAR
Extreme Loss
Mark to market
Initial margin
Exposure margin
Premium margin
Duration Generally Long term
(more than 1 year)
Short term
(Max. 3 months)
Participants Long term Investors
Hedgers
Safe Investors
Speculators
Arbitragers
Hedgers
Expiry Date of contract No such things Last Thursday of any month

23. 18
OBJECTIVE & SCOPE OF STUDY
Objectives
 To study the investor awareness towards equity market investments.
 To learn about stock market, equity market, stock exchange & the regulators.
 To study about online trading and its various advantages.
 To study the differences between equity market and derivatives (Comparative analysis of Equity &
Derivatives).
 To analyze the Indian Broking Industry.
Scope
This Project is useful to get to know the awareness and perceptions of the investors towards the equity market.
It is also useful for the researchers to get to know about the stock market and exchanges. This project is also
useful for investors.

24. 19
Chapter 2 – COMPANY PROFILE
ShareKhan is the largest standalone retail brokerage in the country and the third largest in terms of customer
base after ICICI Direct and HDFC Securities. ShareKhan is one of the pioneers of online trading in India.
ShareKhan was founded by Mumbai-based entrepreneur Shripal Morakhia in 2005. ShareKhan pioneered the
online retail broking industry and leveraged on the first wave of digitization, when dematerialization (demat) of
securities came into effect and electronic trading was introduced in the stock exchanges.
In India, ShareKhan has over 4800+ employees, and is present in over 575 cities through 150 branches, more
than 2,600 business partners. The company has 1.6 Million clients and on an average, executes more than 4 lakh
trades per day.
ShareKhan is now a fully owned subsidiary of BNP Paribas, it was rebranded as ShareKhan by BNP Paribas.
KEY SERVICE OFFERING
 Demat and trading accounts
 Mutual fund distribution
 Loan against shares
 Wealth management
 Financial advisory
 Forex and commodities
COMPOSTION OF THE BOARD
S.NO NAME Type of Board members
1 Mr. Jaideep Arora CEO and Whole time director
2 Mr. Shankar Vailaya Whole-time director
3 Mr. Jimmy Mahtani Member of Board of directors
4 Mr. Marc Desaedeleer Member of Board of directors
5 Mr. Rahul Yadav Member of Board of directors
6 Mr. Anil Nagu Member of Board of directors
7 Mr. SumeetNarang Member of Board of directors
8 Mr. Vikram Limaye Member of Board of directors
9 Mr. ThiruvidaimarudhurSivshankar Alternate Director

25. 20
ShareKhan is among the top financial services company in India. It provides a complete package of investment
solutions in Equities, Derivatives, Commodities, IPO, mutual funds, Depositary Services, Portfolio
Management Services and Insurance.
On April 2002, it launched a new service called Speed Trade which was an online executable application that
is equivalent to the broker terminals accompanied with other information that is used for Day Trade.
ShareKhan has various outlets which provide a full range of investment services like:-
Online Trading
Equity and Derivative trading on NSE & BSE
Commodities trading on MCX
Portfolio Management Services
Depository Services
IPO Services
A major strength of ShareKhan would be its ability to provide Specialized & Custom made Research Products
which highlight the investment philosophy of true Investors in the secondary stock market.
Hierarchy of ShareKhan
Source: Sharekhan Website
BNP Paribas in Asia Pacific
In Asia Pacific, BNP Paribas is one of the best-positioned international financial institutions with an
uninterrupted presence since 1860. Currently with over 192000 employees and a presence in 74 countries, BNP
Paribas provides corporates, institutional and private investors with product and service solutions tailored to
their specific needs. It offers a wide range of financial services covering corporate & institutional banking,
wealth management, asset management, insurance, as well as retail banking and consumer financing through
strategic partnerships.
CEO
Vice President
AssistantVicePresident
Country head
Regional branch manager
Area sales manager
Territory Manager
Asst. manager/RM/Equity
manager
Senior sales executive
Sales executive
Super trainee
Trainee

26. 21
BNP Paribas in India
BNP Paribas has had a presence in India for over 150 years having established its first branch in Kolkata, in
1860. With this unparalleled experience of the Indian market, it is among the leading corporate banks in the
country. Through its branches in eight key cities — Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore,
Ahmadabad and Pone — BNP Paribas offers sophisticated solutions in its three core businesses — Corporate
and Institutional Banking, Investment Solutions and Retail Banking — many of them in association with strong
local partners.
Acquisition of Sharekhanby BNP Paribas
Sharekhan.com, one of the first movers in the country’s online broking segment, has been acquired by French
bank BNP Paribas. While the deal size was not disclosed, sources at the brokerage said the company has been
valued at about ₹2,200 crores.
Mumbai-based Sharekhan offers broking solutions across all asset classes to more than 1.2 million private
clients and holds 7 per cent of the market share in terms of number of accounts. BNP Paribas said: “Sharekhan
will join BNP Paribas’ Personal Investors division, which is a key player in retail brokerage and digital banking
services with 1.7 million clients in Europe. “All staff and clients at Sharekhan will be absorbed into BNP
Paribas. The completion of the transaction is subject to regulatory approvals
Products & Services of Sharekhan
Source: Sharekhan Website

27. 22
SWOT ANALYSIS OF SHAREKHAN
Strengths
is a pioneer in online trading with a turnover of Rs.400 crores and more than 800 peoples working in the
organization.
the parent company of Share Khan has more than eight decades of trust and
credibility in the Indian stock market. In the Asian Money Broker’s poll SSKIwon the “India’s best broking
house for 2004” award.
Share Khan provides multi-channel access to all its customers through a strong online presence
with www.sharekhan.com, 250 share shops in 130 cities and a call-center based Dial-n-Trade facility.
Khan has dedicated research teams for fundamental and technical research, which constantly track
the pulse of the market and provide timely investment advice free of cost to its clients which has a strike
rate of 70-80%.36
access to the customer due to largest ground network of 280 branded shareshops in 120 cities.
Effic ie nt research and analysis team, which is, interpret ing the economy and
company’s performance accurately, is enhancing the profitability of the client
Weakness
presence due to insufficient investments for countrywide Expansion.
of awareness among customers because of non-aggressive promotional strategies (print media,
newspapers, etc).
emphasis on customer retention.
more on HNIs than retail investors, which results in merger market-Share as compared to close
competitors.
activities conducted by the company are not at par with the other Firms.

28. 23
Opportunities
With the booming capital market it can successfully launch new services and raise its client’s base.
can easily tap the retail investors with small saving through promotional Channels like print media,
electronic media, etc.
interest on fixed deposits with post office and banks are all time low, more and more small investors are
entering into stock market.37
Abolit io n of long- term capital gain tax on shares and reduction in short term capital
gain is making stock market as hot destination for investment among small investors.
usage of internet through broadband connectivity may boost a whole new breed of investors for
trading in securities.
Threats
Threats
Aggressive promotional strategies by close competitors may hamper ShareKhan’s acceptance by new clients.
of sufficient branch-offices for speedy delivery of services.
players are providing margin funds to investors on easy terms where asthere is no such facility in share
khan.
and more players are venturing into this domain which can further reducethe earnings of Share Khan.
of Unit Linked Insurance Policies (ULIP’s) and mutual funds in themarket.

29. 24
Business analysis using Porter’s Five Forces Model
Competitors
ICICI securities
HDFC Securities
MotilalOswal
Kotak securities
Potential Entrants
Investment options
Various Banks
SUPPLIERS
Web Maintainers
NSCL
CSDL
NSE
BSE
MCX
NCDEX
SUBSTITUTES
Mutual Funds
Insurance
Bank FD
Post office deposits
BUYERS
Small investors
Franchise
Partners
HNI’s
MF companies
HUF
Institutional investors

30. 25
Chapter 3 – LITERATURE REVIEW
Barber and Odean (2001, 2002) studied the impact that the Internet is having on investors and financial
markets. Their first study (2001) examined how the Internet, with its abundance of information, is affecting
online investors’ decisions because of an illusion of knowledge and an illusion of control. They further studied
this phenomenon in a second study (2002) and they concluded that after deciding to trade via the Internet,
investors make more frequent trades, more risky trades and make less profit than they did prior to switching to
online trading.
Ranganathan (2006) in a study on impact of internet on financial markets found that the investor behavior
from the marketing world and financial economics has brought together to the surface an exciting area for study
and research: behavioral finance. The realization that this is a serious subject is, however, barely dawning.
Analysts seem to treat financial markets as an aggregate of statistical observations, technical and fundamental
analysis. A rich view of research waits this sophisticated understanding of how financial markets are also
affected by the ‘financial behavior’ of investors. With the reforms of industrial policy, public sector, financial
sector and the many developments in the Indian money market and capital market, mutual funds that has become
an important portal for the small investors, is also influenced by their financial behavior. Hence, this study has
made an attempt to examine the related aspects of the fund selection behavior of individual investors towards
Mutual funds, in the city of Mumbai. From the researchers and academicians point of view, such a study will
help in developing and expanding knowledge in this field.
Bhasin (2007) in a study examined e-brokering and how e-brokerage firms can market financial services. He
discussed the benefits of the lower transaction costs and the convenience of online trading for the investor. In
a separate article by Phelan (2001), the difference between full service brokers and online brokers is presented
and a discussion about the need for good online security is examined. Another study by Globerman, Roehl,
and Standifird (2001) assessed how e-commerce has added to the retail brokerage business. Brokers are now
online and thus can provide lower costs to their customers along with a larger variety of investment information.
Finally, Yap and Lin (2001) examined how online trading systems are changing. They think that future online
discount brokerage firms will evolve from systems that provide basic services like low transaction costs, speed,
and boundary spanning to systems that will eventually be able to provide the one-on-one personal advice that
online brokerage firms are now missing.
Lewison and Bernstein (2008) in a study on online investing found that online investing was still in its infancy.
They discussed how to match the investors’ needs with the right online brokerage firm, how to avoid sales
pitches, and how to think about security needs before one begins to invest. Hong studied the information-
processing costs that can occur from online trading. He discussed how many online traders are new to the
investing world and are therefore naïve about how to go about investing. Konana, Menon, and Abramowitz
explored the observable and unobservable costs associated with online electronic brokerages. A second article
by the authors in 2000 looked at verifiable versus unverifiable costs. Verifiable and observable costs are the
direct costs associated with trading online, like commissions.

31. 26
Turri A (2009) in a study on effects of online trading on the investment community found that online investing
is gaining prominence; it will not be for everyone. Some will not trust the security of trading online and others
will not have the time to do the research required and will prefer to have traditional brokers invest for them.
Overall, online investing will only encourage new investors to trade in the stock market, bringing together
buyers and sellers to make the market more efficient. After some of the kinks are worked out of online trading,
it will tend to be more beneficial to the financial industry in the long run without many negative effects. Even
though online trading has slowed down somewhat at the present time, it is our belief that it will pick up speed
in the future. Once investors have become more comfortable with the current economic conditions and foresee
brighter economic conditions they will return.
Mayank (2009) has analysed the role of two important forces - the regulator and the capital market as
determinant of external finance in transition economies analyses the changing pattern and future prospectus of
external finance to India and reviews the role of external finance. Under this framework, the study evaluates
current Indian corporate governance practices in light of external finance.
Impavido et al.and Claessens etal. (2010) in a study on institutional investors found that that the development
and particularly the liquidity of financial markets depend also on the existence of a diversified class of
institutional investors. Mutual funds, pension funds and insurance companies act as a stable source of demand
for equity and debt securities. They foster competitiveness and efficiency in primary markets and create an
incentive for the establishment of a robust regulatory and supervisory framework. In this regard,, Catalan et
al.(2000) examine the determinants of stock market development for OECD countries and for some emerging
economies. Their findings suggest that, setting aside the issues of macro stability and legal rights, contractual
savings institutions positively affect stock market development.
Vishal B.S. (2011) in a study on public perception about stock exchanges conducted in Latur city of India found
that the number of investors in stock market has been increasing in the study period. The public thinks
investment in stock market is more risky and like gambling. In addition, investors are less interested to invest
in stock market than any other financial investments & they generally think that return on investment in stock
market is high as compared to other financial investment. In the whole study period it was found that investment
through mutual funds is preferred than direct investment in stock market.

32. 27
Chapter 4 - RESEARCH METHODOLOGY
To study the investors awareness towards equity market investment, a structured questionnaire was prepared
and was administered on the investors of the stock market in Delhi. The questionnaire was distributed through
personal contacts. The link of the questionnaire was forwarded to different people in Delhi and 103 responses
were ultimately received.
Population
The population targeted was around 150 respondents. Survey was sent to all these respondents in order to record
their response towards investments in stock market.
Sampling Technique & Sample Size
The sampling technique used in this research is Convenient Sampling. The sample size from which the
researcher has recorded the responses is 103. Out of the targeted 150 respondents, 103 responded back.
Sources ofData
The main source of data was the young adults. A particular age group from 21- 30 years was targeted in order
to record their perception towards investments in stock market.
Methods of Data Collection
The main method of data collection was conducting an online survey that was sent to the 150 respondents. A
questionnaire was designed and this was sent to the targeted respondents. This questionnaire consisted of 14
questions including Name, Age, Salary, and other questions related to the investments in stock market.
Instruments Used
Google Forms & MS – Excel

33. 28
Chapter 5 – DATA ANALYSIS
From this, the researcher found that out of the 103 respondents, 52.4% were female & 47.6% were male, which
is almost an equal ratio. Almost same no. of males & females answered the questionnaire.
From this, the researcher found that out of the 103 respondents, 83.5% were from the age group of 21 – 30
years.

34. 29
From this, the researcher found that out of the 103 respondents, 63.1% were students. & 28.2% were in service.
Moreover, a few i.e., 6.8% were in business. This was one of the major findings that a large no. of percentage
of young adults were students.
From this, the researcher found that out of the 103 respondents, a major percentage i.e., 54.4% of the total
respondents were not earning. This was one of the major findings that a large no. of percentage of young adults
were not earning. There was almost an equal percentage of the respondents earning different income bracket.

35. 30
From this, the researcher found that out of the 103 respondents, almost equal percentage of the respondents
were Graduated & Post Graduated i.e., 45.6% & 42.7% respectively. A very few were 12th passed i.e., 8.7% of
the total respondents.
From this, the researcher found that out of the 103 respondents, 88.3% of the respondents were single & a very
few i.e., 10.7 were married. This was again one of the major findings that a large percentage of young adults
were single.

36. 31
From this, the researcher found that out of the 103 respondents, 60.2% of the respondents known a little on
investments, this means that if a platform is provided to these respondents they can do well in investments. A
very few i.e., 6.8 % knows fully about the investments.
From this, the researcher found that out of the 103 respondents, 72.8% of the respondents were not investing
into equity markets. This was again one of the major findings that a large percentage of young adults were not
investing into equity markets.

37. 32
From this, the researcher found that out of the 48 respondents, 37.5% were short-term investors & rest were mid
& long term investors.
From this, the researcher found that out of the 103 respondents, 58.3% of the respondents were attracted towards
the equity market due to high return.

38. 33
From this, the researcher found that out of the 103 respondents, 90.3% of the respondents use their savings to
invest or trade in the stock market. This was again one of the major findings that a large percentage of young
adults use their personal savings to invest.
From this, the researcher found that out of the 103 respondents, 47.6% of the respondents were interested in
investing into mutual funds & almost equal percentage of respondents were interested in stock market & FDs.

39. 34
From this, the researcher found that out of the 103 respondents, almost equal percentage of the respondents had
the investment horizon upto 6 months, 6-12 months, 1-2 years & more than 2 years.
From this, the researcher found that out of the 103 respondents, 61.2% of the respondents said they might invest
through Sharekhan in future. 27.2 % of the respondents clearly said no that they’ll not invest through Sharekhan.
This was again one of the major findings.

40. 35
Chapter 6 – FINDINGS
After a thorough study of the questionnaire and responses received, the researcher came up with the
following findings:-
 A large percentage of young adults out of the total respondents were students.
 Almost 50% out of total respondents i.e., 54.4% were not earning. This means that for investing into the
stock market they are dependent on their parents i.e., they had to consult with their parents before
investing.
 A large percentage i.e., 72.8% of the respondents were not investing into equity markets.
 90.3% of the total respondents use their saving/personal as a source to invest in the stock market.
 27.2 % out of the total respondents clearly said no that they‘ll not invest through Sharekhan. This was
again one of the major findings. Sharekhan should take major steps to get involve with the customers.
 47.6 % of the total respondents prefer to invest in mutual funds rather that equity market.
 58.3% of the total respondents are attracted towards the equity market only due to high returns, i.e., if
they don’t get high returns they’ll not prefer equity investments over any other investments.

41. 36
CONCLUSIONS
 After the survey, it was found that people in Delhi do not know much about the equity markets.
 The Awareness of Investors in Stock Market tells about Age levels of investors above 40 are highly
aware compare to other groups.
 Investors are investing in various avenues like equity, bonds but the most preferred is mutual funds.
 The amount of investment is associated with the kind of investment and type of transaction

42. 37
SUGGESSTIONS
 It is recommend for the individual investor to be in contact with a good broker and be upgraded with
latest news about the stock market before investing into it.
 The investors should rely on fundamentals and take the decision of investment in equity after a detailed
study of various accounting as well as non-accounting variables.
 Small investors should not be indulging into speculative activities
 As 27.2% of the total respondents clearly said no to invest through Sharekhan, Sharekhan should indulge
more with the people and should conduct online sessions so that people can be made aware of the
different schemes provided by Sharekhan for online investments.

43. 38
BIBLIOGRAPHY
Journals
Barber, B.M., & Odean, T. (2001). “The Internet and the Investor.” The Journal of Economic Perspectives,
Volume 15, 40-55.
Barber, B.M., & Odean, T. (2002). “Online Investors: Do the Slow Die First?” The Review of Financial Studies,
Volume 15, 67-88.
Bhasin, M.L. (2007). “E-Broking as a tool for Marketing Financial Services the Global Market.” Journal of
Services Research, Volume 5, 53-65.
Impavido & Claessens, (2010) “Institutional Investors”, Journal of Diversified Classes of Investors, Volume
30, 25-55.
Lewison , J.E, and Bernstein, P.(2008) “Cyberspace Investing.” Journal of Accountancy, Volume 182, 20-32.
Ramachandran, P. S., & Chinnathambi. (2011). “Investment Behaviour and Risk Return Perception of Investors
in Equity Shares”, Contemporary Research Issues and Challenges in Emerging Economies, Volume 82, 80-95.
Ranganathan (2006), “Investors Preference towards Stock Market and Other Investment Options”. IJRMBSS.
41(9), 60-75.
Turri, A.M., (2009). “Effects of Online Trading on the Investment Community”Journal of Investment Research,
Volume 7, 10-20.
Vishal B.S., (2011), “A Study of Public Perception about Stock Exchange Transactions: Special reference to
Latur city”, Volume 23, 7-21.
Internet
“Company Profile”, retrieved from www.sharekhan.com on 26 June 2018 at 4:30 p.m.
“Stock Market & Stock Exchange”, retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/stock-market/ &
https://www.avatrade.com/cfd-trading/stocks/stock-market, on 27 June 2018 at 3:05 p.m.
“Analysis of Equity & Derivatives”, retrieved from www.investopedia.com/terms/e/equity_derivatives.asp on
28 July 2018 at 8:30 p.m.
“The Regulators”, retrieved from www.investopedia.com/articles/economics/09/financial-regulatory-body.asp
on 20 August 2018 at 5:10 p.m.

44. 39
“Online Trading”, retrieved from www.financial-dictionary.thefreedictionary.com/online+trading.html on 23
September 2018 at 6:15 p.m.

45. 40
ANNEXURE
Survey on “Investors awareness towards
equity market investment”.
This survey is conducted by Karan Saraf. All the details filled by the respondent will be kept confidential and will be used
for the purpose of survey only.
* Required
1.Name *
2.Sex *
o Male
o Female
o Other:
3.Age *
o 15 to 20
o 21 to 30
o 31 to 40
o 41 above
4.Occupation *
o Service
o Business
o Student
o Other:

46. 41
5.Annual income *
o Below 1,20,000
o 1,20,000 to 3,00,000
o 3,00,000 to 5,00,000
o 5,00,000 above
6.Educational Qualification *
o 10th
o 12th
o Graduate
o Post Graduate
7.Marital Status *
o Single
o Married
o Divorced
8.What do you know about investment? *
o I don’t know anything about investments
o I know a little about investment but I could use a little help about which is suitable
for me.
o I am fully aware of investment
o I am fully aware and sufficiently applying my knowledge
9.Are you investing in equity market?
o Yes
o No
10.If yes, what type of investor are you?
o Short term
o Mid term
o Long term
o Mix of any two

47. 42
11.What attracts you to equity market? *
o High return
o Speculation
o Dividend
o Liquidity of investment fund
12.What sources of funds do you utilize to invest in stock market? *
o Savings
o Loan
o Pledging
13.Where would you like to invest?
o Stock market
o Mutual funds
o Bonds
o FD'S
o Other:
14.What is the purpose of investment? *
o To meet the cost of inflation
o To earn return on idle resources
o To generate a specified sum of money for a specific goal in life
o To make a provision for an uncertain future
15.What is the factors which you considered before investing in particular
company? *
o Financial position
o Current market position
o Goodwill
o Future prospects
o Any other

48. 43
16.Your investment decisions are influenced by? *
o Self
o Broker
o Eco policies
o Market research
o Friends/relatives
o Other: