Sunny project 1

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Sunny project 1

  1. 1. A Summer Training PROJECT REPORT ON(Acquisition of Demat and Trading Account For Edelweiss Broking Limited) A report submitted to Mahamaya Technical University for the partial Fulfillment of MBA Degree 2010-12Submitted to :- Submitted by: Prof. Hari Prakash Maheshwari Sandeep Kumar Yadav Director – MBA MBA - IIIrd Sem. Greater Noida Institute of Technology Roll No. 1027270091 Greater Noida Institute of Technology (Management Institute) Code: 272 7, Knowledge Park-II, Greater Noida (U.P)
  2. 2. CERTIFICATEThis is to certify that the SUMMER TRAINNING Project Report entitled“Acquisition of Demat and Trading Account For Edelweiss Broking Limited”being submitted by Sandeep kumar yadav fulfillment of the requirement ofU.P.Technical University is a record of an independent work done by his under myguidance and supervision.Prof. Hari Prakash MaheshwariDirector-MBA Concerned Faculty GuideGreater Noida Institute of Technology Ms. Neelam Sharma(Management Institute)-Code: 272 GNIT, Greater Noida.
  3. 3. DECLARATIONI,______________________, hereby declare that the project report entitled “Acquisition ofDemat and Trading Account For Edelweiss Broking Limited”, being submitted tothe MAHAMAYA TECHNICAL UNIVERSITY for the partial fulfillment of the requirement forthe degree of Master of Business Administration is my own endeavors and it has not beensubmitted earlier to any institution/university for any degree.Place:Date:
  4. 4. TABLE OF CONTENT Particulars Pg. No.Sr. No. 1 Company’s Certificate 2 2 Acknowledgement 3 3 Declaration 5 4 Executive Summary 6 5 Industry Profile 8 6 Company Profile 13 7 Research Objectives 21 8 Research Methodology 25 9 Major Players in Industry 26 10 Brokerage details of the competitors 27 11 Data Analysis 32 12 Conclusion 48 13 Recommendation 49 14 Bibliography 50 15 Annexure 51 1
  5. 5. CHAPTER-1 OBJECTIVES AND LIMITATIONS OF PROJECTOBJECTIVES:The objectives for the project given to me and as well as a sneak peek as to what I did so as toattain them are given below:- 1. Sales promotion of demat and trading account: As per this objective, I had to increase the sales of the demat and trading account for Sharekhan Limited. This objective of the project was completed by me through direct as well as indirect interaction with customers. The details of this are given in the later part of the project. 2. Find out the competitive advantage Sharekhan has over its competitors: As per this objective, I was given the task of visiting different broking houses and collect data as what are they offering to their customers. It also required SWOT analysis, PESTLE analysis and Porter’s Five Forces analysis. This project gave a chance to interact with competitors and to know and understand as to what are they offering to customers so as to increase their market share. The details of this are provided in the later part of the report. 3. Find out the customer satisfaction: This objective was of great importance as Sharekhan believes in serving its customers to the best. This objective required me to conduct a survey among the present clients/customers of Sharekhan so as to know their satisfaction level. This required one on one interaction with the clients as well as through 2
  6. 6. calls made to them by the relationship managers assigned to them and data was collected through a questionnaire. The details of this objective is provided afterwards. 4. Find out the customer preference: This objective required me to collect data personally through a survey in which people were asked questions which were able to generate data which could be useful for Sharekhan Limited.Overall Limitations:There were many problems in a whole which I faced during the project. The problems faced aregiven as follows:- a) The intervention from the side of management was high which restricted the freedom in performing the things I wanted to do. b) The guidelines for performing the objectives were given before hand hence leaving no scope for innovation. c) The data has been collected for 200 on a whole which is a very small sample size and thus cannot generalize the results of the findings. d) There were numerous problems which were faced while setting up canopy. From getting the required permission to the resistance from the people in front of whose office we setup it. This restricted the effectiveness of canopy as a sales promotion tool. e) The respondents were hesitant in providing information which was a barrier in my research work. f) Many of the answers given by respondents were contradictory so I had to discard few of the questionnaires. g) It was very difficult to contact prospective clients at various organizations as without references they do not allow any one to meet with them. 3
  7. 7. Executive Summary There is growing competition between brokerage firms in post reform India. For investor it isalways difficult to decide which brokerage firm to choose. Research was carried out to find which brokerage house people prefer and to figure out whatpeople prefer while investing in stock market. Through this report I was also able to understand, what are our Company’s (Edelweiss Broking Ltd.) positive and strong points, on the basis of which we come to know what can be the basis of pitching to a potential client .This project focuses on the strength areas of the company while at the same time tries to identify the weak areas so that it can be overcome. A comparative analysis of Edelweiss with other broking firms has been done.I went for the field work, talked to customers and tracked their investment pattern to help them suggest the kind of financial product they should use according to their risk appetite. Adding to this, I have been communicating with different types of customers through various media, including client visits, who fall under the sample space for this project. My job here is to advice them to take the suitable products offered by the company, depending on certain criteria, in order to make investing easier for them. I have also worked as a part of sales force of the company and sold Demat account. 4
  8. 8. I have visited to many places in Gurgaon. Some of the data has been collected from thecustomers regarding their views about Edelweiss. Having said that, a comparative study hascarried out to see where Edelweiss stands in the race for offering Products and services. Ihave been handling the profile of Customer Relationship Management. I have been talkingto existing retail clients of the company over the phone, asking for an appointment followingwhich there will be client visit. In the visit the main focus would be to convince the clients todo more business with the company and telling them about the benefits provided by thecompany. So tracking the transformation is really interesting and worth appreciating. I haveconcentrated on existing and dormant clients trying to know their opinion about theirassociation with Edelweiss. Interaction with the clients helped to know the image of thecompany in the minds of the customers and it helped me to come up with suggestions tofurther improve the services of the company. I hope my findings are useful for the company. 5
  9. 9. INTRODUCTIONThe Indian broking industry is one of the oldest trading industries that have beenaround even before the establishment of BSE in 1875Inception- The roots of a stock market in India began in the 1860s during the AmericanCivil War that led to a sudden surge in the demand for cotton from India resulting insetting up of a number of joint stock companies that issued securities to raise finance. Bubble burst- The early stock market saw a boom till 1865, and then in Jul1865, what was then used to be called the share mania ended with burst of the stockmarket bubble. In the aftermath of the crash, banks, on whose building steps sharebrokers used to gather to seek stock tips and share news, disallowed them to gather there,thus forcing them to find a place of their own, which later turned into the Dalal Street. Agroup of about 300 brokers formed the stock exchange in Jul 1875, which led to theformation of a trust in 1887 known as the “Native Share and Stock Brokers Association”Beginning of a new phase- A new phase in the Indian stock markets began in the 1970s,with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestmentof foreign equity by the multinational companies, which created a surge in retailinvesting.Growth supporting factors-The early 1980s witnessed another surge in stock marketswhen major companies such as Reliance accessed equity markets for resourcemobilization that evinced huge interest from retail investors. A new set of economic andfinancial sector reforms that began in the early 1990s gave further impetus to the growth 6
  10. 10. of the stock markets in India.Setting up of SEBI- the Securities and Exchange Board of India (SEBI), which was setup in 1988 as an administrative arrangement, was given statutory powers with theenactment of the SEBI Act, 1992. The broad objectives of the SEBI include-to protect the interests of the investors in securitiesto promote the development of securities markets and to regulate the securities marketsIncorporation of NSE- NSE was incorporated in Nov 1992 as a tax payingcompany, the first of such stock exchanges in India, since stock exchanges earlier weretrusts, being run on no-profit basis. NSE was recognized as a stock exchangeunder the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commencedoperations in wholesale debt segment in Jun 1994 and capital market segment(equities) in Nov 1994. The setting up of the National Stock Exchange brought toIndian capital markets several innovations and modern practices and procedures such asnationwide trading network, electronic trading, greater transparency in price discovery andprocess driven operations that had significant bearing on further growth of the stockmarkets in India. To speed the securities s e t t l e m e n t p r o c e s s , T h e Depositories A c t1 9 9 6 w a s p a s s e d t h a t allowe for dematerialization(and dematerialization) of securities in depositories and the transfer of securities throughelectronic book entry. The National Securities D e p o s i t o r y L i m i t e d ( NSDL) s e t u pb y l e a d i n g f i n a n c i a l institutions, commenced operations in Oct 1996. Despite passing through a number of changes in the post liberalization period, theindustry has found its way towards sustainable growth. A stock Broker is a regulatedprofessional who buys and sells shares and other securities through market makers orAgency Only Firms on behalf of investors. To work as a broker a certificate of registration 7
  11. 11. from SEBI is mandatory after satisfying all the terms and conditions. FINANCIAL MARKETS The financial markets have been classified asCash market (spot market) – largest traded, the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. Derivatives market – after cash market, the derivatives markets are the financial markets for derivatives. The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives. Debt market - The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities. Commodities m ar k et – af t e r com m odi t i es m ar k et , C o m m o d i t y m a r k e t s a r e markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts. NEED OF A BROKER A broker is a person or firm that facilitates trades between customers. It is advisable to conduct transactions through an intermediary. For example one needs to transact through a trading member of a stock exchange if they intend to buy or sell any security on stock exchanges. One needs to maintain an account with a depository if they intend to hold securities in demat form. You need to deposit money with a banker to an issue if you are subscribing to public issues. One gets guidance if you are transacting through an 8
  12. 12. intermediary. A broker acts as a go between and, in doing so, does not assume any risk forthe trade. The broker does, however, charge a commission. A broking firm acts as anintermediary between NSE and Client. Stock Brokers come under the category of MarketPlayers. The membership in the stock exchange can be granted as individualmembership and corporate membership. NSE B BROKER CLIENTThe market intermediaries play an important role in the development of SecuritiesMarket by providing different types of services. There are two major stock-exchanges NSE (composition of 50 stocks) and BSE (Composition of 30 stocks). 9
  13. 13. Edelweiss Capital Limited: A Profile _________________________IntroductionThe Edelweiss Group is a conglomerate of 44 entities including 39 Subsidiaries and 4 Associatecompanies (September‟09), engaged in the business of providing financial services, primarilylinked to the capital markets. Edelweiss Capital Limited (www.edelcap.com), incorporated in1995, today has emerged as one of India‟s leading integrated financial services conglomerates.The Edelweiss Group offers one of the largest range of products and services spanning variedasset classes and diversified consumer segments. The Group‟s product offerings are broadlydivided into Investment Banking, Brokerage Services, Asset Management and Financing. Thecompany‟s research driven approach and consistent ability to capitalize on emerging markettrends has enabled it to foster strong relationships across corporate, institutional and HNI clients. 10
  14. 14. Edelweiss Capital Limited now employs about 1200 employees, leveraging a strong partnershipculture and unique model of employee ownership. It is a listed company since December 2007under the symbols NSE: EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN.Products of the Edelweiss  Equities  Mutual Funds  IPO – Initial Public Offer  PMS – Portfolio Management Services  Commodities  DerivativesEquitiesEquities are traditional stocks. If you own an equity, then you own stock in a company, you ownequity in that company, and you own part of that company.The term "stock" is often used loosely to include equities, and other products which are traded ortracked in a manner similar to equities. We use the term equities when we want to make it clearthat we are only talking about real stocks. 11
  15. 15. Mutual FundA mutual fund is a company that brings together money from many people and invests it instocks, bonds or other assets. Portfolio is the bundle/combination of stocks, securities, bonds orother assets. Each investor in the fund owns shares, which represent a part of these holdings.Initial public offering (IPO), When the companies issues shares, debentures etc. to the publicfor the first time, known as IPO (Initial Public Offering) , they do so for expansion of capital forthe fulfill of their projects requirements and some large private companies wants to expand theirbusiness to general public.Generally, companies which want to issue shares etc to public have not proper market linkage forIPO then they underwrites their shares to brokers. The commission is paid to underwriters, whichis defined in Companies Act, 1956 at the rate 5%.Since in IPO, it is firstly offer to investor, investor has less knowledge for prediction of futureprobable prices and its market conditions, so it is highly risky as compare to trading throughstock exchanges.Portfolio ManagementInvestment management is the professional management of various securities (shares, bondsetc.) and assets, to meet specified investment goals for the benefit of the investors. Investors maybe institutions (insurance companies, pension funds, corporations etc.) or private investorsCommodityA commodity is anything which has its own demand and supply regardless of its qualitativecharacteristics across the market. It is a products regardless of thinking its producer have actsame. It may be milk, petroleum, bags , gold, silver etc.. The prices of commodity fluctuates onmarket conditions or in simple the price of commodity depends on market rather than its cost. 12
  16. 16. There are two markets in which commodity deals. Firstly cash market in which actual physicalcommodity traded. Secondly derivative market in which future prices and contracts on prices ofcommodity fixes or deals.DerivativesDerivative is a risk-shifted agreement, the value of which is derived from the value of anUnderlying asset. The underlying asset could be a physical commodity, an interest rate, acompany’s stock, a stock index, a currency, or virtually any other tradable instrument uponwhich two parties can agree.There are many types of derivatives such as future, forward, option, OTC.There are some risk associated with derivatives such as credit risk, market risk, liquidity risk,operational risk etc. These risk can be protected through hedging. SERVICES PROVIDED BY Edelweiss  Depository Services  Online Services  Commodities Trading  Portfolio Management  Dial & Trade  Shareshops  Fundamental Research  Technical Research 13
  17. 17. Online ServicesEdelweiss classic account:This account is basically meant for those who are new to sharemarket and are still learning about the same. It provides the customer with the opportunity totrade by logging on at the website of Edelweiss and doing the transaction. The website isdesigned in a manner so that it can provide a jargon free environment and ease in trading to thecustomers. Streaming quotes (using the applet based system) Provides the customer to watch multiple lists. It also provides integration of trading, demat and bank account. It also provides opportunity for instant credit as well as instant transfer facility. It also provides the facility to track portfolio by a customer with all the price alerts andother features.Features Of Classic Account Provides facility for online trading. Integration of On-line trading, Saving Bank and Demat Account. Provides with the facility to transfer funds from bank account to trading account and viceversa. Competitive transaction charges. All the updates and confirmation for the trade done through email. Streaming Quotes. (Cash & Derivatives) Provides a customer with the personalized view of market. It provides single screen for both cash as well as derivative trade. Provides the customer with the option of choosing the trigger price for a stock and towatch that particular stock online. Speed trade: 14
  18. 18. SPEED TRADE is an internet-based software application that enables you to buy and sell in aninstant. It is ideal for active traders and jobbers who transact frequently during day’s session tocapitalize on intra-day price movement.Features: Instant order Execution and Confirmation. Single screen trading terminal. (NSE) All the current quotes as taking place at the market are provided to the customer. Thesecan also be viewed with the help of charts and graphs. Whole of the summary for the market is provided to the customer. This includes featuresas what were the hottest stocks, most traded stocks, what was the high price for the stock by theend of the day etc. All the facilities are provided to the customers as hot keys. This facility is similar to thatof the broker’s terminal. Regular alerts regarding the market price and limit price are provided in addition to thevarious other forms of reminders. In order to make sure that the investor does not loose an opportunity because of badtelephone lines back up facility is provided to the customers for the direct line.Dial-n-Trade:The Dial-n-Trade service enables you to place orders for buying and selling through yourtelephone.Share Shop:Edelweiss has 640 share shops across 280 cities in India to facilitatetrading related services.A Edelweiss shop offers the folling services  Online BSE and NSE executions 15
  19. 19.  Free access to investment advice from Edelweiss’s research team  Daily research reports and market review  Daily trading calls based on Technical analysis  Live market information  Commodities trading  IPOs & mutual funds distribution Demat services: Edelweiss Depository services offers dematerialization services to individual and corporate investors. Edelweiss provides its customers with whole team of professional who are equipped with the latest technology to help and provide customers with the most secured and speediest service. Edelweiss makes sure that its customers are never in loss when it comes to service. It seeks to provide the knowledge of market to its customers in order to make them informed investors. Categories Of Classification Of Stocks Edelweiss Limited in order to make the decisions of its customers more effective and simple provides classifications of stocks which are based on certain criteria. The classifications are explained below:- Evergreen: These 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 help them achieve and sustain market dominance in the long run. They have strong brands, management credentials and a consistent track record of achieving super normal shareholder returns. We expect stocks in this category to compound at between 18-20% per annum for the next five to ten years. Apple Green: These are stocks that have the potential to be steady compounders and are attempting to move upwards, to turn Evergreen. They rank a shade below the Evergreen 16
  20. 20. companies, only because their potential in the five to ten years time is still not very clear, although they might grow at rates faster than that of the Evergreen stocks in the next year or two. They could grow at 25-30% per annum over the next two to three years. Emerging Star: These are typically young companies, often in niche businesses, that have the potential to grow and dominate their niches. Even better, they might turn out to be real giants, if their niches explode into full-blown markets in their own rights. These stocks are potential ten- baggers but you need to be patient. Ugly Duckling: These are companies that are trading below their fair value or at values, which are at a significant 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 are likely to cause a re-evaluation of their prospects. These stocks could double in two to three years time. Vultures Pick: These are companies with valuable assets or brands that have been trashed to ridiculously low prices. Buy a Vultures Pick and wait for a predator who finds its assets undervalued to come along. This could be a long wait but the returns could be startlingly high. Cannonball: These are companies with valuable assets or brands that have been trashed to ridiculously low prices. Buy a Vultures Pick and wait for a predator who finds its assets undervalued to come along. This could be a long wait but the returns could be startlingly highINTRODUCTION TO SHARE MARKET AND RELATED CONCEPTS: SHARE MARKET: Share market is a financial market were equities, shares, debentures; bonds etc. are purchase and sell. Every day, stocks are exchanged and traded in numerous stock markets around the world. The liquidity they bring is a vital component of economic growth. Share market is a public market were the trading of company stock and at an agreed price, these are the securities listed on a stock exchange as well as those only for trading privately. Stock market is a open market that trade financial assets.it is associated with a company or acting as an individual, stock exchange is place where stocks are purchase or sell. Or it is rightly said 17
  21. 21. that stock exchange deals with a number of financial instruments such as stocks, bonds, andequities. Where both corporate and governments are traded in stock exchange.Stock are the listed and traded on stock exchange which are entities of a corporation or mutualorganization specialized in the business of bringing buyers and sellers of the organization tolisting stock and securities together.What is SENSEX? And how it works?SENSEX is termed as sensitivity index. It runs on companies shares listed in BSE (Bombaystock exchange) and NSE (national stock exchange). Where top companies 50 companies shareslisted in NIFTY and top 20 companies shares listed in MINI NIFTY that they goes ups anddowns that determines SENSEX index every day in working day.Functions of Stock Exchanges: An OverviewStock exchange main function is to facilitate the transactions associated with both the buying andselling of securities. The Buyers and sellers of shares and stocks can track the price changes ofsecurities from the stock markets in which they operate. The ups and downs of stock indexeshelp the investors to speculate on the return on investment (ROI) of various investment options.In stock exchange Speed and transparency are vital for all stock market transactions. Thecompanies listed in a stock exchange need to provide proper guidance regarding businessperformance and prospects, mergers and acquisitions, stock prices, dividends and otherinformation at all times.Investors make their investment decisions based on the information obtained from thesecompanies, and the comments of analysts who track those companies. This is an attractivefeature in investing in stocks, compared to other less liquid investment such as real state. 18
  22. 22. Exchanges also act as clearing houses for each of the transaction. Meaning that they collect anddeliver the shares and guarantee the payment the seller of the security. Exchange protects theinterests of both the buyers and sellers by assuring a timely transfer of money.The participants of a stock market are required to operate within the specified transaction limitsfixed by the regulatory authority of that stock market.TYPES OF STOCK MARKET:-The stock Market divided into two categories they are as:  Primary Market: Primary market are the that type of capital market that deals with the issuance of new securities, companies, governments or public sector institutions that can obtained by the funding through issue of new securities, stock or bonds. This is typically done through a syndicate of securities dealers. It provides the process of selling new issues to investors is called Underwriting. It also provide the new stock issue, this sale is an initial public offering (IPO). Dealers of issuing this IPO can earn a commission that is built into the price of the security offering; through it can be found in the prospectus.Following Features of Primary Market are:  In primary market the securities are directly issued to the investors.  Primary Market Company can receive the money and issue new securities to the investors. 19
  23. 23.  It is also called as the market for new long term capital. In primary market the market where the securities are sold for the first time. Therefore it is also called New Market Issue (NIM).  In primary issues the companies used for the purpose of setting up new business or for expanding or modernizing the existing business.  It plays a vital role in formation of capital to the economy by facilitating crucial function in market.  In primary market the new issue does not include the certain source of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may raise capital for converting private capital into public capital – this is called as Going Public.Methods of Issuing Securities in the Primary Market .They are as:-  Initial Public Offer (IPO).  Preferential Issue.  Right Issue (For Existing Companies).  Secondary Market: This market is also called as Aftermarket or Second market, it also called a financial market where previously issued securities and financial instruments such as stock, bonds, options, and future are brought or sold. 20
  24. 24. Secondary market is termed as the market of any used goods or assets, or an alternative use for an existing product or assets where the customer base in the second market. For example, companies have been traditionally used for primarily for food production and feedstock. Where the 2nd and 3rd market is used or developed for the ethanol production. Primary issue of securities or financial instruments, or the primary market, Investors purchase these securities directly from issuers such as corporations Issuing share in an IPO or private settlements. After the initial issuance, Investors can purchase from other investor in the secondary market.Functions of secondary market: The function of the secondary market is vital to an efficient and modern capital market. In the Secondary market securities are sold and transferred by one investor to the other investor. In the market condition where secondary market be highly liquid. Or fundamentally, secondary markets is to mesh with the investors preference for liquidity for the investors need not to tie up with his or her money for a long period time, or in case of the investor need it to be deal with unforeseen circumstances. Secondary market allocates accurate share price capital more efficiently. the new projects that are financed through a new primary market offering, but there is also accuracy may also matter in the secondary market because:  It reduce the price accuracy to maintain the agency cost management, or make less risky when take over or moving capital into the hands of better managers.  Allocation of accurate share price for the allocation of debt finance whether debt offerings or institutional borrowing. 21
  25. 25. BOMBAY STOCK EXCHANGE (BSE)In India share market started functioning from 1875. First name share trading associated withIndia was the native share and stock broker’s association which later came to known as Bombaystock exchange (BSE). Exchange operates with the help of stock brokers, the buyers and thesellers participating in a stock market carry out their transaction.The brokers representing selling parties to take their orders to the stock exchange floor and thenfind brokers representing parties wiling to invest in similar stock . if both parties agree to trade atthe fixed price ,the transaction takes place in both the favor.It works the stock that are listed or traded on stock exchanges. Which are entities a corporationor mutual organization for specialized in the business or bringing buyers and sellers of theorganizations to a listing of stock and securities together. Stock market in the India includes thetrading of all the securities listed on the BSE (Bombay stock exchange) and NSE and the manyother regional exchanges like Delhi stock exchange.As an Indian share market enables the buying and selling of the collective shares of the variouscompanies as well as other securities and derivatives. Shares of the Indian market are expressedas a company’s sales revenue from Indian share market divided by the total sales revenueavailable in the Share market of India.The Indian share market is thus one of the most important sources of the companies for raisingmoney.Of the leading stock exchanges that deal with the share trading in the Indian stock market theNational Stock Exchange of India NSE is the largest stock exchange in India while the Bombaystock exchange BSE is the oldest. Some others are: 22
  26. 26.  Securities and Exchange Board of India (SEBI)  Calcutta Stock Exchange Association Limited  Delhi Stock Exchange Association  Inter-connected Stock Exchange of IndiaNational Stock Exchange (NSE)NSE is the second largest exchange in the south Asia. It is the leading most stock exchange inIndia in term of total volume traded. It based in Mumbai but it has presence in over 1500 townsand cities. It got the recognition as a stock exchange in July 1993 under the securities contracts(regulation) Act, 1956. The products that can be traded in NSE are:-  Equity or Share.  Futures (Both index and stock).  Options (Call and Put).  Wholesale Debt Market.  Retail Debt Market.NSE is leading index is Nifty 50 or properly Nifty and is composed of 50 diversified BenchmarkIndian company stocks. It is constructed on the basis of weighted average market capitalizationmethod. NSE provides its customers with a fully automated screen based trading system knownas NEAT system with speedy, efficient and transparent transactions.Hours: NSE trading session start from 09:30am to 03:30pm on all days except Saturdays,Sundays, and holidays declared by the Exchange in advance. 23
  27. 27. NIFTY:Nifty is the major indicator of all the major companies of the NSE. Where the top 50 stocks arethat stocks were it is favored by the institutional investors in the 1960s and 1970s that shows theups and downs of share market.Nifty has two part first is where 50 companies are listed is called big Nifty. And other is calledMINI NIFTY. Where 20 companies are listed in it. Companies in this group were usuallycharacterized by consistent earnings growth and high P/E ratios.MCX (MULTI COMMODITY EXCHANGE)It is established in 2003 and based in Mumbai. It is an independent commodity exchange boardbased in India. MCX offer commodity for trading in future like:  Agricultural commodities.  Bullion  Ferrous and Non- ferrous metals  Pulses.  Oils Seeds.  Energy.  Plantations.  Spices.  And other soft commodities.National Commodity & Derivatives Exchange Limited (NCDEX)NCDEX is the online commodity based exchange in India. It is located in Mumbai and offerfacilities in more than 550 centers in India. 24
  28. 28. It was incorporated as a private limited company incorporated on April 23, 2003.Under theCompanies Act, and 1956. But it obtained its Certificate For Commencement of Business onMay 9, 2003.and started its operations on Dec. 15 2003.NSDL (National Securities and Depository Limited)NSDL is the first depository in India that established under depository Act August 1996. Thisdepository promoted by national stature responsible for the economic development of country.Since its establishment a national infrastructure of international standards that handles most ofthe securities that held and settled in Dematerialized from the Indian capital market.Its main aim to ensure safety and soundness of Indian marketplaces by developing the settlementsolutions to increase efficiency, minimize risk and reduce costs. In NSDL, the central role indeveloping products and services that will continue to grow the nurture needs of the financialservices industry.Promoters & Shareholders in NSDLNSDL is promoted by:  Industrial Development Bank of India Limited (IDBI) - The largest industrial development bank of India.  Unit Trust Of India (UTI) – The largest Mutual Fund in India.  National Stock Exchange of India Limited (NSE) – The largest stock exchange in India. Above they are the some of the prominent banks in the country have taken a stake in NSDL. And, the other Shareholders that promote the NSDL are as:  Citibank. 25
  29. 29.  Canara Bank.  Union Bank of India.  State Bank of India.  Oriental Bank of Commerce.  Dena Bank.  HDFC Bank Limited.  Standard Chartered Bank.  Deutsche Bank.  The Hong Kong and Shanghai Banking Corporation Limited.  AXIS Bank.Introduction to Broking FirmsStock BrokerA Stock Broker is an agent, matching up buyers and sellers on the stock market. He sells or buystocks on behalf of a customer, charging a fee or commission for his services.Stock brokers may also offer advices in which stock or funds to invest.Taking this view forward we shall try to define stock broking houses:-A brokerage firm acts as a liaison between a seller and buyer. Word "broker" means to bring aseller and buyer together to handle all intermediary duties for a sales transaction to occur.Brokers are not just for stocks and bonds but for fine art and real estate too.There are some ofthe intermediary duties of a broker from start to close of sale.FUNCTIONS OF BROKERAGE FIRMThere are three different perspectives to define the job of brokerage firm, i.e. from the sellerspoint of view, from the buyers point of view and from middle men point of view. 26
  30. 30. These are as follows:-Brokers for the Seller: A brokerage firm that represents the seller will assist in finding a buyerfor the product or service that seller has to offer. Once the buyer is secured, the buyer makes andoffer to the seller through the firm.Brokers for the Buyer: A broker that represents the buyer will act as a liaison to communicatewith the broker of the seller. These brokers are interested in securing the best deal for their client.The Middle Man: Without brokerage firms, there would be practice of complete freetrade inconsumer market i.e. there would be no way for a buyer or a seller to influence the market--anyone could sell/buy anything at any price.Money generation ways of brokerage firms: Brokerage firms are contracted on commission,which means that if a sell doesnt occur, the broker will get nothing. This is why firms mustmake sure they match sellers with the most probable buyers, which requires extensive marketresearch.Supply and Demand:When there is a demand for a product, there will be a demand for abrokerage firm to make that product. Available to consumer.Brokers help to keep the cycle ofsupply and demand in existence. 27
  31. 31. www.edelweiss.in Enter Stock for Company Details / Stocks for Comparison. Equities Go SENSEX 17,700.90 166.81 ( 16:03 ) | NIFTY 5,312.50 56.35 ( 16:14 ) Copyright © 2009 ECSL. | Disclaimer | Terms & Conditions | Privacy Policy | Browser Settings About Us | Customer Service | Channel Partners | Our Offerings | Site Map Edelweiss : India`s leading Stock Broking Company provides online BSE and NSE Share Trading Services. Site is best viewed using Browsers Internet Explorer 7.0+ & Mozilla Firefox 2.0+ with resolution 1280 by 768.The firm’s online trading and investment site - www.edelweiss.in - was launched on Feb 8, 2009.The site gives access to superior content and transaction facility to retail customers across thecountry. Known for its jargon-free, investor friendly language and high quality research, the sitehas a registered base of over 1 Lacs customers. The number of trading members currently standsat over 7 Lacs. While online trading currently accounts for just over 5 per cent of the dailytrading in stocks in India, Edelweiss alone accounts for 27 per cent of the volumes traded onlinefor HNI segment. 28
  32. 32. Edelweiss is managed by CLIENT ADVISORY SERVICES group to serve the interests ofindividual investors.The various products offered by Edelweiss broking ltd are-:FREE ACCOUNT OPENINGThis is a User Friendly Product which allows the client to trade through websitewww.edelweiss.in and is suitable for the retail investors who is risk-averse and hence prefers toinvest in stocks or who do not trade too frequently.Features Online trading account for investing in Equity and Derivatives via www.edelweiss.in Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. Integration of On-line trading, Saving Bank and Demat Account. Instant cash transfer facility against purchase & sale of shares. Competitive transaction charges. Instant order and trade confirmation by E-mail. Streaming Quotes (Cash & Derivatives). Personalized market watch. Single screen interface for Cash and derivatives and more. Provision to enter price trigger and view the same online in market watch. 29
  33. 33. XPRESS XPRESS is an internet-based software application that enables you to buy and sell inan instant. It is ideal for active traders and jobbers who transact frequently during day’s sessionto capitalize on intra-day price movement. 30
  34. 34. Features Instant order Execution and Confirmation. Single screen trading terminal for NSE Cash, NSE F&O & BSE. Technical Studies. Multiple Charting. Real-time streaming quotes, tic-by-tic charts. Market summary (Cost traded scrip, highest clue etc.) Hot keys similar to broker’s terminal. Alerts and reminders. Back-up facility to place trades on Direct Phone lines. Live market debts. 31
  35. 35. Funds Transfer  Transfer funds between your savings account and trading account.  Avail a pay-in and pay-out option where you can transfer funds from and to your trading account.  Tie ups with HDFC Bank, ICICI Bank and Axis Bank, Yes Bank, Kotak bank wherein you can easily transfer funds from any of these banks. 32
  36. 36. MOBILE TRADING EDELWEISS had introduced mobile trading, A mobile based software where one canwatch Stock Prices, Intra Day Charts, Reasearch & Advice and Trading Calls live on the Mobile. (As per SEBI regulations, buying-selling shares through a mobile phone arenot yet permitted.)www.edelweiss.in MOBILE WEBSITE KEY FEATURES  Instant Market Updates  All Company Stock Quotes  Smart Financial Snapshots  Trading Strategies  Portfolio Tracker  Equity Watchlist 33  Global Indices Update
  37. 37. CHARGE STRUCTURE Plan Advance Validity Brokerage Rates Equivalent delivery Brokerage Period Fee Turnover limit Deliver Futures and y Intraday CashEBSPN01 Rs 2450 12 0.33 0.033% 750000 months %EBSPN02 Rs 4950 12 0.27% 0.027% 1800000 MonthsEBSPN03 Rs 9950 12 Months 0.22% 0.022% 4500000EBSPN04 Rs 15000 12 Months 0.17% 0.017% 9000000EBSPN04 Rs. 12 month 0.11% 0.011% 45000000 50000EBCRB06 Rs 12 0.09% 0.009% 125000000 1,10,000 month Rs 3 month 0.05% 0.005% 200000000EBCRB07 1,11,111 34
  38. 38. MAJOR PLAYERS IN THE INDUSTRY1. Karvy2. Indiainfoline3. ICICI direct4. HDFC security5. Indiabulls6.Religare7.Edelweiss Broking Ltd.8.Motilal Oswal ltd9.Angel Broking ltd 35
  39. 39. KARVYKarvy is a premier integrated financial services provider, and ranked among the top five in thecountry in all its business segments, services over 16 million individual investors in variouscapacities, and provides investor services to over 300 corporate, comprising the who is who ofCorporate India. Karvy has a professional management team and ranks among the best intechnology, operations and research of various industrial segments.ICICI DIRECTICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to asthe "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned byICICI Bank Limited. IWTL has launched and established an online trading service on theWebsite. 36
  40. 40. INDIAINFOLINE SECURITY PRIVATE LTDIndia Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltdand is the stock broking arm of India Infoline.com. The subsidiary was formed to comply withregulatory guidelines. www.5paisa.com is a focused website for online stock market trading.5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied fortrading membership of the BSE under Securities and Exchange Board of India (Stock Brokersand Sub-Brokers) Rules 1992.ICICI DIRECTICICI Direct is the stock broking firm of ICICI bank. It is number one when it comes to onlinetrading customer base. It provides all the services which are provided by any broking house. Itprovides its investors with the opportunity to invest in BSE, NSE, Mutual Fund, IPO’s etc.Types Of Accounts Offered:There are three types of accounts which are offered by ICICI Direct. These accounts are asfollows: 1. Share Trading Account 2. Wise Investment Account 3. Active Trader Account Brokerage and Fees Charged By ICICI Direct: 37
  41. 41. 1) Account Opening and Activation Charges: Rs.750 which is a one payment and is not refundable to the investor. 2) Brokerage Charged: the amount of brokerage charged depends upon the volume of trade done, the service charge applicable and courier charges. It has range from 0.1% to 0.15% when it comes to trade based on margin. It is 0.2% to 0.45% when it comes to squared off trade and 0.4% to 0.85% when it comes to delivery based trade.The point to be noted here is the entire volume slabs given below are on quarterly basis. Thisgives more to the customer to take advantage and fulfill the slabs so that less brokerage will beapplicable.The normal trading + Demat a/c + Savings a/c opening charges is Rs.750/- Total Eligible Brokerage Charged Second Segment Effective Brokerage Turnover (which (Leg) of Traders Charged Per Segment depends upon (Leg) of Squared Off volume of Trade transaction) per quarter. Rs.5 Cr. And Above 0.25% Nil 0.125% Rs.2 Cr. to 5 Cr. 0.30% Nil 0.15% Rs.1Cr. to 2 Cr. 0.35% Nil 0.175% Rs.50lacs to 1 Cr. 0.45% Nil 0.225% Rs.25lacs to 50lacs 0.55% Nil 0.275% Rs. 10lacs to 25lacs 0.70% Nil 0.35% Upto Rs.10 lacs 0.75% Nil 0.375% There is an additional charge for service tax which is at the rate of 12.24 above brokerage. Securities Transaction Tax on Equity (STT): It is calculated on the basis of the weighted price that is generated by a client during the day. This value is calculated up to second 38
  42. 42. decimal place. 0.125% is charged as STT when it is delivery trade. 0.025% is charged when it is non-delivery trade. Note: All the above charges are in addition to the brokerage.Brokerage Charges When Trade is done in Margin Segment: Total Eligible Turnover (which is based on volume of transaction Brokerage Charged done) per month Rs.20 Cr. And Above 0.03% Rs.10 Cr. To 20 Cr. 0.035% Rs. 5 Cr. to 10 Cr. 0.40% Less than Rs.5 Cr. 0.05%They have two different schemes other than the above said. The upfront brokerage scheme iscalled Clear Value Deal and the normal is called Variable Brokerage Deal. These products areonly available for cash and carry.Clear Value Deal: In clear value they have again three options Rs.299, Rs.599, Rs.999. Thecustomer can only delivery and BTST in this.Product 299: Monthly charge of Rs.299/- applicable for a delivery volume of Rs.1.5lacs in 3months. Only 50 thousand is exceeded then 0.75% is charged on the exceeded amount.Product 599: Monthly charge of Rs.599/- applicable for a delivery volume of Rs.3lacs in 3months. Only 1lac can be done in a month. If Rs.1lac is exceeded then 0.75% is charged on theexceede amount.Product 999: Monthly charge of Rs.999/- applicable for a delivery volume of Rs.6lacs in 3months. Only 2lac can be done in a month. If Rs.2lac is exceeded then 0.75% is charged on theexceeded amount.Variable Brokerage Plan: Here the brokerages are applicable as per the volume trades. Thebrokerage charged is given in the table. 39
  43. 43. Delivery Intraday(on one leg) Derivatives 0.25%-0.75% 0.125%-0.37% 0.03%-0.05%Zero Brokerage Plans: Below mention are the brokerage charges by ICICI Direct in their zerobrokerage plans.Other charges are: Type DP Charges Transaction charges For Market and Off Market Buy Nil For Market and Off Market Sell Nothing is charged if it is done through ICICI Direct.com. whereas if it is done through e- instructions the charges are 0.04% which amounts to the minimum of Rs.10. 0/04% is charged if it is done the call center. 0.04% is charged which amounts to minimum of Rs.30 if the request is submitted to the branch directly. Extra charges which are levied by ICICI for Rs.10 are charged per ISIN processing of TIFD’s Rejection / falls Rs.30/- Dematerialisation charges Rs.35 is charged per request and Rs.2 are charged extra for each certificate. Rematerialisation charges Rs.20 is charged for each request form. Closure of account Nil In the case of pledge creation, invocation, 0.02% which amounts to minimum Rs.15 if confirmation, the percentage value for each ICICI bank is the counter party. ISIN in each request 0.02% which amounts to minimum of Rs.30 if ICICI bank is not the counter party. 40
  44. 44. Addition Account Statements Rs.20/- Per debit instruction the charge is Rs.6 and in case of commercial papers it is nil. Remateralisation of Certificates Rs.10 per certificate is charged Pledge Rs.25/- per instructionAdvantages and Merits of having an Account at ICICI Direct:There are some advantages of having an account at ICICI Direct. These are enumerated asbelow:- 1) ICICI provides 3 accounts facilities. It provides demat and trading account in addition to savings account. 2) A person can easily transfer money from one form of account to another in no time by logging to the ICICI website. 3) As all the three accounts are well integrated it provides a lot of comfort for the customer to handle. 4) ICICI Direct provides a whole lot of opportunities for the customer when it provides with all types of investment opportunities that are available to a person. Difficulties and Demerits of having Account in ICICI Direct: ICICI Direct has the following disadvantages:- 1) The brokerage which is charged by ICICI Direct is quite high. 2) The margin amount to start with is very high when it comes to opening an account at ICICI Direct. 3) The website of ICICI Direct becomes overloaded during the market hours making the online transactions for customers difficult. 4) All types of stocks and market instruments are not made available by ICICI Direct. 41
  45. 45. IndiabullsIndia Bulls is one of the largest financial service provider in the country. It is also quite evidentin the realty sector also. With one of the largest chains of retail outlets, India Bulls is one of thebiggest competitor of India Bulls.Types of AccountThey have only one type of product i.e. the normal account. The brokerage applicable can benegotiated with huge volumes and huge margin money.India Bulls Equity Trading Account and a brief Introduction:It is the standard and the basic product which is offered by India Bulls to its customers. It is thestandard online trading and demat account facility that is provided by India Bulls. The specialfeature of this account is that it provides a priority telephone facility using which a customer candirectly approach its relationship manager.Power India Bulls: The software based service:-It is the innovative step on the part of India Bulls. This online trading terminal provides lightningspeed service. With the features like live streaming quotes, tic by tic charts and many features ithas become the new generation face for online trading service providers.Documentation Requirements of India Bulls in order to open an Account: 1) One passport size photograph of the applicant. 2) One photocopy of PAN card of the applicant. 3) One photocopy of Identity proof which could be either driving licence or PAN card or voter id card etc. 4) One photocopy of Address proof. 5) Bank Account Proof which could be either Bank Pass Book or Bank Account Statement.Fees And Brokerage Charged By India Bulls:Account Opening and Activation Charges: Rs.900/-Initial Margin: Rs.1000/-Exposure: 4 times (intraday)DP Charges: Rs.250/- @12.24% 42
  46. 46. The software using charges: Rs.750/-(One Time Cost). This Trading Software is called PowerTrade as discussed above.HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation).www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled toits online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based onwhich customers would be chosen to participate in these services .The present web site(www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. Thelaunch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE.HDFC SecuritiesHDFC sec is brought to you by HDFC Securities Limited (HDFC Sec), a broking housepromoted by the HDFC Group.HDFC securities is a big name today when it comes to stock broking industry. With the back upin the form of banking, HDFC provides its customers with various services. From banking totrading, HDFC provides its clients with three accounts under one scheme. Linking of savingsaccount opened at HDFC with the demat and trading account of a person provides great comfortswhen it comes to transferring of funds. HDFC provides its customers with expertise knowledge,many articles published with the view to provide enhanced knowledge, online databases andfinancial tools to take better decisions when it comes to investing in market.Procedure for Opening Account at HDFC:In order to open an account here at HDFC, a person has to open a savings account in order tohave a demat and trading account through HDFC.Documentation:Following documents are required in order to open an account here at HDFC:- a) Passport Size Photograph: One in number. 43
  47. 47. b) Photocopy of an Identity proof which could be PAN card, Voter Id card or Driving Licence. c) Photocopy of the address proof which could be Driving Licence, Voter Id card. Telephone bill etc.Brokerage and Fees Charged By HDFC:Account Activation Fees Charged:Rs799 in which a person’s bank account, trading account anddemat account all are opened at once.Minimum Margin to be maintained by a person in its account is Rs.2500Exposure: Up to 4 times exposure is provided to a client.Annual Maintenance Charges: Rs.500 is charged after the first year. Before that the AnnualMaintenance Charges are waived.Brokerage: The brokerage for Intraday is 0.15% whereas for delivery it is .50%.INDIABULLS SECURITIES LIMITEDIndiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9,1995. The name of the company was changed to Orbis Securities Private Limited on December15, 1995 to change the profile of the company and subsequently due to the conversion of thecompany into a public limited company; the name was further changed to Orbis SecuritiesLimited on January 5, 2004. The name of the company was again changed to Indiabulls 44
  48. 48. Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term“Indiabulls” in the company name. ISL is a corporate member of capital market & derivativesegment of The National Stock Exchange of India Ltd. At present, ISL accounts forapproximately 3% of the total daily turnover of the Exchange with 32,359 client relationshipsand 70 branches spread across the country as of April 30, 2004.SHAREKHANSharekhan is one of the leading retail brokerage of Citi Venture which is running successfullysince 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKIGroup, which has over eight decades of experience in the stock broking business. Sharekhanoffers its customers a wide range of equity related services including trade execution on BSE,NSE, Derivatives, depository services, online trading, investment advice etc.FEATURES OF SHAREKHAN LIMITED AND KNOWING ITS COMPETITORS:We have already had deep introduction about Sharekhan Limited but it is now important tounderstand and know the features and other aspects of Sharekhan Limited. It is also important toknow about the competitors of Sharekhan Limited and also see to as to what they offer and howthey are better or not so good as compared to Sharekhan Limited.In this we shall first of all look at various features of Sharekhan Limited and know about itscompetitors. Then we shall have a SWOT analysis and Porter’s Five Forces analysis tocomprehend the situation in a better manner. 45
  49. 49. Features offerd by sharekhan limited:Types of account:- 1. Sharekhan Classic Account:Allow investor to buy and sell stocks online along with the following features like multiplewatch lists Integrated Banking, Demat and digital contracts, Real-time portfolio tracking withprice alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone(Dial-n-Trade)  Two dedicated numbers for placing your orders with your cell phone or landline.  Automatic funds transfer with phone banking(for Citibank and HDFC bank customers)  Simple and Secure Interactive Voice Response based system for authentication.  Get the trusted, professional advice of our teleprocess.  After hours order placement facility between 8:00 am and 9:30 am c. Integration of: Online trading + Bank + Demat account. d. Instant cash transfer facility against purchase & sale of shares. e. IPO investments. f. Instant order and trade confirmations by e-mail. g. Single screen interface for cash and derivatives. 2. Trade Tiger Account:This is a software based facility provided by Sharekhan to its customers. This basically meant forthose customers who are very active in share market and have knowledge to certain extent. ThisTrade Tiger has certain features which are enumerated as below:- a) Single screen interface for cash and derivatives. b) Real-time streaming quotes with Instant order Execution & Confirmation. 46
  50. 50. c) Hot keys similar to a traditional broker terminal. d) Alerts and reminders. e) Back-up facility to place trades on Direct Phone lines.Fees and Brokerage Charged:Sharekhan charges 0.05% for intra day transaction and 0.5% for delivery.Other Charges:-Account Opening Charges:375 Rs + 5000 (margin money) or200 Rs + 10,000 (margin money) or0 Rs + 25,000 (margin money)Annual maintenance charges400 Rs (from the second year)Call and Trade chargesNillMerits and Advantages of Opening an Account At Sharekhan Limited: 1) Many services are provided to the customers as SMS alerts, updates on emails, tips related to stocks etc. 2) All time relationship manager facilities are provided to the customers with the help of which it can call its relationship manager even after market hours. 3) Sharekhan provides the facility of transferring funds from various banks. Sharekhan has a tie up with eleven banks through which a customer can transfer its funds into the trading 47
  51. 51. and demat account from savings account or from trading and demat account to savings account. 4) No Annual Maintenance Charges for the first year provides customers with an opportunity to test Sharekhan and its services.Demerits and Difficulties Faced For An Account At Sharekhan Limited: 1) All the users are not provided the facility to trade in commodities. Only those who started with an amount of Rs.25000 and above are provided this service. 2) There are many hidden cost and service charges which are cleared before hand. 3) After trade hour facilities are not so great as compared to other broking houses. 4) It was problem that a person cannot purchase mutual funds online. But now this problem has been rectified. Brokerage for Intraday Online Broker Brokerage for Delivery AMC* trading Sharekhan 0.03% - 0.50% 0.03% - 0.10% 300 brokerage charges Karvy 0.30% - 0.50% 0.03% - 0.15% 300 brokerage charges ICICI direct 0.75% 0.15% 500 brokerage charges Indiabulls 0.25% - 0.50% 0.05% - 0.10% Nil brokerage charges HDFC Securities 0.50% 0.15% 500 brokerage charges 48
  52. 52. Religare 0.20% - 0.30% 0.02% - 0.03% 250 brokerage charges Reliance Money 0.01% 0.01% card system brokerage charges Indiainfoline 0.50% 0.10% Nil brokerage chargesAMC=ACCOUNT MAINTENANCE CHARGES. RESEARCH OBJECTIVESOur research study has two objectives:-PRIMARY OBJECTIVE: To study about the competitive position of Edelweiss Broking ltd inCompetitive Market.SECONDARY OBJECTIVE: -1. To know about the awareness towards stock brokers and share market.2. To study about the effectiveness & efficiency of Edelweiss Broking Ltd in relation to its competitors.3. To study about whether people are satisfied with Edelweiss Services & Management System or not. 49
  53. 53. Research MethodologySampling designTypes of sampling  Random SamplingResearch Approach  Descriptive approachTechniques to be used in research approach  Survey and interviewSampling Unit  QuestionnaireIn this project Questionnaire is used as the research instrument. These questionnaires includeClose Ended as well as Open Ended questions. The questionnaire is attached at the end ofAnnexure.Data collectionPrimary Data Collection  Structured questionnaire for the customer.Secondary data collection  Journals  Web-sites  News paper 50
  54. 54. BROKERAGE DETAILS OF THE COMPANY ANGEL BROKINGCRITERIA ANGEL STOCK BROKINGDemat a/c opening charges 660Brokerage intra day, delivery Classic plan: 3p ,20p Freedom plan; 1p,10pAMC(Annual Maintenance Charges) Rs.225Trading funding intra day, delivery 6times,4 times(minimum stock Rs 50000)Interest rate 18 %paDebit period T+2 DAYSMode of trading Both online and offlineMargin money ,5000,10000 51
  55. 55. CRITERIA RELIGARE SECURITIES LTDDemat a/c opening charges 299,499,999Brokerage intra day, delivery Classic plan: 5p ,50p Freedom plan; 3p,30pAMC (Annual Maintenance Charges) No amcTrading funding intra day, delivery 6times,4 times(minimum stock rs 500000)Interest rate 18 %paDebit period T+2 DAYSMode of trading Both online and offlineMargin money 5000,5000,10000Software installation charges No extra charges 52
  56. 56. CRITERIA ICICI DIRECTDemat a/c opening charges RS 750/-Brokerage intra day, delivery 50P,75PAMC(Annual Maintenance Charges) RS 500/-Trading funding intra day, delivery 3-4 times of the available funds.Interest rate 18% p.a.Debit period T+2 DAYSMode of trading Both Online & OfflineMargin money -Software installation charges - 53
  57. 57. CRITERIA Kotak securities .comDemat a/c opening charges RS 550Brokerage intra day, delivery 2.5P,25PAMC(Annual Maintenance Charges) RS 30pmTrading funding intra day, delivery 7times,4 timesInterest rate 21%Debit period T+2Mode of trading OfflineMargin money Rs8000/-Software installation charges _ 54
  58. 58. CRITERIA HDFC securitiesDemat a/c opening charges Rs 799/-Brokerage intra day, delivery 15p,50pAMC(Annual Maintenance Charges) NilTrading funding intra day, delivery 10times,4 timesInterest rate -Debit period T+ 2daysMode of trading BothMargin money 5000,10000Software installation charges - 55
  59. 59. DATA ANALYSIS QUESTIONNAIRE ANALYSISQ. 1 Through which of the channels do you usually buy a financial product? Direct from the 20% company Internet 5% Broker 75% Direct from the Internet company 5% 20% Broker 75% 56
  60. 60. Conclusion:When it comes to channels of buying a financial product most of the people prefer to buyit from a broker as it is the most trusted source and they have a good market and productknowledge. Many people like to inquire themselves directly from the company while 5%of the people look for internet as a medium. This graph shows that broking business is aprofitable one as it attracts the large volume of potential customers.Q.2 What is your preferable tool of investment? Preferable tools In Percentage Equity share 22 Real state 7 Derivative instrument 5 Mutual fund 25 Gold and bullion 5 Bank deposit 36 57
  61. 61. Preferable tool of investment Bank Deposit 36% Equity shares 22% Gold and bullion 5% mutual fund 25% Real estate Derivative 7% instrument 5%Conclusion-When it comes to investing one’s income 36% of the people prefer to be on the safer sideand avoid risk by investing in the bank deposits. The next option is mutual funds as they arecomparatively risk free. Equity shares are the next best option according to therespondents. So it can be said that most of the people prefer risk-free return. While a 22%of graph shows that equity shares are considered as a good option by the investors due totheir high return. 58
  62. 62. Q3. How did you come to know about Edelweiss? Know Through In Percentage Internet 12.7 Print and Electronic media 20.3 Reference group 27.6 By Chance 39.4 50 40 30 20 Series1 10 0 Internet Print and Reference By Chance Electronic group MediaConclusion: The above responses shows that most of the people came to know about Edelweiss by chance while many through reference group. Reference group is a good source of information about the company. 59
  63. 63. Q.4 Are you aware of all the products offered by Edelweiss? Yes 30 % No 70% Chart Title Yes 30% No 70% Conclusion- 70% of the people are not aware of the products offered by the Edelweiss. In this category few of the respondents knew about the equity share trading but were not aware of all the products, while a large chunk of respondents had never heard of Edelweiss. 60
  64. 64. Q5. Have you used any Edelweiss financial product? Yes 22% No 78% 80 70 60 50 Series1 40 30 20 10 0 Yes NoConclusion:In response to the question 78.0% of the respondents said that they are not using anyEdelweiss product at present, so it gives a clear picture that there is a huge untappedsegment among which the product needs to be pitched. 61
  65. 65. Q.6 Which Edelweiss product are you using now? Product In Percentage Mutual fund 40 De-Mat 10 Debenture 45 Other (structured Product) 5 45 50 40 40 30 20 10 5 10 0 Mutual fund De-Mat Debenture Other (structured Product) Series1 Conclusion: From the response it can be seen that De-mat (equity shares) is the highest selling product of Edelweiss followed by mutual fund. Of the 21.56% of people using Edelweiss products nearly 50% prefer equity shares. 62
  66. 66. Q.7 Best company according to the respondents ? Company Percentage Company Percentage ICICI Direct 30 Indiabulls 7.56 Share khan 21.44 HDFC Securities 6 Motilal oswal 12 Indiainfoline 4 Religare 4 Enarn 5 Edelwiess 10 30 30 25 21.44 20 15 12 10 10 7.56 6 4 4 5 5 0 Series1Conclusion 30% of the respondents ranked ICICI Direct as the number one share trading company. This is mainly because of its good Brand Image and linked bank account. Sharekhan is preferred for its customer friendly approach and trading terminal. Still Edelweiss stands in the competition and is preferred mainly because of its research facility. 63
  67. 67. Q.8 Factors affecting the choice of a company? Factors affecting In Percentage Brand Image 28 innovation 3.5 Service 6.89 Proximity with residence 8 Dealer support 18 Advance R&D 20 Brokerage 23 28 30 23 25 18 20 20 15 6.89 8 10 3.5 5 0 Series1 64
  68. 68. Conclusion:When it comes to the choice of the company the factor that affects the decision to thelargest extent is the Brand Image i.e. the reputation of the company. The best example isICICI. Brokerage is the second most important factor. Edelweiss has good research so it hasthe capability of attracting customers. Of the above factors all are present in Edelweissexcept a good Brand Image, which it needs to build.Q.9 Possible sources searched for financial product information? Source In Percentage Television / Radio 19 Internet / website 21 Newspaper / Magazine 11 Friend 32 Word of Mouth 17 65
  69. 69. Chart Title Television / Word of Mouth Radio 17% 19% Internet / website Friend 21% 32% Newspaper / Magazine 11% Conclusion: Most of the respondents 32% trust their friend’s advice when it comes to financial product information especially in stock market. They trust on their experience with the company and act accordingly. ANALYSIS OF THE QUESTIONNAIRE FOR EXISTING CLIENTS1) Association with the company Duration Customer in Percentage 66
  70. 70. 6 month 43 1 year 38 2 year 11 More than 2 year 8 Association with company more than 2 6 month 2 year year 43% 11% 8% 1 year 38%ConclusionMost of the customers are newly acquired. 67
  71. 71. 2) Satisfaction level of the customers Satisfaction Level Customer in Percentage Extremely Satisfaction 11 Satisfied 49 Neutral 32 dissatisfaction 8 Satisfaction level of the customers Extremely dissatisfaction Satisfaction 8% 11% Netural Satisfaction 32% 49% Conclusion: 49% of the customers are satisfied and 8% dissatisfied. The company needs to work on these customers and minimize their dissatisfaction. 68
  72. 72. 3) Expectations of the customers Expectations Customer in Percentage Reduction in brokerage 34 Improved service Quality 31 More tips 13 Customer friendly norms 22 Expectations of the customers Series1 34 31 22 13 Reduction in Improved service More tips Customer friendly brokerage Quality norms Conclusion: Most of the customers want the brokerage to be reduced and services to be improved. 69
  73. 73. ANALYSIS OF QUESTIONNAIRE FOR DORMANT CLIENTS1) Reason for disassociation Reason for Disassociation In percentage Liquidity crisis 11 Alternate brokerage firm 7 lost faith in capital market 26 temporary breaks 56 Reason for disassociation Liquidity crisis 11% Alternate brokerage firm 7% temporary lost faith in breaks capital market 56% 26%Conclusion: Because of the present turmoil in the stock market most of the people have taken temporary breaks and are not trading, While 7% of the people have found alternate broking houses. 70
  74. 74. 2) Attractive features of the competitors Features of Competitors In Percentage low brokerage 43 proximity to residence 12 trained people in desk 10 good system support 32 good research 3 43 45 40 32 35 30 25 20 12 15 10 10 3 5 0 low proximity trained good good brokerage to people in system research residence desk support Series1Conclusion: Low brokerage is what attracts most of the customers. Besides Edelweiss needs to improve its quality of service. 71
  75. 75. ANALYSIS AND INTERPRETATION FOR CUSTOMER PRFERENCESWe shall now begin with the analysis and interpretation part for customer preferences.Q1. Have you invested in any investment plan? have you invested in any investment plan? Cumulative Frequency Percent Valid Percent Percent Valid Yes 68 67.3 68.0 68.0 No 32 31.7 32.0 100.0 Total 100 99.0 100.0 Missing System 1 1.0 Total 101 100.0Interpretation: As we can see from the above table, 68% of have invested their money in some orthe other investment plan. Whereas there are 32% of people who have not invested in any planwhat so ever. It is good to see that the majority of people have an investment in some form or theother, but the rest 32% is also not a small figure. It shows that there is a lot of people who idlemoney with them which can be invested in something fruitful. 72
  76. 76. The above table has been depicted with the help of a pie chart which is as follows:- 73
  77. 77. Q2. If no, then what are the reasons for the same? if no, then what are the reasons for the same? Cumulative Frequency Percent Valid Percent Percent Valid no answer 68 67.3 68.0 68.0 lack of fund 12 11.9 12.0 80.0 lack of proper knowledge 11 10.9 11.0 91.0 lesser returns 9 8.9 9.0 100.0 Total 100 99.0 100.0 Missing System 1 1.0 Total 101 100.0Interpretation: We can see from the above table that the most of the people who are not investingin any plan is due to the lack of funds. This table suggests that lack of fund is the major problem.The second most important is that lack of knowledge in terms of market. This is a big hurdle.And if it is not eradicated there will always be a lot idle money which shall not be investedanywhere. 74
  78. 78. Q3. If yes, then in what do you invest? if yes, then what do you invest in? Cumulative Frequency Percent Valid Percent Percent Valid no answer 32 31.7 32.0 32.0 Fixed deposits 10 9.9 10.0 42.0 saving accounts 36 35.6 36.0 78.0 post office 5 5.0 5.0 83.0 provident fund 17 16.8 17.0 100.0 Total 100 99.0 100.0 Missing System 1 1.0 Total 101 100.0Interpretation: We can see clearly from the table that the most number of people in terms ofinvestment have only savings bank account. The next option which has been on a high scale isprovident fund. This shows that even though the people who are investing are high in numbersbut they are investing in things those are less risky and can earn a stable and constant income. 75
  79. 79. Q4. What income group do you belong to? what income group do you belong to? Cumulative Frequency Percent Valid Percent Percent Valid rs.100000-rs.300000 9 8.9 9.0 9.0 rs.300000-rs.500000 47 46.5 47.0 56.0 rs.500000-rs.2500000 35 34.7 35.0 91.0 rs.2500000 and above 9 8.9 9.0 100.0 Total 100 99.0 100.0 Missing System 1 1.0 Total 101 100.0Interpretation: We see from the table above that most of our respondents belong to the incomegroup of Rs.300000-Rs.500000 and the second highest percentage comes from Rs.500000-Rs.2500000. but still there are many people who do not invest in any thing more risky and full ofhigher returns and among them are many who do not invest at all. 76
  80. 80. Q5. If asked to invest, what would be your term of investment? if asked to invest what will be your term of investment? Cumulative Frequency Percent Valid Percent Percent Valid long term 73 72.3 73.0 73.0 Short term 27 26.7 27.0 100.0 Total 100 99.0 100.0 Missing System 1 1.0 Total 101 100.0Interpretation: From the above table we can clearly see that most of the people are interested inlong term investment which shows that people look towards more of a stable income over longerperiod of time. 77

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