1. 1
Comparative
Analysis Of
Broking
Firms
Submitted to : Prof.
Samarjeet Sen Gupta
Saloni Pradhan………rollno. 02
Sanjeev Gupta………..rollno.06
SoumaDas…………….roll no.24
Subhendu Chanda….rollno.36
Subhojit Ghosh……….rollno.33
Utsav Roy……………….rollno.59
2. 2
Contents
S/NO. TOPICS PAGE NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Acknowledgement
Declaration
Objectives
Introduction
Company Profile
Different players in the Industry
Activation and Other Charges Of
Different Co.
Data Analysis
Findings
Annexure
Bibliography
3
4
5
6
8
12
13
14
20
21
22
3. 3
Acknowledgement
Preservation, inspiration and motivation have alwaysplayed a key
role in the success of any venture. In the presentworld of competition and
success understanding of theoretical and practical working makesyou
aware about the real Business; willingly we prepared this particular project.
Wewould like to thank our faculty Prof. Samarjeet Sen Guptato give
usthe opportunity to do this project.
Wewould also like to thank the Microsec Capital Ltd. for helping us
to providethe information about their brokingfirm.
And finally, wewould like to thank EIILM for providingusthe
platform to do this projectand to learn about the differentbrokingfirms.
4. 4
Declaration
Wethe studentof Eastern Institute for Integrated Learningin Management,
Kolkata , declare that this project reporttitle” A COMPARITEIVE STUDYOF
VARIOUSBROKING FIRMS” submitted, is our original work and has not
been previously submitted asa partof any other degreeor diplomaof
another Businessschool or University.
The findings and conclusions of this report are based on our personal study
and experience.
5. 5
Objectives
1. To know the customerspreferencein differentsector of
investmentand to know what are the factors consider most
importantin order to choose their broking firm.
2. To know the differentcompaniesActivation and Other charges.
3. To know about the differentbrokingfirmsand to makea
comparison between them with the help of primary and
Secondary Data.
6. 6
Introduction
The Bombay Stock Exchange (BSE) and
the National Stock Exchange of India Limited
(NSE) are the two primary exchanges in India.
In addition, there are 22 Regional Stock Exchanges. However, the BSE and
NSE have established themselves as the two leading exchanges and account
for about 80% of the equity volume traded in India. The NSE and BSE are
equal in size in terms of daily traded volume.
The average daily turnover at the exchanges has increased from
Rs851crore in 1997-98 to Rs1284crore in 1998-99 and further to
Rs2273crore in 1999-2000. NSE has around 1500 shares listed with the
total market capitalization of around Rs9, 21,500crore.
The BSE has over 6000 stocks listed and has a market capitalization
of around Rs9, 68,000crore. Most key stocks are traded on both the
exchanges and hence the investor could buy on either of the exchanges.
Both exchanges have a different settlement cycle, which allows investors to
shift their position on the bourses. The primary index of BSE in BSE Sensex
comprises 30 stocks. NSE has the S&P NSE 50 Index (Nifty), which consists
of fifty stocks. The BSE Sensex is the older and most widely followed index.
Both these indices are calculated on the basis of market capitalization and
contain the heavily traded shares from key sectors.
The markets are closed on Saturdays and Sundays.
Both the exchanges have switched over from the open
outcry trading system to a fully automated computerized
mode of trading known as BOLT (BSE On Line Trading)
and NEAT (National Exchange Automated Trading)
system. It facilitates more efficient processing, automatic
order matching, faster execution of trades and
transparency.
The scrip traded on the BSE has been classified into ‘A’,
‘B1’, ‘B2’, ‘C’, ‘F’, and ‘Z’ groups. The ‘A’ group shares represent those, which
are in the carry forward system (Badla). The ‘F’ group represents the dept
market (fixed income securities) segment. The ‘Z’ group scrip is the
blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’,
‘B1’, & ‘B2’ groups and Rights renunciations. The key regulator governing
Stock Exchanges, Brokers, Depositories, Depository participants, Mutual
Funds, FIIs and other participants in Indian secondary and primary market
is the Securities and Exchange Board of India (SEBI) Limited.
7. 7
Financial Market
MONEY MARKET:
The Money Market refers to the market where borrowers and lenders
exchange short-term fundsto solve their liquidity needs.
CAPITALMARKET:
The Capital Market is a market for financial investments that are
direct or indirectclaims to capital (Gart, 1988).
SECURITIES MARKET:
It refers to the markets for those financial
instruments/claims/obligations that are commonly and readily
transferable by sale. It has two inter-dependent and inseparable segments,
the new issues (primary)marketand the stock (secondary)market.
Primary Market
Securities generally have two stages in their lifespan. The first stage is
when the company initially issues the security directly from its treasury
at a predetermined offeringprice. This is a primary marketoffering. It is
referred to as the Initial PublicOffering (IPO). In Primary market,
securities are offered to public for subscription for the purposeof
raising capital or fund.
Secondary Market
Secondary marketrefers to a market where securities are traded after
being initially offered to the public in the primary marketand listed on
the Stock Exchange. Majority of the trading is donein the secondary
market. Secondary marketcomprisesof equity marketsand the debt
markets.
8. 8
Company Profile of Microsec
Microsec endeavorsto provideservices in the arena of Financial
Services which includes Equity & DerivativesTradingon NSE and
BSE, CommoditiesTradingon MCX & NCDEX, InvestmentBanking,
Insurance, Depository Services, Portfolio ManagementServices, Mutual
funds-SIP, Mediclaim.
Microsec Capital Limited has its principalofficesin Kolkata and Mumbai
with another 250(app.)businesslocationsin 49 Indian Cities/Townsin 13
States. It is an ISO 9000 Certified Process.
9. 9
EQUITIES
Microsec Capital Limited is a member of National Stock Exchange of India
and Bombay Stock Exchange and is in the businessof distribution of
financial savingsproductsto its clients.
Microsec Group providesservicesto a widerangeof clients. In order to
keep the pace going we have developed our equity brokingteam which is
equipped with research team, relationship manager, dealers and round the
clock back office.
Microsec add value to people by:
Providingdatasource from Bloomberg
Research Team
Online Back office support
Transaction mailed on daily basis & also through SMS.
Margin Trading
Man to man interaction
In houseDP
10. 10
PRODUCT AND SERVICES PROVIDE BY MICROSEC CAPITAL
LTD.
Equity & DerivativesTrading on NSE and BSE
Commodities Trading on MCX & NCDEX
Investment Banking
Insurance
Depository Services
PortfolioManagement Services
Mutual funds-SIP
Mediclaim
11. 11
DE-MAT ACCOUNT
Definition:
De-mat accountis a safe and convenientmeansof holdingsecurities
just like a bank account is for funds. Today, practically 99.9% settlement(of
shares) takes place on De-matmodeonly. Thus, it is advisableto have a
Beneficiary Owner (BO) accountto tradeat the exchanges.
Benefits Of De-mat Account:
1. A safe and convenient way of holding securities. (equity and debt instruments
both).
2. Transactions involving physical securities are costlier than those involving
dematerialized securities (just like the transactions through a bank teller are
costlier than ATM transactions). Therefore, charges applicable to an investor are
lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the trading hours
(between 9:00 AM to 3:30 PM on all working days), and payment can be received
in a very short period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with
physical certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available.
11. Any change in address or bank account details can be electronically intimated to
all companies in which investor holds any securities, without having to inform
each of them separately.
12. Securities are transferred by the DP itself, so no need to correspond with the
companies.
13. Shares arising out of bonus, split, consolidation, merger etc. are automatically
credited into the De-mat account of the investor.
14. Shares allotted in public issues are directly credited into De-mat account of the
applicants in quick time.
Is a demat account a must?
Now a day, practically all tradeshave to be settled in dematerialized form.
Although the market regulator, the Securities and Exchange Board of India
(SEBI), has allowed trades of up to 500 shares to be settled in physical form,
nobody wantsphysical shares any more. So a de-mat accountis a mustfor
tradingand investing.
13. 13
Activation and other Charges of firms
COMPANY
A/c
Opening
Charges
Brokerage
(Intraday,
Delivery)
AMC Trading
Exposure
Interest
Rate
Debit
Period
Mode of
Trading
Margin
Money
Software
used
Microsec
Capital Ltd
NIL 3p,30p Rs350pa 5 times 18% T+2 Online/
Offline
Rs5000 NOW
Sharekhan
NIL 5p,50p 1st yr free,
2nd yr
Rs400
4-6 times 19% T+4 Online/
Offline
Rs5000
ICICI Direct
Rs750 50p,75p Rs500pa 3-4 times 18% T+2 Online/
Offline
NIL Accesed
through net
Indiabulls
Rs900 3-4p,
30-40p
NIL 4-5 times 17% T+2 Online/
Offline
NIL Power
India Bulls
Angel
broking
Rs660 3p,20p Rs225 4-6 times 18% T+2 Both
online/
Offline
Rs5000
/10,000
14. 14
Data Analysis
Primary Datacollection
Structured questionnairefor customer.
Secondary Data Collection
Journals
Websites
Newspapers
Research Approach
Descriptiveapproach
Techniques to be used in Research Approach
Survey and Interview
15. 15
Data Findings
Total SampleSize : 82
Male : 47
Female : 35
Online/Offline Trading
Total Sample(82)
online(64)
offline(18)
21.95%
78.04%
20. 20
Findings
According to the data that have been collected all the people who were
surveyed areawareof sharemarket and trading.
Survey shows thatthe nearly 79% people prefer the online trading
rather than that of offline trading through broker.
People like to invest more in equity rather than other investment sectors.
The best preferred broking firm among the people is ICICI directwith
22% rather than other broking firms.
Friends, News paper and Internetare the mostpreferred mode for
awareness of the broking firms and sharetrading
21. 21
Annexure
QUESTIONAIRE
1. Are you interestedinshare trading?
a) Yes b) No
2. Whichmode of tradingwouldyouprefer?
a) Online b) Offline
3. Whichtype of productdo youinvestin?
a) Mutual fund b) Equityc) Commodityd) Insurance e) Others
4. If you trade in future,whichbrokingfirmwouldyouprefer?
a) Share khanb) IndiaBullsc) Angel brokingd) ICICIDirecte) Microsecf) Others
5. How didyoucome to knowabout the brokingfirm?
a) Newspaper b) Journalsc)TV Advertisementd) Friendse)Internetf) Others
6. How importantdoyouthinkthese factorsinfluenceinchoosingabrokingfirm?
(Select one)
a) Low brokerage
Not very important 1 2 3 4 5 Extremely important
b) Bettercustomerservice
Not very important 1 2 3 4 5 Extremely important
c) Brand loyalty
Not very important 1 2 3 4 5 Extremely important
d) Margin money
Not very important 1 2 3 4 5 Extremely important
e) Good tradingtips
Not very important 1 2 3 4 5 Extremely important
f) Timelyresearchreport
Not very important 1 2 3 4 5 Extremely important
g) Friendsrecommendations
Not very important 1 2 3 4 5 Extremely important
