INVESTING AT EQUITY MARKET VIA SHAREKHAN FROM NISHANT PATEL

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A
COMPREHENSIVE PROJECT REPORT
On
“CONSUMERS PREFERENCE FOR INVESTMENT IN EQUITY
MARKET AT SHAREKHAN LTD”
BY
NISHANT D PATEL
IN
BARODA INSTITUTE OF MANAGEMENT STUDIES (BIMS)
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
VALIDATED AND AWARDED BY
DR. BABASAHEB AMBEDKER OPEN UNIVERSITY
DATE: 11-10-2014

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BARODA INSTITUTE OF MANAGEMENT STUDIES
A PROJECT REPORT ON
UNDER THE GUIDANCE OF
MR. VISHAL THAKKAR (FACULTYGUIDE BBA)
SUBMITTED BY
NISHANT D PATEL
REGISTRATION NO. – 812150919097BBA
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
BBA
COMPANY GUIDE:
MR. NIMITSHITOLE
(SHAREKHAN LTD)

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DECLERATION
I NISHANT PATEL hereby declare that this Project Report entitled “CONSUMERS
PREFERENCE FOR INVESTMENT IN EQUITY MARKET AT SHAREKHAN LTD”
in SHAREKHAN Ltd. submitted in the partial fulfillment of the requirement of Bachelor of
Business Administration (BBA) of BARODA INSTITUTE OF MANAGEMENT STUDIES,
BARODA is based on primary & secondary data found by me in various departments, books,
magazines and websites & Collected by me in under guidance of NIMIT SHITOLE.
DATE: 11-10-2014 NISHANT PATEL
BBA (FINAL YEAR)

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Baroda Institute of Management Studies
PROJECT COMPLETION CERTIFICATE
This is to certify that Project Report entitled:
Is submitted in partial fulfillment of the requirements for the degree of
Bachelor of Business Administration (BBA)
By : Nishant D patel
Registration No. : 812150919097BBA
Year : 3rd
year
The degree awarded is approved by UGC, Ministry of HRD, DEC and AIU.
It is to further certify that he has worked under my supervision and Guidance
and that no part of this report has been submitted for the Award of any
other degree, Diploma, Fellowship or other similar titles or prizes and that the
work has not been published in any Journal or Magazine.
Certified by:
Faculty guide Umesh pandya
Mr vishal thakkar Vice Dean

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PREFACE
For a management student training plays an important role during his/her study. Training
provides a corporate or real world platform to learn practically. BBA degree without any
training or corporate world experience is just like life without oxygen. So industrial training
provides a great learning experience about management concepts and its applications.
This training provides us an opportunity to know the current market. To know
the current market situations, prevailing competitions, behavioral environment of different
people etc. It provides us a platform whereby we can apply our theoretical knowledge and we
can solve many practical problems. And hence it can help us to be a successful manager in
future.
Thanks to all those who directly or indirectly help me to complete this project
within a short time limit. For preparation of this report I would like to thanks to faculty
members of our college and staff members of SHARE KHAN LTD.

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ACKNOWLEDGEMENT
There is a fact that none of the human being in this world is 100% perfect and in order to
gain some perfectness in itself an individual surely needs a helping hand. The same was with
me with respect to the project that I was undergoing during this session of 2 months. As I too
was illiterate with this research topic that I selected for my research at the initial stages, I got
acquainted with it slowly and steadily through efforts and surely from various intelligent and
helpful personalities. I would like to extend my heartily thanks to all of them through this
acknowledgement.
I am also thankful to MR. NIMIT SHITOLE (Assistant manager) of Sharekhan Ltd.,
Vadodara for giving me an opportunity for getting in valuable experience in such reputed
organization.
I am also thankful to Mr. Navneet Sharma (Regional Manager) who is presently
working with Sharekhan Limited for providing me actual training and the required
knowledge & guidance in completing this training successfully.
Finally, I would like to record my special thanks to my parents, friends, and
colleagues help me directly or indirectly in preparation of project work.

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INDEX
CHAPTER
NUMBER
CHAPTER NAME Page no.
1 INTRODUCTION OF COMPANY 9
2 ABOUT EQUITY MARKET 23
3 COMPETITIVE ANALYSIS 39
4 RESEARCH METHODOLOGY 49
5 DATA ANALYSIS 57
6 FINDINGS 78
7 SUGGESATIONS 81
8 CONCLUSION 84
9 BIBLIOGRAPHY 86
10 QUESTIONNAIRES 88
11 ANNEXTURE 93

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Chapter - 1
INTRODUCTION OF COMPANY

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1.1About the sharekhan:
Sharekhan is one of the top retail brokerage houses in India with a strong online trading
platform. The company provides equity based products (research, equities, derivatives,
depository, margin funding, etc.). It has one of the largest networks in the country with 704
share shops in 280 cities and India’s premier online trading portal www.sharekhan.com. With
their research expertise, customer commitment and superior technology, they provide
investors with end-to-end solutions in investments. They provide trade execution services
through multiple channels - an Internet platform, telephone and retail outlets.
Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family,
continues to remain the largest shareholder. It is the retail broking arm of the Mumbai-based
SSKI [SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group.
SSKI which is established in 1930 is the parent company of Sharekhan ltd. With a legacy of
more than 80 years in the stock markets, the SSKI group ventured into institutional broking
and corporate finance over a decade ago. Presently SSKI is one of the leading players in
institutional broking and corporate finance activities.
Sharekhan offers its customers a wide range of equity related services including trade
execution on BSE, NSE, and Derivatives. Depository services, online trading, Investment
advice, Commodities, etc.
Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is
having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock
Broking Brand by Awwaz Consumer Vote. It is first brokerage Company to go online. The
Company's online trading and investment site - www.Sharekhan.com - was also launched on
Feb 8, 2000.
This site gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the
content-rich and research oriented portal has stood out among its contemporaries because of
its steadfast dedication to offering customers best-of-breed technology and superior market
information.
Share khan has one of the best states of art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs. One can surf across 5,500 companies for
in-depth information, details about more than 1,500 mutual fund schemes and IPO data.
One can also access other market related details such as board meetings, result
announcements, FII transactions, buying/selling by mutual funds and much more.

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1.2THE COMPANY
 Name of the company: Sharekhan ltd.
 Year of Establishment: 1925
 Headquarter: Sharekhan SSKI
A-206 Phoenix House
Phoenix Mills Compound
Lower Parel Mumbai - Maharashtra, INDIA- 400013
 Nature of Business: Service Provider
 Services: Depository Services, Online Services and Technical Research.
 Number of Employees: Over 3500

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 Website: www.sharekhan.com
 Slogan: Your Guide to The Financial Jungle.
1.3Vision
To be the best retail brokering Brand in the retail business of stock market.
1.4Mission
To educate and empower the individual investor to make better investment decisions through
quality advice and superior service.
1.5 Sharekhan is infact-
• Among the top 3 branded retail service providers
• No. 1 player in online business
• Largest network of branded broking outlets in the country serving more than 7,00,000
clients.
Sharekhan's management team is one of the strongest in the sector and has positioned
Sharekhan to take advantage of the growing consumer demand for financial services products
in India through investments in research, pan-Indian branch network and an outstanding
technology platform. Further, Sharekhan's lineage and relationship with SSKI Group provide
it a unique position to understand and leverage the growth of the financial services sector.
SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank
with strong research-driven focus. Their team members are widely respected for their
commitment to transactions and their specialized knowledge in their areas of strength.

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1.6 SHAREKHAN LIMITED’S MANAGEMENT TEAM
DIRECTORS:
MR. TARUN SHAH CEO- SHARE KHAN
MR SHANKAR VAILAYA- DIRECTOR (OPERATION) OF
THE COMPANY
MR. JAIDEEP ARORA– DIRECTOR (PRODUCT &
TECHNOLOGY) OF THE COMPANY
OTHER DIRECTORS:
 Mr. Baldev L Boolani
 Mrs. Meena S Jain
 Mr. Bhupendra T Shah

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 Mr. Hasmukh Sheth
1.7HIERARCHY IN SHAREKHAN:
Sales Side Dealing Side
 Trainees  Junior Dealer
 Super Trainees  Dealer
 Sales Executives  Relationship manager
 Senior sales executives  Senior Relationship manager
 Business development
executive
 Equity advisor
 Assistant sales manager  Assistant Branch Manager
 Deputy manager  Branch Manager
 Territory manager  Cluster Head
 Area sales manager/ Cluster
manager
 Directors
 Regional sales manager  CEO
 Regional Head
 Vice president
 Directors

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 CEO
1.8AWARDS AND ACHIEVEMENTS
-SSKI has been voted as the Top Domestic Brokerage House in the research category, twice
by Euromoney Survey and four times by Asiamoney Survey.
-Sharekhan Limited won the CNBC AWARD for the year 2004.
The team has completed over US$5 billion worth of deals in the last 5 years - making it
among the most significant players raising equity in the Indian market. SSKI, a veteran
equities solutions company has over 8 decades of experience in the Indian stock markets.
If we experience their language, presentation style, content or for that matter the online
trading facility, we'll find a common thread; one that helps us make informed decisions and
simplifies investing in stocks.The common thread of empowerment is what Sharekhan's all
about!
"Sharekhan has always believed in collaborating with like-minded Corporate into forming
strategic associations for mutual benefit relationships" says Jaideep Arora, Director -
Sharekhan Limited.
Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.
Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he
says that investing in stocks should not be confused with trading in stocks or a portfolio-
based strategy is better than betting on a single horse, it is something that is spoken with
years of focused learning and experience in the’ stock markets. And these beliefs are
reflected in everything Sharekhan does for us! Sharekhan is a part of the SSKI group, an
Indian financial services power house, with strong presence in Retail equities Institutional
equities Investment banking.
In Delhi it is having the branches at netaji subash place and Nehru place. We have been given
the centre at netaji subash place.

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1.9 Sharekhan provides 4 in 1 account.
- Demat a/c
- Trading a/c: for cash calculation
- Bank a/c: for fund transfer
- Dial and Trade: for query relating trading
1.10 PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

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1.11 Demat account:
Sharekhan is a depository participant. This means that we can keep the shares in
dematerialized form in Sharekhan. But for this one has to the demat account in Sharekhan.
Dematerialization is the process by which a client can get physical certificates converted into
electronic balances maintained in his account with the DP.
In Sharekhan, under demat account there are two types of terminals.

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TYPE OF DEMAT
ACCOUNT TERMINAL
DEPOSIT (Refundable) CHARGES (non-refundable)
CLASSIC Rs.5000 Rs.750
Rs.10000 Nil
TRADETIGER Rs.5000 Rs.1000
Rs.10000/25000 Nil
1.12Account opening:
 Opening a DP account with Sharekhan-
One can open a Depository Participant (DP) account, either through a Sharekhan branch or
through a Sharekhan Franchisee center.
There is no fee for opening DP accounts with Sharekhan. However a nominal deposit
(refundable) is charged towards services which will be adjusted against all future billings.
All investors have to submit their proof of identity and proof of address along with the
prescribed account opening form.
1.12 BROKERAGE STRUCTUREOF SHAREKHAN
BROKERAGE:
INTRADAY DELIVERY
CASH- EQUITIES 0.05% 0.5%
FnO 0.05%
PREPAID SCHEME 0.025% 0.25%

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1.13 Sharekhanhas tie up with the following banks:
 HDFC
 Axis Bank
 IDBI
 Citi Bank
 IndusInd Bank
 Union Bank
 ICICI Bank.
1.14 MINIMUM INVESTMENT IN MUTUAL FUND:
INVESTMENT MINIMUM AMOUNT
Mutual Fund (Any Company) 5000
Systematic Investment Plan (Any Company) 500
1.15 CUSTOMER
 Business class people (high class)
 High Net worth Individuals
 Service class people
 Government Employees
 Young Adults (19-30 yrs.)
 Adults (35-50 yrs.)
 HUF (Hindu Undivided Family)
 Women (literate and working)

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1.16 Market Share
Sharekhan enjoyed about 20 per cent market share in Web business (Internet trading) in stock
markets. Three years ago, Web trading showed lot of promise but with the market witnessing
a downturn, there was not much interest among retail customers.
1.17Profits
The share of Web trading constituted 22 per cent of the revenue. As Sharekhan's daily trading
volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a day was
substantial and a larger part of the volume was coming from day traders
1.18Its core services are:
 Equities, and Derivatives trading on the National Stock Exchange of India Ltd.
(NSE), and Bombay Stock Exchange Ltd. (BSE),
 Commodities trading on National Commodity and Derivatives Exchange India
(NCDEX) and Multi Commodity Exchange of India Ltd. (MCX),
 Depository services,
 Online trading services,
 IPO Services,
 Dial-n-Trade
 Portfolio management services,
 Fundamental and Technical Research services,
 In addition to this they also provide advisory services and distributions for mutual
funds.
 Sharekhan ValueLine (a monthly publication with reviews of recommendations,
stocks to watch out for etc.)
 Daily research reports and market review (High Noon & Eagle Eye)
 Pre-market Report
 Daily trading calls based on Technical Analysis
 Cool trading products (Daring Derivatives and Market Strategy)
1.19Features of Trading With Sharekhan:
1 Freedom from paperwork
2 Instant credit and money transfer
3 Trade from any net enabled PC
4 After hour orders

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1.20Online orders on Demataccounts
Sharekhan is a depository participant. This means that we can keep the shares in
dematerialized form in Sharekhan. But for this one has to the demat account in Sharekhan.
Dematerialization is the process by which a client can get physical certificates converted into
electronic balances maintained in his account with the DP.
In Sharekhan, under demat account there are two types of terminals.

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TYPE OF DEMAT
ACCOUNT TERMINAL
DEPOSIT (Refundable) CHARGES (non-refundable)
CLASSIC Rs.5000 Rs.750
Rs.10000 Nil
TRADETIGER Rs.5000 Rs.1000
Rs.10000/25000 Nil
1.21MINIMUM INVESTMENT IN MUTUAL FUND:
INVESTMENT MINIMUM AMOUNT
Mutual Fund (Any Company) 5000
Systematic Investment Plan (Any Company) 500
1.22 Useful links about Sharekhan:
1. Sharekhan Website: http://www.ShareKhan.com
2. Product Demo - Speed Trade: http://www.sharekhan.com/Demos/speedtrade/index.html
3. Product Demo - Classic: http://www.sharekhan.com/Demos/classic/index.html
4. Email: info@sharekhan.com

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5. FAQs: http://sharekhan.com/KnowledgeCentre/Sharekhan_FAQ.aspx
6. Phone: 022-66621111
7. Toll Free: 1-800-22-7500
1.23 TRADING SESSION:-
Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period.
Monday to Friday is the trading period in all the stock exchanges. SEBI has
Stipulated that all the stock exchanges in India must have same trading period.
CHAPTER 2

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ABOUT EQUITY MARKET
2.1EQUITY SHARES
 Shares represent ownership rights of their holders. Shareholders are owners of the
company. Shares can of two types:
 Equity Shares
 Preference Shares
 Equity Shares are also known as ordinary shares.
 Do not have fixed rate of dividend.

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 There is no legal obligation to pay dividends to equity shareholders.
 Priority wise equity shareholders get second priority in paying the dividend.
 Equity shareholders have a right to vote in the annual general meetings
(AGM) and extra ordinary general meeting (EGM).
 A company may issue right shares or bonus shares to the existing shareholders
of the company.
 Equity shareholders are never redeemed unless the company as a going
concern.
2.2STOCKMARKETS IN INDIA
Stock exchanges are the perfect type of market for securities whether of government
And semi-govt bodies or other public bodies as also for shares and debentures issued
By the joint-stock companies. In the stock market, purchases and sales of shares are
Affected in conditions of free competition. Government securities are traded outside the
Trading ring in the form of over the counter sales or purchase. The bargains that are
Struck in the trading ring by the members of the stock exchanges are at the fairest
Prices determined by the basic laws of supply and demand.
2.3Definition of a stock exchange:
“Stock exchange means anybody or individuals whether incorporated or not,
Constituted for the purpose of assisting, regulating or controlling the business of buying,
Selling or dealing in securities.” The securities include:
 Shares of public company.
 Government securities.

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 Bonds
2.4History of Stock Exchanges:
The only stock exchanges operating in the 19th century were those of Mumbai setup
In 1875 and Ahmadabad set up in 1894. These were organized as voluntary nonprofit-
Marking associations of brokers to regulate and protect their interests. Before
The control on securities under the constitution in 1950, it was a state subject and the
Bombay securities contracts (control) act of 1925 used to regulate trading in
Securities. Under this act, the Mumbai stock exchange was recognized in 1927 and
Ahmadabad in 1937. During the war boom, a number of stock exchanges were
Organized. Soon after it became a central subject, central legislation was proposed
And a committee headed by A.D.Gorwala went into the bill for securities regulation.
On the basis of the committee’s recommendations and public discussion, the
Securities contract (regulation) act became law in 1956.
2.5Functions of Stock Exchanges:
Stock exchanges provide liquidity to the listed companies. By giving quotations to
The listed companies, they help trading and raise funds from the market. Over the
Hundred and twenty years during which the stock exchanges have existed in this
Country and through their medium, the central and state government have raised
Corers of rupees by floating public loans. Municipal corporations, trust and local

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Bodies have obtained from the public their financial requirements, and industry, trade
And commerce- the backbone of the country’s economy-have secured capital of
Crores or rupees through the issue of stocks, shares and debentures for financing
Their day-to-day activities, organizing new ventures and completing projects of
Expansion, diversification and modernization. By obtaining the listing and trading
Facilities, public investment is increased and companies were able to raise more
Funds. The quoted companies with wide public interest have enjoyed some benefits
And assets valuation has become easier for tax and other purposes.
2.6ONLINE TRADING INDUSTRY– INDIA
With an online trading account, you can buy and sell shares in an instant! Anytime you like
and from anywhere you like. You can choose the online trading account that suits your
trading habits and preference.

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In online trading the orders are sent to the exchanges, the confirmation is immediately
conveyed through E-mail and the proceeds or shares are credited (or debited) to the bank and
demat accounts. Globally, trade every seconds trade that goes through in the stock market is
an online trade. We in India have a long way to go but we sure are catching up a good speed.
Companies offer a fast online share dealing service using real time quotes, free up to
the minute advice, information and tips. Trades may be both in NSE & BSE. Some online
companies offer investment in mutual funds and IPO’s online.
2.7The Indian issues:
Some other structural aspects need to be kept in mind while analyzing the e-broking scenario
in India. The breadth of participation in the stock market in India is significantly lower as
compared to western markets with only 12.1 million equity owning households and three
million depository accounts. Brokerage rates in India are significantly lower than US rates,
with Indian brokers charging commissions of 0.5% to 1.25% per trade. For any player, the
pricing strategy for e-broking for the retail segment is as follows: For the cash segment, the
brokerage charged varies from 0.4% to 0.85% based on the volume of trade done per quarter
while for the margin segment; the brokerage charged varies from 0.05% to 0.15% based on
the volume of trade done per quarter. The above charges are inclusive of depository charges
and all the other statutory charges.
2.8VARIOUS STOCKEXCHANGES IN INDIA

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National Stock Exchange of India (NSE),
Bombay Stock Exchange of India (BSE)

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Indian Commodity Exchange (ICEX)
United Stock Exchange of India (USE)
Multi Commodity Exchange (MCX)
Over the Counter Exchange of India (OTCEI)
Inter-connected Stock Exchange of India (ISE)
Madras Stock Exchange (MSE)
Coimbatore Stock Exchange (CSX)
Ahmedabad Stock Exchange (ASE)
Bhubaneshwar Stock Exchange (BhSE)
Cochin Stock Exchange (CSE)
Hyderabad Stock Exchange (HSE)
Calcutta Stock Exchange (CSE)
Delhi Stock Exchange (DSE)
Bangalore Stock Exchange (BgSE)
Madhya Pradesh Stock Exchange, Indore
Jaipur Stock Exchange (JSE)
Magadha Stock Exchange, Patna
UP Stock Exchange (UPSE)
Vadodara Stock Exchange,Vadodara (VSE)
Guwahati Stock Exchange Ltd

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Ludhiana Stock Exchange Association Ltd
Kanara Stock Exchange Ltd
Mangalore Stock Exchange Ltd
Pune Stock Exchange Ltd
Saurashtra Kutch Stock Exchange Ltd
Meerut Stock Exchange Ltd
Intrex Trade Exchange Ltd
United Stock Exchange of India
Mahurat trading
2.9 INTRODUCTION TO NATIONAL STOCK EXCHANGE (N.S.E)

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The National Stock Exchange (NSE) (Hindi: राष्ट्रीयशेयरबाजारRashtriya Śhare Bāzaār) is a
stock exchange located at Mumbai, India. It is the 16th largest stock exchange in the world by
market capitalization and largest in India by daily turnover and number of trades, for both
equities and derivative trading. NSE has a market capitalization of around US$985 billion
and over 1,646 listings as of December 2011. Though a number of other exchanges exist,
NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India,
and between them are responsible for the vast majority of share transactions. The NSE's key
index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an
index of fifty major stocks weighted by market capitalisation.
NSE is mutually owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries in India but its ownership and management operate as
separate entities. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs
who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total,
cover more than 1500 cities across India. NSE is the third largest Stock Exchange in the
world in terms of the number of trades in equities. It is the second fastest growing stock
exchange in the world with a recorded growth of 16.6%.
The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern,
fully automated screen-based trading system with national reach. The Exchange has brought
about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up
facilities that serve as a model for the securities industry in terms of systems,
practices&procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and
settlement mechanism, and has witnessed several innovations in products & services viz.
demutualisation of stock exchange governance, screen based trading, compression of
settlement cycles, dematerialisation and electronic transfer of securities, securities lending
and borrowing, professionalization of trading members, fine-tuned risk management systems,
emergence of clearing corporations to assume counterparty risks, market of debt and
derivative instruments and intensive use of information technology.

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Origins
The National Stock Exchange of India was set up by Government of India on the
recommendation of Pherwani Committee in 1991.Promoted by leading Financial institutions
essentially led by IDBI at the behest of the Government of India, it was incorporated in
November 1992 as a tax-paying company. In April 1993, it was recognized as a stock
exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations
in the Wholesale Debt Market (WDM) segment in June 1994. The Capital market (Equities)
segment of the NSE commenced operations in November 1994, while operations in the
Derivatives segment commenced in June 2000.
Purpose
Committed to improve the financial well-being of people.
Vision

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To continue to be a leader, establish global presence, facilitate the financial well being of
people.
Values
NSE is committed to the following core values:
 Integrity
 Customer focused culture
 Trust, respect and care for the individual
 Passion for excellence
 Teamwork
Markets
Currently, NSE has the following major segments of the capital market:
 Equity
 Futures and options
 Retail debt market
 Wholesale debt market
 Currency futures
 Mutual fund
 Stocks lending and borrowing
In August 2008 currency derivatives were introduced in India with the launch of Currency
Futures in USD INR by NSE. Currently it has also launched currency futures in euros,
pounds and yen. Interest Rate Futures were introduced for the first time in India by NSE on
31 August 2009, exactly one year after the launch of Currency Futures.
NSE became the first stock exchange to get approval for interest rate futures, As
recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7%
10 Year Government of India (Notional) was launched with quarterly maturities.
Hours
NSE's normal trading sessions. 9:15 AM TO 3:15(3:30) pm

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2.10 INTRODUCTION TO BOMBAY STOCK EXCHANGE (B.S.E)
The Bombay Stock Exchange (BSE) (Bombay Śhare Bāzaār) (formerly, The Stock
Exchange, Bombay) is a stock exchange located on Dalal Street, Mumbai and is the oldest
stock exchange in Asia. The equity market capitalization of the companies listed on the BSE
was US$1 trillion as of December 2011, making it the 6th largest stock exchange in Asia and
the 14th largest in the world The BSE has the largest number of listed companies in the
world.
As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrips on the
stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE
SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though
many other exchanges exist, BSE and the National Stock Exchange of India account for the
majority of the equity trading in India. While both have similar total market capitalization
(about USD 1.6 trillion), share volume in NSE is typically two times that of BSE
BSE Limited is the oldest stock exchange in Asia What is now popularly known as the BSE
was established as "The Native Share & Stock Brokers' Association" in 1875.
Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by
providing it with an efficient capital raising platform.
Today, BSE is the world's number 1 exchange in the world in terms of the number of listed
companies handled through its electronic trading system. And it is in the top ten of global
exchanges in terms of the market capitalization of its listed companies (as of December 31,
2009). The companies listed on BSE command a total market capitalization of USD Trillion
1.28 as of Feb, 2010.
BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certifications. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its BSE
On-Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO
version of BS 7799 for Information Security.

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The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.
Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and
options on the index are also traded at BSE. (over 4900). It is the world's 5th most active in
terms of number of transactions
Hours of operation
Session Timing
Beginning of the Day Session 8:30 - 9:00
Pre-open trading session 9:00 - 9:15
Trading Session 9:15 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Option Exercise Session 16:05 -
The hours of operation for the BSE quoted above are stated in terms the local time (GMT +
5:30). BSE's normal trading sessions are on all days of the week except Saturday, Sundays
and holidays declared by the Exchange in advance.

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2.11 SEBI (Securities and Exchange Board of India)
In 1998, the SEBI was established by the Government of India through an executive
resolution, and was subsequently upgraded as a fully autonomous body (a statutory board) in
the year 1992 with the passing of the SEBI act on 30th Jan 1992. In place of Government
control statutory and autonomous regulatory boards with defined responsibilities, to cover
both development and regulation of the market, and independent powers have been set up.
Paradoxically this is a positive outcome of the securities scam of 1990-91.
The basic objectives of the board were identified as:
 To promote the interests of investors in securities.
 To promote the development of securities market.
 To regulate the securities market and
 For matters connected there with or incidental there .
Since its inception SEBI has been working targeting the securities and is attending to the
fulfillment of its objectives with commendable zeal and dexterity. The improvements in the
securities markets like capitalizations requirements, margining, establishments of clearing
corporation etc. reduced the risk of credit and also reduced the market.

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SEBI has introduced the comprehensive regulatory measures prescribed norms, the eligibility
criteria, the code of obligations and the code of conduct for different intermediaries like,
bankers to issue, merchant bankers, brokers and sub-brokers, registrars, portfolio managers,
credit rating agencies, underwriters and others. It has framed by-laws, risk identification and
risk management systems for clearing houses of stock exchanges, surveillance system etc.
which has made dealing in securities both safe And transparent to the end investors.
Another significant event is the approval of trading in stock indices (like S&P CNX Nifty
and Sensex) in 2000. A market index is a convenient and effective product because of the
following reasons:
 It acts as a barometer for market behavior.
 It is used to benchmark portfolio performance.
 It is used in derivative instrument like index futures and index options.
 It can be used for passive fund management as in case if index funds.
Two board approaches of SEBI is to integrate the securities market at the national level,
and also to diversify the trading products, so that there is an increase in number of traders
including banks, financial institutions, insurance companies, mutual funds, primary dealers
etc. to transact through the exchanges. In this context the introduction of derivatives trading
through Indian stock exchanges permitted by SEBI in 2000 AD is a real landmark.
SEBI appointed the L.C. Gupta Committee in 1998 to recommend the regulatory
frameworks for derivatives trading and suggest by-laws for regulation and control of trading
and settlement of derivatives contracts. The board of SEBI in its meeting held on May 11,
1198 accepted the recommendations of the committee and approved the phased introduction
of derivatives trading in India beginning with stock index futures. The board also approved
the “Suggestive by-laws” as recommended by the Dr. L.C. Gupta Committee for regulation
and control of trading and settlement of derivatives contracts.
SEBI then appointed the J. R. Verma Committee to recommend Risk Containment
Measures (RCM) in the Indian stock index futures market. The report was submitted in
November 1998.
However the Securities Contracts (Regulation) act, 1956 (SCRA) required amendment to
include “derivatives” in the definitions of securities to enable SEBI to introduce trading in
derivatives. The necessary amendment was then carried out by the Government in 1999. The

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Securities law (Amendment) bill, 1999 was introduced. In December 1999 the new
framework was approved.
Derivatives have been accorded the status of ‘Securities’. The ban imposed on trading in
derivatives in 1969 under a notification issued by the central government was revoked.
Thereafter SEBI formulated the necessary regulations and intimated the stock exchanges in
the year 2000. The derivatives trading started in India at NSE in 2000 and BSE started
trading in the year 2001.

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Chapter -3
COMPETITIVE ANALYSIS

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3.1THE MAJOR PLAYERS IN ONLINE TRADING
1) SHAREKHAN.COM
2) 5PAISA.COM
3) KOTAKSTREET.COM
4) INDIABULLS.COM
5) ICICIDIRECT.COM
6) HDFCSEC.COM

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3.2 HDFC SECURITIES:
Company Background:
HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase Capital
Partners and their associates. Pioneers in setting up Dial-a-share service with the
Largest team of Tele-brokers.
 Online Account Type:
 HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1
Advantage.
 Pricing of HDFC Account
 Account Opening: Rs 750
 Demat: NIL, 1st year charges included in Account Opening
 Initial Margin : Rs 5000/- for non HDFC Bank Customers (AQB)
 Brokerage:
 Trading 0.15%* each side + ST
 Delivery 0.50%** each side + ST
 Rs 25 Min Brokerage per transaction
 Rs 8 Min Brokerage per transaction

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ICICI DIRECT:
Account Opening: Rs 750
 Schemes: For short periods Rs 750 is refundable against brokerage generated
In a quarter these schemes are introduced 3-4 times a year.
 Demat: NIL, 1st year charges included in Account Opening Plus a facility to open
Additional 4 DP’s without 1st yr AMC. Only Rs 100 as linking charges per DP
 Initial Margin : Nil
Brokerage: ICICI’s brokerage rates are inclusive of Stamp duty (0.002%) for
Trading and 0.010% for delivery while service tax (10.2%) on BROKERAGE land
Turnover tax is EXTRA.
 Delivery Vol per QTR Brokerage Square Vol P.M. Brokerage
 < 10 lakhs 0.75% < 50 lakhs .10% Both Sides
 10 – 25 lakhs 0.70% 50 lakhs – 2 Cr .08% Both Sides
 25 – 50 lakhs 0.55% 2Cr-5Cr .05% Both Sides
 50 lakhs - 1 Cr 0.45% 5Cr- 10 Cr .04% Both Sides
 1 Cr – 2 Cr 0.35% 10Cr -20 Cr .035% Both Sides
 2 Cr – 5 Cr 0.30% > 20 Cr .03% Both Sides
 5 Cr 0.25% -------- ----------

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3.3 INDIABULLS:
 Company Background:
India Bulls is a retail financial services company present in 70 locations covering 62
Cities. It offers a full range of financial services and products ranging from Equities
To Insurance. 450 + Relationship Managers who act as personal financial advisors.
Online Account Type:
 Signature Account: Plain Vanilla Account with focus on Equity Analysis. The
Equity analysis is a paid service even for A/c holders.
 Power India bulls: Account with sophisticated trading tools, low commissions
And priority access to R.M.
Pricing and type of Accounts:
Signature Account Power India Bulls
 Account Opening: Rs 250 * Account Opening: Rs 750
 Demat: Rs 200 if POA is signed, ,
 No AMC for this DP No AMC for this DP
 Initial Margin: NIL
 Brokerage: Negotiable
 Power India Bulls
 Account Opening: Rs 750
 Demat: Rs 200 if POA is signed,
 No AMC for this DP
 Initial Margin: NIL
 Brokerage: Negotiable

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3.4 KOTAKSTREET:
Company Background:
Kotakstreet is the retail arm of Kotak Securities. Kotak Securities limited is a joint
Venture between Kotak Mahindra Bank and Goldman Sachs.
 Online Account Type
 Twin Advantage / Green Channel : 2 DP’s, Limit against shares
 Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction
 High Trader : 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
 Cash Expressway : Spot payment, additional 0.5% charges
For Kotak Fast Lane / Keat Lite / Keat Desktop are trading interfaces.
Keat Desktop with advanced tools comes at a charge of Rs 500 p.m,
Non-Refundable.
 PRICING OF KOTAK
 Account Opening : Rs 500
 Demat: Rs 22.5 p.m
 Initial Margin : Rs 5000(Compulsory)
 Min Margin Retainable : Rs 1000
 Brokerage Slab wise: Higher the volume, lower the brokerage.
Even older customers (on 0.25% & 0.40%) have been moved to the slab wise
Structure w.e.f 1/4/2004
 Slab structure of Kotak
 Delivery Vol p/m Brokerage * Square Vol P.M. Brokerage
< 1 lakhs 0.65% < 10 lakhs 0.10% Both Sides
1 lakhs – 5 lakhs 0.60% 10 lakhs – 25 lakhs 0.08% Both Sides
5 lakhs – 10 lakhs 0.50% 25 lakhs - 2 Cr 0.05% Both Sides
10 lakhs - 20 lakhs 0.40% 2 Cr - 5 Cr 0.04% Both Sides
20 lakhs – 60 lakhs 0.30% > 5 Cr 0.035% Both Sides
60 lakhs - 2 Cr 0.25% ---do--- 0.03% Both Sides
> 2 0.20% ---- --------
* Brokerage is inclusive of All Taxes * Brokerage is inclusive of All Taxes
* Min Brokerage of Rs 0.05 per share * Min Brokerage of Rs 0.01 per share
 Derivatives
Vol off p/m Brokerage
< 2 Cr 0.07% Both Sides
2 Cr - 5.5 Cr 0.05% Both Sides
5.5 Cr – 10 Cr 0.04% Both Sides
> 10 Cr 0.03% Both Sides

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3.5 5PAISA
Company Background
 Indiainfoline was founded in 1995 and was positioned as a research firm
In 2000 e-broking was started under the brand name of 5paisa.com.
Apart from offering online trading in stock market the company offers
Mutual funds online.
 It also acts as a distributor of various financial services i.e. Company Fixed Deposits,
Insurance.
 Limited ground network, present in 20 cities
 Online Account Types
 Investor Terminal : Investors / Students
 Trader Terminal : Day Traders / HNI’s
 PRICING FOR RETAIL CLIENTS
 Investor Terminal
 Demat 1st Yr : Rs 250
 Initial Margin : Rs 2500 (Compulsory)
 Brokerage:
 Trading 0.10% each side + ST
 Delivery 0.50% each side + ST
 PRICING FOR HNI CLIENTS
 Trader Terminal
 Demat 1st Yr : Rs 250
 Initial Margin : Rs 5000(Compulsory)
 Brokerage:
 Trading 0.10% each side + ST
 Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)

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3.6 SHAREKHAN
Company Background
 Sharekhan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56%
In Sharekhan, balance ownership is HSBC, First Caryle, and Intel Pacific
 Into broking since 80 years
 Focused on providing equity solutions to every segment
 Largest ground network of 210 Branded Share shops in 90 cities
 Online Account Types
 Classis Account: Investor in equities
 Speed Trade: Trader in equities & derivatives
 PRICING FOR HNI CLIENT
 Speed Trade
 Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)
 Demat 1st Yr : Rs 0 in Account Opening
 Initial Margin : Nil
 Min Margin Retainable : NIL
 Brokerage:
 Trading 0.10% each side + All Taxes
 Delivery 0.50% each side + All Taxes
(Negotiable based on volume)
 Account Access Charges
 Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr.
 No access charges for gold customers (Above 1 lac brokerage p.a)
 Pricing for Retail Customers
 Classic:
 Demat 1st Yr : NIL
 Initial Margin : NIL
 Min Margin Retainable : NIL
 Brokerage:
 Trading 0.10% each side + All Taxes
 Delivery 0.50% each side + All Taxes

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 Sharekhan online Trading Interfaces
The customer can choose the online trading interface that meets his requirement
Based on his trading habits and preferences
 DIAL-N-TRADE – Toll Free
The DNT is a value added services meant for all customers who
Want to transact but are not online.
 DNT – TOLL FREE FERTURES
 Dedicated Toll – Free number for Order placements
 Automatic fund transfer with phone banking*
 Simple and secure IVR based system for authentication
 No wait time, on entry of Phone Id & TPIN, the call is transferred
 Trusted, professional advice of Tel-brokers who offer undiluted Sharekhan
Research Inputs
 After-hours order placement facility
 Transfer of money using phone banking is available with Citibank only
 Between 9 a.m to 9.55 am and 3.30p.m to 6 p.m
 CLASSIC/WEBSITE FEATURES
 Facility to integrate choice of 4 Banks/DP/Trading Account
 Instant credit for shares sold from DP
 Automatic pick-up of shares from linked DP for pay – in
 Automatic deposit of shares into linked DP after pay-out
 4 Times leverage on Margin Trades
 Margin Trading available for entire marker session
 Slab wise brokerage structure for delivery and margin trades, shortly
 Free calls for order placement on Toll-Free
 Trusted, Professional advice of Tele-brokers
 Facility to enter After Market Orders online & via Phone
 CLASSIC/WEBSITE FEATURES
 Daily Research newsletter (Investor Eye) Via e-mail
 Access to new IPO without any paperwork
 Advanced portfolio monitoring Tools
 Integrated DP account with trading account
 Option of linking additional 4 DP accounts to trading account
 Choice of linking 4 banks to trading a/c for online payments
 Cash and Derivatives trading in a single account
 E-mail confirmations for all transactions
 Choice of electronic/Physical contracts

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 SPEEDTRADE EXECUTION FEATURES
 Real – time streaming quotes using 2 Marker Watches
 Trade Execution in 2-3 seconds
 Instant Order/trade confirmations in the same window
 Hot keys similar to a Broker’s Terminal
 MULTIPLE Tic-by-Tic Intra-day charts with multiple indicators
 Availability of 2 ISP & 6 Servers ensuring maximum uptime
 Customized alerts based on multiple parameters
 Cancel All/Square Off All Facility
 Window for Top Gainers, Top Losers, and Most Active updated Live

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Chapter -4
RESEARCH METHODOLOGY

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Research design - Descriptive research
Research instrument - Questionnaire
Questionnaire -Open ended and close ended
Contact method - Survey
- Personal interview
- Online interview
Method of data Collection - Primary data and Secondary data
Sampling method - Non-probability sampling
Sampling type - Area sampling
Sampling unit - Consumers
Sampling size - 50

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4.1 Research Design
There are three types of research design. They are
 Descriptive
 Exploratory
 Explanatory
In this research the research design adopted is Descriptive research design.
4.2Descriptive Research Design
It is designed to describe something, such as demographic characteristics of consumers who
use the products. It deals with determining frequency with something occurs or how two
variables vary together. This study is also guided by an initial
Hypothesis.
4.3Importance of Descriptive Study
 During the analysis of characteristics of certain groups, for e.g. users of a product
with different age, sex, education etc.
 To forecast the future trends, e.g. sales of a company’s product in each of next five
years.
 To study whether certain variables are associated, e.g. income and usage of a product.

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4.4Questionnaire Design
Designing and implementing the questionnaire is one of the most interesting and challenging
tasks of conducting research. Questionnaire designing also becomes important and necessary
when he/she observes that unless the data discussion or otherwise is noted down, is basic
form will be distorted. The questionnaire is the backbone for obtaining data during a personal
interview, telephone survey, and mail survey.
4.5Meaning of Questionnaire
A questionnaire is a form prepared and distributed to secure response to certain question. The
term questionnaire refers to a self administration process here by the respondent
himself/herself reads the questionnaire and records his/her answer assistance of an
interviewer.
Purpose of questionnaire is two fold
 To collect information from the respondent who are scattered in a vast area.
 To achieve success in collecting reliable and dependable data.
4.6Determining Type of Question
After specifying the required data, the researcher must decide the type of question required to
be asked from the respondents to collect this data. He/she must understand various existing
types of question and decide which of these would suit the most of his/her project situation.
There are different types of questions they are as follows:
Direct question – Direct question are just what their name indicates e.g. Have you ever
purchased brand?
Indirect question – Indirect refers to those whose responses are used to indicate or suggest
date about respondents other than the actual facts given in the answer. For e.g. why you think
most other people buy prefer SHAREKHAN ?

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Open ended question – Sometimes these question are called free answer questions the
respondent answer in his/her words, for e.g. and open ended question on a study on “Orange
squashes” can be asked as what suggestion do you make for improving orange squashes? In
this case no answer choice is given to the respondent and he/she may give any answer he/she
thinks.
Close ended question – Such guests are also called fixed alternative questions. The alternative
questionnaire may take the form of dichotomous question multiple choice question checklist
and rating scales, such as ordinal scale nominal scale etc.
Question method of data collection is quite popular and consists of question printed or typed
in a form or set of forms. Care was taken in the main aspect as general form. Question
sequence, question formulation and wording, the study was associated with both the question
i.e., closed ended and open ended questions. Free responses were invited from the
respondents.
4.7Types of Questionnaire
The study conducted by using structural and undisguised questionnaire. It comprises of both
open and closed ended questions. Questions are rather framed for the customer attitude
including the multiple choice and dichotomous questions.
The following are the contact method generally user for survey.
1. Mail survey
2. Telephone interview
3. Personal interview

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4.8Method of Data Collection
The task of collecting data being after a research problem has been defined and plan is
chalked and plan is chalked out. This study pertains to collect data from primary sources
primary data and from secondary sources secondary data.
4.9Primary data
Primary data are that information which is collected, fresh and fir the first time thus happens
to be original in character primary data can be collected in marketing by three basic methods,
viz., survey, observation and experiments.
4.10 Secondary data
On the other hand are those, which have already been passed through the statistical process.
The secondary data are that information which is collected from internal sources as
well as external sources, Wiz’s from the company own the records and documents.
Secondary data was collected from the registers, manuals, information bulletins
maintained by the personnel department and other records, information collected in this
manner was immediately complied processed manually and a statistical structure was given
to the data to help interpretation of the statistical data.
4.11 Sampling Procedures
Sampling can be carried out fewer than two important methods, in order to obtain a
respective of the sample they are classified as:
1. Probability sampling
2. Non-probability sampling

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4.12Sampling Size
55 consumers are taken as samples.
4.13Sampling Procedures
Selection for this study in area sampling /cluster sampling.

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Chapter -5
DATA ANALYSIS &
INTERPRETATION

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AGE:-
Table 5.1
20-30 18
30-40 7
40-50 20
ABOVE 50 5
Figure 5.1
 INTERPRETATION :- From the above study the result is 18 respondance
between 20 – 30 age , 7 respondance between 30 – 40 age , 20 respondance
between 40 – 50 age , and only 5 respondance Above 50 age are the interested in
Equity trading in SHAREKHAN . majority 40 – 50 age people are came.
18
7
20
5
TOTAL NUMBER OF PEOPLE
20-30
30-40
40-50
ABOVE 50

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GENDER:-
Table 5.2
MALE 36
FEMALE 14
Figure 5.2
 INTERPRETATION: - From the above study we can clarify that out of 50, 36
male respondence and 14 female respondance are doing trading in
SHAREKHAN. So we can clarify that male are more interested compare to
female in Equity trading in sharekhan.
36
14
00
MALE
FEMALE

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OCCUPATION:-
Table 5.3
STUDENT 10
PUBLIC SECTOR JOB 8
PVT. SECTOR JOB 9
PROFESSIONAL 7
BUSINESS 12
OTHERS 4
Figure 5.3
 INTERPRETATION :- From the above study we can see that out of 50
respondance , 10 respondance are students , 8 respondance have public sector job ,
9 respondance have pvt. Sector job, 7 respondance are professionals, 12
respondance are Businessman, and 4 are related to the other work. We can justify
that business people are more interested in equity trading with SHAREKHAN.
10
8
9
7
12
4
STUDENT
PUBLIC SECTOR JOB
PRIVATE SECTOR JOB
PROFESSIONAL
BUSINESS
OTHERS

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1. ARE YOU DOING ONLINE TRADING IN EQUITY MARKET?
Table 5.4
OPTIONS TOTAL NUMBER OF
PEOPLE
PERCENTAGE
YES 50 90%
NO 5 10%
Figure 5.4
 INTERPRETATION: - we can see that out of 50 respondance, 50 respondance
are aware and only 5 respondance are not aware about the online trading. From
the above mention graph we can clearly identify that most of the people are
aware about the online trading.
90%
10%
Yes
No

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2. WHAT IS YOUR OPINION ABOUT EQUITY SHARES?
Table 5.5
PEOPLE
PERCENTAGE
It offers an investment facility 14 28%
It make earn quick profit /
gain
12 24%
It is a part of an investment 10 20%
It offers easy liquidity 14 28%
Figure 5.5
 INTERPRETATION :- out of 50 respondance , 28% are belives that shares offer
an investment facility , 24% people are believes that shares are earn quick profit /
gain , 20%are believe that it is a part of an investment , 28% people are believes
that shares are useful for easy liquidity.
28%
24%
20%
28%
Frequency
it offers investment
opportunity
it make quick gain
it is a part of
investment
it offers easy liquidity

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3. HOW DID YOU COME TO KNOW ABOUT SHAREKHAN ONLINE
TRADING EQUITY SHARES?
Table 5.6
OPTIONS TOTAL NUMBEROF
PEOPLE
PERCENTAGE
Share broker 12 24%
Friends 5 10%
Bankers 24 48%
Online adv. 9 18%
Figure 5.6
 INTERPRETATION :- Out of 50 respondance , 24% people got information
about sharekhan from share brokers , 10% people got information about
sharekhan from friends ,48% people got information about sharekhan from
bankers , 18% people got information about sharekhan from online
advertisement . So we can justify that majority people have got information from
friends and relatives.
24%
10%
48%
18%
frequency
sharebroker
friends
bankers
Online advertisements

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4. WHAT IS YOUR OBJECTIVE BEHIND INVESTING IN EQUITY
SHARES?
Table 5.7
PEOPLE
PERCENTAGE
Additional return 10 20%
Earn high dividends 17 34%
Easy liquidity 8 16%
Capital appreciation in the
long run
15 30%
Figure 5.7
 INTERPRETATION :- Out of 50 respondance , 20% people are thinks that
investing in share is additional return, 34% people are thinks that investing in share
is earn high dividend ,16% people are thinks that investing in share is easy
liquidity , 30% people are thinks that investing in share is capital appreciation for
long term . Most of the people are investing only for earn high profit / gain.
20%
34%16%
30%
Frequency
Additional return
Earn high dividends
Easy liquidity
Capital appreciation in the
long run

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5. HOW FREQUENTLY YOU INVEST IN EQUITY SHARES?
Table 5.8
PEOPLE
PERCENTAGE
Monthly 22 44%
Every 3 months 8 16%
Every 6 months 9 18%
Intraday 11 22%
Figure 5.8
 INTERPRETATION :- Out of 50 respondance , 44% people are invest in
shares Monthly, 16% people are invest in shares Every 3 month , 18% people are
invest in shares Every 6 month , 22% people are invest in intraday.
44%
16%
18%
22%
Frequency
Monthly
Every 3 months
Every 6 months
Intraday

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6. HOW MUCH RISK CAN YOU TAKE AT A TIME IN EQUITY
MARKET?
Table 5.9
PEOPLE
PERCENTAGE
Whole money 5 10%
Half money 7 14%
Depends on market 11 22%
On particular brand only 10 20%
Can’t say 17 34%
Figure 5.9
 INTERPRETATION :- Out of the 50 people , 10% people are take risk on
whole money , 14% people are take risk on Half money , 22% people are take
risk on the depends on market , 20% people are take risk on a particular brand
only , 34% people are take risk for them Can’t say.
10%
14%
22%
20%
34%
Frequency
Whole money
Half money
Depends on market
On particular brand only
Can’t say

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7. Have you ever felt dissatisfied with any of the services of our company
Sharekhan?
Table 5.10
PEOPLE
PERCENTAGE
Slow operation 15 30%
Delayed correspondence 17 34%
Inaccessibility to the service
centre
7 14%
Fund transfer facility 11 22%
Figure 5.10
 INTERPRETATION: - Out of the 50 respondance 30% people are dissatisfy
with services of sharekhan is Slow operation, 34% people are dissatisfy with
services of sharekhan is Delayed operation, 14% people are dissatisfy with
services of sharekhan is inaccessibility to the service centre, 22% people are
dissatisfy with services of sharekhan is Fund transfer facility.
30%
34%
14%
22%
Frequency
Slow operation
Delayed correspondence
Inaccessibility to the service
centre
Fund transfer facility

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8. Are you satisfied by the brokerage charges of transactions when
compared to other competitors in the equity market?
Table 5.11
PEOPLE
PERCENTAGE
Satisfied 23 46%
Dissatisfy 15 30%
Can’t say 12 24%
Figure 5.11
 INTERPRETATION :- Out of 50 Respondance , 46% are satisfied with
Brokerage of Sharekhan , 30% people are Dissatisfied with Brokerage of
Sharekhan , 24% people can’t say for Brokerage of Sharekhan
46%
30%
24%
Frequency
Satisfied
Dissatisfy
Can’t say

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9. Are you satisfied by the options provided by the BTST/DELIVERY (buy
today sell tomorrow) company?
Table 5.12
PEOPLE
PERCENTAGE
Yes 40 80%
No 10 20%
Figure 5.12
 INTERPRETATION: - Out of 50 respondance, 80% people are satisfied by the
options BTST/DELIVERY (buy today sell tomorrow), 20% people Dissatisfied
by the options BTST/DELIVERY (buy today sell tomorrow).
80%
20%
Frequency
Yes
No

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10. Are you aware of the absence of AMC (Annual maintenance charges)
with reference to Sharekhan?
Table 5.13
PEOPLE
PERCENTAGE
Yes 50 100%
No 0 0%
Figure 5.13
 INTERPRETATION: - Out of 50 respondance all 50 are aware about the AMC.
Frequency
Yes
No

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11. Are you aware of TRADE TIGER software, which is being used for the
online transactions?
Table 5.14
PEOPLE
PERCENTAGE
Yes 47 94%
No 3 6%
Figure 5.14
 INTERPRETATION: - From the 50 respondance 94% are aware about the
TRADE TIGER, only 6% are not aware.
94%
6%
Sales
Yes
No

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12. Are you satisfied by the overall services provided by Sharekhan?
Table 5.15
PEOPLE
PERCENTAGE
Satisfied 35 70%
Dissatisfy 10 20%
Can’s say 5 10%
Figure 5.15
 INTERPRETATION: - services From the 50 respondance, 70% are satisfied by
the overall services provided by Sharekhan , 20% are Dissatisfy by the overall
services provided by Sharekhan , 10% people can’t say by the overall services
provided by Sharekhan.
70%
20%
10%
Sales
Satisfied
Dissatisfy
Can’s say

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13. What factor you consider the most while purchasing shares of a
company?
Table 5.16
OPTIONS TOTAL NUMBEROF PEOPLE PERCENTAGE
Promoters background 11 22%
Premium account 10 20%
Performances of company 25 50%
Sector performance 4 8%
Figure 5.16
 INTERPRETATION: Out of 50 respondence , 22% people purchase share on
basis of the Promoter’s background, 20% people are purchasing the shares on
basis of premium account, 50% people are purchasing shares on basis of the
performance of the company, 8% people are purchasing their shares on basis of
sector performance.
22%
20%
50%
8%
Frequency
Promoters background
Premium account
Performances of company
Sector performance

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14. Which exchange would you like to trade most?
Table 5.17
PEOPLE
PERCENTAGE
Bombay stock exchange 20 40%
National stock exchange 20 40%
Can’t say 10 20%
Figure 5.18
 INTERPRETATION: Out of 50 people, 40% people would like to trade in
Bombay stock Exchange, 40% people would like to trade in National stock
exchange and 20 % people can’t Say where they would like to trade
40%
40%
20%
Frequency
Bombay stock exchange
National stock exchange
Can’t say

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15. What do you think about the tips provided by sharekhan?
Table 5.19
PEOPLE
PERCENTAGE
Satisfactory 30 60%
Dissatisfactory 10 20%
Can’t say 10 20%
Figure 5.19
 INTERPRETATION: Out of 50 people, 60% people are satisfied by the tips
provided bysharekhan, 20% people are dissatisfy with tips provided by sharekhan,
20% people can’t say About the tips provided by sharekhan.
60%20%
20%
Frequency
Satisfactory
Dissatisfactory
Can’t say

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16. Have you ever attend seminar of market outlook which are organized by
sharekhan?
Table 5.20
PEOPLE
PERCENTAGE
Yes 30 60%
No 20 40%
Figure 5.20
 INTERPRETATION: Out of 50 people, 60% People have attended a seminar of
market Outlook organized by sharekhan, 40% people have not attended a seminar
of market outlook Organized by sharekhan.
Yes, 60%
No, 40%

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17. What do you think about the advertisement about the Equity market such
as seminars; leaflets, etc. are explanatory enough?
Table 5.21
PEOPLE
PERCENTAGE
Yes 10 20%
No 25 50%
Much needed 15 30%
Figure 5.21
 INTERPRETATION: Out of 50 people, 20% people think that advertisements
and are enough, 50% people thinks that advertisements are not enough and 30%
Thinks that more advertisements are needed.
20%
50%
30%
Sales
Yes
No
Much needed

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Chapter 6
FINDINGS

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6.1 FINDINGS
In the prevailing competitive environment existing in the share industry, the market
potential and promotional strategy is changing from time to time. So there is a need to
analyze the market efficiency and promotional strategy prevailing in the market
For the development of SHAREKHAN.
It is found from the study customer awareness toward SHAREKHAN in different aspects are
as follows:
1. AGE wise highest people come between the ages of 40 – 50 i.e. 20.
Second highest 20 – 30 i.e. 18.
2. As SHAREKHAN deals with online shares, 47 of the customers are
aware of the online shares and 3 of the respondents are not aware of
online shares.
3. Out of 50 respondance , 14 are believes that shares offer an investment
policy , 12 people are believes that shares are earn quick profit / gain ,
10 are believe that it is a part of an investment , 14 people are believes
that shares are useful for easy liquidity.
4. Maximum no. of customers got knowledge about SHAREKHAN
through Friends that is 24, next to that they come to know through the
Share Brokers that is 12 and rest of the customers through online adv.
and bankers.
5. Majority of the customers main objective is to invest in shares is earn
high returns that is 17 , easy liquidity around 8 , 10 of the respondents
invest because of the tax-saving rest to 15 capital appreciation in long
run. So overall result is people invest shares only for earning high
dividends and Capital appreciation for long term.

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6. Around 8 of the customers invest shares in the time gap within 3
months. 22 of the customers invest Monthly. It is the major in
numbers.
7. When we talk about risk taking, 11 people are take risk on the depends
on market, 10 people are take risk on a particular brand only, 17 people
are take risk for them can’t say.
8. 15 of the customers feels slow operations, inaccessibility to the service
centre and fund transfer facility and 7 very few customers are
dissatisfied for their delayed correspondence.
9. The brokerage charges are highly Dissatisfied by 15 of the customers,
7 says dissatisfied, 9 are moderate and 12 are satisfied. Only 7 of the
customers say highly satisfied so almost 70% of them are Highly
Dissatisfied with the brokerage charge.
10. 40 of the customers are satisfied with the BTST provided by the
company; only few customers that are 10 are not satisfied and said no.
11. AMC’s absence in the company is aware to all 50 of the customers
and not aware that is 0.
12. Company’s TRADE TIGER software used for online transaction is
aware to 47 of the customers and only few, 3 are not aware.

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Chapter 7
SUGGESTIONS

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7.1 SUGGESTIONS
From the analysis of the survey and personal observation of the customer towards the
awareness of the share and the share company SHAREKHAN. Lots of experience gained
from the survey. This will help the company to survive in the market and also improvise their
market potential in the current competitive environment. With this the company should take
immediate steps to improve the nature of the business.
From the survey: -
1) Try to encourage people who come between the age group of 30 – 40. They are very
less in number.
2) Most of the customers got information about the company only through the Friends.
The company should take necessary steps to concentrate on the advertisements.
Through they are advertising online, it is necessary to advertise in TV, radio, presses;
only when they give these kinds of advertisements they can get lots of customers.
Also they have to go for boarding, which can be viewed by everyone passing by.
3) It was found that maximum no of customer is investing in shares after a time gap of
3 months. The company should explain the benefits of intraday (buy today and sell
today) operations certain customers invest in shares with a long term on capital
apperceptions. The benefits of short term trading can be explained to the customers
so that they may be persuaded to go in for the same.
4) There is an unfavorable feedback from the customers about brokerage charges as per
transactions. . The company should take necessary steps to concentrate on the
Brokerage charges according to competitors.
5) Many of the customers are not aware of my broker software. This usefulness should
be explained to them.
6) Customers with money to invest may be living in isolated areas with no proper
telephone or computer facility, the company may think of deputing relationship

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managers to help the customers through proper guidance and by passing on relevant
information.
7) More number of customers is dissatisfied with slow operation and delay operation of
transaction, so it is advisable to take some steps for that.

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Chapter 8
CONCLUSION

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CONCLUSION
Share trading as a whole is now considered as a specific sources of investment. With
the advent of new online based trading customers are very much satisfied. Share trading
industry has reviewed up its standards once again investment centers.
It can be explicitly noted from the project that the awareness level are high with the
present youngsters and the middle-aged group which can be observed as a positive sign for
the growth of the industry. The effectiveness of the other supporting instrument
Like client relationship can be further improved so that the impact will be high.
It doesn’t end at just opening the demat account but the actual implementation is
considered with the customer related services. The customer should be updated on recent
trends market news and the value of the investment that increases their satisfaction and
awareness and trust on the company.

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Chapter 8
BIBILIOGRAPHY

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BIBILIOGRAPHY
 www.sharekhan.com
 www.economictimes.com
 www.moneycontrol.com
 www.bseindia.com
 www.nseindia.com
 www.sebi.gov.in
 www.investors.com
 www.investopedia.com
 Previous project reports
 News Papers
 Sharekhan’s brochures
 Sharekhan’s value Guide

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Chapter 9
QUESTIONNAIRE

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QUESTIONNAIRE
Name:
Age:
A) 20 – 30
B) 30 – 40
C) 40 – 50
D) Above 50
Sex:
A) Male
B) Female
Occupation:
A) student
B) Pubic sector
C) Professional
D) pvt. Sector employee
E) Investor in stock market
1. Are you doing online trading in equity shares?
A) Yes
B) No
2. What is your opinion about shares?
A) Shares offer an investment opportunity
B) Shares make earn quick profit/ gain
C) Share is a part of an investment
D) Shares offer easy liquidity
3. How did you come to know about Sharekhan online trading share?
A) Share broker
B) Bankers
C) Friends
D) Online Advertisement

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4. What is your objective behind investing in shares?
A) Additional return
B) Earn high dividends
C) Easy liquidity
D) Capital appreciation in the long run
5. How frequently you invest in shares?
A) Monthly
B) Every 3 months
C) Every 6 months
D) Others
6. How much risk can you take at a time?
A) Your whole money
B) Half of money
C) Depends on market
D) On particular brand only
E) Can’t say
7. Have you ever felt dissatisfied with any of the services of our company Sharekhan ?
A) Slow operation
B) Delayed correspondence
C) Inaccessibility to the service centre
D) Fund transfer facility
8. Are you satisfied by the brokerage charges of transactions when compared to other
competitors in the market?
A) Satisfied
B) Dissatisfied
C) Can’t say
9. Are you satisfied by the options BTST/DELIVERY (buy today sell tomorrow)
provided by the company?
A) Yes
B) No

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10. Are you aware of the absence of AMC (Annual maintenance charges) with reference
to Sharekhan?
A) Yes
B) No
11. Are you aware of TRADE TIGER software, which is being used for the online
transactions?
A) Yes
B) No
12. Are you satisfied by the overall services provided by Sharekhan?
A) Satisfied
B) Dissatisfied
C) Can’t say
13. What factor you consider the most while purchasing shares of a company?
A) Promoters background
B) Premium account
C) Performance of the company
D) Sector performance
14. Which exchange would you like to trade most?
A) Bombay stock exchange
B) National stock exchange
C) Can’t say
15. What do you think about the tips provided by sharekhan?
A) Satisfactory
B) Dissatisfactory
C) Can’t say
16. Have you everattend seminar of market outlook which are organized by
sharekhan?
A) Yes
B) No

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17. What do you think about the advertisement about the Equity market such as
seminars; leaflets, etc. are explanatory enough?
A) Yes
B) No
C) Much needed

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ANNEXTURE

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THE SECURITIES AND EXCHANGE BOARD
OF INDIA ACT, 1992
(Act No. 15 of 1992)
[4 April 1992]
 An Act to provide for the establishment of a Board to protect the interests of
investor’s insecurities and to promote the development of, and to regulate, the
securities market and for matters connected therewith or incidental thereto. Be it
enacted by Parliament in the Forty-third Year of the Republic of India as follows:
 Chapter I Preliminary
1. Short title, extent and commencement
(1) This Act may be called the Securities and Exchange Board of India Act, 1992.
(2) It extends to the whole of India.
(3) It shall be deemed to have come into force on the 30th day of January, 1992.
2. Definitions
(1) In this Act, unless the context otherwise requires, -
(a) "Board" means the Securities and Exchange Board of India
Established under section 3;
(b) "Chairman" means the Chairman of the Board;
(c) "Existing Securities and Exchange Board" means the Securities and Exchange Board of
India constituted under the Resolution of the Government of India in the Department of
Economic Affairs No. 1(44) SE/86 dated the 12th day of April, 1988;
(d) "Fund" means the Fund constituted under section 14;
(e) "Member" means a member of the Board and includes the Chairman;
(f) "Notification" means a notification published in the Official Gazette;
(g) "Prescribed" means prescribed by rules made under this Act;
(h) "Regulations" means the regulations made by the Board under this Act;
(i) "Securities" has the meaning assigned to it in section 2 of the Securities Contracts
(Regulation) Act, 1956 (42 of 1956).
1[(2) Words and expressions used and not defined in this Act but defined in

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The Securities Contracts (Regulation) Act, 1956 (42 of 1956) shall have the meanings
respectively assigned to them in that Act.]
 Chapter II Establishment of the Securities and Exchange Board of India
3. Establishment and incorporation of Board
(1) With effect from such date as the Central Government may, by notification, appoint, there
shall be established, for the purposes of this Act, a Board by the name of the Securities and
Exchange Board of India.
(2) The Board shall be a body corporate by the name aforesaid having perpetual succession
and a common seal, with power subject to the provisions of this Act, to acquire, hold and
dispose of property, both movable and immovable, and to contract, and shall, by the said
name, sue or be sued.
(3) The head office of the Board shall be at Bombay
(4) The Board may establish offices at other places in India.
4. Management of the Board
(1) The Board shall consist of the following members, namely: -
(a) A Chairman;
(b) Two members from amongst the officials of the Ministries of the Central Government
dealing with Finance and Law;
(c) One member from amongst the officials of the Reserve Bank of India constituted under
section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);
(d) Two other members, to be appointed by the Central Government.
(2) The general superintendence, direction and management of the affairs Of the Board shall
vest in a Board of members, which may exercise all Powers and do all acts and things which
may be exercised or done by The Board.
(3) save as otherwise determined by regulations, the Chairmen shall also
Have powers of general superintendence and direction of the affairs of Substituted by the
Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995 for the following:“(2) Words and
expressions used and not defined in this Act but defined in the Capital Issues (Control) Act,
1947 (29 of 1947) or the Securities Contracts (Regulation) Act, 1956 (42 of 1956) shall have
the meanings respectively assigned to them in those Acts.” The Board and may also exercise
all powers and do all acts and things which may be exercised or done by that Board.
(4) The Chairman and members referred to in clauses (a) and (d) of subsection (1) Shall be
appointed by the Central Government and the Members referred to in clauses (b) and (c) of

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that sub-section shall be Nominated by the Central Government and the Reserve Bank of
India Respectively. 2 Inserted by the Depositories Ordinance, 1996, w.e.f. 20-9-1995.
(5) The Chairman and the other members referred to in clauses (a) and (d) of sub-section (1)
shall be persons of ability, integrity and standing who have shown capacity in dealing with
problems relating to securities market or have special knowledge or experience of law,
Finance, economics, accountancy, administration or in any other discipline which, in the
opinion of the Central Government, shall be useful to the Board.
5. Term of office and conditions of service of Chairman and members of
The Board
(1) The term of office and other conditions of service of the Chairman and
The members referred to in clause (d) of sub-section (1) of section 4 shall be such as may be
prescribed.
(2) Notwithstanding anything contained in sub-section (1), the Central
Government shall have the right to terminate the services of the Chairman or a member
appointed under clause (d) of sub-section (1) of section 4, at any time before the expiry of the
period prescribed under sub-section (1), by giving him notice of not less than three months in
writing or three months' salary and allowances in lieu thereof, and the Chairman or a
member, as the case may be, shall also have the right to relinquish his office, at any time
before the expiry of the period prescribed under sub-section (1), by giving to the Central
Government notice of not less than three months in writing.
6. Removal of member from office
The Central Government shall remove a member from office if he -
(A) is, or at any time has been, adjudicated as insolvent;
(B) is of unsound mind and stands so declared by a competent court;
(c) Has been convicted of an offence which, in the opinion of the Central Government
involves a moral turpitude;
2 The brackets and figure “(1)” omitted by the Securities Laws (Amendment) Act, 1995,
w.e.f. 25-1/1995.
3 Omitted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1/1995. Prior to
omission,
(d) Is appointed as a director of a company.”
(e) Has, in the opinion of the Central Government, so abused his position As to render his
continuation in office detrimental to the public interest; Provided that no member shall be
removed under this clause unless he has been Given a reasonable opportunity of being heard
in the matter.
7. Meetings
(1) The Board shall meet at such times and places, and shall observe Such rules of procedure
in regard to the transaction of business at its Meetings (including quorum at such meetings)
as may be provided by Regulations.

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(2) The Chairman or, if for any reason, he is unable to attend a meeting of The Board, any
other member chosen by the members present from amongst themselves at the meeting shall
preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a
majority votes of the members present and voting, and, in the event of an equality of votes,
the Chairman, or in his absence, the person presiding, shall have a second or casting vote.
4[7A. Member not to participate in meetings in certain cases
Any member, who is a director of a company and who as such director has any direct or
indirect pecuniary interest in any matter coming up for consideration at a meeting of the
Board, shall, as soon as possible after relevant circumstances have come to his knowledge,
disclose the nature of his interest at such meeting and such disclosure shall be recorded in the
proceedings of the Board, and the member shall not take any part in any deliberation or
decision of the Board with respect to that matter.]
8. Vacancies, etc., not to invalidate proceedings of Board
No act or proceeding of the Board shall be invalid merely by reason of -
(a) Any vacancy in, or any defect in the constitution of, the Board; or
(b) Any defect in the appointment of a person acting as a member of the Board; or
(c) Any irregularity in the procedure of the Board not affecting the merits of the case.
9. Officers and employees of the Board
(1) The Board may appoint such other officers and employees as it
Considers necessary for the efficient discharge of its functions under this Act.
(2) The term and other conditions of service of officers and employees of the Board
appointed under sub-section (1) shall be such as may be determined by regulations.
3. Inserted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995.
 Chapter III Transfer of Assets, Liabilities, etc., of the Existing Securities and
Exchange Board to the Board
10. Transfer of assets, liabilities, etc., of existing Securities and Exchange
Board to the Board
(1) On and from the date of establishment of the Board, -
(a) Any reference to the existing Securities and Exchange Board in any law other than this
Act or in any contract or other instrument shall be deemed as a reference to the Board;
(b) All properties and assets, movable and immovable, of, or belonging to, the existing
Securities and Exchange Board, shall vest in the Board;
(c) All rights and liabilities of the existing Securities and Exchange Board shall be transferred
to and be the rights and liabilities of, the Board;
(d) Without prejudice to the provisions of clause (c), all debts, Obligations and liabilities
incurred, all contracts entered into And all matters and things engaged to be done by, with or
for The existing Securities and Exchange Board immediately before that date, for or in

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connection with the purpose of the said existing Board shall be deemed to have been
incurred, entered into or engaged to be done by, with for, the Board;
(e) All sums of money due to the existing Securities and Exchange Board immediately before
that date shall be deemed to be due to the Board;
(f) All suits and other legal proceedings instituted or which could have been instituted by or
against the existing Securities and Exchange Board immediately before that date may be
Continued or may be instituted by or against the Board; and
(g) Every employee holding any office under the existing Securities and Exchange Board
immediately before that date shall hold his office in the Board by the same tenure and upon
the same terms and conditions of service as respects remuneration, leave, provident fund,
retirement and other terminal benefits as he would have held such office if the
Board had not been established and shall continue to do so as an employee of the Board or
until the expiry of the period of six months from that date if such employee opts not to be the
Employee of the Board within such period.
(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or
in any other law for the time being in force, absorption of any employee by the Board in its
regular service under this section shall not entitle such employee to any compensation
Under that Act or other law and no such claim shall be entertained by any court, tribunal or
other authority.
 Chapter IV Powers and Functions of the Board
11. Functions of Board
(1) Subject to the provisions of this Act, it shall be the duty of the Board to protect the
interests of investors in securities and to promote the development of, and to regulate the
securities market, by such measures as it thinks fit.
(2) Without prejudice to the generality of the foregoing provisions, the measures referred to
therein may provide for –
(a)Regulating the business in stock exchanges and any other securities markets;
(b) Registering and regulating the working of stock brokers, sub brokers,
Share transfer agents, bankers to an issue, trustees of
Trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers,
investment advisers and such other intermediaries who may be associated with
Securities markets in any manner;
(3) Registering and regulating the working of the depositories,
(4) Participants custodians of securities, foreign institutional investors, credit rating agencies
and such other intermediaries as the Board may, by notification, specify in this behalf;
(c) Registering and regulating the working of 7[venture capital funds And collective
investment schemes], including mutual funds;
(d) Promoting and regulating self-regulatory organizations;

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(e) Prohibiting fraudulent and unfair trade practices relating to Securities markets;
(f) Promoting investors' education and training of intermediaries of securities markets;
(g) Prohibiting insider trading in securities;
(h) Regulating substantial acquisition of shares and take-over of Companies;
(I) Calling for information from, undertaking inspection, conducting inquiries and audits of
the 8[stock exchanges, mutual funds, other persons associated with the securities market,]
Intermediaries and self-regulatory organizations in the securities market;
(5) Inserted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995.
(6) Inserted by the Depositories Ordinance, 1996, w.e.f. 20-9-1995.
(7) Substituted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995 collective
Investment schemes”.
(8) Substituted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995 for “stock
exchanges and”.
(j) Performing such functions and exercising such powers under The provisions of 9 the
Securities Contracts (Regulation) Act, 1956 (42 of 1956), as may be delegated to it by the
Central Government;
(k) Levying fees or other charges for carrying out the purposes of this section;
(l) Conducting research for the above purposes;
10[(la) calling from or furnishing to any such agencies, as may be specified by the Board,
such information as may be considered necessary by it for the efficient discharge of its
functions;] (m) Performing such other functions as may be prescribed. 11[(3) notwithstanding
anything contained in any other law for the time being in force while exercising the powers
under clause (i) of sub-section (2), the Board shall have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect
of the following matters, namely: -
(I) the discovery and production of books of account and other documents, at such place and
such time as may be specified by the Board;
(ii) Summoning and enforcing the attendance of persons and
Examining them on oath;
(iii) Inspection of any books, registers and other documents of any
Person referred to in section 12, at any place.]
12[11A.Matters to be disclosed by the companies
Without prejudice to the provisions of the Companies Act, 1956 (1 of 1956), the
Board may, for the protection of investors, specify, by regulations, -
(a) The matters relating to issue of capital, transfer of securities and other Matter incidental
thereto; and
(b) The manner in which such matters, shall be disclosed by the Companies.

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11B Power to issue directions
Save as otherwise provided in section 11, if after making or causing to be made an
Enquiry, the Board is satisfied that it is necessary -
9 The words, brackets and figures “the Capital Issues (Control) Act, 1947 (29 of 1947) and”
omitted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995.
10 Inserted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995.
11 Inserted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1/1995.
12 Inserted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1/1995.
(i) In the interest of investors, or orderly development of securities market; or
(ii) to prevent the affairs of any intermediary or other persons referred to in section 12 being
conducted in a manner detrimental to the interests of investors or securities market; or
(iii) To secure the proper management of any such intermediary or person,
It may issue such directions, -
(a) To any person or class of persons referred to in section 12, or Associated with the
securities market; or
(b) To any company in respect of matters specified in section 11A, As may be appropriate in
the interests of investors in securities and the securities market.
Chapter V Registration Certificate
12. Registration of stock-brokers, sub-brokers, share transfer agents, etc.
(1) No stock-broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed,
registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and
such other intermediary who may be associated with securities market shall buy, sell or deal
in securities except under, and in accordance with, the conditions of a certificate of
registration obtained from the Board in accordance with the 13[regulations] made under this
Act: Provided that a person buying or selling securities or otherwise dealing with the
securities market as a stock-broker, sub-broker, share transfer agent, banker to an issue,
trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager,
investment adviser and such other intermediary who may be associated with securities market
immediately before the establishment of the Board for which no registration certificate was
necessary prior to such establishment, may continue to do so for a period of three months
From such establishment or, if he has made an application for such registration within the
said period of three months, till the disposal of such application:
14 [Provided further that any certificate of registration, obtained immediately before the
commencement of the Securities Laws (Amendment) Act, 1995 shall be deemed to have been
obtained from the Board in accordance with the regulations providing for such
Registration.] 15[(1A) No depository, 16[participant,] custodian of securities, foreign
Institutional investor, credit rating agency or any other
13 Substituted by the Securities Laws (Amendment) Act, 1995, w.e.f. 25-1-1995 for “rules”.
16 Inserted by the Depositories Ordinance, 1996, w.e.f. 20-9-1995.
Intermediary associated with the securities market as the Board may by notification in this
behalf specify, shall buy orsell or deal in securities except under and in accordance with the
conditions of a certificate of registration obtained from the Board in accordance with the

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regulations made under this Act: Provided that a person buying or selling securities or
otherwise dealing with the securities market as a depository,
17 custodian of securities, foreign institutional investor or credit rating agency immediately
before the commencement of the Securities Laws (Amendment) Act, 1995 (9 of 1995), for
which no certificate of registration was prior to such commencement, may continue to buy or
sell securities or otherwise deal with the securities market until Such time regulations are
made under clause (d) of subsection (2) of section 30. (1B) No person shall sponsor or cause
to be sponsored or carry on or cause to be carried on any venture capital funds or collective
investment scheme including mutual funds, unless he obtains a certificate of registration from
the Board in accordance with the regulations: Provided that any person sponsoring or causing
to be, carrying or causing to be carried on any venture capital funds or collective investment
scheme operating in the securities market immediately before the commencement of the
Securities Laws (Amendment) Act, 1995 for which no certificate of registration was required
prior to such commencement, may continue to operate till such time regulations are made
under clause (d) of sub-section (2) of section 30.] (2) Every application for registration shall
be in such manner and nonpayment of such fees may be determined by regulations. (3) The
Board may, by order, suspend or cancel a certificate of registration in such manner as may be
determined by regulations: Provided that no order under this sub-section shall be made unless
the person concerned has been given a reasonable opportunity of being heard.
 Chapter VI Finance, Accounts and Audit
13. Grants by the Central Government
The Central Government may, after due appropriation made by Parliament by law in this
behalf, make to the Board grants of such sums of money as that Government may think fit for
being utilized for the purposes of this Act.17 Inserted by the Depositories Ordinance, 1996,
w.e.f. 20-9-1995.
14. Fund
(1) There shall be constituted a Fund to be called the Securities and Exchange Board of India
General Fund and there shall be credited Thereto -
(a) All grants, fees and charges received by the Board under this Act; 18 19[(AA) all sums
realized by way of penalties under this Act; and
(b) All sums received by the Board from such other sources as May be decided upon by the
Central Government.
(2) The Fund shall be applied for meeting –
(a)The salaries, allowances and other remuneration of the members, officers and other
employees of the Board
(b) The expenses of the Board in the discharge of its functions under section 11;
(c) The expenses on objects and for purposes authorized by this Act.
15. Accounts and audit
(1) The Board shall maintain proper accounts and other relevant records and prepare an
annual statement of accounts in such form as may be prescribed by the Central Government
in consultation with the Comptroller and Auditor-General of India.

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(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of
India at such intervals as may be specified by him and any expenditure incurred in connection
with such audit shall be payable by the Board to the Comptroller and Auditor-General of
India.
(3) The Comptroller and Auditor-General of India and any other person Appointed by him in
connection with the audit of the accounts of the Board shall have the same rights and
privileges and authority in connection with such audit as the Comptroller and Auditor-
General generally has in connection with the audit of the Government accounts and, in
particular, shall have the right to demand the production of books, accounts, connected
vouchers and other documents and papers and to inspect any of the offices of the Board.
(4) The accounts of the Board as certified by the Comptroller and Auditor- General of India
or any other person appointed by him in this behalf together with the audit report thereon
shall be forwarded annually to the Central Government and that Government shall cause the
same to be laid before each House of Parliament. 18 The word “and” omitted by the
Securities Laws (Amendment) Act, 1995, w.e.f. 25-11995. 19 Inserted by the Securities Laws
(Amendment) Act, 1995, w.e.f. 25-1-1995.
 Chapter VI Penalties and Adjudication
15A. Penalty for failure to furnish information return etc.
If any person, who is required under this Act or any rules or regulations made There under, -
(a) To furnish any document, return or report to the Board, fails to furnish the same, he shall
be liable to a penalty not exceeding one lakh and fifty thousand rupees for each such failure;
(b) To file any return or furnish any information, books or other documents Within the time
specified therefore in the regulations, fails to file return or furnish the same within the time
specified therefore in the regulations, he shall be liable to a penalty not exceeding five
thousand rupees for every day during which such failure continues;
(c) To maintain books of account or records, fails to maintain the same, he shall be liable to a
penalty not exceeding ten thousand rupees for every day during which the failure continues.
15B. Penalty for failure by any person to enter into agreement with clients
If any person, who is registered as an intermediary and is required under this Act or any rules
or regulations made there under to enter into an agreement with his client, fails to enter into
such agreement, he shall be liable to a penalty not exceeding five lakh rupees for every such
failure.
15C. Penalty for failure to redress investors' grievances
If any person, who is registered as an intermediary, after having been called upon by
The Board in writing to redress the grievances of investors fails to redress such grievances;
he shall be liable to a penalty not exceeding ten thousand rupees for each such failure.
15D. Penalty for certain defaults in case of mutual funds
If any person, who is –

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(A) Required under this Act or any rules or regulations made there under to obtain a
certificate of registration from the Board for sponsoring or carrying on any collective
investment scheme, including mutual funds, sponsors or carries on any collective investment
scheme, including mutual funds, without obtaining such certificate of registration, he shall be
liable to a penalty not exceeding ten thousand rupees for each day during which he carries on
any such collective investment scheme, including mutual funds, or ten lakh rupees,
whichever is higher;
(B) Registered with the Board as a collective investment scheme, including mutual funds, for
sponsoring or carrying on any investment scheme, fails to comply with the terms and
conditions of certificate of registration, he shall be liable to a penalty not exceeding ten
thousand 20 Chapters VIA and VIB inserted by the Securities Laws (Amendment) Act, 1995,
w.e.f. 25-1-1995. Rupees for each day during which such failure continues or ten lakh rupees,
whichever is higher;
(C) registered with the Board as a collective investment scheme including mutual funds, fails
to make an application for listing of its schemes as provided for in the regulations governing
such listing, he shall be liable to a penalty not exceeding five or five lakh rupees, whichever
is higher
(D) registered as a collective investment scheme, including mutual funds, fails to dispatch
unit certificates of any scheme in the manner provided in the regulation governing such
dispatch, he shall be liable to a penalty and exceeding one thousand rupees of each day
during which such failure continues;
(E) registered as collective investment scheme, including mutual funds, fails to refund the
application monies paid by the investors within the period specified in the regulations, he
shall be liable to a penalty and exceeding one thousand rupees for each day during which
such failure continues;
(F) Registered as a collective investment scheme, including mutual funds, fails to invest
money collected by such collective investment schemes in the manner or within the period
specified in the regulations, he shall be liable to a penalty not exceeding five lakh rupees for
each such failure.
15E. Penalty for failure to observe rules and regulations by an asset Management
Company
Where any asset management company of a mutual fund registered under this Act Fails to
comply with any of the regulations providing for restrictions on the activities of The asset
management companies, such asset management company shall be liable to a penalty not
exceeding five lakh rupees for each such failure.
15F. Penalty for default in case of stock brokers
If any person, who is registered as a stock broker under this Act, -
(a) Fails to issue contract notes in the form and manner specified by the stock exchange of
which such broker is a member, he shall be liable to a penalty not exceeding five times the
amount for which the contract note was required to be issued by that broke;

INVESTING AT EQUITY MARKET VIA SHAREKHAN FROM NISHANT PATEL

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