1. MASTERS IN MANAGEMENT STUDIES
Summer Internship Report
Name of Company: SHAREKHAN LTD.
Address of Company: Shah & Nahar group industrial estate, 232,Sharekhan,
Lower Parel,Mumbai (west)400013.
Phone No.
Email id :myaccount@sharekhan.com
Submitted by:
Swati G. Pawar
(Roll No.43)
Name of Coordinator: Mustafa Sapatwala
BES’s Institute of Management Studies and Research
(Approved by AICTE & Affiliated to University of Mumbai)
May 2010

2. DECLARATION
I hereby declare that the Summer Internship Report submitted for the MMS
Degree, BES’s Institute of Management Studies and Research (Affiliated to
University of Mumbai) is my original work and conducted in Sharekhan Ltd
Company.
Place: Mumbai
Date:
(XXXXXXXXXXX)
Signature of the Student

3. Certificate
This is to certify that the Summer Internship Report is the bona fide internship
work carried out by Ms. Swati G.Pawar student of MMS, at BES’s Institute of
Management Studies and Research (Affiliated to University of Mumbai) during
the May to July 2010, in partial fulfillment of the requirements for the award of
the Degree of Master in Management Studies.
Place: Mumbai
Date:
Signature of the Director Signature of the Coordinator

4. ACKNOWLEDGEMENTS
I wish to express my gratitude to Mr.Swanand Kale from the Sharekhan Ltd
for providing me valuable information.
I am grateful to BES’s Institute of Management Studies and Research for
giving me an opportunity to pursue MMS. I wish to thank Professor Vikram D.
Shikhare, Director, BES’s Institute of Management Studies and Research who
has been a perpetual source of inspiration and offered valuable suggestions
to improve my practical Knowledge.
I am indebted to my Coordinator Mr. Mustafa Sapatwala Professor, BES’s
Institute of Management Studies and Research, for abundant guidance,
support, and encouragement throughout my internship Study.
I would like to express my thanks to various people from the Sharekhan Ltd
Company for their support and direction.
Place: Mumbai
Date: July, 2010
Signature of the student
(swati G. pawar)

5. TABLE OF CONTENTS
Page
Chapter No Title
No
A List of Abbreviations
1 Sharekhan Ltd Industry - A perspective
1.1 Introduction
1.2 Global Scenario
1.3 Indian Scenario
2 Sharekhan Ltd Company Profile
3 Marketing Department
4 Finance Department
5 Operation / Production Department
6 MIS/ IT Department
7 Solutions of Problems with Merit and Demerit
8 Recommendations to Company
9 Learning Outcomes
10 Reference Section

6. LIST OF ABBREVIATIONS
EU European Union
FDI Foreign Direct Investment
GDP Gross Domestic Product
NAFTA North American Free Trade Agreement
SSKI Shri Shantilal Kantilal Ishwarlal
BSE Bombay Stock Exchange
NSE National Stock Exchange
IPO Initial public offerings
F&O Futures & Options
MIS monthly income scheme
NSC National Saving Certificate
PPF Public Provident Fund
NSDL National securities depository limited
DICGC (deposit insurance and credit Guarantee Corporation
CDSL Central depository services limited
SAARC South Asian Association for Regional Corporation

7. Chapter 1
Sharekhan Ltd Industry - A perspective
Introduction – (Information related to specific Industry)
Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group
which is running successfully since 1922 in the country. It is the retail broking
arm of the Mumbai-based SSKI Group, which has over eight decades of
experience in the stock broking business. Sharekhan offers its customers a
wide range of equity related services including trade execution on BSE, NSE,
Derivatives, depository services, online trading, investment advice etc.
The firm’s online trading and investment site - www.sharekhan.com - was
launched on Feb 8, 2000. The 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 site has a
registered base of over one lakh customers. 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. The objective has been to let customers make
informed decisions and to simplify the process of investing in stocks.
On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable
application that emulates the broker terminals along with host of other
information relevant to the Day Traders. This was for the first time that a net-
based trading station of this caliber was offered to the traders. In the last six
months Speed Trade has become a de facto standard for the Day Trading
community over the net. Share khan’s ground network includes over 1288
centers in 325 cities in India which provide a host of trading related services.
Sharekhan has always believed in investing in technology to build its
business. The company has used some of the best-known names in the IT
industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies,
Nexgenix, Vignette, VeriSign Financial Technologies India Ltd, Spider
Software Pvt Ltd. to build its trading engine and content. The Morakhiya family
holds a majority stake in the company.HSBC; Intel & Carlyle are the other
investors.
With a legacy of more than 80 years in the stock markets, the SSKI group
ventured into institutional broking and corporate finance 18 years ago.
Presently SSKI is one of the leading players in institutional broking and
corporate finance activities. SSKI holds a sizeable portion of the market in
each of these segments. SSKI’s institutional broking arm accounts for 7% of
the market for Foreign Institutional portfolio investment and 5% of all
Domestic Institutional portfolio investment in the country. It has 60 institutional

8. clients spread over India, Far East, UK and US. Foreign Institutional Investors
generate about 65% of the organization’s revenue, with a daily turnover of
over US$ 2 million. The Corporate Finance section has a list of very
prestigious clients and has many ‘firsts’ to its credit, in terms of the size of
deal, sector tapped etc. The group has placed over US$ 1 billion in private
equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.
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. Sharekhan provides 4 in 1 account. - Demat a/c
- Trading a/c: for cash calculation - Bank a/c: for fund transfer -¬ Mutual fund
schemes ¬Dial and Trade: for query relating trading Products: ¬ Bonds ¬
Shares – online and offline ¬ Portfolio Management System ¬Insurance
Commodities Out of these we have to mostly sell demat accounts¬Fixed
Deposits and Mutual Funds.

9. Global Scenario –
HISTORY OF THE STOCK BROKING INDUSTRY
When people talk about the Stock Market, it's no always immediately clear
what they're referring to. Is the Stock Market a place? Or is it something
different? To many people it is an abstract idea. They buy stocks in "the stock
market" without ever leaving the comfort of their computer terminal. But the
stock market is indeed a physical place with buildings and addresses, a place
you can go visit.
Many folks think of Wall Street and the Stock Market as one in the same, and
that view isn't really far from the truth. Wall Street is the place where it all
started and where the world's largest financial market was born and
prospered. From Wall Street sprang a new industry with it's own language and
terminology. Wall Street can trace its name back to 1653. Originally it was set
up for defense and not for commerce.
The year was 1790. The place was Philadelphia. The occasion was the
founding of the first stock exchange in America. Two years later a group of
New York merchants met to discuss how to take command of the securities
business. The merchants, a group of 24 men, founded what is now known as
the New York Stock Exchange. But in early 1817, the merchant group from
New York, distressed at the sorry state of their stock exchange, sent a
representative to Philadelphia to observe how things were being done. Upon
arriving with news about the robust exchange in Philadelphia, the New York
Stock and Exchange Board was soon formally organized.
The exchange opened up shop on Wall Street. As for the New York Stock
Exchange, it has since moved past its humble beginnings to the point where
its system now facilitates billions of dollars worth of trades each day. But there
was a gradual build up to this sort of status. In the early 1900s massive
amounts of money were made on Wall Street. But the boom period could not
be sustained indefinitely. And in 1929 this principle came front and center as
the stock market crash of 1929 seared the national.nay, global. Psyche and
triggered what was to be called the Great Depression.
While many of the powers that be realized that the markets could not sustain
a boom forever, very few publicized this view, choosing instead to let the
market be its own judge, jury and executioner. As a result of the laissez-faire
attitude, many people. Rich and poor alike. Lost a lot of money.
But the stock market crash of 1929 was just the beginning of sorrows for Wall
Street. For while the economy eventually recovered from its catastrophic
losses, the market excesses that had factored into the crash in the late 1920s
seeped back into the picture. The result was the stock market crash of 1987,
which saw the Dow Jones suffer what was the largest single-day loss in the
stock market’s history.
Since then, the government and the industry have tried to put measures in
place to curtail, if not entirely eliminate, the possibility of such a large-scale
crash. The stock markets are now an integral part of the global economy, and
so proper safeguards to reduce the risks of another disastrous crash are
necessary.

10. The current "stock market" is comprised of 300,000 computers situated on pro
trader's desks. These computers are networked together using sophisticated
protocols. This level of information sharing makes pricing an almost exact
science.
These 300,000 computers are further linked to another 26 million computers
worldwide. These computers are located in banks, small businesses, and
large corporations. These computers comprise the banking networks which
make computerized transactions possible.
Finally, these computers are connected to another 300 million+ computers
which connect and disconnect from the financial markets daily. In New York
City alone, these transactions amount to over $2.2 trillion dollars daily
The size of the world stock market was estimated at about $36.6 trillion US at
the beginning of October 2008 The total world derivatives market has been
estimated at about $791 trillion face or nominal value,11 times the size of the
entire world economy. The value of the derivatives market, because it is
stated in terms of notional values, cannot be directly compared to a stock or a
fixed income security, which traditionally refers to an actual value. Moreover,
the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet'
on an event occurring is offset by a comparable derivative 'bet' on the event
not occurring). Many such relatively illiquid securities are valued as marked to
model, rather than an actual market price.

11. Indian Scenario –
Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest records of security dealings in India are
meager and obscure. By 1830's business on corporate stocks and shares in
Bank and Cotton presses took place in Bombay. Though the trading list was
broader in 1839, there were only half a dozen brokers recognized by banks
and merchants during 1840 and 1850. The 1850's witnessed a rapid
development of commercial enterprise and brokerage business attracted
many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United
States of Europe was stopped; thus, the 'Share Mania' in India begun. The
number of brokers increased to about 200 to 250. However, at the end of the
American Civil War, in 1865, a disastrous slump began (for example, Bank of
Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At
the end of the American Civil War, the brokers who thrived out of Civil War in
1874, found a place in a street (now appropriately called as Dalal Street)
where they would conveniently assemble and transact business. An important
early event in the development of the stock market in India was the formation
of the Native Share and Stock Brokers’ Association at Bombay in 1875, the
precursor of the present-day Bombay Stock Exchange. This was followed by
the formation of associations /exchanges in Ahmadabad (1894), Calcutta
(1908), and Madras (1937). IN addition, a large number of ephemeral
exchanges emerged mainly in buoyant periods to recede into oblivion during
depressing times subsequently.
In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as "The Stock Exchange").
In 1895, the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of
exchanges were increased and at currently it reached to the figure of 24 stock
exchanges.
The Indian Stock Index is called the Sensex. It is comprised of 30 stock-
sensitive companies and was first compiled in 1986 by the Bombay Stock
Exchange. The companies come from 13 industries and are chosen to be
representative of the businesses in India. It serves much like the Dow Jones
Industrial Index or the S&P 500 Index in America. The Sensex crossed 1000
for the first time in 1990. Two years later, the index nearly quadrupled
because of Financial Minister Man Mohan Singh's financial policies. The index
passed the 8000 mark in 2005. It peaked at 20,000 in January 2008.
The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia.
It traces its history to the 1850s, when stockbrokers would gather under
banyan trees in front of Mumbai’s Town Hall. The location of these meetings
changed many times, as the number of brokers constantly increased. The
group eventually moved to Dalal Street in 1874 and in 1875 became an
official organization known as ‘The Native Share & Stock Brokers
Association’. In 1956, the BSE became the first stock exchange to be

12. recognized by the Indian Government under the Securities Contracts
Regulation Act.
The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the
BSE a means to measure overall performance of the exchange. In 2000 the
BSE used this index to open its derivatives market, trading Sensex futures
contracts. The development of Sensex options along with equity derivatives
followed in 2001 and 2002, expanding the BSE’s trading platform.
Historically an open-cry floor trading exchange, the Bombay Stock Exchange
switched to an electronic trading system in 1995. It took the exchange only
fifty days to make this transition.
Capital market reforms in India and the launch of the Securities and Exchange
Board of India (SEBI) accelerated the integration of the second Indian stock
exchange called the National Stock Exchange (NSE) in 1992. After a few
years of operations, the NSE has become the largest stock exchange in India.
Three segments of the NSE trading platform were established one after
another. The Wholesale Debt Market (WDM) commenced operations in June
1994 and the Capital Market (CM) segment was opened at the end of 1994.
Finally, the Futures and Options segment began operating in 2000. Today the
NSE takes the 14th position in the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and
CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is
a diversified index of 50 stocks from 25 different economy sectors. The
Indices are owned and managed by India Index Services and Products Ltd
(IISL) that has a consulting and licensing agreement with Standard & Poor’s.
In 1998, the National Stock Exchange of India launched its web-site and was
the first exchange in India that started trading stock on the Internet in 2000.
The NSE has also proved its leadership in the Indian financial market by
gaining many awards such as ‘Best IT Usage Award’ by Computer Society in
India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999).
India has the second largest number of companies being traded on its stock
exchanges, second only to the United States. The Bombay Stock Exchange
has more companies listed than any other exchange in the world (4700
companies in 2007). The growing popularity of investing in the stock market in
India has also led to more middle-class investors and on-line trading of Indian
stocks. The number of Indians invested in the stock market is around 30
million.

13. ACHIEVEMENTS OF SHAREKHAN:
A wired company along with Reliance, HUJl, Infosys, etc by ‘Business
Today’, January 2004 edition. Awarded ‘Top Domestic Brokerage House’ four
times by Euro Asia money. Pioneers of online trading in India amongst the top
3 money and from India. Most preferred financial destination online trading
websites Winners of “Best Financial Website” award. Amongst online broking
customers. India’s most preferred brokers within 5 years. “Awaaz customers
Award 2005”.

14. Chapter 2
Sharekhan Ltd – Company Profile
Brief History/ Background of Company
SKI Group Companies- ¬
SSKI Corporate Finance ¬
S.S. Kantilal Ishwarlal Securities Ltd (Share khan)
Share khan Commodities Pvt Ltd
Fin flow Investment Pvt Ltd.
Palm spring estates Pvt Ltd.
I dream Production UK Pvt Ltd.
Archfund Properties Pvt Ltd.
PROFILE OF THE 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
Revenue : Data Not Available
Website : www.sharekhan.com
Slogan : Your Guide to The Financial Jungle.
Sharekhan is online stock trading company of SSKI Group, provider of India-
based investment banking and corporate finance service. Sharekhan is one of
the largest stock broking houses in the country. Shri Shantilal Kantilal
Ishwarlal Securities Limited (SSKI) has been among India’s leading broking
houses for more than a century.
Sharekhan is one of the leading retail brokerage firms in the country. It is the
retail broking arm of the Mumbai-based SSKI Group , which has over eight
decades of experience in the stock broking business.
Sharekhan Ltd is India's leading online retail broking house with its presence
through 1288'Share Shops' in 398 cities. It has a client base of 1.5 Corers.
Launched on 8th February, 2000 as an online trading portal, Sharekhan offers
its client’s trade execution facilities for cash as well as derivatives, on BSE
and NSE, depository services, mutual funds, initial public offerings (IPOs),
and commodities trading facilities on MCX and NCDEX. Besides high quality
investment advice from an experienced research team Sharekhan provides
market related news, stock quotes fundamental and statistical information
across equity, mutual funds, IPOs and much more. Sharekhan is also about

15. 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. To sum
up, Sharekhan brings to you a user- friendly online trading facility, coupled
with a wealth of content that will help you stalk the right shares.
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
clients 7, 00,000.
Get everything you need at a Sharekhan outlet! All you have to do is walk
into any of our 640 share shops across 280 cities in India to get a host of
trading related services - our friendly customer service staff will also help you
with any accounts related Online queries you may have.
Sharekhan Ltd is India's leading online retail broking house with its presence
through 1288'Share Shops' in 398 cities. It has a client base of 1.5 Corers.
Launched on 8th February, 2000 as an online trading portal, Sharekhan offers
its client’s trade execution facilities for cash as well as derivatives; Sharekhan
is one of the leading retail brokerage firms in the country. It is the retail
broking arm of the Mumbai-based SSKI Group, which has over eight decades
of experience in the stock broking business. SSKI owns 37.21% in
Sharekhan; balance ownership is HSBC, Intel Pacific, and General Atlantic.
Sharekhan offers its customers a wide range of equity related services
including trade execution on BSE, NSE, Derivatives, depository services,
online trading, investment advice etc. Share khan’s ground network includes
over 450 centers in more than 157 cities in India, of which 100 are fully-owned
branches.
REASON TO CHOOSE SHAREKHAN LIMITED
Experience
SSKI has more than eight decades of trust and credibility in the Indian stock
market. In the Asia Money broker's poll held recently, SSKI won the 'India's
best broking house for 2004' award. Ever since it launched Sharekhan as its
retail broking division in February 2000, it has been providing institutional-
level research and broking services to individual investors.
Technology
With their online trading account one can buy and sell shares in an instant
from any PC with an internet connection. Customers get access to the
powerful online trading tools that will help them to take complete control over
their investment in shares.

16. Accessibility
Sharekhan provides services for investors. These services are accessible
through many centers across the country (Over 650 locations in 150 cities),
over the Internet (through the website www.sharekhan.com) as well as over
the Voice Tool.
Knowledge
In a business where the right information at the right time can translate into
direct profits, investors get access to a wide range of information on the
content-rich portal, www.sharekhan.com. Investors will also get a useful set of
knowledge-based tools that will empower them to take informed decisions.
Convenience
One can call Share khan’s Dial-N-Trade number to get investment advice and
execute his/her transactions. They have a dedicated call-center to provide this
service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere in
India.
Customer Service
Its customer service team assists their customer for any help that they need
relating to transactions, billing, dmat and other queries. Their customer
service can be contacted via a toll- free number, email or live chat on
www.sharekhan.com.
Investment Advice
Sharekhan has dedicated research teams of more than 30 people for
fundamental andtechnical researches. Its analysts constantly track the pulse
of the market and provide timely investment advice to its clients in the form of
daily research emails, online chat,printed reports and SMS on their mobile
phone.

17. Location – Head Office and Branches
122 Franchisees and 28 branches
Covers 82 cities in 17 states across
India
Headquarter: Sharekhan SSKI A-206
Phoenix House
Phoenix Mills Compound
Lower Parel Mumbai –
Maharashtra, INDIA- 400013
Branches : 1) Sharekhan B/204,
Kotia Nirman, 2nd Floor,
Next to Fun Republic Cinema,
New Link Road, Andheri (W),
Mumbai - 400 053.
2) Sharekhan Flat No. 4B,
Ground Floor, Ashwin Villa,
Telang Road, Matunga (E),
Mumbai - 400019.

18. Products and Services offered by the Company
The different types of products and services offered by Sharekhan Ltd. are as
follows:
Equity and derivatives trading
Depository services
Online services
Commodities trading
Dial-n-trade
Portfolio management
Share shops
Fundamental research
Technical research

19. Overview of Demat Account :
Demat account allows you to buy, sell and transact shares without the
endless paperwork and delays. It is also safe, secure and convenient. In
India, a demat account, the abbreviation for dematerialized account, is a type
of banking account which dematerializes paper-based physical stock shares.
The dematerialized account is used to avoid holding physical shares: the
shares are bought and sold through a stock broker. This account is popular in
India. The Securities and Exchange Board of India (SEBI) mandates a demat
account for share trading above 500 shares. As of April 2006, it became
mandatory that any person holding a demat account should possess a
Permanent Account Number (PAN), and the deadline for submission of PAN
details to the depository lapsed on January 2007. Is a demat account a must?
Now a day, practically all trades have to be settled in dematerialized form.
Although the market regulator, the Securities and Exchange Board of India
(SEBI), has allowed trades of up to 500 shares to be settled in physical form,
nobody wants physical shares any more. So a demat account is a must for
trading and investing. Why demat? The demat account reduces brokerage
charges, makes pledging/hypothecation of shares easier, enables quick
ownership of securities on settlement resulting in increased liquidity, avoids
confusion in the ownership title of securities, and provides easy receipt of
public issue allotments. It also helps you avoid bad deliveries caused by
signature mismatch, postal delays and loss of certificates in transit. Further, it
eliminates risks associated with forgery, counterfeiting and loss due to fire,
theft or mutilation. Demat account holders can also avoid stamp duty (as
against 0.5 per cent payable on physical shares), avoid filling up of transfer
deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
What is dematerialization?
Dematerialization is the process by which physical certificates of an investor
are converted to an equipment number of securities in electronic from and
credited in the investor account with his DP. In order to dematerialize the
certificates, an investor has to first open an account with a DP and then
request for the Dematerialization Request Form, which is DP and submit the
same along with the share certificates. The investor has to ensure that he
marks “Submitted for Dematerialization” on the certificates before the shares
are handed over to the DP for demat. Dematerialization can only be done to
those certificates, which are already registered in your name and belong to
the list of securities admitted for Dematerialization at NSDL.Most of the active
scrip’s in the market including all the scrip’s of S&P CNX NIFTY and BSE
SENSEX have already joined NSDL. This list is steadily increasing.
Briefly, the process is as follows: after completion of transfer, the investor gets
the option to dematerialize such shares. Investor’s willing to exercise this
option sends a Demat request along with the option letter sent by the
company to his DP. The company or its R&T agent would confirm the Demat
request on its receipt from the DP to reduce risk of loss in transit.
Dematerialized shares do not have any distinctive or certificate numbers.
These shares are fungible-which means that 100 shares of a security are the

20. same as any other 100 shares of the security. Odd lot shares certificates can
also be dematerialized.
Dematerialization normally takes about fifteen to thirty days. To get back
dematerialized securities in the physical form, request DP for
Rematerialization of the same is made.
Rematerialization is the process of converting electronic shares in to physical
shares.
Benefits of Demat:
• It reduces the risk of bad deliveries, in turn saving the cost and
wastage of time associated with follow up for rectification. This has
lead to reduction in brokerage to the extent of 0.5% by quite a few
brokerage firms.
• In case of transfer of electronic shares, you save 0.5% in stamp duty.
You avoid the cost of courier / notarization.
• You can receive your bonuses and rights issues into your DA as a
direct credit, this eliminating risk of loss in transit.
• You can also expect a lower interest charge for loans taken against
Demat
• shares as compared to loans against physical shares.
• There is no lost in transit, thus the overheads of getting a duplicate
copy in such circumstances is reduced.
• RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities as against 50% for loans against physical
securities.
Why DEMAT a/c likes a BANK a/c?
Just as you have to open an a/c with a bank if you want to save your money,
make cheque payments etc, you need to open a demat a/c if you want to buy
or sell stocks. So it just like a bank a/c where actual money replaced by
shares. Example : let’s say your portfolio has 100 of SATYAM, 200 of IBM
and 120 of TCS shares. All these will show in your a/c. so you don’t have to
possess any physical certificate that you own these shares. They all are held
electronically in your a/c.
Steps involved in opening a demat account:
First an investor has to approach a DP and fill up an account opening form.
The account opening form must be supported by copies of any one of the
approved documents to serve as proof of identity (POI) and proof of address
(POA) as specified by SEBI. Besides, production of PAN card in original at the
time of opening of account has been made mandatory effective from April 01,
2006. All applicants should carry original documents for verification by an
authorized official of the depository participant, under his signature. Further,
the investor has to sign an agreement with DP in a depository prescribed
standard format, which details rights and duties of investor and DP. DP should
provide the investor with a copy of the agreement and schedule of charges for
their future reference. The DP will open the account in the system and give an
account number, which is also called BO ID (Beneficiary Owner Identification
number). The DP may revise the charges by giving 30 days notice in
advance. SEBI has rationalized the cost structure for dematerialization by

21. removing account opening charges, transaction charges for credit of
securities, and custody charges vide circular dated January 28, 2005. Further,
SEBI has vide circular dated November 09, 2005 advised that with effect from
January 09, 2006, no charges shall be levied by a depository on DP and
consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all
the securities lying in his account to another branch of the same DP or to
another DP of the same depository or another depository, provided the BO
Account/s at transferee DP and at transferor DP are one and the same, i.e.
identical in all respects. In case the BO Account at transferor DP is a joint
account, the BO Account at transferee DP should also be a joint account in
the same sequence of ownership.
Rights: 1. You can open more than one depository account in the same
name with single DP/ multiple DPs. 2. No minimum balance is required to be
maintained in a depository account. 3. You can give a onetime standing
instruction to your DP to receive all the credits coming to your depository a
safe and convenient way to hold¬account automatically
DEMAT Conversion :-
1. Surrender the certificates of physical shares for dematerialization to your
depository participants.
2. Depository participant intimates depository of the request through the
system.
3. Depository participant submit the certificates to the registrar to the issuer
company.
4. Registrar confirms the dematerialization request from depository.
5. After dematerializing the certificates, registrar updates accounts and
informs depository of the completion of dematerialization.
6. Depository updates its accounts and informs the depository participant.
7. Depository participant updates demat a/c of the investor
DEMAT Benefits?
No stamp duty on transfer of securities.
Immediate transfer of securities.
Elimination of risks associated with securities (0.5 % on physical shares).
Physical certificates such as bad delivery, fake securities, delays, theft No
odd lot problem
Reduction in transaction cost.
Reduction in paper work. etc.
Even one share can be sold.
Holding investment in equity and debt instruments
Nomination facility in a single account.etc.

22. A Sharekhan outlet offers the following services:
Online BSE and NSE executions (through BOLT & NEAT terminals).
Sharekhan Value Line (a monthly publication with reviews of
recommendations, stocks to Watch out for etc)
investment advice from Sharekhan's Research team monthly publication with
reviews of recommendations, stocks to watch out for etc) 20
Daily research reports and market review (High Noon & Eagle Eye)
Daily trading calls based on Technical Pre-market Report (Morning Cuppa)
Cool trading products (Daring Derivatives and Market Strategy)
Analysis Depository Services: Demat
Live Market Information
Personalised Advice & Commodities
Derivatives Trading (Futures and Options)
Trading & Internet-based Online Trading: SpeedTrade
IPO’s & Mutual Funds Distribution •
TYPES OF PRODUCTS
• Classic Account
• Fast trade Account
• Trade Tiger
1. Classic Account
This is a User Friendly Product which allows the client to trade through
website www.sharekhan.com and is suitable for the retail investor who is risk-
averse and hence prefers to invest in stocks or who does not trade too
frequently. This account allow investors to buy and sell stocks online along
with the following features like multiple watch lists, Integrated Banking, Demat
and digital contracts, Real-time portfolio tracking with price alerts and Instant
credit & transfer.
The features about classic account are-
a. Online trading account for investing in Equities and Derivatives
b. Free trading through Phone (Dial-n-Trade)
I. Two dedicated numbers(1800-22-7500 and 39707500) for placing
the orders using cell phones or landline phones
II. Automatic funds transfer with phone banking facilities (for Citibank
and HDFC bank customers)
III. Simple and Secure Interactive Voice Response based system for
authentication

23. IV. get the trusted, professional advice of Sharekhan limited’s Tele
Brokers
V. After hours order placement facility between 8.00 am and 9.30 am
c. Integration of: Online Trading +Saving Bank + Demat Account.
d. Instant cash transfer facility against purchase & sale of shares.
e. IPO investments.
f. Instant order and trade confirmations by e-mail.
g. Single screen interface for cash and derivatives.

24. 2. Fast trade Account
This is an internet-based software application, which enables one to buy and
sell in an instant. It is ideal for active traders and jobbers who transact
frequently during day’s session to capitalize on intra-day price movement.
This account comes with the following features:
a. Instant order Execution and Confirmation.
b. Single screen trading terminal for NSE Cash, NSE F&O & BSE.
c. Technical Studies.
d. Multiple Charting.
e. Real-time streaming quotes, tic-by-tic charts.
f. Market summary (Cost traded scrip, highest value etc.)
g. Hot keys similar to broker’s terminal.
h. Alerts and reminders.
i. Back-up facility to place trades on Direct Phone lines.
j. Live market debts.

25. 3.Trade Tiger
This is an internet-based software application, which enables one to buy and
sell in an instant. It is ideal for active traders and jobbers who transact
frequently during day’s session to capitalize on intra-day price movement.
Trade Tiger is an application that brings you the power of a broker’s terminal,
right from your desktop.
Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a single
screen.
Customize market watches by scripts or sectors and view them on a single
screen. Get access to technical tools and trade like a pro.
This account comes with the following features:
• Instant order Execution and Confirmation.
• Single screen trading terminal for NSE Cash, NSE F&O & BSE. 48
• Technical Studies.
• Multiple Charting.
• Real-time streaming quotes, tic-by-tic charts.
• Market summary (Cost traded scrip, highest value etc.)
• Hot keys similar to broker’s terminal.
• Alerts and reminders.
• Back-up facility to place trades on Direct Phone lines.
• Live market debts.

26. HOW TO OPEN AN ACCOUNT WITH SHAREKHAN LIMITED?
For online trading with Sharekhan Ltd., investor has to open an account.
Following are the ways to open an account with Sharekhan Ltd.:
• One need to call them at phone number provided below and asks that
he want to open an account with them.
a. One can call on the Toll Free Number: 1-800-22-7500 to speak to a
Customer Service executive
b. Or If one stays in Mumbai, he can call on 022-66621111
• One can visit any one of Sharekhan Limited’s nearest branches.
Sharekhan has a huge network all over India (640 centers in 280
cities). One can also log on to “http://sharekhan.com/Locateus.aspx”
link to find out the nearest branch.
• One can send them an email at info@sharekhan.com to know about
their
• products and services.
• One can also visit the site www.sharekhan.com and click on the option
“Open an Account” to fill a small query form which will ask the
individual to give details regarding his name, city he lives in, his email
address, phone number, pin code of the city, his nearest Sharekhan
Ltd. shop and his preferences regarding the type of account he wants.
These information are compiled in the headquarter of the company that is in
Mumbai from where it is distributed throughout the country’s branches in the
form of leads on the basis of cities and nearest share shops. After that the
executives of the respective branches contact the prospective clients over
phone or through email and give them information regarding the various types
of accounts and the documents they need to open an account and then fix
appointment with the prospective clients to give them demonstration and
making them undergo the formalities to open the account. After that the forms
that has collected from the clients, is scrutinized in the branch and then it is
sent to Mumbai for further processing where after a few days the clients’
account are generated and activated. After the accounts are activated, a
Welcome Kit is dispatched from Mumbai to the clients’ address mentioned in
the documents provided by them. As soon as the clients receive the Welcome
Kit, which contains the clients’ Trading ID and Trading Password, they can
start trading and investing in shares.

27. Generally the process of opening an account follows the following steps:
LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES
CONTACT THE PERSON OVER PHONE OR THROUGH EMAI
L
FIXING AN APPOINTMENT WITH THE PERSON
GIVING
DEMONS
TRATION
YES NO
DOCUMENTATION
FILLING UP THE FORM
SUBMISSION OF THE FORM
LOGIN OF THE FORM
SENDING ACCOUNT OPENING KIT TO THE CLIENT
TRADING

28. Apart from two passport size photographs, one needs to provide with the
following
documents in order to open an account with Sharekhan Limited.:
d Photocopy of the clients’ PAN Card which should be duly attached
P Photo copy of any of the following documents duly attached which will
serve as correspondence address proof:
a. Passport (valid)
b. Voter’s ID Card
c. Ration Card
d. Driving License (valid)
e. Electricity Bill (should be latest and should be in the name of the client)
f. Telephone Bill (should be latest and should be in the name of the client)
g. Flat Maintenance Bill (should be latest and should be in the name of the
client)
h. Insurance Policy (should be latest and should be in the name of the client)
i. Lease or Rent Agreement.
j. Saving Bank Statement** (should be latest)
j Two cheques drawn in favour of Sharkhan Limited, one for the Account
Opening Fees and the other for the Margin Money (the minimum margin
money is Rs. 5000).
** A cancelled cheque should be given by the client if he provides Saving
Bank Statement as a proof for correspondence address.
NOTE: Only Saving Bank Account cheques are accepted for the purpose of
Opening an account.
EXPOSURE:
Sharekhan also helps their customers by providing them a Four time
Exposure.
Example :- If a customer invests Rs. 20000, then he will get a exposure of 4
times of Rs. 20000 that means Rs. 20000 * 4 = Rs. 100000. But only for Five
days, within 5 days the customer have to pay back the amount otherwise they
will sell your shares. But yes, they will sell the loss making shares first. If you
make any frod , then also you may face the same problem. But Exposure
always helps the customer to invest more and more in profit making scripts. It
is like an Overdraft which you have to return within 5 days.
NOTES
In Sharekhan account opening is free.
First year’s maintenance charge is zero.
Second year’s maintenance is Rs 300.

29. Tie ups with Banks Tie ups with Banks
Sharekhan has tied up with ten banks to facilitate the transfer of money from
saving account to Dmat account and vice –versa .and by only these banks
one can transfer the money by e-banking .
AXIS Bank
Bank of India
Citi Bank
HDFC
ICICI Bank
IDBI Bank
IndusInd Bank
Oriental Bank of Commerce {OBC}
Union Bank of India
Yes Bank
Vision, Mission, Goals and Organizational Objectives
Vision : To be the best retail brokering Brand in the retail business of stock
market.
Mission : To educate and empower the individual investor to make better
investment decisions through quality advice and superior service
SHAREKHAN LIMITED’S MANAGEMENT TEAM:
Dinesh Murikya : Owner of the company
Tarun Shah : CEO of the company
Shankar Vailaya : Director (Operations)
Jaideep Arora : Director (Products & Technology)
Pathik Gandotra : Head of Research
Rishi Kohli : Vice President of Equity Derivatives

30. Nikhil Vora : Vice President of Research
HIERARCHY IN Sharekhan
There are 14 main hierarchical levels in Sharekhan:
1) Trainees
2) Super trainees
3) Sales executives
4) Assistant sales manager
5) Area sales manager : Mr. Chirag Joshi
6) City sales manager
7) Assistant branch manager
8) Branch manager
9) Regional head
10)Cluster head
11) Business head
12) Country head
13) Directors
14) CEO
Current Strategies of Company
STRATEGY ADOPTED:
INSTALL THE SOFTWARE TAKE
REFERENCES
COMPLETE THE FORMALITIES
TELECALLING
FIX APPOINTMENT
YES
ATTEND
INTERESTED APPOINTMENT
NOT TAKE REFERENCES

31. TELECALLING -
WISH /GREETINGS INTRODUCTION
CLOSE THE CALL PURPOSE OF CALLING
BROKERAGE EXPLAINATION NEED GENERATION
FIX THE APPOINTMENT OBJECTION HANDLING
Future Plans:
Branches / Semi branches servicing¬centralized call centers/ web solutions.
250¬affluent / aggressive traders through high skill financial advisor.
independent investment managers/ franchisee servicing 50,000 highly valued
New initiatives Portfolio management Services and commodities¬clients
trading.

32. Chapter 3
Marketing
CONSUMER BEHAVIOR - A THEORETICAL INPUT
"The most important thing is to forecast where customers are moving and to
be in front of them." - Kotler
The aim of marketing is to meet and satisfy target customers needs & Wants.
The field of Consumer Behavioral studies how individuals, grows, and
organizations. Select, buy, use & dispose of goods, services, ideas or
experiences to satisfy their needs & desires. Understanding consumer
behavior and "knowing customers" is never simple .Customers may say one
thing but do another. They may not be in touch with their deeper motivations.
They may respond to influences that change their minds at the last minute.
Consumer behavior is a process and purchase is only one stage in the
process. There are many underlying influences ranging from internal
motivations and attitudes to social influences of various kinds. Yet, motivation
and attitude can be understood through research. Perfect predication is never
possible, but properly designed and used research efforts can significantly
lower the risk of marketing failure.
Consumer behavior is related to an individual person (micro behavior) where
as consumption behavior relates to the mass or aggregates of individuals
(macro behavior). The study of consumer behavior always focuses on the
decision process of the individual consumer or consuming unit, such as the
family. In contrast, the study of consumption behavior is concerned with
description & explanation of the behavior of aggregates of consumer or
consuming units, again at a given time or over a period of time.
Consumer Behavior Influencing Investment Pattern
Usually before investment consumers go on for a detailed study of each and
every option available to them. Often they want to go on for those options
which involves less risk and that will give more profit. Usually before investing
anywhere they like to consult those to whom they rely and those who have
also invested in financial services.
INVESTING
An investment operation is one which, upon thorough analysis promises
safety of principal and
an adequate return. Operations not meeting these requirements are
Speculative

33. Types of Investment.
A) Fixed Return Options
B) Variable Return Options
C) Conventional returns options
Fixed Return Options
i) Post Office Monthly Income Scheme
In this scheme, an investment can be made by individual in single or joint
names up to a maximum of Rs 9lakhs (Rs 4.5lakhs per person) with an
interest of approximately 10.5% in a monthly income scheme. In addition this
investment will fetch you a taxable bonus of 8% on the deposit maturity (i.e.
after 6 years). Premature withdrawal is allowed after one year with a discount
of 5% on the amount deposited as a penalty and after 3 years without any
discount on the bonus. Interest qualifies for deduction under section 80L. Only
individuals can open the
account (either single or joint). The post-office monthly income scheme (MIS)
provides for monthly payment of interest income to investors. It is meant for
investors who want to invest a sum amount initially and earn interest on a
monthly basis for their livelihood. The MIS is not suitable for an increase in
your investment. It is meant to provide a source of regular income on a long
term basis. The scheme is, therefore, more beneficial for retired persons.
ii) Other Post Office Schemes
a) National Saving Certificate (NSC):
National Savings Certificates (NSC) are certificates issued by Department
of post, Government of India and are available at all post office counters in the
country. It is a long term safe savings option for the investor. The scheme
combines growth in money with reductions in tax liability as per the provisions
of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years. NSCs
are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs
10,000 for a maturity period of 6 years. There is no prescribed upper limit on
investment. Rs. 1000 becomes Rs. 1601 after 6 years at a compounded yield
of 8.16% with tax benefits under section 80L and 88. No premature
withdrawal is allowed. Interest accrued annually is also reinvested in this
scheme and also qualifies for up to 15/20 % rebate under section 88. There is
no tax deduction at source.
b) Kisan Vikas Patra
Kisan Vikas Patras is a safe and long term investment option backed by the
Government of India which provides interest income similar to bonds. The title
of the scheme makes some misconception that it is only meant for farmers.
But anyone can go for Kisan Vikas Patra. KVP is beneficial for those looking
for a safe avenue of investment without the pressing need for a regular source
of income. Money doubles at the end of specified period.

34. Money can be doubled in 8 years and 7 months. There is no upper limit that
you can invest. There are no tax benefits for investments made under this
scheme. The rate of interest works out to be 8.41% (2009). Loans are
available against Kisan Vikas Patra. Interest is paid on maturity and cannot be
claimed prior to maturity. This can be purchased jointly by two adults. In the
case of loss or stolen Certificate, the purchaser should report the post office at
the earliest. An application should submit in post office containing the
certificate number, amount, date of purchase /maturity etc. and declare the
circumstances resulting the loss of certificate. In such cases the identity slip
comes useful to get a duplicate certificate. After the verification, the post office
will issue a duplicate certificate. If needed, the purchaser will have to submit
an indemnity bond/declaration/Bank verification.
c) Senior Citizens Savings Scheme
The government has announced a new senior citizens saving scheme. It has
been launched only through designated post offices from 2nd august 2004. It
is for individuals who have attained the age of 60 years, and who have retired
under voluntary retirement scheme on the date of opening of an account. The
main features of the scheme are that it carries an interest of 9 % p.a. (taxable)
on the deposit. Deposit can be a minimum of Rs. 1000 and a maximum of Rs.
15 lacs, to be held for a period of 5 years and extendable for a further 3 years.
It can be prematurely withdrawn after one year with some deductions. Interest
qualifies for deductions. A depositor may open the account in the individual
capacity or jointly with a spouse. Nonresident Indian is not eligible to open an
account. This Scheme is most beneficial to Senior citizens and provides a
high rate of interest as compared to bank interest of 4.5- 4.75%. Although the
interest on the deposit is taxable, the deposits themselves are tax free. As the
post office is a department of the government of India, it is a safe investment.
The principal amount is assured.
iii) Public Provident Fund
The rate for public provident fund is currently 8% pa. This is basically a long
term investment opportunity (maturity 15 years) as entire amount that is
accumulated in this account can be withdrawn entirely only after 15 years.
Part withdrawal is allowed only after 7 years. An investor can put up to Rs
70000 per year in PPF in either lump sum or 12 monthly installments. After 15
years the investor can renew this account for a 5 year period. Interest is totally
exempt from income tax. The amount deposited qualifies for tax rebate under
section 88.
iv) Bank Fixed Deposits
Bank fixed deposits yields will vary from bank to bank but are more or less
streamlined. The yields are currently ranging from 4.5 % to 5.5 % per annum
for deposits ranging from 30 days to 3 years. All scheduled banks are covered
under DICGC (deposit insurance and credit Guarantee Corporation) which
mean that up to Rs 1lakh deposited in a bank every person is absolutely safe
and insured even if the bank collapses. Interest qualifies for deduction from
income tax.
v) Government Securities or Gilts

35. Government securities or gilts are totally secure. Government bonds are
issued by government of India periodically. These are now available in the
secondary market through satellite dealers and banks. They are known to
yield 5 to 6% per annum. Interest exceeding Rs 2500 is liable for TDS at
10.455%.
vi) RBI Taxable Bonds
These are 8% bonds which are taxable. The maturity period is after 6 years
and there is no upper limit to investment in these bonds. The interest accrued
on these bonds is taxable under income tax act.
vii) Insurance
There are several types of insurance policies available in the market today
through various players. Life Insurance Corporation (LIC) till recently held
monopoly in this market. Life insurance is the most sought option as it also
offers tax benefits for premier paid. Though insurance is expenditure, it is now
an investment option.
viii) Company Fixed Deposits
Company fixed deposits was a highly popular investment vehicle in the past.
In today’s changing scenario where the corporate world has access to
cheaper funds from sources all over the world, the rates of interest offered by
good companies make this a less attractive investment vehicle.
If company fixed deposits are unsecured deposits and if a accompany goes
insolvent;
there is very little possibility of investor recovering his investments.
ix) Infrastructure Bonds
An infrastructure bond is a tax saving bond that was innovated in order to
provide funds for the development of key infrastructure projects. Thus,
investors in these bonds apart from material benefit in terms of tax savings,
have the higher satisfaction of having contributed to the development of the
country’s infrastructure.
B) Variable Return Options
i)Mutual Funds:
Through Mutual Funds. companies pools the money of many investors -- its
shareholders -- to invest in a variety of different securities. Investments may
be in stocks, bonds, money market securities or some combination of these.
Those securities are professionally managed on behalf of the shareholders,
For the individual investor, mutual funds provide the benefit of having
someone else manage your investments and diversifying your money that
may not be available or affordable to you otherwise. A mutual fund, by its very
nature, is diversified -- its assets are invested in many different securities .
ii) Shares and Stock Market
Indian Stock Market Overview.

36. The Bombay Stock Exchange (BSE) and the National Stock Exchange of
India Ltd (NSE) are the two primary exchanges in India. In addition, there are
22 Regional Stock Exchanges. However, the BSE and NSE have established
themselves as the two leading exchanges and account for about 80 per cent
of the equity volume traded in India. The primary index of BSE is BSE Sensex
comprising 30 stocks. NSE has (Nifty) which consists of fifty stocks. The BSE
Sensex is the oldest and more widely followed index. Now these days’ even
common people are being aware about the share market in respect of 4-5
years ago. Before 4-5 years ago only affluent and highly educated people
were aware about share market and they used to invest in companies stock.
But the time is changing very rapidly .the people is being educated about the
share market by broking firms , stock exchange , government, news papers,
news channels and by introducing various new course in schools and
colleges. Now common people have started investing in companies stocks by
opening up Dmat account in various broking firms.
In this type of investment there is no certainty of return on investment one
may lose his
money or can gain unexpected amount of return.
In stock market people get two type of return
1. Dividend paid by the company
2. Price rise in company’s share
These two of benefit get the stock holder only if the company is doing well and
all
external environment which affects the stock market is favorable.
iii) PPM (Private Placement Memorandum)
A private placement memorandum (PPM) is the document that discloses
everything the investor needs to know to make an informed investment
decision. This includes: the offering structure, the share structure of the
company, disclosures about the shares being purchased, company
information, information on company operations, risks involved with the
investment, management information, use of proceeds, information on certain
transactions that could affect the investor, and investor suitability data. The
PPM also includes the subscription agreement which is the actual "sales
contract" for the shares of stock. This is the document that the investor will
sign and send in with their investment funds.
The PPM is very important because it provides the investor with all of the
prescribed data they will need to make an investment decision and includes
the actual documentation to effect the investment transaction. PPM's are
designed as a stand-alone document - meaning that there need not be other
information presented to the investor for them to make an accurate
investment decision. Many companies will attach their business plans to the
PPM as supporting documentation. This is an acceptable practice so long as
the information in the business plan properly corresponds with the information
in the PPM and that the investor is made aware that the business plan alone
does not constitute an offer to sell securities - only the PPM can make that
offer.
C) Conventional options

37. i) Property
Investment in real estate or property is a good long-term investment for well
heeled investors with a large amount of money. People used to purchase
property and when they realize that they are getting maximum return on their
investment sale it off and book the profit. In this type of investment there is no
fix rate of return its depend on the people’s
foresight.
ii) Gold and silver
In developing countries, people have often trusted gold as a better investment
than stock and bank deposits. Gold and silver have always been popular in
India because historically these acted as a good hedge against inflation. In
that sense these metals have been more attractive than bank deposits or gilt
–edged securities. In gold and silver there is also an aesthetic appeal which
attracts the people and they consider it as a value for money.
Buying the gold and silver people feel secure because these are the scarcest
and they can cash it any time at higher price than their original buying price.
The Investment at Glance
a)FIXED RETURN Option & Benefit Safety Liquidity Return
OPTION
1.Post Office – MP (8%) High Good Good
10% Bonus On
Maturity
2. N.S.C. (8.16% High Low Moderate
compounded). Tax
benefits, No TDS
3. Kisan Vikas Patra High Low Moderate
(8.4%) 8yrs. 7mths.
Double You’re Money. No
TDS. Loan Available
From Banks against KVP
4. Senior Citizen Saving High Low Moderate
Scheme (9%)

38. Taxable Option & Benefit Safety Liquidity Return
1PPF (8%). High Low Moderate
Offers tax benefits
2Bank FDs High High Low
(between 4.5
-5.5%) Deposits
covered by
DICGC up to Rs.
1 lakh.
3Government High Good Low
Securities, Gilts
(5-6%)
4RBI Taxable High Low Moderate
Bonds (8%). The
interest
accrued is taxable
5Insurance High Low Low
6Company FD. Low Low Low
Not a
recommended
investment
option
in
today’s
environment
7Infrastructure High Moderate Moderate
Bonds

39. b) VARIABLE RETURN Option Safety Liquidity Return
OPTION
1.Mutual Fund – Debt, High Varies Low
Income , Saving Funds
2.Mutual Fund – Equity Low Low High
3.Mutual Moderate Good Moderate
Fund
–Balance
Fund
4.Share market Low Moderate High
5.Properties market Moderate Low Varies

40. INDUSTRY ANALYSIS USING PORTER’S 5 FORCES MODEL
POTENTIAL
ENTERANT
Investmart
Various Banks
Geojit
Cipher
UTI Securities Ltd.
Refco Group Ltd.
IDBI Capital Mkt.
Services
SUPPLIERS COMPETITORS BUYERS
Web maintainers ICICI Web Trade Ltd Small Investors
NSCL 5paisa.com Franchise/Business
CSDL Kotak Securities Ltd Partners
NSE India Bulls HNI’s
BSE Motilal Oswal MF Companies
MCX Securities Ltd HUF
NCDEX HDFC Securities Ltd Institutional
Marwadi Finance Ltd Investors
SUBSTITUTES
Mutual Funds
Insurance
Bank FD
SUPPLIERS
NSDL & CSDL are the regulatory bodies for Depository Participants like
SSKI,SHCIL, ICICIdirect.com, etc. Also these regulatory bodies have got an
upper hand as the bargaining power stock broking houses like SSKI, etc.
would be less.
NSE & BSE are playgrounds where common an investor trade through stock
broking houses, for which they have to take permission from NSE/BSE.

41. NSE & BSE are under the purview of SEBI, that’s why stock broking houses
like SSKI, have low bargaining power. But here there is one advantage that
NSE/BSE have i.e. they cannot go for forward integration.
MCX & NCDEX are stock exchanges which trade in commodities and
derivatives. Here again stock broking houses have to follow rules and
regulation of the same.
Web maintainers are companies which maintain web sites & technical
aspects of the same. Here stock broking houses like SSKI can have more
bargaining power due to stiff competition among web maintaining companies.
Web maintainers are companies who make and maintain software’s for stock
broking houses. If say for example stock broking houses switches over to
other web maintainers then that company cannot understand the mechanisms
of software’s. So it is quite high switching cost.
BUYERS
There are various types of investors who trade through stock broking houses
like SSKI, which includes investors like small investors, medium net worth
investors, business partners, institutional investors and mutual fund
companies.
Here the bargaining power of stock broking houses depends on how big the
investor is.
So here we can say that bargaining power of stock broking houses is high in
case of small investors & HUF.
While the bargaining power is moderate in case of HNI (High New Worth
Investors)/ MNI’s (Medium Net Worth Investors) and business partners.
But the in case of mutual fund companies and institutional investors
bargaining power is less.
There is competitive buzz in stock broking industry; competitors are offering
low brokerage and best services with added feature. So switching cost is
pretty much less. So the buyer can easily switch over to competitors product.
COMPETITORS
The company is facing the competition from local as well as national level
players. The local players provide facility for off-line trading while the national
players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide
online trading services.
There are also other big names like Indiabulls, Motilal Oswal, 5paisa and
Marwadi encircles the company form both the sides by providing online and
off-line trading with competitive services.
POTENTIAL ENTRANTS
The potential entrants in like Investmart, Jeojit and Cipher which are coming
in near future to Rajkot City.

42. Nationalized banks are also thinking to enter in this field by tying up with
broking houses. E.g. Bank Of Baroda.
SUBSTITUES
Here substitutes are such instruments which can be used instead of
investingin shares.
The instruments like Bank FD, insurance, mutual funds are the substitutes.
If the use of this instruments increase this may be disadvantage for the
stockbroking houses.
The companies and banks which are having these instruments can
plungeinto this industry.
How many players are in Indian Market,
1. S S KANTILAL ISHWARLAL SECURITIES PVT LTD.
(www.sharekhan.com)
2. ICICI WEB TRADE LTD. (www.icicidirect.com)
3. 5 PAISA.COM (www.5paisa.com)
4. KOTAK SECURITIES LTD. (www.kotakstreet.com)
5. INDIABULLS (www.indiabulls.com)
6. MOTILAL OSWAL SECURITIES LTD.
7. HDFC SECURITIES LTD. (www.hdfcsec.com)
8. UTI SECURITIES LTD.
9. IDBI CAPITAL MARKET SERIVICES LTD.
10.REFCO SIFY SECURITIES PVT LTD
Market position
Follower:
The followers are those who just blindly follow the other player which are
leader and challenges.
The players like 5 paisa, Motilal Oswal, HDFC Securities, Kotakstreet are the
followers.
LEADER:
ICICIdirect.com is a leader in the online account which is having 1, 24,000
accounts in the country.
While in offline account Sharekhan is leading with 64,000 offline accounts.
CHALLENGER:
Sharekhan, Kotakstreet and Indiabulls come under this head.

43. Sharekhan challenges competitors by providing quality services and research
based advice.
Indiabulls is also challenging with low brokerage rates and class on Services.
Market Research Activities
More than our fair share of pain The Sensex' valuation has dropped by
about 17% over the last two months on heavy selling by the FIIs. We believe
that the Indian equity market has had more than its share of pain compared
with its peers, as the BSE Sensex has corrected much more than the other
emerging market indices in the past few weeks.
So what lies in store for retail investors? To know answer to that billion-dollar
question, read our latest Market Outlook report dated June 3, 2006. If you
don't have a trading account with Sharekhan, open an account today to
access our latest Market Outlook report and other such premium contents.
Sharekhan's trading calls in the month of November 2005 has given
89% strike rate If you are an active trader looking out for intra-day and short
term trading opportunity's, Just Check This Out - Out of 37 trading calls
given by Sharekhan in the month of November 2005, 33 hit the profit target.
These exclusive trading picks come only to Sharekhan Online Trading
Customer and are based on in depth technical analysis.
Our Trading Call covers
HIT LIST - A Day Trader Tool Kit
SMART CHARTS for Position Calls
INTRA-DAY calls and
CTFT Created Today For Tomorrow
Preview Of Performance Summary November 05 Performance Summary
No of 37
Calls
Winning 33
Calls
Losing 4
Calls
Strike 89.19
Rate
Avg Win 6
%

44. Avg Loss -4
%
Risk 11.40
Reward
Product & Price management
CHARGE STRUCTURE :
Fee structure for General Individual:
Charges Classic Account Fast trade Tiger Account
Trade Account
Account Opening Ni
l Nil Nil
Brokerage Intra – day – Intra – day – Intra – day –
0.10% 0.10% 0.10%
Delivery – 0.50% Delivery – 0.50% Delivery – 0.50%
Depository Charges:
Account Opening Charges Rs. NIL
Annual Maintenance Charges Rs. NIL first year Rs. 300/= p.a. from
second calendar year onward
TYPES OF PLANS
Advance Brokerage – Intraday Brokerage -Delivery
Brokerage
750 10 paise 50paise/50paise
1000 9 paise 45paise/45paise
2000 7 paise 40paise/40paise
6000 5 paise 25paise/25paise
Comparative analysis
The major players in online trading

45. • 5paisa.com
• KotakStreet.
• IndiaBulls.
• Icici Direct.com
• Reliance:
5 paisa.com Indiainfoline
5 paisa.com Indiainfoline was founded in 1995 and was positioned as a
research firm. In 2000 e-broking was started under the brand name of 5
paisa.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. GOI securities, Company Fixed Deposits, Insurance. It has a
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:-
• Account Opening: Rs 500
• Demat 1st Yr: Rs 250
• Initial Margin: Rs 2500(Compulsory)
• Min Margin Retainable: Rs 1000
• Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST PRICING FOR HNI CLIENTS
Trader Terminal
• Account Opening: Rs 500
• Demat 1st Yr: Rs 250
• Initial Margin: Rs 5000(Compulsory)
• Min Margin Retainable: Rs 1000
• Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)
• Account Access Charges
Monthly Rs 800, adjustable against Brokerage
Yearly Rs 8000, adjustable against brokerage
Problems Of 5 Paisa
• Downtime
Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency
downtime between 3 – 3:30 p.m due to server load (as their T.T is feature
heavy compared to Speedtrade charting)
• Manual Accounting
The 5 paisa accounting system is manual, Online fund transfer through bank
is not credited instantly. Limit is provided EOD for shares sold from DP, or call
Similarly limit released for shares sold under BTST is manual Delay in
receiving pay-out of clear funds from trading to Bank Account.
• Min Account Balance

46. Concept of Min Rs1,000 is to be maintained in form of cash / securities to
keep account active. This can be withdrawn only on closure of account.
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 Accounts
Signature Account
• Account Opening: Rs 250
• Demat: Rs 200 if POA is signed, No AMC for this DP
• Initial Margin: NIL
• Brokerage: Negotiable
Power IndiaBulls
• Account Opening: Rs 750
• Demat: Rs 200 if POA is signed, No AMC for this DP
• Initial Margin: NIL
• Brokerage: Negotiable
Problems Of India Bulls
POA for Clients DMAT Charges are levied to move shares from IB pool
Account to client DP account All shares held by client trading with IB are
moved to IB Pool Account and the same is shown as a reflection in client DP
account. Paid Research Services
Access to a research even for an IB trading account holder is charged a min
of Rs 500 a month. Margin funding hoax
The interest on funding starts on leveraged delivery trades from T+1 day itself
@21% p.a, on a daily basis.
The role of Relationship Manager
Each RM is looked upon as a revenue generator and he gets a % on business
generated from client. This can lead to over leveraged (Interest) & high
frequency (Brokerage) trading, which may not be in the best interest of the
client.
KOTAK SECURITIES

47. 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 Types
• 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
Pricing of KOTAK
• Account Opening: Rs 500
• Demat: Rs 225 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.
Problems of Kotakstreet
Rigid Account Opening Terms
No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs
5000/- Account opening free with Rs 10,000 Margin .
No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)
No flexibility in Brokerage, driven by slab structure.
No Customization of commercial Terms.
Restricted Access to Terminal like product
KEAT Desktop restricted distribution on payment of Rs 500, Non refundable
any Other Charges:
Rs 225 p.m towards DP AMC charges
DP incoming charges extra , 0.02%
Rs 1,000 as retainable Margin to keep account active
Rs 25 per call after 20 calls for the month
ICICI Direct.com
Company Background
ICICI Web Trade Limited (IWTL) maintains
ICICIdirect.com. IWTL is an affiliate of ICICI Bank Limited
and the Website is owned by ICICI Bank Limited
Account Types
ICICI Direct e-invest Account:
Premium trading interface of ICICIDirect Link is given to DBC partners and
HNI’s Plain Vanilla Account with focus on 3 in 1 advantage. Differentiated in
services within the account.
1. Cash on spot
2. Margin Plus
Account Opening: Rs 750
Schemes: For short periods Rs 750 is refundable against brokerage
generated in a qtr. 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.

48. Initial Margin: Nil
Brokerage: All brokerage is inclusive of stamp duty and exclusive of other
taxes.
Slab wise brokerage ranges from 0.75% to 0.25% depending on volume
Problems of ICICIDirect
Poor online Interface.
Slow website interface with no real-time quotes creates dissatisfaction among
high frequency traders Margin trading restriction.
Restriction of Bank Account.
The choice of bank is restricted to ICICI Bank. Higher Brokerage rates with
slabs.
The delivery brokerage is pegged at 0.75% and trading at 0.10% each side,
this makes is very unviable for customers dealing in large volumes.
Reliance:
Here the problem is that any order you place has to be cleared by 2.30pm.
No exposure is given here.
There tie-ups with only two banks i.e. HDFC and IDBI.
In Reliance per call is Rs15 extra.

49. Chapter 4
Finance
Structure of the Finance Department
Owns 56% of Owns 50.5% of
SSKI Securities Pvt.
Ltd.
Morakhia Family &
SSKI Investor Services Pvt. Ltd. SSKI Corporate Finance Pvt.
Retail broking arm of the group Ltd.
Shareholding pattern Investment banking arm of the
56% Morakhia family (promoters) group
18.5% H Structure of Marketing Shareholding pattern
Department 50.5% SSKI Securities Pvt. Ltd.
SBC Private Equity
49.5 % Morakhia family
Management, Mauritius
18.5% First Carlyle Ventures, Mauritius
7% Intel Pacific Inc.
FINANCIAL INFORMATION:-
The company which is today known as the largest financial service provider of
India. Sharekhan has interests in asset management and mutual funds, life
and general insurance, private equity and proprietary investments, stock
broking, depository services, distribution of financial products, consumer
finance and other activities in financial services. Sharekhan is among India’s
top ten private sector business houses on all major financial parameters, with
a market capitalization of Rs.325, 000 crores (US$ 81 billion),net assets in
excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune of
Rs.55,000 crores(US$ 14 billion) Its Endeavour is to change the way India
transacts in financial markets and avails financial services. Sharekhan is a
single window, enabling you to access, amongst others inequities, Equity &
Commodities Derivatives, Mutual Funds, IPOs, Life & 8 General Insurance
products, Offshore Investments, Money Transfer, Money Changing and Credit
Cards.
Sharekhan is the largest brokerage and distributor of financial products in
India with more than 2.5million customers and the largest distribution network.
Sharekhan Consumer finance has a loan book of over Rs. 8,000 crores at the
end of June 2008. Sharekhan has increased its market share among private
financial companies to nearly Convenient & effective – Anytime & anywhere
financial transaction capability. Launched in April 2007.It provides the Flat
fees system. It has 2.2 million customers in 1 year of official launch. It has
over5, 000 outlets across 700 towns/cities. Average daily turnover – in excess

50. of Rs 2,000 crores. Considering the entire life market, including the Rs.
12,890 crores booked by life insurance Corporation, Reliance life insurance
market share works out to around 6.25% .The life insurance market
continuous to be dominated by LIC which has about 67% share this only a
marginal dip from its 73% share in end-July. These comparisons are only for
first year or new business premium.
Sharekhan has over 22 lakhs customers and more than 10'000 branches in
around 5000 cities in India. Company is among the largest broking and
distribution house of financial products and having share of more than 3% of
total stock market volume at BSE & NSE
FINANCIAL MARKET:
Financial markets are helpful to provide liquidity in the system and for smooth
functioning of the system. These markets are the centers that provide facilities
for buying and selling of financial claims and services. The financial markets
match the demands of investment with the supply of capital from various
sources. According to functional basis financial markets are classified into two
types. They are:
t Money markets (short-term)
M Capital markets (long-term)
According to institutional basis again classified in to two types. They are
A Organized financial market
O Non-organized financial market.
The organized market comprises of official market represented by recognized
institutions, bank and government (SEBI) registered/controlled activities and
intermediaries.
The unorganized market is composed of indigenous bankers, moneylenders,
individual professional and non-professionals.
MONEY MARKET:
Money market is a place where we can raise short-term capital.
Again the money market is classified in to
A Inter bank call money market
I Bill market and
B Bank loan market Etc.
B E.g.; treasury bills, commercial papers, CD's etc.

51. CAPITAL MARKET:
Capital market is a place where we can raise long-term capital.
Again the capital market is classified in to two types and they are
A Primary market and
P Secondary market.
E.g.: Shares, Debentures, and Loans etc.
PRIMARY MARKET:
Primary market is generally referred to the market of new issues or market for
mobilization of resources by the companies and government undertakings, for
new projects as also for expansion, modernization, addition, diversification
and upgradation. Primary market is also referred to as New Issue Market.
Primary market operations include new issues of shares by new and existing
companies, further and right issues to existing shareholders, public offers, and
issue of debt instruments such as debentures, bonds, etc.
The primary market is regulated by the Securities and Exchange Board of
India(SEBI a government regulated authority).
Function:
The main services of the primary market are origination, underwriting, and
distribution. Origination deals with the origin of the new issue. Underwriting
contract make the shares predictable and remove the element of uncertainty
in the subscription. Distribution refers to the sale of securities to the investors.
The following are the market intermediaries associated with the market:
1. Merchant banker/book building lead manager
2. Registrar and transfer agent
3. Underwriter/broker to the issue

52. 4. Adviser to the issue
5. Banker to the issue
6. Depository
7. Depository participant
Investors’ protection in the primary market:
To ensure healthy growth of primary market, the investing public should be
protected. The term investor protection has a wider meaning in the primary
market.
The principal ingredients of investors’ protection are:
T Provision of all the relevant information
P Provision of accurate information and
P Transparent allotment procedures without any bias.

53. SECONDARY MARKET
The primary market deals with the new issues of securities. Outstanding
securities are traded in the secondary market, which is commonly known as
stock market or stock exchange. “The secondary market is a market where
scrip’s are traded”. It is a market place which provides liquidity to the scrip’s
issued in the primary market. Thus, the growth of secondary market depends
on the primary market. More the number of companies entering the primary
market, the greater are the volume of trade at the secondary market. Trading
activities in the secondary market are done through the recognized stock
exchanges which are 23 in number including Over the Counter Exchange of
India (OTCE), National Stock Exchange of India and Interconnected Stock
Exchange of India. Secondary market operations involve buying and selling of
securities on the stock exchange through its members. The companies hitting
the primary market are mandatory to list their shares on one or more stock
exchanges in India. Listing of scrip’s provides liquidity and offers an
opportunity to the investors to buy or sell the scrip’s.
The following are the intermediaries in the secondary market:
1. Broker/member of stock exchange – buyers’ broker and sellers’ broker
2. Portfolio Manager
3. Investment advisor
4. Share transfer agent
5. Depository
6. Depository participants.
SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES):
S Board of Directors of Stock Exchange has to be reconstituted so as to
include non-members, public representatives and government representatives
to the extent of 50% of total number of members.
t Capital adequacy norms have been laid down for the members of various
stock exchanges depending upon their turnover of trade and other factors.
s All recognized stock exchanges will have to inform about transactions
within 24 hrs.

54. Chapter 5
Operation and Production
Number of Employees with Designation and Duties
Pathik Gandotra : Head of Research
Nikhil Vora : Vice President of Research
Mr. Shankar Vailaya – Director (Operations) of the company:
A graduate in commerce from the University of Mangalore and an Associate
of The Member of the Institute of Chartered Accountants of India, Mr. Shankar
Vailaya heads the finance, operations and legal functions. He is responsible
for settlements, depository operations, risk and compliance and regulatory &
other legal commitments and Treasury. Shankar has managed broking
operations through the most turbulent times of the post securities scam period
in 1992 and has managed to steer clear of a flurry of bad papers in the market
during 1994-95
RESEARCH METHODOLOGY INTRODUCTION
Sharekhan Limited has its own in-house Research Organisation which is
known as Valueline. It comprises a team of experts who constantly keep an
eye on the share market and do research on the various aspects of the share
market. Generally the research is based on the Fundamentals and Technical
analysis of different companies and also taking into account various factors
relating to the economy. Sharekhan Limited’s research on the volatile market
has been found accurate most of the time. Sharekhan's trading calls in the
month of November 2007 has given 89% strike rate.
Out of 37 trading calls given by Sharekhan in the month of November 2007,
33 hit the profit target. These exclusive trading picks come only to Sharekhan
Online Trading Customer and are based on in-depth technical analysis.
As a customer of Sharekhan Limited, one receives daily 5-6 Research
Reports on their emails which they can use as tips for investing in the market.
These reports are named as Pre-Market Report, Eagle Eye, High Noon,
Investors Eye, Daring Derivatives and Post-Market Report. Apart from these,
Sharekhan Limited issues a monthly subscription by the name of Valueline
which is easily available in the market.

55. Research Methodology refers to search of knowledge .one can also define
research methodology as a scientific and systematic search for required
information on a specific topic. The word research methodology comes from
the word “advance learner ‘s dictionary meaning of research as a careful
investigation or inquiry especially through research for new facts in my branch
of knowledge for example some author have define research methodology as
systematized effort to gain new knowledge. Methodology In the first phase we
are trained and they teach¬of the project starts with – After that they conduct
a mock viva, in this¬us different things about market. They provide¬they ask
about the real life problem faced by the customers. Then after that we have
to provide details¬leads and after that we make calls. Then we have to visit
them and get the formed¬of product and convince them. Maintaining dairy of
clients and contacting them at regular¬filled from them. ¬ Get the knowledge
of technical as well as fundamental methods. ¬Basis. Observe the patterns
of the scripts.
Exploratory Research:
Exploratory research is a type of research conducted because a problem has
not been clearly defined. Exploratory research helps determine the best
research design, data collection method and selection of subjects. Given its
fundamental nature, exploratory research often concludes that a perceived
problem does not actually exist. Exploratory research often relies on
secondary research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers,
employees, management or competitors, and more formal approaches
through in-depth interviews, focus groups, projective methods, case studies or
pilot studies. The results of exploratory research are not usually useful for
decision-making by themselves, but they can provide significant insight into a
given situation. Although the results of qualitative research can give some

56. indication as to the "why", "how" and "when" something occurs, it cannot tell
us "how often" or "how many." Exploratory research is not typically
generalizable to the population at large.
Research is exploratory when you use no earlier model as a basis of your
study. The most usual reason for using this approach is that you have no
other choice. Normally you would like to take an earlier theory as a support,
but there perhaps is none, or all available models come from wrong contexts.
Exploratory research means that hardly anything is known about the matter at
the outset of the project. You then have to begin with a rather vague
impression of what you should study, and it is also impossible to make a
detailed work plan in advance. Analysis in exploratory research is essentially
abstraction and generalization. Abstraction means that you translate the
empirical observations, measurements etc. into concepts; generalization
means arranging the material so that it disengages from single persons,
occurrences etc. and focuses on those structures (invariance’s) that are
common to all or most of the cases. It will seldom be possible to divide
exploratory study into such clear phases as is common in the case that the
object has been studied earlier.
The purpose of descriptive exploratory research is to extract a structure from
the source material which in the best case can be formed as a rule that
governs all the observations and is not known earlier (per the definition of
exploratory study). Finding the unknown structure may need some creative
innovation, because even the most sophisticated computerized analysis
methods cannot automatically uncover which type of structure is concealed in
data. Usually you first have to formulate a tentative pattern for the assumed
structure in the observations and then you can ask the computer to estimate
how well the data corresponds to the model, cf. Tools for Analysis
METHODS OF DATA COLLECTION
In the project work Primary data secondary data (both) sources of data has
been used.
1. Primary data collection:
In dealing with real life problem it is often found that data at hand are
inadequate, and hence, it becomes necessary to collect data that is
appropriate. There are several ways of collecting the appropriate data which
differ considerably in context of money costs, time and other resources at the
disposal of the researcher. Primary data can be collected either through
experiment or through survey. The data collection for this study was done in
the following manner: Through personal interviews:- A rigid procedure was
followed and we were seeking answers to many pre- conceived questions
through personal interviews. Through questionnaire:- Information to find out
the investment potential and goal was found out through questionnaires.
Through Tele-Calling:- Information was also taken through telephone calls.
The first type is a primary source which is the initial material that is collected
during the research process. Primary data is the data that the researcher is
collecting themselves using methods such as surveys, direct observations,
interviews, as well as logs(objective data sources). Primary data is a reliable

57. way to collect data because the researcher will know where it came from and
how it was collected and analyzed since they did it themselves.
2. Secondary sources of data:
In the secondary sources of data is used. (Internet, magazine, books,
journals) In research, secondary data is data collected and possibly
processed by people other than the researcher in question. Common sources
of secondary data for social science include censuses, large surveys, and
organizational records. In sociology primary data is data you have collected
yourself and secondary data is data you have gathered from primary sources
to create new research. In terms of historical research, these two terms have
different meanings. A primary source is a book or set of archival records. A
secondary source is a summary of a book or set of records. Secondary data
analysis: There are two different types of sources that need to be established
in order to conduct a good analysis.
Secondary sources on the other hand are sources that are based upon the
data that was collected from the primary source. Secondary sources take the
role of analyzing, explaining, and combining the information from the primary
source with additional information. Secondary data analysis is commonly
known as second-hand analysis. It is simply the analysis of preexisting data in
a different way or to answer a different question than originally intended.
Secondary data analysis utilizes the data that was collected by someone else
in order to further a study that you are interested in completing. Common
sources of secondary data are social science surveys and data from
government agencies, including the Bureau of the Census, the Bureau of
Labor Statistics and various other agencies.
Sources of secondary data:
Sources of secondary data may be classified into qualitative and quantitative.
Examples of qualitative sources are biographies, memoirs, newspapers, etc.
Quantities sources include published statistics (e.g., census, survey), data
archives, market research, etc.[1] Today, with the aid of our internet
capabilities, thousands of large scale datasets are at the click of a mouse for
secondary data analyst. Globally, there are many sources available. These
sources can arrive from the data arranged by governmental and private
organizations, to data collected by any social researcher.
Secondary data analysis is a growing research tool in our modern day society.
Social scientists have the opportunity to explore massive amounts of
secondary data. Collecting, reviewing, and analyzing secondary data The
Design and Purpose of Research Secondary data analysis consists of
collecting data that was compiled through research by another person and
using that data to get a better understanding of a concept.
In order to use secondary data three steps must be completed: 1. locate the
data 2. Evaluate the data 3. Verify the data locating the data can be easily
done with the advancements of searching sources online.

58. RESEARCH SECTION IN SHAREKHAN LIMITED: Sharekhan Limited has
its own in-house Research Organization which is known as Value line. It
comprises a team of experts who constantly keep an eye on the share market
and do research on the various aspects of the share market. Generally the
research is based on the Fundamentals and Technical analysis of different
companies and also taking into account various factors relating to the
economy. Sharekhan Limited’s research on the volatile market has been
found accurate most of the time. Sharekhan's trading calls in the month of
November 2007 has given 89% strike rate. Out of 37 trading calls given by
Sharekhan in the month of November 2007, 33 hit the profit target. These
exclusive trading picks come only to Sharekhan Online Trading Customer and
are based on in-depth technical analysis. As a customer of Sharekhan
Limited, one receives daily 5-6 Research Reports on their emails which they
can use as tips for investing in the market. These reports are named as Pre-
Market Report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives and
Post-Market Report. Apart from these, Sharekhan Limited issues a monthly
subscription by the name of Value line which is easily available in the market.

59. Chapter 7
MIS or IT Department
Mr. Jaideep Arora – Director (Products & Technology) of the company:
Jaideep Arora completed his B.Tech from IIT (Kanpur) and his PGDM from
IIM Kolkata.Jaideep worked with ICICI for 8 years where his work spanned a
gamut of functions, which included project finance, equity sales and
brokerage, investments etc. During his tenure there he set up and headed the
‘Institutional Equity Brokerage Desk’ at ICICI Securities & Finance Co. Ltd.
Jaideep joined Sharekhan in June 2000 as Head of Product Development. A
year later he took over the reigns of the online business at Sharekhan. At
present Jaideep’s responsibilities include spearheading Sharekhan’s online
foray and overall customer acquisition effort.

60. Chapter 10
Solutions with Merit and Demerit
Merit
It is to analyze the changes in trading after the exchange shifted from outcry
to online trading system.
It is to study the functions of SHAREKHAN through various departments.
To know the online screen based trading system adopted by SHAREKHAN
and about its communication facilities.
The appropriate configuration to set the network, which would link the
SHAREKHAN to individual / members.
To know about the latest and future development in the stock exchange
trading system.
Demerit
Despite of the training my level best, there were still some limitation which I
think remains there to draw fruitful conclusion. There were some practical
problems which come across and could not be properly death with-
• The advisory services being promised by the brokers would be of little
use to investors looking for an insight into the market.
• As a client one will access the NSE through a server of the online
brokerage and this may involve queuing delays.
• If one like to ask his broker "Aaj kya achcha lag raha hai" he may not
be able to do so. If he want advice on a particular stock in his portfolio
he may not even be able to get that.

61. Chapter 11
SUGGESTIONS TO COMPANY
MORE BRANCHES – Need to open more branches to be a topper in market
because it has a low distribution network.
LESS TIME – They should try to make some arrangements to reduce account
opening time by verifying documents at branch it selves.
LINK-BANK A/Cs – Linked as many accounts as client wants to its online
account.
NEW BANKS IN THE KITTY – Need to tie up with major banks like SBI,
Allahabad Bank, Bank of Baroda etc.
CUSTOMER SATISFACTION – The Company should focus on the customer
satisfaction not on just taking money from their pocket.
CONTROLLED BRANCHES – The Company would have to make some
arrangements to control the branches and make standardized procedures for
all of Commitment should be¬them for their better control and performance
appraisal.
Provide the facility of free demonstrations for¬equalized for every person.
Improvement in the opening of De-mat¬ & contract notice procedure is There
should be a limited number of clients under the relationship¬required.
Some¬manger. So that he can handle new as well as old customer properly.
People¬promotional activities are required for the awareness of the customer.
Seminars should¬at young age should be encouraged to invest in stock
market. Be held for providing information to prospective and present
customers.