COMPANY PROFILE

ABOUT THE COMPANY SHAREKHAN RETAIL BROKING Among the top 3 branded retail service providers (Rs 750 croresaverage daily volumeApr Dec04 No. 2 player in online business Largest network of branded broking outlets in the country servicing 4,00,000 clients.

MANAGEMENT TEAM

The company has an eighty years experience in brokering business it was earlier known as SSKI (SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. The owner of the company is Mr. SHRIPAL MORKHIYA. 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 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 firms 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 4 lakh customers. The number of trading members currently stands at over 3 Lacs. While online trading currently accounts for just over 1 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded online. 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 firms 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 4 lakh customers. The number of trading members currently stands at over 3 Lacs. While online trading currently accounts for just over 1 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded online. 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 SpeedTrade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. 2

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 SpeedTrade has become a de facto standard for the Day Trading community over the net. Sharekhans ground network includes over 250 centres in 123 cities in India, of which 20 are fully-owned branches. 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 Morakhia 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. SSKIs 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 clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations 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 Shoppers Stop.

750 branded share shops across 280 cities in India

From sharekhan.com to Indias largest chain of branded retail share Shops

Sharekhan Business 1 Brokering business 2 White feathering house production 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 is the retail broking arm of SSKI, an organization with more than eight decades of trust & credibility in the stock market. Amongst pioneers of investment research in the Indian market In 1984 ventured into Institutional Broking & Corporate Finance. Leading domestic player in Indian institutional business Over US$ 5 billion of private equity deals

SSKI Group Companies 1. SSKI Investor Services Ltd (Sharekhan) 2. S.S. Kantilal Ishwarlal Securities 3. SSKI Corporate Finance 4. I dream Productions

SSKI Corporate Structure

SSKI Securities Pvt. Ltd.

Owns 56% of

Morakhia Family & Associates 100%

Owns 50.5% of

SSKI INVESTOR SERVICES PVT. LTD. Retail broking arm of the group Shareholding pattern: 55.5% Morakhia family (promoters) 18.5% HSBC Private Equity India Fund Ltd 18.5% First Carlyle Ventures, Mauritius 7.5% Intel Pacific Inc. SSKI CORPORATE FINANCE PVT. LTD. Investment Banking arm of the group Shareholding pattern: 50.5% SSKI Securities Pvt. Ltd. 49.5 % Morakhia family

ABOUT THE TOPIC

INTRODUCTION OF THE TOPIC The topic is to study the consumer preference towards investment in stock market. DEMAT A/C is a pool of various scripts and securities, where as online trading A/C is a tool of purchasing/ selling of shares or scripts online. These scripts are then transferred to DP i.e. Depository account after three days. This topic includes the practical experience of selling company product that is followed by studying the consumer preference or interest towards share market. This is a market, which is uncertain some time it gives huge profit and also vice versa; it depends up on the investment customer made. This is a better option to have better returns on the investments then investing in banks, mutual fund or bonds et. But risk is high in this case. This product offers customer two type of investment option INTRADAY and DELIVERY both has their own benefits and limitation but a better way to have more returns on investment. Intraday means investing in share market for a day i.e. purchasing and selling of the share in one day. Delivery is purchasing share and selling those shares next day. The charges that company charge in terms of brokerage are different in both the cases.

LITERATURE REVIEW

GENERAL INTRODUCTION DP (Depository Participants) As an investor you open a securities account with a DP. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI . All interactions including account opening, dematerialization, transactions, pledge etc are done through the DP. Reasons to choose DP You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be: Convenience: proximity to the office/residence, business hours. Comfort: reputation of the DP, past association, range of services etc. Find out if the DP is in a position to give the specific service you may need. Cost: the service charges levied by DP and the service standard. Dematerialization The dematerialization system is an alternative to the physical existence of securities. In this system securities are converted into the electronic form and deposited in a depository accounting the investors name. In order to dematerialize certificates, an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization Request Form (DRF), which is available with the DP, and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the

DP for demat, they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates. Procedure for selling dematerialized securities The procedure for selling dematerialized securities in stock exchanges is similar to the procedure for selling physical securities. Instead of delivering physical securities to the broker, you instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account. The procedure for selling securities is given here below: Investor sells securities in any of the stock exchanges linked to NSDL through a broker. Investor gives instruction to DP to debit his account and credit the broker's (clearing member pool) account. Before the pay-in day, investor's broker gives instruction to his DP for delivery to clearing corporation. The broker receives payment from the stock exchange (clearing corporation). The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode. NSDL Although India had a vibrant capital market, which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. This depository promoted by institutions of national stature 9

responsible for economic development of the country has since established a national infrastructure of international standard that handles most of the trading and settlement in dematerialized form in Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry. In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. CDSL A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialisation of his holdings and transferring securities. The balances in the investors account recorded and maintained with CDSL can be obtained through the DP. The DP is required to provide the investor, at regular intervals, a statement of account which gives the details of the securities holdings and transactions. The depository system has effectively eliminated paper-based certificates which were prone to be fake, forged, counterfeit resulting in bad deliveries. CDSL offers an efficient and instantaneous transfer of securities.

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CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Union Bank of India and Centurion Bank. CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. Some of the important milestones of CDSL system are:

CDSL received the certificate of commencement of business from SEBI in February, 1999.

Honourable Union Finance Minister, Shri Yashwant Sinha flagged off the operations of CDSL on July 15, 1999.

Settlement of trades in the demat mode through BOI Shareholding Limited, the clearing house of BSE, started in July 1999.

All leading stock exchanges like the National Stock Exchange, Calcutta Stock Exchange, Delhi Stock Exchange, The Stock Exchange, Ahmedabad, etc have established connectivity with CDSL.

As at the end of Dec 2007, over 5000 issuers have admitted their securities (equities, bonds, debentures, commercial papers), units of mutual funds, certificate of deposits etc. into the CDSL system.

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JOB DESCRIPTION The company placed me as a Summer Trainee. I have been handling the following responsibilities: My job profile is to sale of product of the organization. My job profile is to coordinate the team and also help them to sale the product and also help them in field. My job profile is to generate the lead by cold calling.

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My job profile is to understand customers needs and advising them to make a portfolio as per their investment.

My job profile is to do sales promotion through e-mails, canopies, making cold calling, distributing pamphlets and etc.

My job profile is to convince customer for investment in Commodity. AREA ASSIGNED

I covered areas like Delhi, Gurgaon, Ghaziabad, Faridabad and NCR. TARGET ASSIGNED To sell 15 accounts per month. TARGET MARKET Different property dealers. Charted accountants. Lawyers Travel agencies Transport business House wives Businessmen Corporate employees etc. DAY TO DAY JOB EXPERIENCE 13

Reporting time: 9.30 AM Fixing appointment with clients. Visit clients place. Demonstrate the product on Internet to the client. Completing the formalities like filling the application form and documentation. Cold calling.

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RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY 1) Main objective

The main objective is overview of Sharekhan & comparative analysis among its competitors. 2) Specific Objective A) B) C) D) Creating customer; Marketing of the product; Creating relationship with the customer to have their sources; Motivating customer for trading;

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind him. Why a research study has been undertaken, how a research problem has been defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study.

RESEARCH DESIGN: 15

A research design is the arrangement of conditions for collection and analysis of in a manner and aims to combine relevance to the research purpose with economy in procedure. In fact the research design is the conceptual structure within which research I conducted. Research design is needed because it facilitates the smooth sailing of the various research operations thereby making research as efficient as possible yielding maximum information with minimal expenditure of effort, time and money. I have adopted descriptive and conclusive research design. Descriptive research is those studies, which are concerned with describing the characteristics of a particular individual or a group. Since the aim is to obtain the accurate information about the customer in terms of his interest towards investment in stock sector. I have used the techniques of questioning customer in order to know their consumer behavior, their interests, their needs and etc. It is very important for the sales executive to study the mind of the customer so that the personal visit would not be a waste of time, money and efforts.

DATA SOURCES: The researcher can gather primary data, secondary data or both. Secondary data are data that were collected for another purpose and already exist somewhere. Primary data are data specially gathered for a specific purpose or for a specific research project. When the needed data do not exist or are outdated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research projects involve some primary data collection.

PRIMARY DATA:

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I have collected primary data through personal references; LMS i.e. Leads management system of the company; Customer references.

SECONDARY DATA: The main source of information for the project was: Weekly magazine; Telephone directory Used leads of the company; Leads of the other company; i.e. telephone list for tele calling

CONTACT METHOD: The marketing researchers have four choices to contact the respondents: Mail, Telephone, Personal and Online. I chose the above techniques to reach to the customer in almost convenient method.

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LIMITATIONS Lack of awareness of Share Khan and stock market:

Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs. Some people are comfortable with traditional system:

As people are doing trading from there respective brokers, they are quite comfortable to trade via physical form of paper, they want to trade off line, i.e. through telephone or etc. Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno savvy. Also Internet penetration is poor in India. Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call. Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5-digit phone number to wrong phone number, some people have registered to know about their personal quarries. They are the unsatisfied clients of the company. Misleading concepts:

Some people think that as all the shares are in electronic form and they dont have any physical proof. Sometimes this leads to a great misconception of the entire process.

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MARKETING STRATEGIES OF SHAREKHAN Marketing strategy? A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm's potential for gaining a competitive advantage. A business approach to marketing its products/ services expresses in broad terms, which forms the basis for developing a marketing plan. Marketing starts with market research, in which needs and attitudes and competitors' products are assessed, and continues through into advertising, promotion, distribution, and, where applicable, customer servicing and repair, packaging, and sales and distribution. The broad marketing thinking that will enable an organization to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives.

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MARKETING STRATEGIES OF THE COMPANY

INSTALL THE SOFTWAR E

TAKE REFERENC ES

COMPLETE THE FORMALIT IES

TELECALL ING

INTEREST ED

FIX APPOINTME NT

ATTEND APPOINTME NT

NOT INTERESTED

TAKE REFERENCES

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Tele Calling: The company uses the tele calling/ phone calling to reach the customer, which are interested. This is the most important technique to save time and giving demo of the companies product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc.

WISH /GREETING S

INTRODUCTI ON

CLOSE THE CALL

PURPOSE OF CALLING

FIX THE APPOINTMEN T

NEED GENERATI ON

BROKERAGE EXPLAINATIO N

OBJECTIO N HANDLING

LMS:

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It is leads management system which means leads are generated by the customer who want to purchase the product of the company. Company provide facility to the customer on online to fill the registration form through which the companies executives can provide more information to the customer.

Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.

Canopies: This is the most important technique used by Sharekhan securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides this companies executives ask customer to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main markets, cinema s, hotels, ATM or etc where people come in good numbers.

Direct Marketing Sharekhan executives reaches to the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better.

Advertising: 22

Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. Sharekhan use banners, distribution of pamphlets, and advertisement in newspapers, magazines. References: Sharekhans strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funs by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advise and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company. Competitiveness: The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. Sharekhan make it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer. Internet: Company provides detailed information about the products on Internet so that customer can know about the product easily and completely.

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UNIQUE OBJECTIVE OF THE COMPANY 200000+ retail customers being serviced through centralized call centre / web solution 60 branches, semi branches servicing affluent/aggressive traders through highly skilled financial advisors 250 independent investment managers/franchisees servicing 50000 highly valued clients Strong advisory role through Fundamental & technical research New initiatives - Portfolio Management Services & Commodities trading. Dealing in mutual funds.

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TYPES OF THE PRODUCTS

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Its core services are: Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE), Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), Depository services, Online trading services, IPO Services, Dial-n-Trade Portfolio management services, Fundamental and Technical Research services, In addition to this they also provide advisory services and distributions for funds. Sharekhan ValueLine (a monthly publication with reviews of recommendations, stocks to watch out for etc.) Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice Live Market Information Sharekhan First Step mutual

Sharekhan First Step The Sharekhan FirstStep is a brand new program designed especially for those who are new to investing in shares. All one have to do is open a Sharekhan FirstStep account and they guide us through the investing process.

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Market Share Sharekhan enjoyed about 20 per cent market share in Web business (Internet trading) in stock markets. Three years ago, Web trading showed lot of promise but with the market witnessing a downturn, there was not much interest among retail customers. Profits The share of Web trading constituted 22 per cent of the revenue. As Sharekhan's daily trading volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a day was substantial and a larger part of the volume was coming from day traders. Features of Trading With Sharekhan: 1. Freedom from paperwork 2. Instant credit and money transfer 3. Trade from any net enabled PC 4. After hour orders 5. Online orders on the phone 6. Timely advice and-research reports 7. Real-time Portfolio tracking 8. Information and Price alerts. FINANCIAL CAPABILITY Taking in to consideration all its assets and liabilities company is valued at around Rs. 750-850 crores. HIERARCHY IN Sharekhan There are 14 main hierarchical levels in Sharekhan: 1) Trainees 2) Super trainees 3) Sales executives 27

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

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CLASSIC ACCOUNT This account allows the client to trade throuhg our website www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features Classic screen serves hot by using SHAREKHAN TRADE TIGER , the software developed by Share Khan for buying and selling of shares, derivatives and commodities.

Online trading account for investing in Equity and Derivatives via www.sharekhan.com Integration of On-line trading, Saving Bank and Demat Account. Instant cash transfer facility against purchase & sale of shares. Competitive transaction charges. Instant order and trade confirmation by E-mail. Streaming Quotes.(Cash & Derivatives) 29

Personalized market watch. Single screen interface for Cash and derivatives and more. Provision to enter price trigger and view the same online in market watch.

TRADE TIGER :TRADE TIGER is an internet-based software application that enables you 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.

Customer can fast trade then the classic product

Features Instant order Execution and Confirmation. Single screen trading terminal.(NSE) Real-time streaming quotes, tic-by-tic charts. Market summary (Cost traded scrip, highest calue etc.) Hot keys similar to brokers terminal. Alerts and reminders. Back-up facility to place trades on Direct Phone lines.

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Customer can view 425 scripts at a time

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Customer can view graphical presentation

PROCESS ON ACCOUNT OPENING LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES CONTACT TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

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PROCESS ON ACCOUNT OPENING LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES CONTACT TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE

DISAGREE

NO

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM LOGIN OF THE FORM SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING 33

DOCUMENTS: 1) Photo ID Proof 2) Residence Proof (Permanent) Passport Pan Card Driving Licence Voter's ID MAPIN UIN Card Passport (valid) Voter's ID Driving Licence (valid) Bank Statement (latest) Telephone Bill (latest) Electricity Bill (lates) Ration Card Flat Maintanance Bill (latest) Insurance Policy (latest) Leave-Licence/Purchase Agreement

3) Residence Proof (Correspondence) Passport (valid) Voter's ID Driving Licence (valid)

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 Bank Statement (latest) Telephone Bill (latest) Electricity Bill (lates) Ration Card Flat Maintanance Bill (latest) Insurance Policy (latest) Leave-Licence/Purchase Agreement 4) Two Photographs (Passport size)

ACCOUNT OPENING CHARGES :

Proposal for Opening of Online Share Trading cum Demat A/C Particulars Account opening charges (inclusive of demat a/c) Brokerage : Delivery Intra-Day Service Tax Turnover Tax Stamp Duty Exposure/margin Demat Transaction Charges Research Report on email AMC (Demat): 1st year 2nd Year No. of Calls on Toll Free PLAN I (Charges) 10,000 /- (fully refundable) 0.25% + 0.25% 0.05% + 0.05% Yes Yes Yes 4 times to 6.6 times Nil Nil Free Rs. 400 Unlimited PLAN II (Charges) 250 /- + 5000 /- (5000 refundable) 0.25% + 0.25% 0.05% + 0.05% Yes Yes Yes 4 times to 6.6 times Nil Nil Free Rs. 400 Unlimited

* Refundable in case the brokerage is more than Rs. 500/= p.m.

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*Taxes as per govt. Sharekhan has tie up with the following banks: HDFC Axis Bank IDBI Citi Bank IndusInd Bank Union Bank ICICI Oriental Bank Of Commerce

MINIMUM INVESTMENT IN MUTUAL FUND: INVESTMENT Mutual Fund (Any Company) Systematic Investment Plan (Any Company) MINIMUM AMOUNT 5000 500

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CLOSURE OF ACCOUNT 1. CLOSURE ON CLIENTS REQUEST A DP can close a depository account on receipt of an application in the prescribed format. The application should be made by the account holder or by all the joint-holders. An account can be closed only when there is no balance in the account. In case there is any balance in the account sought to be closed, the following steps are necessary. (a) Re-materialization of all securities standing to the credit of the account at the time of making the application for closure; or (b) Transferring the balance to the credit of another account opened by the same account holder(s) either with the same participant or with a different participant. Before closing the account the DP should ensure that all pending transactions have been settled. The request for closure should be processed only after ensuring that there is unbalance lying in the account.

2. CONSOLIDATION OF ACCOUNT Some clients could have opened multiple accounts to dematerialize their shares held in multiple combination and sequence of names. However, they may not need so many accounts after they have dematerialized their shares and may want to bring all their share holdings into one or fewer accounts. This can be achieved by using normal off market transfer instruction.

3.CLOSURE BY DP The DP may also initiate closure of a client's account if the client has defaulted in performing its obligations laid out in the client-participant agreement. The participant should give sufficient notice to the client before initiating closure of his account. The notice should clearly state the 37

reasons for closure of account. The process of closing account in such a case is the same that of client-initiated closure.

CLOSURE /SHIFTING OF CLEARING ACCOUNT A clearing member may transfer its clearing account from one DP to another DP. For this, simultaneously applications have to be made for closure of account to the earlier DP and for opening of new clearing member account to the new DP. On receipt of the application, the new DP forwards the application to the depository for approval and allotment of a new CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens a New clearing account and intimates the depository about the new client-ID. On receipt of intimation from the new participant, the depository advises the old DP to close the account. The old DP then closes the account and intimates the clearing member. All payout of securities, subsequent to closure of old clearing account, take place in the new account.

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COMPETITOR ANALYSIS 5PAISE.COM Company Background Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-broking was started under the brand name of 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. Limited ground network, present in 20 Cities Charges for Demat: Demat 1st Yr: Rs 250 Pricing for HNI Clients Demat 1st Yr: Rs 250

KOTAK STREET Company Background Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs, Pricing For Kotak

Demat charges: Rs 22.5 p.m

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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

Demat Charges : Rs 200 if POA is signed, No AMC for this DP POA for Clients DMAT 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. Charges are levied to move shares from IB pool Account to client DP account

ICICI Direct

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 Demat Charges: NIL first years 500 per annum

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HDFC SECURITIES

Company Background The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers DEMAT ACCOUNT WITH HDFC: It is conversion of physical shares into electronic form.

Dematerialization charges

Rs. 3 per share certificate

Rs. 35 per request.

Folio charges are Rs.150 per annum.

Buying and selling transaction through brokers Charges are 0.05% of transaction value

Off market transactions charges - 0.04% of transaction value CHARGES FOR DEMAT ACCOUNT First year: NIL, Yearly charge: 450 per year

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SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

STRENGTHS Services As a product Sharekhan is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.

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Distribution Network Sharekhan with almost 250 branches spread across 123 cities beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution, 60 branches/semi branches servicing affluent/aggressive traders through highly skilled financial advisors, 250 independent investment managers/franchisees servicing 50000 highly valued clients, strong advisory role through Fundamental & technical research and new initiatives are being made in Portfolio Management Services & Commodities trading.

Marketing Sharekhan is a product of SSKI, a veteran equities solutions company with over decades of experience in the Indian stock markets. Sharekhan does not claim expertise in too many things. Share khans expertise lies in stocks and that's what it 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.

Products Companys product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loopholes of all the products offered by the other competitors like low cost, user-friendly online trading services etc.

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WEAKNESS Customer Satisfaction As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking house catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers, who can understand the trading needs of individual customers, and advise accordingly. However, a broking house like Sharekhan, which caters to the mass segment, is in no position to provide relationship managers for individual customers.

Branding Though the company has a efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders.

Competition from banks Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account

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as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.

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OPPORTUNITIES The external environment analysis may reveal certain new opportunities for profit and growth.

Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Sharekhan is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Sharekhan has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time.

Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers.

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Unfulfilled needs of the customers With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by Sharekhan itself was born out of the consumer's need for a more transparent, easy to understand and convenient option of investing in stocks.

Education Level The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes, transactions and indices.

THREATS

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New Competitors A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like Sharekhan and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like icici, kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.

Technology based business Online trading is totally based on the technology, which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but Internet is not that safe. Though a lot of cyber laws are being made but not yet executed.

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OBSERVATIONS AND ANALYSIS

DATA ANALYSIS 1. Market share of share-khan securities COMPANY ICICI Sharekhan Indiabulls 5 Paisa Others MARKET SHARE 28.00% 24.00% 22.00% 20.00% 6.00% Graphical representation of the above data

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The above data describes the market share of the sharekhan competitors in which share has the second highest market share among all its competitors heaving customer base of more then or approximate 4.5 lack. 2. COMPETITORS BROKERAGE COMPARISION

COMPETITORS BROKERAGE ICICI HDFC INDIA BULLS SHARE KHAN 5 PAISA INTRA DAY 0.50% 0.40% 0.10% 0.10% 0.05% DILIVERY 0.75% 0.75% 0.50% 0.50% 0.40%

The above is the detail of the companies brokerages in which sharekhan has competitive brokerage over others in which there reduction of the brokerage depending upon the deal between client and the customer.

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3. GROWTH RATE IN % 2.5 3.1 3.6 4 4.5

YEAR 2002 2003 2004 2005 2006

SHAREKHAN Growth

The above graph shows the growth rate of the company from 2002 to 2006, which shows the increase in the growth trend.

4. COMPANY 51

MARKET SHARE

No of customer in lack ICICI SHARE KHAN INDIA BULLS 5PAISA HDFC 7 4.5 2.5 2.4 1.1

The above graph shows the market share of the customer we are at position no two heaving customer base of around 4.5 lakh customer, ICICI heaving the maximum and HDFC has the minimum customer.

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5. Client acquisition ( During the Project of Two month) Clint Acquisition (Approx.) Total Data Calls made Responses Appointment fixed Appointment confirmed Appointments converted 3000 2700 1200 130 45 26

The above graph shows the numbers of customer (appr.)That has reached through the marketing tools and technique. Approximately out of 3000 clients finally 26 were converted.

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FINDINGS AND RECOMMENDATION

FINDINGS According to the study of the project report and company experience of two month the analysis the following findings: According to graph one icici has the maximum market share and sharekhan is at position no 2. sharekhan has a competitive product feature and services that makes it possible to reach at this position. According to graph two SHAREKHAN has brokerage less then ICICI and HDFC but Same as INDIABULLS but more then other competitors. Brokerage is the main concern for the customer thus company provide some negotiation flexibility in brokerage charges, in terms of brokerage we are better then the ICICI and HDFC company charge less form the customer for the same purpose and providing better service. According to graph 3 which shows the competitors growth in terms of the customer acquisition from 2002 to 2006, Sharekhan has a growth rate of 4% and ICICI has a maximum Growth rate of 5% According to Graph no 4, which shows the total no of customer, sharekhan has the second largest customer base with 4.5lakh among its competitors. According to the graph 5 it shows the practical work done by me. In this I have made approximate 3000-4000 calls in two month to the customers and tried to communicate my product. Out of all these calls I found 2700 numbers correct and rest are not in use. Near about 1200 customer shows interests towards atleast listening to the product out of 1200 only 130 customer fixed the appointment for further process of the account opening with sharekhan. , Then out of 130 customers only 45 appointments are confirmed and visited by me. Out of this total 26 are finally converted and are customer of the company.

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Due to high competition the companies provide same product with different features and services. With this regard sharekhan is at no one for services, brokerage and follow-up.

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RECOMMENDATIONS After heaving an experience of two moths in sales of Demat account I would like to suggest the following things: Company has an advantage of reach tips for which Sharekhan is known for, the customer who are new they need relationship managers who will tell them about investment so it should be provided to al the customer on demand this will lead to customer satisfaction and will hip to have more references from the satisfied customer. The company also have the advantage of brokerage charges it need some revision so that the customer who are locking for the less brokerage can open there account in are company taking into consideration the different proposal, it can be reduced for a HNI client. The company has shown the growth trend and it has reached at no 2 it can move to no one because it has an advantage of its services. As sharekhan is already tieup with 7 banks for online fund transfer that reduces the paper work for customer and ease in trading. The company can increase the customer base if the account opening charges it reduced from 750 to 400, which will give, boost the competition. The company should revise the advertising strategy to increase its brand awareness. I suggest making advertisement on television so that maximum market can be targeted.

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CONCLUSION

After studying the project I would like to conclude that: Company should focus on customer satisfaction at every levels of the account opening procedure. Brokerage can be reduced with the attractive proposals for the HNI. Relationship manager should be given on the customer demand. Company should use the tool of advertising for marketing the brand and the product. Reduction in brokerage would attract the customer of Indiabulls, 5 Paisa and other competitors heaving less brokerage then us. It would increase the market share or client acquisition. The account opening time should be reduce to maximum 5 days because customer losses the opportunity of investments. The company shows the positive trend in growth but it can be increased more if it focuses on building the brand equity.

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RESULT

The given target is 15 clients per month, which is achieved in the specified time frame. I have converted 20 customers in two months and some follow-ups are given to the senior sales executives. The secondary objective is also achieved.

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BIBLIOGRAPHY BOOKS REFERED: MARKETING MANAGEMENT - PHILIP KOTLER RESEARCH METHEDOLGY - C.R KOTHARI OFFICIAL BROCHURE OF SHAREKHAN SECURITIES PVT LTD. 1. www.nsdl.com 2. www.sharekhan.com 3. www.hdfc.com 4. www.nseindia.com 5. www.icicidirect.com 6. www.kotaksecurities.com 7. www.indiabulls.com 8. www.indiainfoline.com 9. www.google.co.in

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