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I Sasmita Tripathi Roll No. 1451770056 declare that the project entitled Comparative Analysis
of Broking Companies and Financial performance of Edelweiss Broking Ltd. is my own
work conducted under the supervision of MR RAVI SHANKAR as a partial fulfillment of
Summer Internship Program for the course of MBA submitted Kailash Institute of Pharmacy &
Management, Gorakhpur.
I further declare that to the best of my knowledge the project does not contain any part of any
work which has been submitted for any other project either in this institute or in any other
without proper citation.
Place :
Date :
ACKNOWLEDGEMENT
3
I would like to extend my deepest gratitude towards those respected people who helped me to
make this project possible. I would like thank my mentor and guide at EDELWEISS Mr. Ravi
Shankar for extending his help that he has given me while making this project. Without his
efforts and vigilance this project would not have been possible. Sir I sincerely thank you for your
relentless efforts towards me. I would also like mention my sincere thanks to all the officials
present at EDELWEISS because they also played an integral part in making this project possible.
Their support and confidence in me always guided me and motivated me.
Lastly , I would like to thank my college Kailash Institute of Pharmacy & Management,
Gorakhpur. for giving us a prospect to experience such hands on training and extensive
practical learning as an extension and application of the theoretical learning we have gained so
far , as a part of our curriculum. This has resulted in immensely valuable knowledge that would
be taken from the institute.
TABLE OF CONTENTS
ACKNOWLEDGEMENT
2. INTRODUCTION
Introduction to stock exchange
Introduction of the company
3. COMPANY PROFILE
4. REVIEW OF LITERATURE
5. RESEARCH METHODOLOGY
Objective of study
Type of research
Sample design
Size of sample
Sources of data collection
6. COMPARATIVE ANALYSIS
7. FINDING & ANALYSIS
8. SUGGESTIONS
9. LIMITATIONS
10. CONCLUSION
11. APPENDIX(Questionnaire)
PREFACE
A good broker system must be able to cope with an extremely complex and dynamic
environment.
The microstructure of the stock market in which brokers work is highly dynamic and volatile.
Many stocks are available to be bought and sold, each exhibiting its own patterns and
characteristics that are highly unpredictable. With so many options and considerations that need
to be taken into account, it is an extremely arduous task for a broker to investigate aspects of the
stock market and consistently provide effective advice to their clients.
Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a system
should provide tools for interacting with exchanges and performing analysis. As a consequence,
these broker systems are quite large and complicated by themselves.
This research aims is to analysis Stock broker on the basis of their services, products,
growth, and their subsidiaries. Because Stockbrokers are one of the main participants in stock
exchanges worldwide, they often act as an agent for their clients, making trades on their behalf.
They also act as advisors, providing suggestions to their clients on what stocks to buy and sell.
EXECUTIVE SUMMARY
There is growing competition between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to choose.
Research was carried out to find which brokerage house people prefer and to figure out what
people prefer while investing in stock market.
This study suggest that people are reluctant while investing in stock and commodity market due
to lack of knowledge
Main purpose of investment is returns and liquidity, commodity market is less preferred by
investors due to lack of awareness. The major findings of this study are that people are interested
to invest in stock market but they lack knowledge.
Through this report we were also able to understand, what are our Companys (Edelweiss
Broking Ltd.) positive and strong points, on the basis of which we come to know what can be the
basis of pitching to a potential client. We also gave suggestions to the company, what
improvement can be done to our product.
INTRODUCTION
In most industrialized countries, a substantial part of financial wealth is not managed
directly by savers, but through a financial intermediary, which implies the existence of an agency
contract between the investor (the principal) and a broker or portfolio manager (the agent).
7
Therefore, delegated brokerage management is arguably one of the most important agency
relationships intervening in the economy, with a possible impact on financial market and
economic developments at a macro level.
In most of the metros, people like to put their money in stock options instead of dumping
it in the bank-lockers. Now, this trend pick pace in small but fast developing cities like Gurgaon,
Noida etc. My research is based on the Delhi-NCR.
As the per-capita-income of the city is on the higher side, so it is quite obvious that they
want to invest their money in profitable ventures. On the other hand, a number of brokerage
houses make sure the hassle free investment in stocks. Asset management firms allow investors
to estimate both the expected risks and returns, as measured statistically. There are mainly two
types of Portfolio management strategies.
1. Passive Portfolio Strategy
2. Active Portfolio Strategy
1. Passive Portfolio Strategy: A strategy that involves minimal expectation input, and
instead relies on diversification to match the performance of some market index. A
passive strategy assumes that the marketplace will reflect all available information in the
price paid for securities
2. Active Portfolio Strategy: A strategy that uses available information and forecasting
techniques to seek a better performance than a portfolio that is simply diversified
broadly.
newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the
prices of business ventures like the Bengal bonded warehouse, the Docking Company and the
storm tug company.
Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during
the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number
of brokers was about 60 and during the exciting period of the American Civil war, their number
increased to about 200 to 250. The end of American Civil war brought disillusionment and many
failures and the brokers decreased in number and prosperity. It was in those troublesome times
between 1868 and 1875 that brokers organized an informal association and finally as recited in
the Indenture constituting the Articles of Association of the Exchange. On or about 9 th day of
July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon
forming in Bombay an association for protecting the character, status and interest of native share
and stock brokers and providing a hall or building for the use of the members of such
association.
As a meeting held in the broker Hall on the 5 th day of February, 1887, it was resolved to execute
a formal deal of association and to constitute the first managing committee and to appoint the
first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange
was formally established in Bombay on 3rd day of December, 1887. The Association is now
known as The Stock Exchange.
The entrance fee for new member was Re.1 and there were 318 members on the list, when the
exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and
478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916
and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000
stock brokers. Organization structure of stock exchange varies.
9
These exchange do not work of its own, rather, these are run by some persons and with the help
of some persons and institution. All these are down as functionaries on stock exchange. These are
1. Stockbrokers
2. sub-broker
3. market makers
4. Portfolio consultants etc.
1.) Stockbrokers
Stock brokers are the members of stock exchanges. These are the persons
who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a
broker. SEBI can impose certain conditions while granting the certificate of registrations. It is
obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are
commission broker, floor broker, arbitrageur etc.
10
31.03.2009
9000
24,000
2.) Sub-broker
A sub-broker acts as agent of stock broker. He is not a member of a stock
exchange. He assists the investors in buying, selling or dealing in securities through stockbroker.
The broker and sub-broker should enter into an agreement in which obligations of both should be
specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered
with SEBI, he must fulfill certain rules and regulation.
Partial fulfillment for degree of M.B.A. programmed, we received the opportunity from
Edelweiss Broking Ltd. for our summer training project report. It is basically a stock brokering
company which deals in security and derivative market, mutual funds etc.
_________________________
12
INTRODUCTION
The Edelweiss Group is a conglomerate of 44 entities including 39 Subsidiaries and 4 Associate
companies (September09), engaged in the business of providing financial services, primarily
linked to the capital markets. Edelweiss Capital Limited (www.edelcap.com), incorporated in
1995, today has emerged as one of Indias leading integrated financial services conglomerates.
The Edelweiss Group offers one of the largest range of products and services spanning varied
asset classes and diversified consumer segments. The Groups product offerings are broadly
divided into Investment Banking, Brokerage Services, Asset Management and Financing. The
companys research driven approach and consistent ability to capitalize on emerging market
trends has enabled it to foster strong relationships across corporate, institutional and HNI clients.
Edelweiss Capital Limited now employs about 1200 employees, leveraging a strong partnership
culture and unique model of employee ownership. It is a listed company since December 2007
under the symbols NSE: EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN.
Evolution of Edelweiss
13
Business Overview
Edelweiss operations are broadly divided into Agency and Capital business lines. The Agency
business line includes Investment Banking, Broking - both Institutional and HNI/Retail, Asset
Management and Investment advisory and distribution services. The Capital business line
14
includes Financing and Treasury Operations. The strategies employed ensure that broadly onethird of the total revenues are contributed by each of Agency fee & commission, Treasury
Arbitrage & Trading income and Interest income thereby achieving the intended diversification
in revenue streams.
Investment Banking
Edelweiss has one of the most extensive product offerings within Investment Banking in India,
catering to different market and client segments. The verticals within Investment Banking
include Equity Capital Markets and Advisory services which offer Mergers & Acquisitions
Advisory, Private Equity Syndication, Structured Finance Advisory, Real Estate Advisory and
Infrastructure Advisory. Edelweiss leadership position in Mid-market space is reflected in the #
1 ranking in both Bloomberg tables for Mid-market Private Equity placements in CY2007 and
Prime Database league tables for IPOs in Mid-market segment in FY2008. It was adjudged
winner in the Best Merchant Banker category in the Outlook Money NDTV Profit Awards 2008.
Broking
Institutional Equities :
15
Edelweiss has one of the leading institutional equities businesses in India backed by a large and
experienced research team and a large and diversified client base. Intense servicing, seamless
execution and innovative research products have helped Edelweiss build strong relationships
with over 300 institutional investors, including FIIs and domestic institutional investors.
Research coverage presently extends to over 145 companies across 16 sectors accounting for
nearly 70% of total market capitalization. The quality and caliber of research associated with
Edelweiss is widely regarded across the institutional community. Our commitment to provide
cutting edge research has resulted in a pioneering effort to provide online research to our clients
through the portal www.edelresearch.com with smart features of sorting of information, analysis
and archiving.
HNI Broking
Edelweiss offers dedicated brokerage services to high net-worth individuals with a strong
emphasis on building long-term relationships with clients. Product offerings include specialized
trading execution for active trading clients and structured products like equity linked capital
protection products.
16
Retail Initiatives
Retail Broking and Distribution are the new initiatives of the Group under its Retail Business
strategy. An online retail broking portal www.edelweiss.in is operational and provides advisory
and research based broking services. Distribution business focuses on giving advice and
analyzing the best financial product options available in the market. It involves the distribution
of the full range of third party financial products and services including IPO syndication for the
retail customer. For the half year ended September 30, 2009 Edelweiss is ranked #2 in NIB (non
institutional bidder) category and is ranked 4th in Retail category by the number of applications
in IPOs as per Prime Database. Edelweiss also secured 1st rank in NIB category both in NHPC
and OIL India IPOs by the number of applications.
Asset Management
Alternative Asset Management focuses on advisory/management expertise for India focused
Multi-Strategy Fund, Real Estate Fund and a Bonds Fund. Recent Initiatives that have been
announced include setting up an ARC for which RBI registration has been received. On the
Domestic AMC side, Edelweiss Mutual Fund has launched a mix of debt and equity funds. The
focus of this business is on broad basing the product portfolio.
Financing
With a deep knowledge and understanding of capital markets, the Companys primary offering
in the financing business includes collateralized loan products such as promoter funding, loans
17
against shares, IPO financing, loans against ESOPs etc. Its prudent financing norms and a
conservative margin of safety ensures low or nil nonperforming loans.
Treasury
The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and
focuses on liquidity management and capital preservation. This business adopts a multi
strategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the
balance sheet. The Company follows a disciplined and conservative approach to cash
management with emphasis on strong risk policies.
Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Citi Venture holds a
majority stake in the company. HSBC, Intel & Carlyle are the other investors.
On April 17, 2009 Edelweiss launched Speed Trade, are 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 SpeedTrade has become a de facto standard for the Day Trading
community over the net.
www.edelweiss.in
SENSEX 17,700.90
56.35 ( 16:14 )
19
Copyright 2009 ECSL. | Disclaimer | Terms & Conditions | Privacy Policy | Browser Settings
About Us | Customer Service | Channel Partners | Our Offerings | Site Map
Equities
Go
The firms online trading and investment site - www.edelweiss.in - was launched on Feb 8, 2009.
The site gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the site
has a registered base of over 1 Lacs customers. The number of trading members currently stands
at over 7 Lacs. While online trading currently accounts for just over 5 per cent of the daily
trading in stocks in India, Edelweiss alone accounts for 27 per cent of the volumes traded online
for HNI segment.
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$ 5 billion in
private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,
Hutchison, Planetasia, and Shoppers Stop.
Finally, Edelweiss shifted hands and Citi venture get holds on it.
FINANCIAL PERFORMANCE
ESLs operation can be broadly classified into equity brokerage services and proprietary trading.
ESL focuses on the wholesale equity segment, providing broking services to Institutional and
corporate clients and high net worth individuals.
Fund Requirements
ESLs fund requirements arise mainly on account of working capital requirement on account of
deposits to be maintained with the exchanges for obtaining trading exposure limits and for
meeting funds requirement for institutional clients. The proceeds of the proposed CP
issue are to be used for the aforesaid purposes. Unutilized margins paid to the exchanges as on
last trading day of the month ranges from 16% to 45% during the period Apr-04 to Dec-04.
However, ESL has to maintain high margins for its intraday transactions done
on its proprietary book and for its clients.
As on 31st Dec04, ESL has fund based bank limits on 2,400 lacs and its average
utilization level has been around 50%.
BRIEF FINANCIAL
As on/For the
2012
2013
2014
2015
Period ended
21
31st March
Brokerage
207
151
290
891
36
121
147
295
Total Income
287
301
587
1394
Employee Costs
35
65
100
229
Operating and
166
171
286
660
Interest Paid
64
46
63
63
Total Expenses
287
289
462
1030
PBT
11
126
364
PAT
-12
10
104
243
Networth
537
536
772
1015
Total Capital
527
1355
1559
2315
Income
Inc from
Securities
&derivatives
Other Expenses
Employed
22
SOLVANCY RATIOS
Overall
1.11
1.47
0.96
1.27
1.01
1.25
2.99
6.77
1.36
1.79
2.96
1.31
0.70
0.79
0.66
0.64
0.22
0.15
0.11
0.05
Debt/Equity
Ratio
Interest
Coverage ratio
Current Ratio
OPERATING EFFICIENCY
Operating
Expenses/Total
Incom
Interest
Expended/total
23
Income
PROFITABILITY RATIO
PAT/Total
-4.20
3.29
17.69
17.42
1.86
15.87
27.18
1.05
7.13
12.54
Income (%)
Return on Net
Worth (%)
Return on
Capital
Employed (%)
24
BROKERAGE INCOME
900
800
700
600
500
400
300
200
100
0
BROKERAGE INCOME
2012
2013
2014
2009
25
COMMENT
Brokerage income of ESL has grown at CAGR of 63% from Rs. 207 lacs in FY15 to Rs. 891 lacs
in FY12. The growth has been particularly strong in FY12 and H1FY14, on account of
buoyancy in the equity market.
Brokerage income contributed 64% of the ESLs total income in FY09. Total
income has grown at 70% p.a. from Rs.287 lacs in FY01 to Rs.1,394 lacs in FY04. However,
from a loss of Rs.12 lacs incurred in FY12 (on account of prior period adjustment, PBT was
positive), ESL registered a profit of Rs.243 lacs in FY15.
300
250
200
150
100
50
0
2012
2013
2014
2009
COMMENT
26
The percentage of income from securities and derivatives is higher because percentages of
deleing with securities and derivatives is higher. And the continuous increasing branches in the
country.
250
200
150
100
East
50
0
-50
2012
2013
2014
2009
COMMENT
27
In 2012 company balance sheet shows higher depreciation and reduction of the fictitious assets
and high investment to launch on line web portal.
NET WORTH
1200
1000
800
600
East
400
200
0
2012
2013
2014
2009
COMMENT
Company is eager to invest in the Indian market.
28
Edelweiss Capital, one of the largest brokerages in India, is close to buying Anagram Stock Broking for
Rs 150Cr.
Edelweiss To Buy Anagram For Rs 150 Cr - Edelweiss Capital Ltd, one of the largest brokerages in
India, is close to buying Anagram Stock Broking for Rs 150 crore. Anagram has 169 branches and 3000,00
clients mainly in Gujarat and Maharashtra. Anagram is owned by Lalbhai group , which has companies like
Arvind Mills. Edelweiss is present in institutional equities, equity financing and investment banking, among
others. (Mint)
29
30
25
20
15
10
0
2007
2014
2015
COMMENT
These ratios shows response from the investors is good and supportive thats why company
showing good returns .
30
Experience
EDELWEISS has more than ten year of trust and credibility in the Indian stock market. In the
Asia Money broker's poll held recently, Edelweiss won the 'India's best research house for 2006'
award. Ever since it launched Edelweiss as its retail broking division in February 2008, it has
been providing institutional-level research and broking services to individual investors.
Technology
31
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.
Accessibility
Edelweiss provides ADVICE, EDUCATION, TOOLS AND EXECUTION 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.edelweiss.in) 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 Edelweisss 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
1800-22-750 from anywhere in India.
Customer Service
32
Its customer service team assist their customer for any help that they need relating to
transactions, billing, demat and other queries. Their customer service can be contacted via a tollfree number, email or live chat on www.sharekhan.com.
Investment Advice
33
Edelweiss Broking Ltd. has dedicated research teams of more than 100 people for fundamental
and technical research. Their analysts constantly track the pulse of the market and provide timely
investment advice to customer in the form of daily research emails, online chat, printed reports
etc.Benefits
Personalised Price and Account Alerts delivered instantly to your Mobile Phone & E-mail
address.
Anytime Ordering.
34
Features
Online trading account for investing in Equity and Derivatives via www.edelweiss.in
Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.
Provision to enter price trigger and view the same online in market watch.
XPRESS
XPRESS 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 days session
to capitalize on intra-day price movement.
Features
Single screen trading terminal for NSE Cash, NSE F&O & BSE.
Technical Studies.
Multiple Charting.
Funds Transfer
Avail a pay-in and pay-out option where you can transfer funds from and to your
trading account.
Tie ups with HDFC Bank, ICICI Bank and Axis Bank, Yes Bank, Kotak bank
wherein you can easily transfer funds from any of these banks.
37
ORDER BOOK
Along with enabling access for trade online, the CLASSIC and XPRESS ACCOUNT
also gives Dial-n-trade services. With this service, one can dial ESELWEISSs dedicated phone
lines 1-800-22-7500.
Beside this, Relationship Managers are always available on Office Phone and Mobile to
resolve customer queries.
38
39
MOBILE TRADING
EDELWEISS had introduced mobile trading, A mobile based software where one can
watch Stock Prices, Intra Day Charts, Reasearch & Advice and Trading Calls live on the Mobile.
(As per SEBI regulations, buying-selling shares through a mobile phone are
not yet permitted.)
www.edelweiss.in
MOBILE
WEBSITE
KEY FEATURES
Trading Strategies
40
Edelweiss had tied-up with Yes bank for Zero Balance Account for Edelweisss Clients.
Now their customers can have a Zero Balance Saving Account with Yes Bank after your demat
Account creation with Edelweiss.
41
CHARGE STRUCTURE
Plan
Advance
Validity
Brokerage
Period
Brokerage Rates
Turnover limit
Fee
EBSPN01
Rs 2450
EBSPN02
Deliver
Futures and
Intraday Cash
12
0.033%
months
Rs 4950
12
Equivalent delivery
750000
0.33%
0.27%
0.027%
1800000
Months
EBSPN03
Rs 9950
12 Months
0.22%
0.022%
4500000
EBSPN04
Rs 15000
12 Months
0.17%
0.017%
9000000
EBSPN04
Rs.
12
50000
month
EBCRB06
Rs
12
1,10,000
month
Rs
3 month
45000000
0.11%
0.011%
0.09%
0.009%
125000000
0.05%
0.005%
200000000
EBCRB07
42
1,11,111
43
Karvy is a premier integrated financial services provider, and ranked among the top five in the
country in all its business segments, services over 16 million individual investors in various
capacities, and provides investor services to over 300 corporate, comprising the who is who of
Corporate India. Karvy has a professional management team and ranks among the best in
technology, operations and research of various industrial segments.
History of Karvy :- The birth of Karvy was on a modest scale in 1981. It began with the vision
and enterprise of a small group of practicing Chartered Accountants who founded the flagship
company, Karvy Consultants Limited. They started with consulting and financial accounting
automation and carved inroads into the field of registry and share accounting by 1985. Since
then, karvy utilized its experience and superlative expertise to go from strength to strength, to
better their services, to innovate, diversify and in the process, evolved as one of Indias premier
integrated financial service enterprise.
44
ICICI DIRECT
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the
"Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by
ICICI Bank Limited. IWTL has launched and established an online trading service on the
Website.
PRODUCTS AND SERVICES OF ICICI DIRECT
1. Investing in Mutual funds
2. Personal Finance
3. Customer Service Features
4. IPOs
5. Margin Trading
6. Margin PLUS Trading
7. Call Trade
45
8. Trading on NSE/BSE
9. Trade in derivatives
India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd
and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with
regulatory guidelines. www.5paisa.com is a focused website for online stock market trading.
5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for
trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers
and Sub-Brokers) Rules 1992.
IILSPL is in the business of providing broking services online via the Internet ("E-broking
Services") and has been permitted by the NSE by way of registration permission no:
NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be applying for permission to the
46
BSE, to provide E-broking Services to its clients. IILSPL is a TRADING MEMBER of the
National Stock Exchange of India.
PRODUCT OFFERED BY IILSPL
Stock market:-IILSPL deals in stock market by trading in equity and derivatives.
Personal finance:- It Deals In Mutual Fund And Insurance.
Online Trading :- It provides services in stock and commodity trading (through Internet).
HDFC SECURITY
47
Online IPO's.
Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9,
1995. The name of the company was changed to Orbis Securities Private Limited on December
15, 1995 to change the profile of the company and subsequently due to the conversion of the
company into a public limited company; the name was further changed to Orbis Securities
48
Limited on January 5, 2004. The name of the company was again changed to Indiabulls
Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term
Indiabulls in the company name. ISL is a corporate member of capital market & derivative
segment of The National Stock Exchange of India Ltd. At present, ISL accounts for
approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships
and 70 branches spread across the country as of April 30, 2004.
INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls Credit Services has been valued
at Rs. 263 crore with the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the recently
formed subsidiary of broking firm, Indiabulls Financial Services Ltd. Faralon Capital, a San
Francisco-based private equity fund, and its affiliates have acquired 33.3 per cent stake for Rs
87.6 crore.
INDIABULLS REAL ESTATE:- Indiabulls through its group companies has entered Indian
Real Estate business in 2005. It is currently evaluating several large-scale projects worth several
hundred million dollars. Indiabulls became the first company to bring FDI in Indian Real Estate
through a JV with Farallon Capital Management, a respected US based investment firm.
SHAREKHAN
Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully
since 1922 in the country. Earlier it was 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.
50
Online Broker
Sharekhan
brokerage charges
Karvy
brokerage charges
ICICI direct
brokerage charges
Brokerage for
Brokerage for
Delivery
Intraday trading
0.03% - 0.50%
0.03% - 0.10%
300
0.30% - 0.50%
0.03% - 0.15%
300
0.75%
0.15%
500
AMC*
51
Indiabulls
brokerage charges
0.25% - 0.50%
0.05% - 0.10%
Nil
0.50%
0.15%
500
0.20% - 0.30%
0.02% - 0.03%
250
0.01%
0.01%
card system
0.50%
0.10%
Nil
HDFC Securities
brokerage charges
Religare
brokerage charges
Reliance Money
brokerage charges
Indiainfoline
brokerage charges
REVIEW OF LITERATURE
52
money whether you win or lose. That means that when youre investing, youre basically just
sitting there. Youre not going anywhere. Youre not making money as an investor.
Trading the Trend: The Only Way to Make Money in the Market
If you dont know this already, Trend Trading means trading trends based on human emotions.
Not lagging indicators. Not complex statistical analysis and not Ph.D. level mathematical
equations. With trend trading, you look for market movement. That could mean stocks that are
going to move up or down during the course of a day (intraday). Youll play the gaps up and
down, often several days a week.
The Trend trading means being aware and taking advantage of trends like the run-ups that
happen around earning sessions. These are trends that have worked time and time again in the
market. They consistently yield results.
OBJECTIVE OF RESEARCH
54
Each research study has its own specific purpose. It is like to discover to Question through the
application of scientific procedure. But the main aim of our research to find out the truth that is
hidden and which has not been discovered as yet. Our research study has two objectives:-
SIZE OF SAMPLE
55
This refers to the number of items to be selected from the universe to constitute a sample
In our research sample size is 500.
But we also study the 5 stock broker companies related to security & commodity market like
India-infoline, ICICI direct, HDFC securities, Karvy consultant ltd. for the appropriate
collection of the information.
Survey Method: - Survey refers to the method of securing information concerning phenomena
under study from all or selected number of respondents of the concerned area. In a survey the
investigator examines those phenomena which exist in the universe independent of his action. We
used the Scheduling Method.
56
Scheduling: - In this method the enumerators along with schedules, go to respondents, put to
them the questions from the Performa in the order the questions are listed and recorded the
replies in the space meant for the same in the Performa.
COMPARATIVE ANALYSIS
After the whole study, we find out the following results:
Results on the Basis of charges
There are the two type of the transaction:1. Intra-day based
2. Delivery based
57
0.75
0.8
0.75
0.7
0.6
0.5
0.5
0.5
0.35
0.4
0.3
0.2
0.2
0.1
INTRA-DAY
0.25
0.1
0.05
DELIVERY
0.1
0.05
0.05
58
Sharekhan ltd:- There is no ACCOUNT OPENING CHARGES but require margin money of Rs
5000 for trading purposes.
ICICI direct:- A one-time charge of Rs. 750 at the time of account opening will be charged. You
may later upgrade your Invest account to an ICICI direct.com share trading account when you
desire to trade in equity.
India Infoline:- There is a nominal charge of Rs. 500 only towards stamp duty, legal and
processing fees for opening the account. This includes the registration and account opening
charges. Bank and Depository Participant (DP) account opening charges, if applicable, are
payable separately.
KARVY consultants ltd:- Account Opening Charges Are 452 But now SEBI banned on opening
of new demat account of Karvy.
Indiabulls:- Account opening charges are Rs. 900. There is no AMC and no margin money is
required.
Edelweiss Broking Ltd.:- Account opening charges are nil. And the requirement of the margin
money is Rs 1000.
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Comment:- India Bulls charge maximum account opening charges but there are no such charges
in Sharekhan pvt. Ltd. And Edelweiss Broking Ltd.
2. According to survey, Edelweiss Broking Ltd open new branches for individually handle to
their customer, but in ICICI direct, HDFC security there is no separate offices for this .
Basis
of Sharekhan
difference
Karvy
Ltd.
India
ICICI
Infoline
direct
Indiabulls
HDFC Edelweiss
Broking
Ltd.
Share
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
Yes
Yes
Yes
No
Yes
trading
Commodity
trading
d-mat
opening
rights
Karvy and HDFC securities are not providing complete range of trading facilities.
61
KNOWLEDGE
%AGE
Yes
80%
No
20%
TOTAL
100
20%
80%
Yes
No
COMMENT
Only 80% people knows the exact meaning of investment. Because of remaining 20% take
his/her residential property as an investment. According to law purpose this is not an investment
because of it is not create any profit for the owner.
2) Most preferable investment scenario.
62
INVESTMENT
%AGE
SCENARIO
Banks
24%
28%
market
Insurance
4%
Bonds
20%
Real estate
20%
Others
4%
TOTAL
100
63
20%
4%
20%
4%
24%
28%
Banks
Derivatives &
securities market
Insurance
Bonds
Real estate
Others
COMMENT
Today scenario is changed so that most area covered by the derivative and securities market. It is
28% of the total population.
64
INVESTMENT
PERCENTAGE
PURPOSE
Liquidity
30%
Returns
25%
Capital
10%
appreciation
Tax benefits
Risk covering
Others
TOTAL
20%
5%
10%
100
65
5%
10%
Liquidity
30%
Returns
20%
10%
Capital
appreciation
Tax benefits
25%
Risk covering
Others
COMMENT:- 75% people are interested in liquidity, returns and tax benefits. And remaining
25% are interested in capital appreciations, risk covering, and others.
4)
Most important things you take into your mind while making investments?
FACTOR
Risk
%AGE
8%
Returns
17%
Both
75%
TOTAL
100
66
8%
17%
Risk
Returns
Both
75%
COMMENT
75% people are considered the both factors risk as well as returns but, only 25% considered the
risk or returns factor.
KNOWLEDGE
Complete
PERCENTAGE
8%
Partial
75%
Nil
17%
TOTAL
100
67
17%
8%
Complete
Partial
Nil
75%
COMMENT
On that basis, we conclude that 17% people know nothing about the securities investments and
75% people have partial knowledge about it, so, some promotional activities are required for
increasing the awareness about security market.
ACCOUNTS
PERCENTAGE
Yes
60%
No
40%
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TOTAL
100%
40%
60%
Yes
No
COMMENT
Only 75% respondents have de-mat and trading account and remaining 25% says no because
they dont know why shares move up and down.
COMPANY
PERCENTAGE
69
SHAREKHAN
38%
INDIAINFOLINE
20%
ICICI DIRECT
14%
INDIA BULLS
12%
KARVY
9%
Others
7%
TOTAL
100
9% 7%
38%
12%
14%
20%
SHAREKHAN
INDIAINFOLINE
ICICI DIRECT
INDIA BULLS
KARVY
Others
COMMENT
In Sharekhan Ltd 38% respondents have de-mat & trading account because of better services and
no annual maintenance and other charges.
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SATISFACTION
PERCENTAGE
Operating expenses
18%
Services
25%
Brokerage
57%
TOTAL
100
18%
57%
25%
Operating expenses
Services
Brokerage
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FINDINGS
According to the survey most of the customers of Sharekhan Ltd says that it is pocket
friendly.
Coming to faith 70% say Sharekhan Ltd is better than others stock brokers due to customers
satisfaction.
Lack of promotional activities undertaken by Sharekhan securities Ltd. in Chandigarh
Region.
Main purposes of investments are returns & liquidity.
Investors take risk as well as returns into their mind while making the investment.
Businessmen are more interested in the stock market than the others.
Commodity market is less preferred by the investors.
People want to invest their money in the security market but they havent the proper
knowledge.
People are not aware of hedging in stock market.
People pay more emphasis on brokerage than service provided by brokerage houses.
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SUGGESTIONS
Commitment should be equalized for every person.
Provide the facility of free demonstrations for all.
Improvement in the opening of De-mat & contract notice procedure is required.
There should be a limited number of clients under the relationship manger. So that he can
handle new as well as old customer properly.
Some promotional activities are required for the awareness of the customer.
People at young age should be encouraged to invest in stock market.
Seminars should be held for providing information to prospective and present customers.
73
LIMITATIONS
As only CHANDIGARH dealt in survey so it does not represent the view of the total
Indian market.
Size of the research may not be substantial.
There was lack of time on the part of respondents.
The survey was carried through questionnaire and the questions were based on
perception.
There may be biasness in information by market participant.
Complete data was not available due to company privacy and secrecy.
74
CONCLUSION
On the basis of the study it is found that Sharekhan Ltd is better services provider than the other
stockbrokers because of their timely research and personalized advice on what stocks to buy and
sell. Sharekhan Ltd. provide the facility of Trade tiger as well as relationship manager facility
for encouragement and protect the interest of the investors. It also provides the information
through the internet and mobile alerts that what IPOs are coming in the market and it also
provides its research on the future prospect of the IPO.
Study also concludes that people are not much aware of commodity market and while its going
to be biggest market in India.
75
The company should also organize seminars and similar activities to enhance the knowledge of
prospective and existing customers, so that they feel more comfortable while investing in the
stock market.
APPENDIX
QUESTIONNAIRE
DATE:
NAME
OCCUPATION
AGE
76
CONTACT NO.
b) No
b) Banks
c) Real estate
d) Share market
e) Commodity
f) Others
b) Returns
d) Risk covering
e) Tax benefits
4) What are the most important things you take into account, while making any investment?
77
a) Risk
b) Returns
c) Both
b) Complete
c) Nil
b) No
b) Karvy
c) Indiainfoline
d) ICICI direct
e) Indiabulls
f) HDFC securities
g) Others
b) No
78
b) BSE
c) MCX
d) NCDEX
b) No
Suggestion:-
79
BIBLIOGRAPHY
Books:
BERI
G C. MARKETING RESEARCH
NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY LIMITED.
KOTHARI
RESEARCH METHODOLOGY
NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978.
80
GOYAL, DR.ALOK,
FINANCIAL MARKET OPERATION
NEW DELHI, V.K. (INDIA) ENTERPRISES .
Magazines:
VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)
CAPITAL MARKET (5PASISA.COM), NEW DELHI.
THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROM KARVY).
Internet:
http://WWW.MONEYCONTROL.COM
http://WWW.CAPITALINE.COM
http://WWW.SHAREKHAN LTD.COM
http://WWW.INDIAINFOLINE.COM
http://WWW.ICICIDIRECT.COM
http://WWW.HDFCSECURITY.COM
http://WWW.KARVY.COM
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