SUMMER TRAINING REPORT

ON
E- MARKETING OF PRODUCT & SERVICES OF SHAREKHAN
LIMITED(JHANDEWALAN)

Submitted in the partial fulfillment of the requirement of

Bachelor of business administration course of
Guru Gobind Singh Indraprastha University (2015-2018)

Under the institutional guidance of:

Under the
organisation guidance of
Mrs.DEEPTI GAUR MR. AMIT KUMAR
(Assistant Manager)
Submitted by
DIWAKAR SHARMA
04115501715

NEW DELHI INSTITUTE OF MANAGEMENT

Tughlakabad Institutional Area, New Delhi – 110062

1
 ACKNOWLEDGEMENT

I take this opportunity to express my heartiest gratitude to New Delhi Institute of Management for
permitting me to undertake this summer training program and supporting me during this training and
otherwise also.
I would like to thanks MR. AMIT KUMAR for his kind support because of whom I was able to complete
my research project on time.
I would like to thank Mrs.DEEPTI GAUR who not only played the role of my philosopher and guide but
also mentored me at every stage of my project work. I would like to extend my hearty thanks to entire
faculty members of BBA department for their constant cooperation and support to take decision during the
course of my summer training. I would also like to thank my parents for their support and blessing without
which this project could not have been completed. Indeed I shall remain ever grateful to them.
I am also thankful to college library and computer laboratory management staff for their constant support.

DIWAKAR SHARMA
04115501715

2
 CERTIFICATE
I hereby certify that this project report entitled “E-MARKETING OF PRODUCT & SERVICES OF

SHAREKHAN LIMITED (JHANDEWALAN)” is based on an original project study conducted by

DIWAKAR SHARMA under my guidance. This has not formed basis for the award of any degree/diploma

of this institution or any other University.

Place: New Delhi Mrs.DEEPTI GAUR

Date: (Faculty Guide)

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 TABLE OF CONTENTS
CHAPTERS CONTENTS PAGE NO.

Cover Page 1
Acknowledgement 2
Certificate of the company from the company 3
supervisor/boss
Table of contents/Index 4

CHAPTER 1 INTRODUCTION AND NATURE OF JOB ASSIGNED 5-8

CHAPTER 2 INDUSTRY OVERVIEW
2.1 Past, present and future trends 10-24
2.2 Major players and their respective market share 25-30
CHAPTER 3 COMPANY PROFILE 31
3.1 History 32
3.2 Vision, Mission and objectives of the company 33
3.3 Organizational structure / management hierarchy 34
3.4 Products and services offered 35-38
3.5 Future plans 39
CHAPTER 4 JOB DESCRIPTION 40
4.1 Job description statement
4.2 Detailed job profile
4.3 Area assigned 41-43
4.4 Target assigned
4.5 Day to Day On job experience

CHAPTER 5 FINDINGS ABOUT THE COMPANY AND ANALYSIS 44-48

5.1 Major findings 49
5.2 Future growth prospects
CHAPTER6 DIFFICULTIES FACED AND MAJOR LIMITATIONS 50-51
CHAPTER 7 CONCLUSION AND SUGGESTIONS 52-54
ANNEXURES 55-58

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 CHAPTER-1

INTRODUCTION AND
NATURE OF JOB ASSIGNED

5
1.1 INTRODUCTION
The topic is to study of the customer preference towards investment in the stock market. DEMAT a/c is a
pool of various scripts & securities where as online trading A/C are a tool of purchasing and selling of share
or scripts online. These scripts are then transferred to Depository account after three days.
This topic includes the practical experience of selling company product that is followed by studying
the customer preference or interest towards the share market. This is a market, which is uncertain sometimes
it gives the opportunity of the huge profit & vice versa. It depends up on the investment customer made. This
is better option to have better return on the investment then investing in banks, mutual fund or bonds etc but
the risk is high in this case,
This product offers the customer two type of investment option INTRADAY & DELIVERY both of
them has there own benefits and limitation but a better way to have more return on investment. Intraday
means investing in share market for a day i.e. purchasing & selling of the share in one day. Delivery is
purchasing share & the selling it next day. The charges that company charges in terms of brokerage are
different in the both of the cases.

1.2 JOB ASSIGNED

Role and responsibilities
I worked there with SHAREKHAN LTD. with a profile of sales trainee. This profile offers me to understand
the need of customers and provide them the best deal possible with maximization of the profit, both for the
company as well as for the customer.
The most important aspect for the role of trainee is trust. So far fulfillment of the targets one needs to:
 Capitalize on the old and loyal clientage which can be building slowly by advising people in the best
possible way.
 Generating new leads through various activities.

Generation of leads
Since I was new in the field so I had to start from scratch and generate new leads to sustain in the market.
Cold calling is one of the trusted ways of getting to the customers without meeting them. Although the rate
of conversion remained very less, for cold calling the quality and accent remains a very important criterion.
This activity gives me mixed result. I often got success and generated many leads through it but it also
landed me in awkward position where the customer were in different mood and made us hear words for
which a marketer should be always prepared to hear. Corporate calls always remained more difficult to crack
with respect to retail sector.

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The corporate were the most difficult and most temping to get the business from. It took me one month to
crack Hi-tech Gears. At SHAREKHAN LTD. after getting the product knowledge in the first week at the
branch I was also allotted distributor to work with. In the initial phase I was accompanied by more
experienced staff. After I became known to the market and procedure I started attending calls alone only.

After the third week my performance also improved and I was able to get close to the targets, though it
looked difficult to achieve in the beginning. To get awareness of the every product I attended diversified
calls. This helped me to implement cross selling to get better results.

Description of live experience

I was supposed to use the database provided by the company to make cold calls or by directly meeting
people to get new leads.

While making cold calls, we need to have

 Good Communication Skills (Voice quality is clear and articulate)

 Persistent and able to bounce back from rejection

 Good organizational skills.

 Ability to project a telephone personality (Enthusiasm, friendliness)

 Flexibility: can adapt to different types of clients and new situations.

Problems faced while selling products

 Customer dissatisfied with the services.

 People fear that Sharekhan being a Private company and a new entrant may

Be able to sustain or not.

 Past experience, word of mouth.

 Misguidance by agents.

 People do not want insurance products.

 Lack of knowledge and less awareness about demat account.

 People risk appetite is very low, so they are afraid of mutual fund as well

7
NEED OF THE STUDY
The need of the study arises because of the reason that a trainee must understand the company, its
achievements and tasks, products and services and also to collect information about its competitors, its
products and services offered. So that, after understanding and collecting information about the organization
and its competitors, a trainee will be able to work well for the organization.
From the study we have learned very much, about the company as well as the strategy of the customers,
which helps us a lot at our working days.

OBJECTIVE
The primary objectives are
 Checking the awareness level of online share trading.
 Evaluation of preferred investments in various mode and industry.
 To collect the real time information about preference level of customers using Demat account and
their inclination towards various other brokerage firms e.g. India bulls, Angel broking, India infoline,
Religare, Alan- kit, Unicon.
 To study the market share of Sharekhan ltd.
 To study the pricing strategy of competitors
 Study of influencing factors affecting the purchase decision.
 Checking the satisfaction level of the customers towards preferred broking house.
The secondary objectives are
 To build clients and let them know about the different services offered by the SHAREKHAN.
 To understand the problem faced by customers and finding way to solve the queries.

8
 CHAPTER-2

INDUSTRY PROFILE

9
INDUSTRY PROFILE

2.1 Past, present and future trends

Origin and development of the industry.

Many millions of people have a personal interest in what happens at a stock exchange. Some are directly
concerned because they are part owners of companies through stock, others are holders of the government
and other listed securities and yet another group is holders of insurance policies, since insurance companies
invest much of their assets in listed security.

Stock exchange or bourse is a mutual organization which provides facilities for stock brokers and traders, in
trading company stocks and other securities, and for the issue of redemption of securities and other financial
tools and capital events like the payment of income and dividends. The securities traded on a stock exchange
include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able
to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at
least for recordkeeping, but trade is less linked to such a physical place.

Electronic networks run modern markets are, providing them great speed and cost of transactions. Stock
exchange is often called the most important element of a stock market. The Demand and Supply in the stock
markets is attracted by number of factors that affect the price of stocks.

INTRODUCTION OF ONLINE TRADING

Electronic trading, sometimes called e trading, is a method of trading securities (such as stocks, and bonds),
foreign exchange or financial derivatives electronically. Information technology is used to bring together
buyers and sellers through an electronic trading platform and network to create virtual market places such as
NASDAQ, NYSE Arco and Globex which are also known as electronic communication networks (ECNs).

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Electronic trading is in contrast to older floor trading and phone trading and has a number of advantages, but
glitches and cancelled trades do still occur.

HISTORY ON ONLINE TRADING

For many years stock markets were physical locations where buyers and sellers met and negotiated.
Exchange trading would typically happen on the floor of an exchange, where traders in brightly colored
jackets (to identify which firm they worked for)

Would shout and gesticulate at one another – a process known as open outcry or pit trading (the exchange
floors were often pit-shaped – circular, sloping downwards to the centre, so that the traders could see one
another). With the improvement in communications technology in the late 20th century, the need for a
physical location became less important and traders started to transact from remote locations in what became
known as electronic trading. Electronic trading made transactions easier to complete, monitor, clear, and
settle and this helped spur on its development.

One of the earliest examples of widespread electronic trading was on Globe, the CME Group’s electronic
trading platform conceived in 1987 and launched fully in 1992.[3] This allowed access to a variety of
financial markets such as treasuries, foreign exchange and commodities. The Chicago Board of Trade
(CBOT) produced a rival system that was based on Oak Trading Systems’ Oak platform branded ‘E Open
Outcry,’ an electronic trading platform that allowed for trading to take place alongside that took place in the
CBOT pits.

Set up in 1971, NASDAQ was the world's first electronic stock market, though it originally operated as an
electronic bulletin board, rather than offering straight-through processing (STP).

By 2011 investment firms on both the buy side and sell side were increasing their spending on technology
for electronic trading. With the result that many floor traders and brokers were removed from the trading
process. Traders also increasingly started to rely on algorithms to analyze market conditions and then
execute their orders automatically.

The move to electronic trading compared to floor trading continued to increase with many of the major
exchanges around the world moving from floor trading to completely electronic trading.

Trading in the financial markets can broadly be split into two groups

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  Business-to-business (B2B) trading, often conducted on exchanges, where large investment banks
and brokers trade directly with one another, transacting large amounts of securities, and
 Business-to-consumer (B2C) trading, where retail (e.g. individuals buying and selling relatively
small amounts of stocks and shares) and institutional clients (e.g. hedge funds, fund managers or
insurance companies, trading far larger amounts of securities) buy and sell from brokers or "dealers",
who act as middle-men between the clients and the B2B markets.

While the majority of retail trading in the United States happens over the Internet, retail trading volumes are
dwarfed by institutional, inter-dealer and exchange trading. However, in developing economies, especially in
Asia, retail trading constitutes a significant portion of overall trading volume.

For instruments which are not exchange-traded (e.g. US treasury bonds), the inter-dealer market substitutes
for the exchange. This is where dealers trade directly with one another or through inter-dealer brokers (i.e.
companies like GFI Group and BGC Partners. They acted as middle-men between dealers such as
investment banks). This type of trading traditionally took place over the phone but brokers moved to offering
electronic trading services instead.

Similarly, B2C trading traditionally happened over the phone and, while some still does, more brokers are
allowing their clients to place orders using electronic systems. Many retail (or "discount") brokers (e.g.
Charles Schwab, E-Trade) went online during the late 1990s and most retail stock-broking probably takes
place over the web now.

Larger institutional clients, however, will generally place electronic orders via proprietary electronic trading
platforms such as Bloomberg Terminal, Reuters 3000 Xtra, Thomson Reuters Eikon, BondsPro, Thomson
Trade Web or Can Deal (which connect institutional clients to several dealers), or using their brokers'
proprietary software.

For stock trading, the process of connecting counterparties through electronic trading is supported by the
Financial Information exchange (FIX) Protocol. Used by the vast majority of exchanges and traders, the FIX
Protocol is the industry standard for pre-trade messaging and trade execution. While the FIX Protocol was
developed for trading stocks, it has been further developed to accommodate commodities, foreign exchange,
derivatives, and fixed income trading.

History of Stock Exchange

Securities markets took centuries to develop. The idea of debt dates back to the ancient world, as evidenced
for example by ancient Mesopotamian clay tablets recording interest-bearing loans. There is little consensus
among scholars as to when corporate stock was first traded. Some see the key event as the Dutch East India
12
Company's founding in 1602, while others point to earlier developments. Economist Ulrike Malmendier of
the University of California at Berkeley argues that a share market existed as far back as ancient Rome.

In the Roman Republic, which existed for centuries before the Empire was founded; there were society’s
publican rum, organizations of contractors or leaseholders who performed temple-building and other
services for the government. One such service was the feeding of geese on the Capitoline Hill as a reward to
the birds after their honking warned of a Gallic invasion in 390 B.C. Participants in such organizations had
parties or shares, a concept mentioned various times by the statesman and orator Cicero. In one speech,
Cicero mentions "shares that had a very high price at the time." Such evidence, in Malmendier's view,
suggests the instruments were tradable, with fluctuating values based on an organization's success. The
societies declined into obscurity in the time of the emperors, as most of their services were taken over by
direct agents of the state.

Tradable bonds as a commonly used type of security were a more recent innovation, spearheaded by the
Italian city-states of the late medieval and early Renaissance periods.

In 1171, the authorities of the Republic of Venice, concerned about their war-depleted treasury, drew a
forced loan from the citizenry. Such debt, known as prestiti, paid 5 percent interest per year and had an
indefinite maturity date. Initially regarded with suspicion, it came to be seen as a valuable investment that
could be bought and sold. The bond market had begun.

From 1262 to 1379, Venice never missed an interest payment, solidifying the credibility of the new
instruments. Other Italian city-states such as Florence and Genoa became bond issuers as well, often as a
means of paying for warfare. Bonds were traded widely in Italy and beyond, a business facilitated by
bankers such as the Medicis.

War between Venice and Genoa resulted in suspension of prestiti interest payments in the early 1380s, and
when the market was restored, it was at a lower interest rate. Venice's bonds traded at steep discounts for
decades thereafter. Other blows to financial stability resulted from the Hundred Years War, which caused
monarchs of France and England to default on debts to Italian banks, and the Black Death, which ravaged
much of Europe. Still, the idea of debt as a tradable investment endured.

As with bonds, the concept of stock developed gradually. Some scholars place its origins as far back as
ancient Rome. Partnership agreements dividing ownership into shares date back at least to the 13th century,
again with Italian city-states in the vanguard. Such arrangements, however, typically extended only to a
handful of people and were of limited duration, as with shipping partnerships that applied only to a single
sea voyage

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The forefront of commercial innovation eventually shifted from Italy to northern Europe. The Hanseatic
League, an alliance of mercantile cities such as Bruges and Antwerp, operated counting houses to expedite
trade.

By the late 1500s, English merchants were experimenting with joint-stock companies intended to operate on
an ongoing basis; one such was the Muscovy Company, which sought to wrest trade with Russia away from
Hanseatic dominance.

The next big step occurred in the Netherlands. In 1602, the Dutch East India Company was formed as a
joint-stock company based in six locations with shares that were readily tradable. The stock market had
begun, but since stocks were not allowed to be traded with multiple addresses for a company, the stocks
were redesigned as coming just from Amsterdam.

. The Dutch East India Company, formed to build up the spice trade, operated as a colonial ruler in what's
now Indonesia and beyond, a purview that included conducting military operations against recalcitrant
natives and competing colonial powers. Control of the company was held tightly by its directors, with
ordinary shareholders not having much influence on management or even access to the company's
accounting statements.

However, shareholders were rewarded well for their investment. The company paid an average dividend of
over 16 percent per year from 1602 to 1650. Financial innovation in Amsterdam took many forms. In 1609,
investors led by one Isaac Le Maire formed history's first bear syndicate, but their coordinated trading had
only a modest impact in driving down share prices, which tended to be robust throughout the 17th century.
By the 1620s, the company was expanding its securities issuance with the first use of corporate bonds.

The Dutch West India Company was formed in 1621, bringing a new issuer to the burgeoning securities
market. Amsterdam's growth as a financial center survived the tulip mania of the 1630s, in which contracts
for the delivery of flower bulbs soared wildly and then crashed. New techniques and instruments proliferated
for securities as well as commodities, including options, repos and margin trading.

Joseph de la Vega, also known as Joseph Penso de la Vega and by other variations of his name, was an
Amsterdam trader from a Spanish Jewish family and a prolific writer as well as a successful businessman in
17th-century Amsterdam. His 1688 book Confusion of Confusions explained the workings of the city's stock
market. It was the earliest book about stock trading, taking the form of a dialogue between a merchant, a
shareholder and a philosopher, the book described a market that was sophisticated but also prone to excesses,
and de la Vega offered advice to his readers on such topics as the unpredictability of market shifts and the
importance of patience in investment.

14
The year that de la Vega published also brought an event that helped spread financial techniques and talent
from Amsterdam to London. This was the "glorious revolution," in which Dutch ruler William of Orange
also ascended to England's throne. William sought to modernize England's finances to pay for its wars, and
thus the kingdom's first government bonds were issued in 1693 and the Bank of England was set up the
following year. Soon thereafter, English joint-stock companies began going public.

London's first stockbrokers, however, were barred from the old commercial center known as the Royal
Exchange, reportedly because of their rude manners. Instead, the new trade was conducted from coffee
houses along Exchange Alley. By 1698, a broker named John Castaing, operating out of Jonathan's Coffee
House, was posting regular lists of stock and commodity prices. Those lists mark the beginning of the
London Stock Exchange.

One of history's greatest financial bubbles occurred in the next few decades. At the center of it were the
South Sea Company, set up in 1711 to conduct English trade with South America, and the Mississippi
Company, focused on commerce with France's Louisiana colony and touted by transplanted Scottish
financier John Law, who was acting in effect as France's central banker. Investors snapped up shares in both,
and whatever else was available. In 1720, at the height of the mania, there was even an offering of "a
company for carrying out an undertaking of great advantage, but nobody to know what it is."

By the end of that same year, share prices were collapsing, as it became clear that expectations of imminent
wealth from the Americas were overblown. In London,

Parliament passed the Bubble Act, which stated that only royally chartered companies could issue public
shares. In Paris, Law was stripped of office and fled the country. Stock trading was more limited and
subdued in subsequent decades. Yet the market survived, and by the 1790s shares were being traded in the
young United States.

Venture capital

A third usual source of capital for startup companies has been venture capital. This source remains largely
available today, but the maximum statistical amount that the venture company firms in aggregate will invest
in any one company is not limitless (it was approximately $15 million in 2001 for a biotechnology
company). At those level, venture capital firms typically become tapped-out because the financial risk to any
one partnership becomes too great.

Corporate partners

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A fourth alternative source of cash for a private company is a corporate partner, usually an established
multinational company, which provides capital for the smaller company in return for marketing rights, patent
rights, or equity. Corporate partnerships have been used successfully in a large number of cases.

Mobilizing savings for investment

When people draw their savings and invest in shares (through an IPO or the issuance of new company shares
of an already listed company), it usually leads to rational allocation of resources because funds, which could
have been consumed, or kept in idle deposits with banks, are mobilized and redirected to help companies'
management boards finance their organizations. This may promote business activity with benefits for several
economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and
higher productivity levels of firms. Sometimes it is very difficult for the stock investor to determine whether
or not the allocation of those funds is in good faith and will be able to generate long-term company growth,
without examination of a company's internal auditing.

Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution channels,
hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid
or a merger agreement through the stock market is one of the simplest and most common ways for a
company to grow by acquisition or fusion.

Profit sharing

Both casual and professional stock investors, as large as institutional investors or as small as an ordinary
middle-class family, through dividends and stock price increases that may result in capital gains, share in the
wealth of profitable businesses. Unprofitable and troubled businesses may result in capital losses for
shareholders.

Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve management standards
and efficiency to satisfy the demands of these shareholders, and the more stringent rules for public
corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public
companies (companies that are owned by shareholders who are members of the general public and trade
shares on public exchanges) tend to have better management records than privately held companies (those
16
companies where shares are not publicly traded, often owned by the company founders and/or their families
and heirs, or otherwise by a small group of investors).

Despite this claim, some well-documented cases are known where it is alleged that there has been
considerable slippage in corporate governance on the part of some public companies. The dot-com bubble in
the late 1990s, and the subprime mortgage crisis in 2007–08, are classical examples of corporate
mismanagement. Companies like Pets.com (2000), Enron Corporation (2001), Nextel (2001), Sunbeam
(2001), webcam (2001), Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International
Group (2008), Bear Stearns (2008), Lehman Brothers (2008), General Motors (2009) and Satyam Computer
Services (2009) were among the most widely scrutinized by the media.

However, when poor financial, ethical or managerial records are known by the stock investors, the stock and
the company tend to lose value. In the stock exchanges, shareholders of underperforming firms are often
penalized by significant share price decline, and they tend as well to dismiss incompetent management
teams.

Creating investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large
and small stock investors because a person buys the number of shares they can afford. Therefore the Stock
Exchange provides the opportunity for small investors to own shares of the same companies as large
investors.

Government capital-raising for development projects

Governments at various levels may decide to borrow money to finance infrastructure projects such as
sewage and water treatment works or housing estates by selling another category of securities known as
bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them,
thus loaning money to the government. The issuance of such bonds can obviate the need, in the short term, to
directly tax citizens to finance development though by securing such bonds with the

full faith and credit of the government instead of with collateral, the government must eventually tax citizens
or otherwise raise additional funds to make any regular coupon payments and refund the principal when the
bonds mature..

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Speculation

The stock exchanges are also fashionable places for speculation. In a financial context, the terms
"speculation" and "investment" are actually quite specific. For instance, although the word "investment" is
typically used, in a general sense, to mean any act of placing money in a financial vehicle with the intent of
producing returns over a period of time, most ventured money including funds placed in the world's stock
markets is actually not investment but speculation.

MAJOR STOCK EXCHANGE IN THE WORLD

NAME OF ECONOMY HEAD QUARTER MARKET

STOCK CAPITALIZAT-
EXCHANGE ION(USD
BILLIONS)
NYSE UNITED NEW YORK CITY 14,085
EURONEXT STATE/EUROPEA
N UNION
NASDAQ OMX UNITED NEW YORK CITY 4,582
GROUP STATE/EUROPEA
N UNION
TOKYO STOCK JAPAN TOKYO 3,478
EXCHANGE
LONDON STOCK UNITED LONDON 3,396
EXCHANGE KINGDOM
HONG KONG HONG KONG HONG KONG 2,837
STOCK
EXCHANGE
SHANGHAI CHINA SHANGHAI 2,547
STOCK
EXCHANGE
TORONTO CANADA TORONTO 2,058
STOCK
EXCHANGE
DEUTSCHE GERMANY FRANKFRUT 1,486
BORSE
AUSTRAILIAN AUSTRALIA SYDNEY 1,386
SECUIRITIES
EXCHANGE

18
BOMBAY STOCK INDIA MUMBAI 1,263
EXCHANGE
NATIONAL INDIA MUMBAI 1,234
STOCK
EXCHANGE OF
INDIA
SIX SWISS SWITZERLAND ZURICH 1,233
EXCHANGE
BM&F BOVESPA BRAZIL SAO PAULO 1,227

KOREA SOUTH KOREA SEOUL 1,179

EXCHANGE
SHENZHEN CHINA SHENZHEN 1,150
STOCK
EXCHANGE
BME SPANISH SPAIN MADRID 995
EXCHANGES
JSE LIMITED SOUTH AFRIC JOHNNESBURG 903

MOSCOW RUSSIA MOSCOW 825

EXCHANGE
SINGAPORE SINGAPORE SINGAPORE 765
EXCHANGE
TAIWAN STOCK TAIWAN TAIPEI 735
EXCHANGE

History of Indian Stock Market

19
Indian stock market marks to be one of the oldest stock market in Asia. It dates back to the close of 18th
century when the East India Company used to transact loan securities. In the 1830s, trading on corporate
stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading was broad but the
brokers were hardly half dozen during 1840 and 1850.
An informal group of 22 stockbrokers began trading under a banyan tree opposite the Tow Hall of
Bombay from the mi1850s, each investing a (then) princely amount of Rupee 1. This banyan tree still stands
in the Harriman Circle Park, Mumbai. In 1860, the exchange flourished with 60 brokers. In fact the 'Share' in
India began with the American Civil War broke and the cotton supply from the US to Europe stopped.
Further the brokers increased to 250. The informal group of stockbrokers organized themselves as the Native
Share and Stockbrokers Association which, in 1875, was formally organized as the Bombay Stock Exchange
(BSE).
BSE was shifted to an old building near the Town Hall. In 1928, the plot of land on which the BSE building
now stands (at the intersection of Dalal Street, Bombay Samachar Marg and Hammam Street in downtown
Mumbai) was acquired, and a building was constructed and occupied in 1930.Premchand Roychand was a
leading stockbroker of that time, and he assisted in setting out traditions, conventions, and procedures for the
trading of stocks at Bombay Stock Exchange and they are still being followed.

Several stock broking firms in Mumbai were family run enterprises, and were named after the heads of
the family. The following is the list of some of the initial members of the exchange, and who are still running
their respective business:

 D.S. Prabhudas & Company (now known as DSP, and a joint venture partner
With Merrill Lynch)

 Jamnadas Morarjee (now known as JM)

 Champaklal Devidas (now called Cifco Finance)

 Brijmohan Laxminarayan

In 1956, the Government of India recognized the Bombay Stock Exchange as the first stock exchange in the
country under the Securities Contracts (Regulation) Act. The most decisive period in the history of the BSE
took place after 1992. In the aftermath of a major scandal with market manipulation involving a BSE

20
member named Harshad Mehta, BSE responded to calls for reform with intransigence. The foot dragging by
the BSE helped radicalize the position of the government, which encouraged the creation of the National
Stock Exchange (NSE), which created an electronic marketplace. NSE started trading on 4 November 1994.
Within less than a year, NSE turnover exceeded the BSE. BSE rapidly automated, but it never caught up
with NSE spot market turnover. The second strategic failure at BSE came in the following two years. NSE
embarked on the launch of equity derivatives trading. BSE responded by political effort, with a friendly
SEBI chairman (D. R. Mehta) aimed at blocking equity derivatives trading. The BSE and D. R. Mehta
succeeded in delaying the onset of equity derivatives trading by roughly five years. But this trading, and the
accompanying shift of the spot market to rolling settlement, did come along in 2000and 2001 helped by
another major scandal at BSE involving then President Mr. Anand Rathi. NSE scored nearly 100%market
share in the runaway success of equity derivatives trading, thus consigning BSE into clearly second place.
Today, NSE has roughly 66% of equity spot turnover and roughly 100% of equity derivatives turnover. Stock
Exchange provides a trading platform, where buyers and sellers can meet to transact in securities.

MAJOR STOCK EXCHANGE IN INDIA

BOMBAY STOCK EXCHANGE

Bombay Stock Exchange, commonly referred to as the BSE, (Bombay Share Bazaar) is a stock exchange
located on Dalal Street, Mumbai, and Maharashtra, India. It is the 10th largest stock exchange in the world
by market capitalization. Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.),
is Asia’s first Stock Exchange and one of India’s leading exchange groups. Over the past 137 years, BSE has
facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform.
Popularly known as BSE, the bourse was established as "The Native Share & Stock Brokers' Association" in
1875.

BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes two leading
global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE provides an efficient
and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a
platform for trading in equities of small-and-medium enterprises (SME). Around 5000 companies are listed
on BSE making it world's No. 1 exchange in terms of listed members. The companies listed on BSE Ltd
command a total market capitalization of USD Trillion 1.2 as of 31 October 2012. BSE Ltd is world's fifth
most active exchange in terms of number of transactions handled through its electronic trading system. It is
also one of the world’s leading exchanges (3rd largest in July 2012) for Index options trading (Source: World
Federation of Exchanges).

NATIONAL STOCK EXCHANGE

21
The National Stock Exchange (NSE) is stock exchange located in Mumbai, India. It is the 11th largest stock
exchange in the world by market capitalization and largest in India by daily turnover and number of trades,
for both equities and derivative trading. NSE has a market capitalization of around US$1 trillion and over
1,652 listings as of July 2012. Though a number of other exchanges exist, NSE and the Bombay Stock
Exchange are the two most significant stock exchanges in India and between them are responsible for the
vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY
(National Stock Exchange fifty), an index of fifty major stocks weighted by market capitalization.

NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other
financial intermediaries in India but its ownership and management operate as separate entities. There are at
least 2 foreign investors NYSE Euro next and Goldman Sachs who have taken a stake in the NSE. As of
2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In 2011, NSE was
the third largest stock exchange in the world in terms of the number of contracts (1221 million) traded in
equity derivatives. It is the second fastest growing stock exchange in the world with a recorded growth of
16.6%.

MCX Stock Exchange

MCX Stock Exchange Limited (MCX-SX) is an Indian stock exchange. It commenced operations in the
Currency Derivatives (CD) segment on October 7, 2008 under the regulatory framework of Securities &
Exchange Board of India (SEBI) and Reserve Bank of India (RBI). The Exchange is recognized by SEBI
under Section 4 of Securities Contracts (Regulation) Act, 1956. In line with global best practices and
regulatory requirements, clearing and settlement is conducted through a separate clearing corporation, MCX-
SX Clearing Corporation Ltd. (MCX-SX CCL).

The Exchange received permissions to deal in Interest Rate Derivatives, Equity, Futures & Options on
Equity and Wholesale Debt Segment, vide SEBI’s letter dated July 10, 2012.MCX-SX was granted the status
of a “recognized stock exchange” by the Ministry of Corporate Affairs (MCA), Government of India on
December 21, 2012. It received “commencement certificate” from market regulator SEBI for trading in new
segments such as Equity, Futures and Options on Equity, Interest Rate Derivatives and Wholesale Debt
Market on December 19, 2012.

NATIONAL COMMODITY&DERIVATIVES EXCHANGE

LIMITED

22
National Commodity & Derivatives Exchange Limited (NCDEX) is an online multi commodity exchange
based in India. It was incorporated as a private limited company incorporated on 23 April 2003 under the
Companies Act, 1956. It obtained its Certificate for Commencement of Business on 9 May 2003. It has
commenced its operations on 15 December 2003. NCDEX is a closely held private company which is
promoted by national level institutions and has an independent Board of Directors and professionals not
having vested interest in commodity markets.

NCDEX is a public limited company incorporated on 23 April 2003 under the Companies Act, 1956.
NCDEX is regulated by Forward Market Commission (FMC) in respect of futures trading in commodities.
Besides, NCDEX is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act,
Forward Commission (Regulation) Act and various other legislations, which impinge on its working. On 3
February 2006, the FMC found NCDEX guilty of violating settlement price norms and ordered the exchange
to fire one of their executive.NCDEX is located in Mumbai and offers facilities in more than 550 centers in
Indi

Growth and present status of the industry

An increase in the demand for a particular product or service over time. Market growth can be slow if
consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price
level. For example, a new technology might only be marketable to a small set of consumers, but as the price
of the technology decreases and its usefulness in every day life increases, more consumers could increase
demand.

Market growth rate

Rapidly growing in rapidly growing markets, are what organizations strive for; but, as we have seen, the
penalty is that they are usually net cash users - they require investment. The reason for this is often because
the growth is being 'bought' by the high investment, in the reasonable expectation that a high market share
will eventually turn into a sound investment in future profits. The theory behind the matrix assumes,
therefore, that a higher growth rate is indicative of accompanying demands on investment. The cut-off point
is usually chosen as 10 per cent per annum. Determining this cut-off point, the rate above which the growth
is deemed to be significant (and likely to lead to extra demands on cash) is a critical requirement of the
technique; and one that, again, makes the use of the growth-share matrix problematical in some product
areas. What is more, the evidence, from fast-moving consumer goods markets at least, is that the most
typical pattern is of very low growth, less than 1 per cent per annum. This is outside the range normally
considered in BCG Matrix work, which may make application of this form of analysis unworkable in many
markets.

23
 Where it can be applied, however, the market growth rate says more about the brand position than just
its cash flow. It is a good indicator of that market's strength, of its future potential (of its 'maturity' in terms
of the market life-cycle), and also of its attractiveness to future competitors. It can also be used in growth
analysis.

In 1848 the Chicago Board of Trade (CBOT–) was formed. Trading was originally in forward contracts; the
first contract (on corn) was written on March 13, 1851. In 1865 standardized futures contracts were
introduced.

The Chicago Produce Exchange was established in 1874, renamed the Chicago Butter and Egg Board in
1898 and then reorganized into the Chicago Mercantile Exchange (CME) in 1919. Following the end of the
postwar international gold standard, in 1972 the CME formed a division called the International Monetary
Market (IMM) to offer futures contracts in foreign currencies: British pound, Canadian dollar, German mark,
Japanese yen, Mexican peso, and Swiss franc.

In 1881 a regional market was founded in Minneapolis, Minnesota, and in 1883 introduced futures for the
first time. Trading continuously since then, today the Minneapolis Grain Exchange (MGEX) is the only
exchange for hard red spring wheat futures and options.

The 1970s saw the development of the financial futures contracts, which allowed trading in the future value
of interest rates. These (in particular the 90-day Eurodollar contract introduced in 1981) had an enormous
impact on the development of the interest rate swap market.

Today, the futures markets have far outgrown their agricultural origins. With the addition of the New York
Mercantile Exchange (NYMEX) the trading and hedging of financial products using futures dwarfs the
traditional commodity markets, and plays a major role in the global financial system, trading over
$1.5 trillion per day in 2005.

The recent history of these exchanges (Aug 2006) finds the Chicago Mercantile Exchange trading more than
70% of its Futures contracts on its "Globex" trading platform and this trend is rising daily. It counts for over
$45.5 billion of nominal trade (over 1 million contracts) every single day in "electronic trading" as opposed
to open outcry trading of futures, options and derivatives.

In June 2001 InterContinental Exchange (ICE) acquired the International Petroleum Exchange (IPE), now
ICE Futures, which operated Europe’s leading open-outcry energy futures exchange. Since 2003 ICE has
partnered with the Chicago Climate Exchange (CCX) to host its electronic marketplace. In April 2005 the
entire ICE portfolio of energy futures became fully electronic.

24
In 2006 the New York Stock Exchange teamed up with the Amsterdam-Brussels-Lisbon Paris Exchanges
"Euro next" electronic exchange to form the first transcontinental futures and options exchange. These two
developments as well as the sharp growth of internet futures trading platforms developed by a number of
trading companies clearly points to a race to total internet trading of futures and options in the coming years.

2.2 MAJOR FIRMS IN INDIAN BROKERAGE INDUTRY

RELIANCE CAPITAL

Reliance Capital Limited (BSE: 500111, NSE: RELCAPITAL) is a financial services company and part of a
Reliance Anil Dhirubhai Ambani Group. It is registered with the Reserve Bank of India under section 45-IA
of the Reserve Bank of India Act, 1934. As a public limited company in 1986 and is now listed on the
Bombay Stock Exchange and the National Stock Exchange (India).

Reliance Capital has a net worth of over 33 billion (US$570 million) and over 165,000 shareholders. On
conversion of outstanding equity instruments, the net worth of the company will increase to about 41 billion
(US$710 million).

It is headed by Anil Ambani and is a part of the Reliance ADA Group.

Reliance Capital ranks among the top 3 private sector financial services and banking companies, in terms of
net worth.

RELIGARE SECURITIES Limited (RSL)

25
Religare Securities Limited (RSL), a 100% subsidiary of Religarenterprises Limited is a leading equity and
securities firm in India. The company currently handles sizeable volumes traded on NSE and in the realm of
online trading and investments; it currently holds a reasonable share of the market. The major activities and
offerings of the company today are Equity Broking,

Depository Participant Services, Portfolio Management Services, International Advisory Fund Management
Services, Institutional Broking and Research Services. To broaden the gamut of services offered to its
investors, the company offers an online investment portal armed with a host of revolutionary features.

 RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India,
Depository Participant with National Securities Depository Limited and Central Depository Services
(I) Limited, and is a SEBI approved Portfolio Manager.

 Religare has been constantly innovating in terms of product and services and to offer such incisive
services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing
groups. These groups take all the portfolio investment decisions depending upon a client’s risk /
return parameter.

 Religare has a very credible Research and Analysis division, which not only caters to the need of our
Institutional clientele, but also gives their valuable inputs to investment dealers.

INDIA BULLS

26
  Indiabulls is India's leading retail financial services company with 77 locations spread across 64
cities. Its size and strong balance sheet allows providing varied products and services at very
attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique
needs.

 Indiabulls is lead by a highly regarded management team that has invested corers of rupees into a
world class Infrastructure that provides real-time service & 24/7 access to all information and
products. The Indiabulls Professional Network offers real-time prices, detailed data and news,
intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful
technology is complemented by our knowledgeable and customer focused Relationship Managers.

 Indiabulls offers a full range of financial services and products ranging from Equities, Derivatives,
Demat services and Insurance to enhance wealth.
.

MOTILAL OSWAL

Motilal Oswal Financial Services Ltd. (BSE, NIFTY, NASDAQ, Dow Jones, Hang Seng) is a diversified
financial services firm offering a range of financial products and services such as Wealth Management,
Retail Broking and Distribution, Institutional Broking, Asset Management, Private Equity, Investment
Banking, Commodity Broking and Principal Strategies.

The company was formed in 1987 by Motilal Oswal and Raamdeo Agrawal after they acquired membership
on The BSE. Motilal Oswal was elected director and joined the Governing Board of the Bombay Stock
Exchange in 1998.

Motilal Oswal Securities is a Depository Participant of NSDL and a Depository Participant of Central
Depository Services Limited (CDSIL)] in 2000. The company started offering Derivatives products and
advisory services on both BSE as well as NSE in 2001.

27
In 2006, the company entered Private Equity and Investment Banking business. In the same year, Motilal
Oswal group acquired South Indian brokerage firm – Peninsular Capital Markets. The company tied up with
State Bank of India and Punjab National Bank in 2006 and 2007 to offer online trading to its customers.
2008 saw the company create one of India's largest Equity Dealing & Advisory rooms, spread over 26,000 sq
ft (2,400 m2) in Malad, Mumbai.

In January 2010, Motilal Oswal Financial Services (through its subsidiary Motilal Oswal Securities Ltd.)
received the final certificate of registration approval from Securities and Exchange Board of India (SEBI) to
set up a mutual fund business in the country.

MARKET SHARE
28
 BASE
SHAREKHAN. Reliance RELIGARE Kotak Motilal Oswal INDIA
COM Capital Securities Financial BULLS
Limited Limited Services Ltd.

TYPE OF
BROKER FULL FULL FULL FULL FULL FULL

SUPPORT-
ED BSE,NSE, BSE,NSE, BSE.NSE,MC BSE,NSE,MC BSE,NSE.
EXCHANGE MCX,NCDEX BSE,NSE MCX X X,NCDEX MCX
,NSEL

TYPE OF CLASSIC EXCEL Power

ACCOUNT ACCOUNT R-FIXED ACCOUNT Kotak _ Indiabulls
Gateway

TRADING
ACCOUNT
OPENING NIL 700 500 750 NIL 950
FEE

TRADING
ACCOUNT 400 NIL NIL NIL NIL NIL
AMC

DEMAT
OPENING NIL NIL NIL NIL NIL NIL
FEE

DEMAT 200 300 600 441 450

ACCOUNT NIL
AMC

CASH INTRA
DAY
BROKER- 0.10% 0.04% 0.25% 0.40% 0.50% 0.40%
AGE

CASH
DELIVERY 0.50% 0.40% 0.025% 0.049% 0.10% 0.04%

29
BROKER
AGE

F&O-
FUTURE 0.10% 0.04% 0.05% 0.049% 0.10% 0.04%
BROKER
AGE
F&O-OPTION 1% on 2.5or
BROKER 2.5or Rs100 PREMIUM OR Rs100 per
AGE per lot which Rs.70 per Rs50 per lot Rs.100 per lot Rs.100 per lot lot which
ever is higher lot whichever is ever is
higher higher

MINIMUM
BROKER
AGE 10 paisa 5 paisa 1 paisa 3 paisa _ 4 Paisa
CHARGE

3 IN 1
ACCOUNT NO NO NO YES NO NO

MOBILE YES NO NO YES YES NO

TRADING
CHART
ING YES NO NO NO NO NO

30
 CHAPTER-3

COMPANY PROFILE

SHAREKHAN LIMITED:

INTRODUCTION OF SHARE KHAN:

Share Khan is one of the leading share brokerage and retail brokerage firm in the country . It is the retail
brokerage arm of the Mumbai based SSKI group. This has more then 88 years of experience in the stock
brokerage business. SKI is a veteran equities solution company with more then 8 decades of trust and

31
incredibility in the Indian stock market. It helps the customer/people to make informed decision and simplify
investing in stocks.
ShareKhan bring to you a user friendly online facility copied with a wealth of content that help stalk the
right shares, SSKI named its online division as Share Khan and it is into retails brokerage. The business of
the company overhauled ten years ago on February 8, 2000 it acts as a discount brokerage house to full
services investment solution provided. It has specialized research product for the small investors and day
traders.
Share khan’s online trading and investing site WWW.SHAREKHAN.COM was launched in 2000.Through
the www.sharekhan.com can have been providing investor a powerful online trading platform, the latest
news, research and the other knowledge based tools
andsharekhanequityrelatedservicesincludetradeexecatioonBSE,NSE,commodities,depository services, online
trading and investor advise.ShareKhan ground network include over 640 share shop across 280 cities in
India with branches and outlets across the country. Share Khan’s ground network is one of the biggest in
India. They have pool of talents experience professionals specially designated to guide you when you need
assistance, which is investigating with as is bound to be a hassle-free experience for you. The Share Khan
provides its customer first step program built specifically for all investors so punch line is “YOUR GUIDE
TO THE FINANCIAL JUNGLE” means our commitment to being your guide through out your investing
life cycle.

3.1 HISTORY OF SHARE KHAN:

Sharekhan is one of the leading retail broking House of SSKI Group which was running sucessfully 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 advisary, Mutual Fund Advisory 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 14
lakh customers. The number of trading members currently stands over 14 Lacs. While online trading
currently accounts for just over 5 per cent of the daily trading in stocks in India, Sharekhan alone accounts
for 32 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.

32
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 588 centers in 148 cities in India, of which 32 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. Previously the CITI GROUP hold the company but now a world
famous brand BNP PARIBAS has taken a majority stake in the company.

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 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$ 4 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.

3.2 VISION, MISSION & OBJECTIVES OF THE COMPANY

VISION
To be the best retail brokering Brand in the retail business of stock market.

MISSION:

33
To educate and empower/awareness and willingness of the individual investor to make better investment
decisions through quality advice and superior service.

OBJECTIVE OF THE COMPANY:

 To increase intrest about online share trading.
 To open De-mat account.
 To learn to manage time
 To know various reasons for market fluctuations.
 To gain practical knowledge of the market.
 To have a pratical experience of working in a reputed organization.

3.3 ORGANISATIONAL STRUCTURE:

 Mr. Tarun Shah – Chief Executive Officer (CEO) of the company.
 Mr.Shankar Vailaya – Director (Operations) of the company.
 Mr. JaideepArora – Director (Products & Technology) of the company.
 Mr. Hemang Jani - Head of Research.
 Nikhil Vora - Vice President of Research
 MR. KETAN PARIAH - Executive Director
 MR.GEETA RAMESH-Customer Service Representative(CSR)
Sales & Marketing.

3.4 PRODUCT AND SERVICES OF SHAREKHAN:

CLASSIC ACCOUNT:
In classic account it is very simple to trading, there customer has first to open a demat account with the
sharekhan and after opening an account can login to the sharekhan.com and in the classic account what ever
company information the clients want, he has to type the company name or code and he will get all the

34
necessary information about that company and he can buy and sell the that company stock or share but in the
classic account the client can access only one script at a time.

TRADE TIGER:
TRADE TIGER is an internet-based software 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.

 Tools available to market such as tick query, ticker market summary, action watch, option
premium call future, spam calculator, charts.

 Short cut key for fast access to order place means and reports.

 Online fund transfer activated with 16 banks.

DIAL-N-TRADE:
Along with enabling access for your trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives
you our Dial-n-trade series. With this service, all you have to do is dial our dedicated phone lines 1-800-22-
7500, 3970-7500 and Separate number for Speed trade Clients i.e. 1800-22-7800.

FINANCIAL PRODUCT SOLD BY SHAREKHAN:

1. EQUITY:

In finance, equity trading is the buying and selling of company stock shares. Shares in large publicly traded
companies are bought and sold through one of the major stock exchanges, such as the New York Stock
Exchange, London Stock Exchange or Bombay Stock Exchange, which serve as managed auctions for stock
trades. Stock shares in smaller public companies are bought and sold in over-the-counter (OTC) markets.

Equity trading can be performed by the owner of the shares, or by an agent authorized to buy and sell on
behalf of the share's owner. Proprietary trading is buying and selling for the trader's own profit or loss. In
this case, the principal is the owner of the shares. Agency trading is buying and selling by an agent, usually a
stockbroker, on behalf of a client. Agents are paid a commission for performing the trade.

Major stock exchanges have market makers who help limit price variation (volatility) by buying and selling
a particular company's shares on their own behalf and also on behalf of other clients.

Over the past 15 years with the popularity of the internet and discount brokerage firms, it has become
increasingly luring for the average investor to partake in their own financial planning and direction of their
35
future. Although trading can be incredibly stressful and dangerous financially, many people have made it
their profession in place of a 9 to 5 job. Individuals that pursue this non-mainstream career usually will have
a knack for technical analysis, money management, tape reading and trader's psychology as well as enjoy
working in a fast paced competitive environment.

2. DERIVATIVE:

The derivatives market is the financial market for derivatives, financial instruments like futures contracts or
options, which are derived from other forms of assets.

The market can be divided into two, that for exchange-traded derivatives and that for over-the-counter
derivatives. The legal nature of these products is very different as well as the way they are traded, though
many market participants are active in both.

3. MUTUAL FUND:

A mutual fund is a very professionally managed type of collective investment scheme that pools money
from many investors and invests it stock,bond,,short term money market instrumental and other securities.
Mutual funds have a fund manager who invests money on behalf of the investor by buying/selling stock,
bonds; etc.Currently the worldwide value of all mutual funds totals more than $US26 trillion. The United
States lead with the number of mutual fund schemes. There are more than 800 mutual fund schemes in the
U.S.A. comparatively, India has around 1000 mutual fund schemes, but this number has grown exponentially
in the last few year. The total assets under management in India of all mutual fund put together touched a
peak of Rs.5,44,535.There are various investment avenues available to an investor such as real estate, bank
deposits, post office deposits, share, debenture, bonds etchant mutual fund is one more type of investment
avenue available to an investors. There are many reasons why investors prefer mutual funds. Buying shares
directly from the market is one way of investing but this requires spending time to find out the market to find
out the performance of the company whose share is being purchased, understanding the future business
prospects of the company, finding out the trace record of the promoters and the dividend, bonus, etc. Investor
therefore prefer the mutual fund route.

4. INITIAL PUBLIC OFFERING:

An initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a
company are sold to the general public, on a securities exchange, for the first time. Through this process, a
private company transforms into a public company. Initial public offerings are used by companies to raise
expansion capital, to possibly monetize the investments of early private investors, and to become publicly
traded enterprises. A company selling shares is never required to repay the capital to its public investors.
36
After the IPO, when shares trade freely in the open market, money passes between public investors.
Although an IPO offers many advantages, there are also significant disadvantages. Chief among these are the
costs associated with the process, and the requirement to disclose certain information that could prove
helpful to competitors, or create difficulties with vendors. Details of the proposed offering are disclosed to
potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertaking
an IPO do so with the assistance of an investment banking firm acting in the capacity of an underwriter.
Underwriters provide a valuable service, which includes help with correctly assessing the value of shares
(share price), and establishing a public market for shares (initial sale). Alternative methods such as the Dutch
auction have also been explored. In terms of size and public participation, the most notable example of this
method is the Google IPO. China has recently emerged as a major IPO market, with several of the largest
IPOs taking place in that country.

In 2013, documents under seal in an ongoing lawsuit were obtained by New York Times Wall Street
Business columnist Joe Nocera. The documents related to the IPO of Toys.com, during the dot-com bubble,
and alleged that kickbacks were demanded from institutional investors who made large profits flipping
deliberately undervalued IPOs underwritten by investment banker Goldman Sachs. Reuters Wall Street
correspondent Felix Salmon suggested that both the company going public and their initial shareholders
would be defrauded by such a practice. The lawsuit is ongoing, and the allegations remain unproven.

5. COMMODITY:

In economics, a commodity is a marketable item produced to satisfy wants or needs. Economic commodities
comprise goods and services.

The more specific meaning of the term commodity is applied to goods only. It is used to describe a class of
goods for which there is demand, but which is supplied without qualitative differentiation across a market. A
commodity has full or partial fungibility; that is, the market treats its instances as equivalent or nearly so
with no regard to who produced them. "From the taste of wheat it is not possible to tell who produced it, a
Russian serf, a French peasant or an English capitalist." Petroleum and copper are other examples of such
commodities, their supply and demand being a part of one universal market. Items such as stereo systems, on
the other hand, have many aspects of product differentiation, such as the brand, the user interface and the
perceived quality. The demand for one type of stereo may be much larger than demand for another.

6. CURRENCY

The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading
of currencies. The main participants in this market are the larger international banks. Financial centers

37
around the world function as anchors of trading between a wide range of different types of buyers and sellers
around the clock, with the exception of weekends. EBS and Reuters' dealing 3000 are two main interbank
FX trading platforms. The foreign exchange market determines the relative values of different currencies.

The foreign exchange market works through financial institutions, and it operates on several levels. Behind
the scenes banks turn to a smaller number of financial firms known as “dealers,” who are actively involved
in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-
scenes market is sometimes called the “interbank market, “although a few insurance companies and other
kinds of financial firms are involved. Trades between foreign exchange dealers can be very large, involving
hundreds of millions of dollars.

The foreign exchange market assists international trade and investment by enabling currency conversion. For
example, it permits a business in the United States to import goods from the European Union member states,
especially Eurozone members, and pay Euros, even though its income is in United States dollars. It also
supports direct speculation in the value of currencies, and the carry trade, speculation based on the interest
rate differential between two currencies.

In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying some
quantity of another currency. The modern foreign exchange market began forming during the 1970s after
three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of
monetary management established the rules for commercial and financial relations among the world's major
industrial states after World War II), when countries gradually switched to floating exchange rates from the
previous exchange rate regime, which remained fixed as per the Bretton Woods system.

TYPES OF CURRENCY TRADING IN INDIA:

1. DOLLAR

2. EURO

3. POUND

4. YEN

3.5 FUTURE PLANS OF SHAREKHAN:

 Sharekhan Ltd is acquired by BNP PARIBAS in 2015.
 Branches / Semi branches servicing affluent / aggressive traders through
High skill financial advisor.
 250 independent investment managers/ franchisee servicing 50,000 highly
Valued clients.
38
 New initiatives Portfolio management Services and commodities trading.

39
 CHAPTER-4

JOB DESCRIPTION

4.1 Job description statement:

The company placed me as a Summer Trainee. I have been handling the Following responsibilities:
 My job profile was to sell the products of the organization.

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  My job profile was to coordinate the team and also help them to sell the product and also help them
in field.
 My job profile was to generate the leads by cold calling.

4.2 Detailed Job Profile:

Job Profile:
 Handling customer calls.
 Advising clients on trading and investments.
 Educating clients on the Stock Market.
 Continuous updating of Corporate Developments.
 Continuous up gradation of knowledge through reading and discussion.

Other Information:
Day Shift (No night Shift)

Responsibilities:
 Acquiring Deemat Account.
 Query resolution of Account Holders.
 Revenue Generation through existing Customers.
 Conducting visits for HNI client meets of Relationship Managers.
 Conducting Seminars/Webinars for HNI Clients.

Skills, qualifications & Experience:

 Strong understanding of markets both from fundamental & technical perspective.
 Candidate should have excellent communications skills & networking skills.
 Qualification – Graduation.
 Freshers are also welcome.

4.3 Area Assigned:

I covered areas like Bhikaji Cama Place.

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4.4 Target Assigned:
To sell Demat accounts.

4.5 WEEK TO WEEK JOB EXPERIENCE:

 Reporting time: 10.00 AM
 Getting training for 10 to 15 days of getting knowledge of the company profile, product & services,
clients, etc.
 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

WEEK No. 1
In this training we were told about Sharekhan Company, history of Sharekhan, organization structure,
products, Sharekhan research reports, trading techniques, clients, Demat accounts, Derivatives, and how to
fill the “Know Your Customer” form or KYC form, Online trading accounts in detail - Speed Trade and
Classic account, learned how to buy and sell shares through these online terminals, Sales technique,
Telecalling, Sharekhan`s brokerage. Got an assignment on “THINGS TO BE TOLD TO THE CLIENT
ABOUT THE COMPANY” Did telecalling and cold calling to many people.

WEEK No. 2
Met 20 people, out of this7 people were interested in Demat account. Client Conversion ratio: 0%. As this
was the beginning of the SIP I found it very difficult to identify the potential customers.

WEEK No. 3
Met 25 people, out of this 10 people were interested in Demat account. Client Conversion ratio: 0%
Collected many leads and references. Got follow up dates and appointments from the interested customers.

WEEK No. 4

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 Met 15 people, out of this 6 people were interested in Demat account. Client Conversion ratio: 0%.
Collected leads and references. Got follow up dates and appointments from the interested customers.

WEEK No. 5
Met 20 people, out of this 8 people were interested in Demat account. Opened 1 demat account worth Rs
10,000/- Client Conversion ratio: 0.017% Collected leads and references. Got follow up dates and
appointments from the interested customers. Learned how to approach and convince the customer.

WEEK No. 6
Met 15 people, out of this 15 people were interested in Demat account. Opened 2 demat account worth Rs
15,000/- each Client Conversion ratio: 0.33%.

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 CHAPTER-5
FINDINGS ABOUT THE
COMPANTY AND ANALYSIS

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DATA ANALYSIS AND INTERPRETATION

1. Do you know about share market ?

(a) Yes
(b) No

INTERPRETATION : According to the respondents, it has been concluded that 30% of the respondents
know about the share market & the rest maximum respondents(70%) don’t know about the market share.

2. Do you have any interest in share market ?

(c) Yes
(d) No

INTERPRETATION : According to the respondents it has been concluded that 70% have interest in share
market & 30% don’t have interest in share market.

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3. How you do your share trading ?
(a) On line
(b) Off line

INTERPRETATION : Majority of respondents (50%) replied they prefer to do both type of share trading ,
as a matter of fact that it is safer and easier. They think that its best for their knowledge to go for both type of
share trading.

4. From whom you like to do your share trading?

(a) From stock brokers and sub brokers
(b) Stock broking companies e.g. Sharekhan.com,

INTERPRETION : From the graph given above which shows that today itself respondents of my research
55% prefer stock brokers and sub brokers to give boost to their share trading the reason given by them was ,
as it provides both online & offline share trading.

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5. If online, which on line trading portal you are using
(a) Sharekhan.com
(b) India bulls
(c) Icici direct.com
(d) Hdfc securities

2
20% 0 sharekhan.co
% imndiabull
40% 20%
sicici
20% direct.com
hdfc
securities

INTERPRATION : From the above mentioned graph we can see that brand name is the biggest driving force
for a majority of customers (40%), this can be regarded as biggest reason behind the success of ICICI
DIRECT.COM . The second best reason is brokerage as it commands around (20%) of the survey. Next
important factor is research work, though this is an important driving force for getting a non trader to start
trading, it is a very important factor as it is the quality of the research work provided by the company which
makes or breaks the company image. Another important factor is definitely demate however it is not so
much of a factor because every company is providing demate free of cost

6. According to your perspective which investment gives you maximum return?

(1) Share market
(2) Mutual funds
(3) Purchasing insurance policy

25%

50% 25%

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INTERPRETITION
People believe in secured investment with no risk also today, and wants more return on investment, so they
think purchasing mutual funds(25%) and insurance policies(25%) is best option for them, most of the
respondents believe in investment in insurance policies and then after mutual funds, reason for purchasing
insurance policies they give is that it not only secures their life but also gives good amount of return after a
certain period of time. Investment in mutual funds is the indirect investment in share market which gives
huge return.

7. Please rank the following facilities in terms of 1 to 7 (where 1 is highest and 7 is the lowest)
(a) Live prices
(b) Easy payment
(c) Research work
(d) After hour trade
(e) No dependence on broker
(f) Availability of both on line and off line
(g) Trade from anywhere

This question was put in order to find out the worthiness of various facilities provided by various companies
so that they can find out which are the most appealing facilities for customers so that they can make there
services more attractive and much more beneficial.The most important facility chosen by respondents is
LIVE PRICES since this is the most crucial factor in share trading as every body wants to know the exact
prices that too with no delay. RESEARCH WORK and EASY PAYMENT are the next best facility rated by
the respondents which is a very clear signal to every company that the research provided by them and the
mode of payment selected by them plays a very important in customer service and therefore they should
make sure that they should provide profitable tips to every client as it has direct bearing to the customers
delight;. When it comes to SHAREKHAN.COM it has a very dedicated research team as well a very good
mode of payment. The next best facilities rated by respondents are AFTER HOUR TRADE, No dependence
on broker, Availability of online and offline Trade from anywhere.

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5.1 MAJOR FINDINGS:

Only 65 % of the respondents studied have the awareness level about the operational system of the stock
market and the derivative market in India.
An asset and liability transactions and policies like future exchanges when accompanied with a suitable
derivative policy of the management can help us to minimize the risks associated with derivatives.
The risk factors associated with foreign exchange derivatives, the respondents are of the opinion that they
are more prone to risk factors or volatile market conditions.
The risk factor is always a potential threat against the use of financial derivatives. 84 % of the respondents
are aware about the role played by SEBI whereas 16 % of the respondents are not aware about it.
Derivatives market has the following roles:
1. Derivative allows hedging of market risk.
2. It allows for a separate market developed for lending to be of funds and securities to the market.

5.2 FUTURE GROWTH PROSPECTS:

 Earnings growth to remain sluggish in 2016 as well,with the sensex companies likely to deliver a
flattish growth in the overall earnings and a weak 3.3% growth in the earnings ex metal companies.
 The revenues of the sensex companies are likely to show a dip of about 6%yoy,again due to
combination of factors like softness in commodity prices and a weak demand environment.
 We expect the earnings before interest,tax,depreciation and amortization margin of the sensex
company to expand by 170 basis points yoy.
 Auto universe[ex-Tata Motors]expected to report a modest 6.9%growth in revenues.Ashok Leyland
Ltd is expected to lead the growth chart with an impressive 47%jump in volume and 61%growth in
revenue.
 We expect net interest income[NII] growth of our banking universe to remain sluggish in
2016[up8.1% overall and 5.3% for public sector banks due to slower credit off –take and base rate
cuts.
 No major pickup in the urban demand environment and deficient monsoon affecting the rural demand

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 CHAPTER-6

DIFFICULTIES FACED AND

MAJOR LIMITATION

50
DIFFICULTIES FACED AND LIMITATIONS:

Lack of awareness of capital market:

Since the area is not known before it takes lot of time in convincing people to start investing in shares
primarily in IPO’s.

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.

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.

Misleading concepts:
Some people think that as all the shares are in electronic form and they don’t have any physical proof.
Sometimes this leads to a great misconception of the entire process.
 The time constraint was one of the major problems.
 The study is limited to the different schemes available under the Demat account selected.
 The lack of information sources for the analysis part.
 Geographical locations.
 Extreme variability in MARKET.

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 CHAPTER-7

CONCLUSION AND
SUGGESTION

52
7.1 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. provides the facility of trade tiger as well as relationship manager facility for
encouragement and protects the interest of the investors.
 It also provides the information through the internet and mobile alerts that what IPO’s 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 it’s going to be
biggest market in India.
 The company 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.
 New and advanced technologies have breached geographical and cultural barriers, and have brought
the countrywide market to doorstep.
 BROKER’S have suddenly been thrown to intense competition from their counter parts across the
country.
 The Regional Stock Exchanges have their own advantages like being nearer to the retail investors
and to let the Broker’s perish would be detrimental to stock market system there is no brokerage
firms with in India with national reach.
 In the present scenario and to compete the BROKER’S would require sound infrastructure and
trading as per international standards.
 The concepts of business have changed and today this has become service to client or to provide the
best possible service to client or to engage into new business from the regional center to the metro
centers and to impart liquidity introduction of on-line trading is necessary.
 The introduction of on-line trading would influence in the investors resulting in an increase in the
business of the exchange.
 Due to invention of online trading there has been greater benefit to the investors as they could sell /
buy shares as and when required and that to with online trading, it will inspire confidence in
investors resulting in increase business of the exchange.
 The BROKER’S has a greater scope than compared to the earlier times because of invention of
online trading.
 The concept of business has changed today this is a service oriental industry hence the survival
would require them to provide the best possible service to the client 1.8 crores.

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7.2 SUGGESTIONS:
 Commitment should be equalized for every person.
 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.
 I suggest the exchange authorities to take steps to educate Investors about their rights and duties. I
suggest to the exchange authorities to increase the investors’ confidences.
 I suggest the exchange authorities to be vigilant to curb wide fluctuations of prices.
 The speculative pressures are responsible for the wide changes in the price, not attracting the genuine
investors to the greater extent towards the market.
 Genuine investors are not at all interested in the speculative gain as their investment is based on the
future profits, therefore the authorities of the exchange should be more vigilant in imposing to curb
the speculative of securities.
 Necessary steps should be taken by the exchange to deal with the situations arising due to break
down in online trading.

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ANNEXEURES
QUESTIONNAIRE
SIR/MADAM
I, _____________student of management education and research institute, I am doing my summer
training project on the future of on line trading. I hereby kindly request you to give your views on the
various questions referred in the following questionnaire. All you have to do is to tick the appropriate
answer. Suggestions are welcome. The information provided will be kept purely confidential.

1. How do you do share trading ?

a) On line
b) Off line
c) Both

2. If online, which on line trading portal you are using ?

a) Sharekhan.com
b) India bulls
c) ICICI Direct.com
d) HDFC securities
e) If any other, please specify

3. According to your perspective which investment gives you

maximum return ?
a) Share market
b) Mutual funds
c) Purchasing insurance policy

4. What are the reasons for choosing above mentioned on line trading portal ?
a) Brand name
b) Brokerage
c) Research work
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 d) Demate facility
e) If any other, please specify

6. Reasons for choosing the offline trading

a) Non availability of computer
b) Personal touch from the broker
c) No restriction on the amount of trade
d) Work load doesn’t allowed on line trading.

5. Please rank the following facilities in terms of 1 to 7 (where 1 is highest and 7is the lowest)
a) Live prices
b) Easy payment
c) Research work
d) After hour trade
e) No dependence on broker
f) Availability of both on line and off line
g) Trade from anywhere

7 problems faced during on line trading

a) Difference in prices shown
b) Problems in transfer of money
c) Problem of internet connection
d) Non availability of prices
e) Any other please specify_______________

8. Given a choice would you wish to change your trading module

a) Yes
b) No
c) Don't know

9 if yes please specify the reason

____________________________________________

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10 what extra services you think you should be provided ?
____________________________________________
____________________________________________

Name mr/miss/mrs _______________

Age 1) 18-25 2) 26-35

3)36-45 4) 46 and above

Occupation 1) professional 2)business 3) salaried

4) Self employed 5) not employed 6) others______

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BIBLIOGRAPHY:

BOOKS:
 Intelligent Stock Market investing by N.J Yasaswy

 Indian Securities Market by Tadashi Endo

 The Big Picture: Reflections on our economic times by T.T Ram Mohan

 Derivatives: valuation and risk management by David .A. Dubofsky & Thomas W Miller

 Financial engineering: complete guide to financial innovation by Vipul .K. Bansal

 Sharekhan’sbrochures

NEWSPAPERS:
 The economic times

 Business standard

 Times of India

 Financial express

 Business lines, etc.

WEBSITES
 www.economictimes.com

 www.moneycontrol.com

 www.bseindia.com

 www.sebi.gov.in

 www.investors.com

 www.sharekhan.com

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