PROJECT REPORT ON COMPARATIVE STUDY OF

SECURITIES LTD. WITH OTHER BROKERAGE COMPANIES

(Submitted in the Partial Fulfillment of Requirement for the Degree of Masters of Business Administration)

BY BHAWNA MEHTA ROLL NO. 7645

Indiabulls Securities Limited

TABLE OF CONTENTS
TOPICS PAGE NO.

Acknowledgement3 Objective...5 Research Methodology6 Introduction To Security Market7 - 15 Securities SEBI & Its Role Capital Market Primary Market Secondary Market OTCEI Introduction To Share Trading Pattern.16 - 23 Trading Trading System Day Trading Trader Market Types Order Matching Types Order Conditions Market Segments

Internet Trading.24 - 30

Indiabulls Securities Limited Introduction To Indiabulls31 - 32 Products & Services...33 - 40 Business Strategies..41 - 43 SWOT Analysis...44 - 50 Main brokerage houses of India51 - 58 Indiabulls securities Limited Kotak Securities Limited Sherkhan

Comparative Study of Indiabulls with Other Brokerage Companies..59 - 65 Questionnaire.66 - 67 Findings..68 - 75 Recommendations.76 - 77 Conclusion.78 Bibliography..79

Indiabulls Securities Limited

ACKNOWLEDGEMENT

We wish to express our gratitude to Indiabulls Securities Ltd. management for giving us an opportunity to be a part of their esteem organization and enhance our knowledge by granting permission to do our summer training project under their guidance. We are grateful to Mr. Ashok Pahwa, Associate Vice President and Mr. Puran Gera, Sales Manager and my guide, for their expert assistance offered for producing this instrument and for the invaluable guidance and cooperation during the course of the project. They provided us with his assistance and support whenever needed that has been instrumental in completion of this project. We wish to acknowledge Mr. Siddharth Shastri, Dean, Wisdom, Banasthali University and my internal faculty member Dr. Harsh Purohit, Reader, Wisdom, Banasthali University for the sharing their valuable time with us and providing us a specialist view point in the concern subjects. Last but not the least we are grateful to all the staff members of Indiabulls Securities Ltd. for their kind cooperation and help during the course of our project. At the end we would like to admit that the learning during the project was immense & invaluable.

(Bhawna Mehta)

Indiabulls Securities Limited

OBJECTIVES OF STUDY

Indiabulls Securities Limited

Main Objective
Main objective is to make the comparative analysis of Indiabulls with other brokerage companies

Other objectives
To gain information about the online trading practices in India with special reference to services provided by Indiabulls. To understand The Financial Market with due Focus on Online Trading in Equity Market To understand the features and services that influences the investor to invest. To know the competitive brokerage houses which are market players of India? To understand the attitude and preference of the prospective investors regarding capital market.

Indiabulls Securities Limited

RESEARCH METHODOLOGY
A Questionnaire is designed by me to collect the needed information regarding my survey. I got the questionnaire filled by them to know: The state of mind of the investors who wanted to invest in the stock market Their expected charges regarding Brokerage Return Annual maintenance charges To know the attitude and preference of the prospective investors regarding capital market. Results are cautiously viewed as sample is coming from a specific population. The response that is generated during this exercise is converted in the form of percentage to have a comparative outlook. These percentages are then represented through the simple tools like Bar graph, Pie charts etc.

Data collection
The method adopted to carry on this report was based on both primary and secondary sources. I have collected data through primary source in the form of: Filling of questionnaire from public Personally talking with existing clients who are trading in stock market. Secondary data are collected from: Stock market websites like, www.nseindia.com, www.indiabulls.com, www.sebi.gov.in, www.bseindia.com, etc. Stock market Books, NCFM Modules Journals Various newspaper article

Indiabulls Securities Limited

INTRODUCTION TO SECURITY MARKET

Indiabulls Securities Limited

SECURITIES
The definition

of Securities as per the Securities Contracts Regulation Act (SCRA),

1956, includes instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government. The functions of Securities Market Securities Markets is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. Further, it performs an important role of enabling corporate, entrepreneur to raise resources for their companies and business ventures through public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporate) is most efficiently achieved through the securities market. Securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called Securities. The securities one can invest Shares Government Securities Derivative products Units of Mutual Funds etc. are some of the securities investors in the securities market can invest in

SEBI AND ITS ROLE

Indiabulls Securities Limited The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) with statutory powers for: (a) Protecting the interests of investors in securities (b) Promoting the development of the securities market (c) Regulating the securities market. Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks fit. In particular, it has powers for: Regulating the business in stock exchanges and any other securities markets. Registering and regulating the working of stock brokers, subbrokers etc Promoting and regulating self-regulatory organizations. Prohibiting fraudulent and unfair trade practices. Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, intermediaries, self-regulatory organizations, mutual funds and other persons associated with the securities market. The participants in the Securities Market The securities market essentially has three categories of participants, namely, The issuers of securities Investors in securities The intermediaries, such as merchant bankers, brokers etc.

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Indiabulls Securities Limited While the corporate and government raise resources from the securities market to meet their obligations, it is households that invest their savings in the securities market. The segments of Securities Market The securities market has two interdependent segments: the primary (new issues) market and the secondary market. The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued. The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest stock exchange in India and a preferred exchange for trading in equity, debt and derivatives instruments by investors. NSE has set up a sophisticated electronic trading, clearing and settlement platform and its infrastructure serves as a role model for the securities industry. The standards set by NSE in terms of market practices; products and technology have become industry benchmarks and are being replicated by many other market participants It provides a screen-based automated trading system with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through the on-line system has helped in integrating retail investors across the nation. The exchange has a network in more than 350 cities and its trading members are connected to the central servers of the exchange in Mumbai through a sophisticated telecommunication network comprising of over 2500 VSATs. NSE has around 850 trading members and provides trading in over 1000 equity shares and 2500 debt securities. Besides this, NSE provides trading in various derivative products such as index futures, index options, stock futures, stock options and interest rate futures. At NSE, it has always been our endeavor to continuously upgrade the skills and proficiency of the Indian investor. Since, financially literate investors are the backbone of the securities market.

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Indiabulls Securities Limited

CAPITAL MARKET
The capital market provides financing to meet the denomination, liquidity, maturity, risk (with respect to credit, interest rate, and market), and other characteristics desired by those who have a surplus of funds and those who have a deficit of funds. The capital market as a whole consists of overnight to long-term funding. The short to medium end of the maturity spectrum is called the money market proper, and the long end is identified as the capital market. The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments. There has been an explosion of innovation in the creation and development of instruments in the money and capital markets since about 1960 in both debt and equity instruments. Some of the important (by volume) money market instruments are Treasury bills, federal agency securities, federal funds, negotiable certificates of deposits, commercial paper, bankers' acceptances, repurchase agreements, euro currency deposits, euro currency loans, futures instruments and options instruments. Similarly, some of the key capital market instruments are U.S. securities; U.S. agency securities; corporate bonds; state and local government bonds; mortgage instruments; financial guarantees; securitized instruments; broker-dealer loans; foreign, international, and global bonds; and Eurobonds

PRIMARY MARKET
The primary is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. Features of Primary Market are:-

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Indiabulls Securities Limited This is the market for new long term capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called New Issue Market (NIM). In a primary issue, the securities are issued by the company directly to investors. The company receives the money and issue new security certificates to the investors. Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business. The primary market performs the crucial function of facilitating capital formation in the economy. The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital; this is known as going public. Methods of issuing securities in the Primary Market Initial Public Offer Rights Issue (For existing Companies) Preferential Issue.

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SECONDARY MARKET
The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. Alternatively, secondary market can refer to the market for any kind of used goods. The market that exists in a new security just after the new issue is often referred to as the aftermarket. Once a newly issued stock is listed on a stock exchange, investors and speculators can easily trade on the exchange, as market makers provide bids and offers in the new stock. Functions In the secondary market, securities are sold by and transferred from one investor or speculator to another. It is therefore important that the secondary market be highly liquid (originally, the only way to create this liquidity was for investors and speculators to meet at a fixed place regularly.) Secondary marketing is vital to an efficient and modern capital market. Fundamentally, secondary markets mesh the investor's preference for liquidity (i.e., the investor's desire not to tie up his or her money for a long period of time, in case the investor needs it to deal with unforeseen circumstances) with the capital user's preference to be able to use the capital for an extended period of time. For example, a traditional loan allows the borrower to pay back the loan, with interest, over a certain period. For the length of that period of time, the bulk of the lender's investment is inaccessible to the lender, even in cases of emergencies. Likewise, in an emergency, a partner in a traditional partnership is only able to access his or her original investment if he or she finds another investor willing to buy out his or her interest in the partnership. With a securitized loan or equity interest (such as bonds) or tradable stocks, the investor can sell, relatively easily, his or her interest in the investment, particularly if the loan or ownership equity has been broken into relatively small parts. This selling and buying of small parts of a larger loan or ownership interest in a venture is called secondary market trading.

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Indiabulls Securities Limited

OTCEI (The OTC Exchange of India)

The OTC Exchange of India (OTCEI) incorporated under the provisions of the Companies Act 1956, is a public limited company. It allows listing of small and medium sized companies. The minimum issued share capital required of a company that wants to be listed on OTCEI is Rs.3 million and the maximum Rs.250 million. Companies engaged in investment, leasing, finance, hire purchase, amusement parks etc., and companies listed on any other recognized stock exchange in India are not eligible for listing on OTCEI. Also, listing is granted only if the issue is fully subscribed to by the public and sponsor. OTCEI is promoted by the Unit Trust of India, the Industrial Credit and Investment Corporation of India, the Industrial Development Bank of India, the Industrial Finance Corporation of India and others and is a recognized stock exchange under the SCR Act. Benefits The OTCEI has set up a national, automated screen based and ringless stock market. It helps companies raise finance from the capital market in a cost effective manner and provides a convenient and effective avenue of capital market investment for investors at large. While the other recognized stock exchanges require that in order to have its securities listed the company should have an issued capital of not less than Rs.3crores out of which normally 25% is to be offered to the public, the minimum issued equity share capital of a company for eligibility for listing on the OTCEI is Rs.30lacs. Listing on OTCEI is advantageous to companies because of the high liquidity of these securities, which is a result of compulsory market making, improved access and speed of transactions resulting from the extensive network of electronically interlinked counters.

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Indiabulls Securities Limited Companies can obtain a fair price of their securities by negotiating the same with the sponsors and save unnecessary issue expenses by placing their securities with the sponsors who will in turn off load the securities to the public. This mechanism is now popularly known as a bought out deal. Its wide computerized net work will be spread all over India and will make investment easier. All deals will be entered into through remote terminals which will be connected to the mainframe computer of the OTCEI. The exchange will enable transactions to be completed quickly and investors can settle the deals across the counter within a few days. The exchange will also provide liquidity to investors as every scrip listed on the OTCEI will have at least two makers who will continuously give two way quotes.

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INTRODUCTION TO SHARE TRADING PATTERN

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TRADING

NSE introduced for the first time in India, fully automated screen based trading. It uses a modern, fully computerized trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system, which adopts the principle of an order driven market.

TRADING SYSTEM

NSE operates on the 'National Exchange for Automated Trading' (NEAT) system, a fully automated screen based trading system, which adopts the principle of an order driven market. NSE consciously opted in favour of an order driven system as opposed to a quote driven system. This has helped reduce jobbing spreads not only on NSE but in other exchanges as well, thus reducing transaction costs.

Market Types Order Books Order Matching Rules Order Conditions

DAY TRADING

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Indiabulls Securities Limited It refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually (not necessarily always) be closed before the market close of the trading day. This is different from After-hours trading. Traders that participate in day trading are called day traders. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures. Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the internet.

TRADER
In finance, a trader is someone who buys and sells financial instruments such as stocks, bonds and derivatives.Traders are either professionals working in a financial institution or a corporation, or casual individual investors or speculators. They buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, these may include:

stock trader day trader pattern day trader swing trader floor trader rogue trader

TRADING SYSTEM - MARKET TYPES

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Indiabulls Securities Limited The NEAT system has four types of market. They are: Normal Market All orders which are of regular lot size or multiples thereof are traded in the Normal Market. For shares that are traded in the compulsory dematerialized mode the market lot of these shares is one. Normal market consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders, Negotiated Trade orders and Stop Loss orders depending on their order attributes. Odd Lot Market All orders whose order size is less than the regular lot size are traded in the odd-lot market. An order is called an odd lot order if the order size is less than regular lot size. These orders do not have any special terms attributes attached to them. In an odd-lot market, both the price and quantity of both the orders (buy and sell) should exactly match for the trade to take place. Currently the odd lot market facility is used for the Limited Physical Market as per the SEBI directives. Auction Market In the Auction Market, auctions are initiated by the Exchange on behalf of trading members for settlement related reasons. There are 3 participants in this market. Initiator - the party who initiates the auction process is called an initiator Competitor - the party who enters orders on the same side as of the initiator Solicitor - the party who enters orders on the opposite side as of the initiator

Spot Market

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Indiabulls Securities Limited Spot orders are similar to the normal market orders except that spot orders have different settlement periods vis--vis normal market. These orders do not have any special terms attributes attached to them. Currently the Spot Market is not in use.

ORDER MATCHING RULES

Order Matching will take place after order acceptance wherein the system searches for an opposite matching order. If a match is found, a trade will be generated. The order against which the trade has been generated will be removed from the system. In case the order is not exhausted further matching orders will be searched for and trades generated till the order gets exhausted or no more match-able orders are found. If the order is not entirely exhausted, the system will retain the order in the pending order book. Matching of the orders will be in the priority of price and timestamp. A unique trade-id will be generated for each trade and the entire information of the trade is sent to the members involved.

ORDER CONDITIONS

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Indiabulls Securities Limited The derivatives market is order driven i.e. the traders can place only Orders in the system. Following are the Order types allowed for the derivative products. These order types have characteristics similar to ones in the cash market. Limit Order: An order for buying or selling at a limit price or better, if possible. Any unexecuted portion of the order remains as a pending order till it is matched or its duration expires. Market Order: An order for buying or selling at the best price prevailing in the market at the time of submission of the order. There are two types of Market orders: 1. Partial fill rest Kill (PF): execute the available quantity and kill any unexecuted portion. 2. Partial fill rest Convert (PC): execute the available quantity and convert any unexecuted portion into a limit order at the traded price. Stop Loss: An order that becomes a limit order only when the market trades at a specified price. All orders shall have the following attributes: Order Type (Limit / Market PF/Market PC/ Stop Loss) The Asset Code, Product Type, Maturity, Call/Put and Strike Price. Buy/Sell Indicator Order Quantity Price Client Type (Own / Institutional / Normal) Client Code Order Retention Type (GFD / GTD / GTC) Good For Day (GFD) - The lifetime of the order is that trading session. Good Till Date (GTD) - The life of the order is till the number of days as

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Indiabulls Securities Limited specified by the Order Retention Period. Good Till Cancelled (GTC) - The order if not traded will remain in the system till it is cancelled or the series expires, whichever is earlier. Order Retention Period (in calendar days) - This field is enabled only if the value of the previous attribute is GTD. It specifies the number of days the order is to be retained. Protection Points - This is a field relevant in Market Orders and Stop Loss orders. The value enterable will be in absolute underlying points and specifies the band

MARKET SEGMENTS
The Exchange operates the following sub-segments in the Equities segment:

Rolling Settlement Limited Physical Market Institutional Segment Trade for Trade Segment

Rolling Settlement In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At NSE, trades in rolling settlement are settled on a T+2 bases i.e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.

Limited Physical Market

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Indiabulls Securities Limited Pursuant to the directive of SEBI to provide an exit route for small investors holding physical shares in securities mandated for compulsory dematerialized settlement, the Exchange has provided a facility for such trading in physical shares not exceeding 500 shares. This market segment is referred to as 'Limited Physical Market' (small window). The Limited Physical Market was introduced on June 7, 1999.

Institutional Segment The Reserve Bank of India had vide a press release on October 21, 1999, clarified that inter-foreign-institutional-investor (inter-FII) transactions do not require prior approval or post-facto confirmation of the Reserve Bank of India, since such transactions do not affect the percentage of overall FII holdings in Indian companies. (Inter FII transactions are however not permitted in securities where the FII holdings have already crossed the overall limit due to any reason). To facilitate execution of such Inter-Institutional deals in companies where the cut-off limit of FII investment has been reached, the Exchange introduced a new market segment on December 27, 1999.

Trade for Trade Segment Trading in this segment is available only for the securities

Which have not established connectivity with both the depositories as per SEBI directive? The list of these securities is notified by SEBI from time to time. On account of surveillance action.

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INTERNET BASED TRADING

The Securities & Exchange Board of India (SEBI) approved the report on Internet Trading brought out by the SEBI Committee on Internet Based Trading and Services In January 2000. Internet trading can take place through order routing systems, which will route client orders to exchange trading systems for execution. Thus a client sitting in any

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Indiabulls Securities Limited part of the country would be able to trade using the Internet as a medium through brokers' Internet trading systems. SEBI-registered brokers can introduce Internet based trading after obtaining permission from respective Stock Exchanges. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start Internet based trading and services.

Internet Trading at NSE NSE became the first exchange to grant approval to its members for providing Internet based trading services. In line with SEBI directives, NSE has issued circulars detailing the requirements and procedures to be complied with by members desirous of providing

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Indiabulls Securities Limited Internet based trading and services. Members can procure the Internet trading software from software vendors who are empanelled with NSE or they may develop the software through their own in-house development team or may procure the software from other non-empanelled vendors.

COMPUTER-TO-COMPUTER LINK (CTCL) FACILITY

NSE offers a facility to its trading members by which members can use their own trading front-end software in order to trade on the NSE trading system. This facility called Computer-to-Computer Link (CTCL) facility is available only to trading members of NSE. About the CTCL facility Trading Members can use their own software running on any suitable hardware/software platform of their choice. This software would be a replacement of the NEAT front-end software that is currently used by members to trade on the NSE trading system. Members can use software customized to meet their specialized needs like provision of on-line trade analysis, risk management tools, integration of back-office operations etc. The dealers of the member may trade using the software remotely through the member's own private network, subject to approvals from Department of Telecommunication etc. as may be required in this regard.

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The Trader Workstation screen of the Trading Member

Securities Available for Trading

The Capital Market (Equities) segment of NSE facilitates trading in the following instruments: A. Shares Equity Shares Preference Shares

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B. Debentures Partly Convertible Debentures Fully Convertible Debentures Non Convertible Debentures Warrants / Coupons / Secured Premium Notes/ other Hybrids Bonds C. Units of Mutual Funds

Trader Workstation
The trader workstation is the terminal from which the member accesses the trading system. Each trader has a unique identification by way of Trading Member ID and User ID through which he is able to log on to the system for trading or inquiry purposes. A member can have several user IDs allotted to him by which he can have more than one employee using the system concurrently. The Exchange may also allow a Trading Member to set up a network of dealers in different cities all of whom are provided a connection to the NSE central computer. A Trading Member can define a hierarchy of users of the system with the Corporate Manager at the top followed by the Branch Manager and Dealers.

The Trader Workstation screen of the Trading Member is divided into several major windows: Title Bar Tool Bar

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Indiabulls Securities Limited Ticker Window Market Watch Window On line Index and Index Inquiry Inquiry Window Snap Quote Order/Trade Window Systems Message Window Supplementary Menu

MARGINS
Categorization of stocks for imposition of margins

The Stocks which have traded atleast 80% of the days for the previous six months shall constitute the Group I and Group II. Out of the scrips identified above, the scrips having mean impact cost of less than or equal to 1% shall be categorized under Group I and the scrips where the impact cost is more than 1, shall be categorized under Group II.

The remaining stocks shall be classified into Group III. The impact cost shall be calculated on the 15th of each month on a rolling basis considering the order book snapshots of the previous six months. On the basis of the impact cost so calculated, the scrips shall move from one group to another group from the 1st of the next month.

For securities that have been listed for less than six months, the trading frequency and the impact cost shall be computed using the entire trading history of the security.

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Categorization of newly listed securities For the first month and till the time of monthly review a newly listed security shall be categorized in that Group where the market capitalization of the newly listed security exceeds or equals the market capitalization of 80% of the securities in that particular group. Subsequently, after one month, whenever the next monthly review is carried out, the actual trading frequency and impact cost of the security shall be computed, to determine the liquidity categorization of the security. In case any corporate action results in a change in ISIN, then the securities bearing the new ISIN shall be treated as newly listed security for group categorization. Daily margins payable by members consists of the following: 1. Value at Risk Margin 2. Extreme Loss Margin 3. Mark to Market Margin

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INDIA BULLS
Indiabulls is Indias leading Financial Services and Real Estate Company having over 640 branches all over India. India bulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, India bulls help its clients to satisfy their customized financial goals. India bulls through its group companies have entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. India bulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of India bulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). India bulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of India bulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital. Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%. India bulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm.

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PRODUCTS AND SERVICES OFFERED BY INDIABULLS

1. Indiabulls Signature Account

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Indiabulls Securities Limited 2. Equity Research 3. Commodities 4. IPO Online 5. Depository Services 6. Power Indiabulls 7. Competitive Commission 8. Customer Support

1. Indiabulls Signature Account

Indiabulls Signature Account is standard Online trading account from India bulls and along with online trading it also provides priority telephone access that gives us direct access to your Relationship Manager and full access to 'Indiabulls Equity Analysis'. Application Trading Terminal Power Indiabulls Power Indiabulls Trading Terminal is most advanced new generation trading platform with great speed. Trading terminal is built in JAVA. Power Indiabulls is extremely rich in features like live news & alert, Technical Analysis, Fast order entry and execution etc.

Benefits
Control - Stay on top of your investments with convenient access to your account online or by phone. Confidence - Support your investing decisions with premium in-depth research Indiabulls Equity Analysis. Value - Enjoy competitive commissions and get the service and support you need at a fair price.

Features

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Indiabulls Securities Limited Priority Service - Enjoy priority telephone access that gives you direct access to your Relationship Manager. Premium Research - Benefit from full access to Indiabulls Equity Analysis. Our objective, fact-based approach to rating stocks. Online Accounting - Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

Documents required for opening account

First we need to open a Trading account in India Bulls. For that one must submit following documents:

You can open a Depository Participant (DP) account, through an Indiabulls branch. There is only a one-time fee of Rs.900 for opening DP accounts with Indiabulls at zero balance. 2 Passport size photographs. Photocopy of Income Tax Permanent Account Number (PAN) Card. Identity Proof photocopy in the form of any document: a) Passport b) PAN Card c) Voter ID d) Driving License e) Ration Card

2. Equity research

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Indiabulls Securities Limited Equity research forms an integral part of the share trading experience. Equity research decides the stance one would take in the share trading industry. Forecasting scrip performance requires much more characteristics and skills than just advance arithmetical ability. It requires split-hair analysis of the market. To do so one also needs to have excellent understanding of the market. Supported by valid, fact-based and reliable research inputs and published results, our research desk picks out stocks, analyzes its future scope and give a timely recommendation.

3. Commodities
Indiabulls Group offers a wide array of financial services to its customers. Indiabulls Commodities Private Limited (ICPL) a 100% subsidiary of Indiabulls Financial Services Limited offers commodity brokerage services to its customers. ICPL is a registered Trading-cum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and National Commodity and Derivatives Exchange Ltd (NCDEX). These two Commodity Exchanges have shown a phenomenal growth in trading volumes. Significant trading as well as arbitrage opportunities exists for informed players in the futures market. ICPL is the right partner for you if you are keen on tapping opportunities being presented by this nascent commodities futures market. Indiabulls offer a clearly differentiated product to our clients with a strong focus on research. Its commodities research team has a rich research experience in the commodities markets. The specialized services provided by our research team include daily intraday reports, reports on Agri-commodites & Metals, weekly & medium term market outlook and arbitrage strategies.

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Indiabulls Securities Limited Its retail branch network is one of the largest retail branch networks in the private financial services sector and provides the customers with an unmatched distribution and service capability. Its flagship INDIABULLS PROFESSIONAL network spread over more than 640 Indiabulls offices in 113 cities offers real-time prices, detailed data and news, intelligent analytics and electronic trading capabilities, right at you fingertips.

4. IPO Online
For various reasons, we often miss the opportunity of subscribing to an IPO. It can either be because we could not procure the application form or we did not have the time to fill up the form and submit it. The most important benefit of the 'Online IPO' facility offered by India bulls Securities Ltd. is the convenience in submission of applications from anywhere breaking the limitations of time and geography. You dont need to submit the application in paper form, or write a cheque or go to submit it anywhere. Now you have the convenience at your fingertip. You can quickly and seamlessly apply to the latest public offerings with just a few clicks. Indiabulls Securities Ltd. offers Online IPO facility to its registered trading customers at absolutely no cost. To use the Online IPO feature, you need to fulfill the following criteria: -You must be registered for Internet Trading with Indiabulls Securities Ltd. You must have a Demat account with Indiabulls Securities Ltd. You must have signed the POA agreement for Online IPOs. You must have access to Net Banking facility with those banks with which Indiabulls is providing Payment Gateways. Currently, it is providing payment gateways for ICICI, IDBI and HDFC banks.

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Indiabulls Securities Limited

5. Depository Services
Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. Indiabulls performs clearing services for all securities transactions through its accounts. We offer depository services to create a seamless transaction platform execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. Schedule of charges can be done through: NSDL & CDSL.

6. Power Indiabulls
Regardless of how the market is performing or which way the economic winds are blowing, you, as a trader, are researching, charting, crafting a strategy, buying and selling. You are getting in, getting out and moving on to the next trade. Choose from a comprehensive offering of accounts, platforms and products. Customize our technology and services to support the way you work.

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Indiabulls Securities Limited

TECHNICAL ANALYSIS CHART

Features of Power Indiabulls Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting

7. Competitive Commissions

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Indiabulls Securities Limited Enjoy competitive commissions and get the service and support you need at a fair price Benefits Comprehensive Financial Services - As an Active trader, you'll have the tools, resources and support you need to execute your trading strategy, plus your choice of a wide range of investment products and services. Dedicated Support and Services - Enjoy priority access to Relationship Managers who are dedicated to support your trading and investing needs.

8. Customer Support
To activate Electronic Contract Notes on Email facility (ECN) To update your address in Trading and Demat account To update your contact details in Trading and Demat account To change your Relationship Manager or Branch To activate ECS Mandate in your Demat Account To receive SMS alerts from the depositories To add a nominee to your Demat Account Change in the Format of Delivery Instruction Slips

BENEFITS OF TRADING WITH INDIABULLS

Personal relationship Manager - 24/7. Most competitive brokerage and DP charges. Only one time account opening charges and no annual maintenance charges. Margin trading of 4 times the cash deposited for delivery based trade. Margin trading of 10 times the cash deposited for intra-day based trade. Buy today Sell tomorrow for all securities facility.

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Indiabulls Securities Limited

BUSINESS STRATEGIES

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Indiabulls Securities Limited

Increase the number of Client Relationships They are focused on increasing the number of client relationships through a wide network of offices throughout India and having more number of relationship managers to service these relationships. They plan to grow their business by growing the number of client relationships. During a downturn of the markets they believe that increased number of client relationships will add stability to their earnings. Offer Diversified Financial Products & Services Company and its subsidiaries offer to their clients a wide range of financial services and products allowing the clients to leverage their relationship with Indiabulls and get products suiting their varied needs. This strategy allows them to gain share of wallet of the clients consumption of financial services. They offer to the client a comprehensive product offering and are able to increase their revenues per client by selling different products to the same client. India bulls offer equity, debt & derivatives brokerage, IPO distribution, mutual funds and insurance products. Their strategy is to increase the number of client relationships and then leverage those client relationships into offering in a whole suite of financial products. Multiple Channels Enhance Customer Experience and Opportunities to interact Companys clients can access their products and services through 135 offices spread across 95 cities; through operator assisted call Centers; or through their website www.indiabulls.com; or through their respective relationship managers or through marketing Associates. These multiple channels provide flexibility to the clients and allow them to utilize their existing business Relationship with them through any channel from any part of India. Companys strategy is to provide the most convenient, efficient and value added channel to the client at the lowest possible cost, and allow the clients with

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Indiabulls Securities Limited choice and varied access points. Indiabulls believe that their multiple channel strategy has been particularly effective in the affluent segment where many sophisticated clients like to have a close-by office they can access and yet have the flexibility of Internet account management, transactions and electronic funds transfer and settlement. Relationship Manager driven sales model, provide high quality service and exploit cross-sell opportunities Companys clients benefit from the personal attention and advice of the trained and motivated relationship managers. All its relationship managers are qualified and educated professionals, who have been extensively trained in-house to provide the products and services to the clients. These relationship managers are encouraged to develop long-term relationships with the clients and can access a variety of resources within the Company, such as insurance specialists, research services and others to add value to their clients. Most of the clients have dedicated relationship managers irrespective of the channel they use.

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Indiabulls Securities Limited

KEY COMPETITIVE STRENGTHS

Diverse Branch Network

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Indiabulls Securities Limited Since Company inception in FY 2000 Company and its subsidiaries have grown from a single location to a nationwide network spread over 135 offices in 95 cities. They have a pan India distribution networks for the purpose of distribution of financial products and services. Such a diverse and integrated network provides a centralized platform to there clients. Bouquet of financial products and services Company and its subsidiaries offer various financial services and products ranging from equity, F & O and wholesale debt, mutual fund, insurance and IPO distribution, equity research analysis, depository services to cater to the specific needs of the retail and institutional investors thus providing all these services in a single platform. Advanced Technology team that delivers market leading product innovation There ongoing investment in technology is a key element in expanding there product and service offerings, enhancing there delivery systems, providing fast and consistent client service, reducing processing costs, and facilitating there ability to handle significant increases in client activity without a corresponding rise in risk and staff. Company and its subsidiaries have an in-house technology team of 27 people comprising of several engineers. The in-house technology team has been responsible for developing the technology products for operating at a large scale with efficient back office systems. The application of technology allows Company and its subsidiaries to build scaleable product and service offerings. The in-house technology team developed one of the first Internet trading platforms in India, one of the first in-house real-time CTCL link with NSE. Company and its subsidiaries introduced integrated accounts with automated gateways with client bank accounts so that they can transfer funds to and from their bank account to their brokerage account with the Company. This has enhanced customer ability to access their funds for market related activities. The in-house technology team has good expertise to create mission critical applications and in the maintenance and upkeep of high transaction processing of there web site.

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Indiabulls Securities Limited Strong Sales and Marketing Teams with continuous reinvestment and training Companys relationship manager channel (through a team of 1050 Relationship Managers as on April 30, 2004) offers a single point contact to retail customers whereby their high net worth clients have separate relationship managers catering to them. These managers offer personalized services to the customers helping build strong and continuing relationships with them. Also, our marketing associate channel helps Company and its subsidiaries in client acquisitions at minimal costs with client loyalty. The marketing associates channel also helps Company and its subsidiaries in increasing their penetration in smaller town and cities. Strong cross Selling Opportunities With 300 branches spread over 110 cities all over India and variety of financial products and offerings coupled with online, relationship manager & marketing associate channels, Company and its subsidiaries have strong cross product selling opportunities thus providing a multi-channel delivery systems to there diverse client base of 250000 clients as on may 2006. Strong Team of Experienced Promoters Indiabulls has a strong team of promoters who are engineers from Indian Institute of Technology and have several years experience in financial services industry. They believe that their strong technical experience will help them in achieving our key business strategies.

Leading Product innovation and marketing strategies Management is innovative and nimble and has historically introduced many new and innovative products to the market place that have played a significant role in their

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Indiabulls Securities Limited growth. Companys relationship manager model has introduced private banking experience to the clients. The relationship managers are trained and incentives to work with their client base and enhance ability to cross sell and leverage the large client base. Indiabulls have launched marketing associate model, which replaces the traditional subbroker model with an authorized person that client can appoint independently and provide them with the benefit of their trading, clearing and servicing strengths. Its equity analysis product provides clients with unbiased research. Company plans to continuously innovate and introduce market leading products and services to add to its competitive advantage. Well capitalized player, with strong banking relationships and credit ratings Indiabulls consolidated net worth is Rs.1023.19 million making it a well capitalized company. The Company and ISL have received sanctioned facilities of Rs.1760 million from 9 leading commercial banks and financial institutions. Ability to combine People & Technology in unique ways They provide multiple distribution channels by combining people and technology. Clients can visit one of the 300 offices in 110 cities or access via telephone, call centre or online channel. Web enabled tools such as technical analysis, information, news, interactive web based programs and tools and back office solutions for clients and marketing associates; Power Indiabulls an order entry, routing and management technology through technology platform, for actively- trading investors.

Strong market presence and increased market share leads to virtuous cycle of growth and profitability

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Indiabulls Securities Limited Theyre growing client base and market share have increased their market presence, brand recognition enhanced their profitability and increased the available credit facilities from the banks further strengthening its strong balance sheet. Companys brand and profitability allows them to recruit good and efficient employees, compensate them attractively and provides the flexibility toes for investments in the business and technology systems. These attributes in turn have a positive effect on the growth of its client base thereby increasing its market share, leading to higher profits and credit facilities and thus forming a virtuous circle.

WEAKNESS OF INDIABULLS
It should have its own mutual funds i.e. Indiabulls as of now does not have its own mutual funds, instead of providing advises in mutual funds it should have its own mutual funds It should provide tips via SMS. Too many people try to eat the same piece of pie i.e. people employed in Indiabulls hit the same area to target their customers. There should be a separate set of staff working in fields and trading on behalf of their clients: India bulls has same set of staff who are making clients and also trading on behalf of clients this hinders the relationship manager to provide adequate and necessary tips to the clients and at times the managers are not in the position to answer the questions of their clients relating to the current market position as the are on fields. It does not display the scripts in BSE on its terminal i.e. POWER INDIABULLS. To trade in scripts in BSE the customer has to open the website www.bseindia.com. Commodities are not traded online (MCX-multi commodity exchange, NCDEXnational commodity derivative exchange of India ltd.)

49

Indiabulls Securities Limited It does not provide with the indices of major world markets, ADR prices of Indian scripts. Unlike some of its competitors like ICICI and Kotak, Indiabulls does not provide a complete catalogue of financial services (e.g. banking facility). Due to the continuous need to meet the targets, some of the Relationship managers crack under pressure and thus leave the organization. There is no limit to the maximum number of clients that a Relationship manager can handle. This affects the level of service provided to the clients who are not volume traders.

OPPURTUNITIES TO INDIABULLS
The external environmental analysis may reveal certain new opportunities for profit and growth some examples of such opportunities include: An unfulfilled customer need. Arrival of new technologies Increasing stake of Fallacom (U.S based company) in Indiabulls. Stake of Mittal Steels in the company. Financial services like banking. Market expansion i.e. opening branches at untapped areas. Indiabulls is registered with Luxembourg stock exchange and so can target other stock exchanges. ATM facility should be provided for easy withdrawals. The Capital market in the last few years has turned out to be one of the favorable avenues for the retail investors. This is due to the performance of the Indian Industry in various sectors and the Economy in general. Even the future outlook looks promising. Scope of online trading on BSE.

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Indiabulls Securities Limited Indiabulls has tied up with other third party companies to sell their products. Due to the high client base of Indiabulls, there exists an opportunity to cross sell these products in the market. Market seems favorable for commodities trading. Should Indiabulls choose to enter this segment it may prove to be a profitable venture.

THREATS TO INDIABULLS
Changes in the external environmental also may present threats to the firm. Some of the examples include: Shifts in consumer tastes away from firms products. Emergence of competitor company who charging less brokerage. Companies like Sharekhan, ICICI Direct, Kotak, and Private Brokers are major threats to Indiabulls. Banks with Demat facility jockeying for position Local brokers capable of charging lower brokerage. Industry competitors vying for the same target segment. Changes in SEBI guidelines & other tax implications. Government Regulations.

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Indiabulls Securities Limited

MAIN STOCK BROKERAGE HOUSES OF INDIA

Indiabulls Securities Ltd.

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Indiabulls Securities Limited Kotak Securities Ltd. Sherkhan

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Ltd. a Technology Oriented Financial Services Company offering Integrated Equity analysis, Stock Trading, Derivatives trading, Depositary & Margin Trading facilities etc. backed by real time risk management systems and fast trade execution. Indiabulls also provides its clients with valuable real-time information, access to breaking news and market happenings, along with in-depth and insightful analysis. The organization has an established presence in 110 main cities through its 300 branch offices and has a base of over 2, 67,000 clients. Rank as the top retail brokers in the country with average daily trading volumes of over Rs.2500crores in the current markets and holds over Rs.150crores of assets in its own depository services. Indiabulls Offline It provides you a virtual trading screen on which you would be able to track your portfolio. For this no extra charge is levied. As they are from Indiabulls Offline you would be given a dedicated relationship manager on opening a trading a/c with them who you would be able to reach 24x7 and not only instruct them to make trades but also get specialized and customized advice and tips from them about the market, are their competitive advantage. Also if a client wishes to trade online they can download software called PIB (Power Indiabulls) to them for trading online.

Some of the unique features are Trading via branch network, telephones and Internet account.

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Indiabulls Securities Limited Integrated Trading and Depositary Account Technology transforming desktop into NEAT like terminal for Internet trading One Screen for both Cash and Derivatives Trading. Equity Analysis Reports on different sectors Indiabulls is India's leading retail financial services company with 300 locations spread across 110 cities. Over 1500 Client Relationship Managers are dedicated to serving your unique needs. Is complemented by our knowledgeable and customer focused Relationship Managers. Provides our clients with real-time service & 24x7 accesses to all information and products Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financial goals Post Registration Services Get professional advice from your Dedicated Relationship Manager Obtain market information through its Research Team. Construct portfolios and get insight on risk management techniques through its analysts in a personalized manner. Get access to IPOs via the Book Building route as well as to all the fixed price issues. Deal in NSE, BSE and Commodities through one branch itself.

Advantages of trading with Indiabulls

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Indiabulls Securities Limited Personal Relationship Manager Most competitive brokerage & DP charges (Delivery-0.5% and Intraday-.05%) No annual maintenance charges. Technology transforming desktop into NEAT like terminal for Internet trading. Trading via branch network, telephone and Internet account I.e. both Online & Offline. Real time Online fund Transfer & Exposure updating facility with HDFC Bank, Citibank & ICICI Bank. Integrated Trading and Depository Account. Margin trading of 3 times the cash deposited for delivery based trade. Margin trading of 8 times the cash deposited for intraday-based trade. Margin Trading of 2 times the approved category a based shares. Quality equity Research department, which studies the market and provides personalized information. Equity Analysis report to support your investment decisions.

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Indiabulls Securities Limited

KOTAK SECURITIES LIMITED

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and distribution arm of the Kotak Mahindra Group. The company was set up in 1994. Kotak Securities is a corporate member of both The Bombay Stock Exchange and The National Stock Exchange of India Limited. Its operations include stock broking and distribution of various financial products - including private and secondary placement of debt and equity and mutual funds. Currently, Kotak Securities is one of the largest broking houses in India with wide geographical reach. The company has four main areas of business: (1) Institutional Equities, (2) Retail (equities and other financial products), (3) Portfolio Management and (4) Depository Services. Institutional Business This division primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). The division also incorporates a comprehensive research cell with sectoral analysts who cover all the major areas of the Indian economy. Client Money Management This division provides professional portfolio management services to high net-worth individuals and corporate. Its expertise in research and stock broking gives the company the right perspective from which to provide its clients with investment advisory services. Retail distribution of financial products Kotak Securities has a comprehensive retail distribution network, comprising approximately 7000 agents, 13 branches and over 20 franchisees across India. This network is used for the distribution and placement of a range of financial products that

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Indiabulls Securities Limited includes company fixed deposits, mutual funds, Initial Public Offerings, secondary debt and equity and small savings schemes. Depository Services Kotak Securities is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. Since it is also in the broking business, investors who use its depository services get a dual benefit. They are able to use its brokerage services to execute transactions and its depository services to settle these.

SHAREKHAN
Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

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Indiabulls Securities Limited

Types of Accounts
ShareKhan Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, Demat and digital contracts, Real time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cell phone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication Get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail Single screen interface for cash and derivative

ShareKhan Speed Trade account This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of Speed Trade account. Single screen interface for cash and derivatives Real-time streaming quotes with Instant order Execution & Confirmation Hot keys similar to a traditional broker terminal

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Indiabulls Securities Limited Alerts and reminders Back-up facility to place trades on Direct Phone lines

Advantages of Sharekhan
Online trading is very user friendly and one doesn't need any software to access. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of Sharekhan
They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below Rs.20 (If you trade, you will loose majority of your money in brokerage). Lots of hidden rules and charges. They do not provide facility to book limit order trades during after-hours. Classic account holders cannot trade commodities. Cannot purchase mutual funds online.

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Indiabulls Securities Limited

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Indiabulls Securities Limited

COMPARATIVE STUDY OF INDIABULLS WITH OTHER BROKERAGE COMPANIES

SERVICES Sharekhan Kotak Indiabulls

Account Opening Charges

Rs.750

Rs.500

Rs.900 Intraday 0.15 4 times Delivery 0.50 4 times Intraday 0.05 10 times

Brokerage (%) Exposure on Cash Exposure on Securities Annual Maintenance Charges Trading with other Demat Account Banking facility Net Banking facility Off-line Trading Relationship Manager

Delivery 0.20 NIL NIL

Intraday 0.05 4 times

Delivery 0.50 4 times NIL

2 times of the Market Value

Rs.300

Rs.260

NIL

N.A. IDBI Bank/City Bank/ OBC/UTI/ HDFC bank IDBI Bank/City Bank/OBC/UTI/HDFC Yes Assigned to every client

N.A.

Possible

Kotak /HDFC/CITI Kotak/HDFC/CITI Yes Assigned to every client.

All private Banks HDFC/ICICI/Citibank Through Phone & SMS Assigned to every client

Account Opening Charges

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Indiabulls Securities Limited Account opening charges is the initial charges that is charged by each brokerage house for opening its Demat and trading A/C And these charges varies from one brokerage house to another. As far as opening charges are concerned: Indiabulls = Rs.900 (De-mat & Trading A/C) Kotak = Rs.500 (De-mat & Trading A/C) Sharekhan = Rs.750 (De-mat & Trading A/C)

Brokerage
Brokerage percentage is that amount charged by brokers for their intermediary services provided by brokerage house. Brokerage can be divided into: Brokerage charges on delivery Brokerage charges on intraday

Brokerage charged on delivery

Means the commission charged by brokers for forward or future trading. Future contract is legal commitment between a buyer and seller or broker in which they agree to exchange something at a specific price at the end of designated period of time. India Bulls = Brokerage charged on delivery .5% Kotak = Brokerage charges on delivery .5% Sherkhan = Brokerage charges on delivery .2%

Brokerage charged on Intra day

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Indiabulls Securities Limited On intra day means the commission charged by broker for spot trading. Spot trading under which the investor buy or sell the share on the same day at the prevailing price. Where as India Bulls brokerage charges are quite nominal, to get competitive advantage that is easily available by small investors. Indiabulls = Brokerage charged on intra day .05% Kotak = Brokerage charges on intra day .15% Sherkhan = Brokerage charges on intra day .05%

Exposure on cash
Exposure on cash means financing facility provided by some reputed brokerage houses i.e. Kotak, India Bulls. e.g. - suppose investor wants to invest Rs.1, 00,000 in cash and a brokerage house provides 3 times exposure on cash, which means an investor can invest up to Rs.3, 00,000. Cash exposure can also be divided into- Intraday & delivery. Indiabulls provides = 4 times (On Delivery) 10 times (On Intraday) Kotak provides = 4 times (On Delivery) 4 times (On Intraday) Sherkhan provides = NIL (On Delivery) 4 times (On Intraday)

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Indiabulls Securities Limited

Exposure on Security
Exposure on security is another persuasive facility provided by reputed brokerage houses like Indiabulls. Under this facility, suppose an investor wants to trade 100 shares & market value of which is Rs.100 each. Now trade total investment amount that he wants to invest is Rs.1, 00,000. A brokerage house provides 3 times exposure on security, now he can trade up to Rs.3, 00,000. Indiabulls provides = 2 times (on delivery) 2 times (on intraday) Kotak provides = NIL (on delivery) NIL (on intraday) Sherkhan provides = NIL (on delivery) NIL (on intraday)

Annual Maintenance Charges (AMC)

AMC are the extra charges by all brokerage houses from their customers from their services. These charges are charged on annual basis. For customers its an unnecessary burden. But India bulls safe its value customers from these extra burden. India Bulls charges = NIL Kotak charges = Rs.260 Sherkhan charges = Rs.300

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Indiabulls Securities Limited

Trading with other Demat A/C

It means that if investor have Demat a/c in any brokerage house, he or she can trade in securities with same Demat a/c & not required to open other Demat a/c in that brokerage house from which he recently wants to invest E.g. - Investor having its Demat a/c in ICICI & wants to invest through Indiabulls, he can trade with Indiabulls without opening of Demat a/c in India bulls, the only thing is required on the part of customer is the opening of trading a/c. This facility of other Demat is exclusively provided by Indiabulls. Indiabulls = Possible Kotak = Not Possible Sherkhan = Not Possible

Banking Facility
Mostly all brokerage houses provide this facility for their customers for clearance & settlement. Indiabulls = Through All Private Banks Kotak = Through Kotak/HDFC/CITI Bank Sherkhan = Through IDBI/ CITI/ OBC/ UTI/ HDFC Bank

Off-line Trading
Generally offline trading is not allowed by any brokerage houses exclusively Indiabulls. Because of the requirement of 24*7 basis connectivity with customers, Indiabulls provide a wide range of connectivity through phone and messenger. Also provides door to door services to its valuable customers. Indiabulls = Through Phone

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Indiabulls Securities Limited Kotak = Not Allowed Sherkhan = Not Allowed

Relationship Manager
Indiabulls provides a relationship manager to every client to provide him investment tips (which are provided everyday by their investment team/ expert) and follow decisions while providing them, professional investment suggestions whereas in Kotak no relationship manager facility to provided to their clients. Kotak = Assigned to every client of Indiabulls Indiabulls = Assigned to every client of Indiabulls Sherkhan = Assigned to every client of Indiabulls

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Indiabulls Securities Limited

QUESTIONNAIRE
1. Would you like to invest in the stock market? (a) Yes (b) No 2. If not why? (a) Lack of Knowledge (b) Feel its Risky (c) No time (d) Dont have money 3. Do you know about online share trading? (a) Yes (b) No 4. Does u have Demat & Trading A/C? (a) Yes (b) No 5. In which Brokerage house you have your Demat A/C? (a) Kotak (b) Indiabulls (c) ICICI (d) Sharekhan 6. What are the a/c opening charges you expect from your Broker? (a) 500 (b) 900 (c) 750 (d) 800 7. What the brokerage should be charged by your broker on Delivery trading? (a) 0.2-0.5 (b) 0.5-0.7

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Indiabulls Securities Limited (c) 0.7-1.0

8. What the brokerage should be charged by your broker on intraday trading? (a) .02-.05 (b) .05-.07 (c) .07-0.1 9. Would you like to have the facility of exposure on Cash? (a) Yes (b) No 10. Would you like to have the facility of exposure on Security? (a) Yes (b) No 11. What are the Annual maintenance charges you expect from your Broker? (a) NIL (b) 100-200 (c) 200-300 12. Would you like to have a facility to trade with other Demat A/C? (a) Yes (b) No 13. Would you like to have a facility of net Banking? (a) Yes (b) No 14. Would you like to have a facility of Relationship Manager? (a) Yes (b) No 15. Are you satisfied with your Broker? (a) Yes (b) No

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Indiabulls Securities Limited

FINDINGS

People Want To Invest Stock Market

People interested in stock market investment Yes No Percentage 65% 35%

Pe nta eo Pe p Inte s d in rce g f o le re te Sto Marke ck t

70% 60% 50% 40% 30% 20% 10% 0%
35% 65%

Pe e ta e rc n g
Yes No

People Having Demat & Trading A/C

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Indiabulls Securities Limited % Of People Having Demat & Trading A/C Yes No Percentage 85% 15%

%of Pe leh op aving De at & m Trad A/C ing

15%

Yes No

85%

Demat A/C in Various Brokerage House

Investors Having Their

Percentage

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Indiabulls Securities Limited Demat A/C In Various Brokerage Houses Kotak Indiabulls ICICI Sharekhan 25% 42% 13% 20%

De a A/C inVa u Bro ra eHo s s mt rio s ke g ue 5% 0 Pe n g s rce ta e 4% 0 3% 0 2% 0 1% 0 0 % Ko k ta In ia u d b lls IC I IC Sa k a h re h n Bro ra eHo s s ke g ue Pe e ta e rc n g 2% 5 1% 3 2% 0 4% 2

A/C Opening Charges

Expected A/C opening charges 500 750

Percentage 30% 12%

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Indiabulls Securities Limited 800 900 20% 38%

100 0 90 0 80 0 70 0 60 0 50 0 40 0 30 0 20 0 10 0 0 % a d A/C Op n g Ch rg s n e in a e Exp c d A/C o e in c a e e te p n g h rg s 1% 2 3% 0 50 0 7 50 800

9 38 00 %

40 % 35 % 30 % 25 %

20%

20 % 15 % 10 % 5% 0%

Pe e ta e rc n g

Brokerage on Delivery

Expected Brokerage on Delivery 0.2-0.5 0.5-0.7 0.7-1.0 72

Percentage 15% 80% 5%

Indiabulls Securities Limited

Bro ra eo De ry ke g n live
80% 70% 60% 50% 40% Pe e ta e rc n g 30% 20% 10% 0% 15% 5% 0.2-0.5 0.5-0.7 0.7-1.0 Exp c c d Bro ra e e te te ke g 80%

Brokerage on Intraday

Expected Brokerage on Intraday .01-.05 % .05-.07 % .07-.10 %

Percentage 37% 58% 5%

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Indiabulls Securities Limited

Bro rag o Intra a ke e n dy

70% 60% 50% 40% Pe e ta e rc n g 30% 20% 10% 0% .01-.05 %

.05-.07 %

.07-.10 %

Exp c d Bro ra e e te ke g

Exposure on Cash

Investors expect exposure on Cash Yes No

Percentage 70% 30%

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Indiabulls Securities Limited

Exp s o Ca h o ure n s
80% 70% 60% 50% 40% 30% 20% 10% 0% 70% 30%

Ye s
Percentage

No

Investors expect Net Banking

Investors expect Net Banking Yes No

Percentage 90% 10%

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Indiabulls Securities Limited

Ne Ba kin Fa t n g cility

10%

Ye s No 90%

RECOMMANDATIONS

Before Opening A/C Familiarize yourself with the rules, regulations, byelaws and circulars issued by Stock Exchanges / SEBI before entering into and carrying out any transaction. Transact only through Stock Exchanges. Please carry out due-diligence before registering as client with any Broker. Clear all your doubts by raising your queries with the Relationship Manager prior to opening an account.

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Indiabulls Securities Limited

A/C Opening Please provide accurate Email ID, DP ID and Bank account number. The correspondence address should always be updated. Please submit your Permanent Account Number (PAN) Please understand the utility of maintaining a running account before signing the authorization for the same. Maintaining a Running Account with it is not compulsory. All information provided should be factually correct and accurate since this will form the basis of your relationship with Indiabulls Securities Ltd.

After Trading Insist and ensure that for every executed trade you receive duly signed contract note from your broker, highlighting the details of the trade, trade time and number, transaction price, brokerage along with your unique client-id, brokers name. Please note that the details or every executed trade are posted on our website www.indiabulls.com in the form of digital contract notes on a daily basis. Access the website, wherever possible and satisfy yourself in respect thereof. Pay the margins within the prescribed time. Collect/pay your mark to market margins, on your positions, on a daily basis, from/to your Broker. Ensure receipt of payment/deliveries within one working day of payout. Do not pay more than the agreed brokerage to the intermediary.

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Indiabulls Securities Limited

Other Recommendations
The calls made should be more informative and assertive. The RM should provide an in depth demonstration of the software and client should be assisted regularly. Provision of a manual for online clients for ease of operation. Time lag between the complaints put and follow up should be reduced. Database should be verified properly, so that repeated entries do not occur. This will reduce inconvenience to the clients, who complained about multiple calls received

CONCLUSION

IndiaBulls by its distinctive feature can efficiently provide 100% satisfaction to its various categories of investors. IndiaBulls is the only Brokerage house that provides various privileges over other brokerage houses. It is the only one who provides a satisfactory redeem to both category of investors by providing them Low brokerage charges, annual maintenance charges are NIL, low a/c opening charges, provides cash exposure facility, in order to provide financial assistance to those investors having lack o funds to invest in capital market. On the other hand IndiaBulls provides 24*7 basis connectivity to its investors through Online & Offline facility. And the most prominent

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Indiabulls Securities Limited privilege i.e. Relationship Manager; in order to develop confidence to those investors who are not aware to the security trading. From the above survey, comparison charts & differential study: We can conclude that the majority of prospective investors from the sample i.e. 65% want to invest in the capital market and rest does not want to invest in stock market because either they dont have sufficient knowledge about stock market or they dont have time or they feel that it is risky to invest in stock market. Apart of that Kotak and Sherkhan have a diversified business therefore their concentration level is also spread over their multi purpose business. While IndiaBulls have specialized one, so there concentration level is too high on the share market only. So we can conclude that investors should rely on the services provided by IndiaBulls in long run.

BIBLIOGRAPHY

http://www.bseindia.com http://www.sebi.gov.in http://www.nseindia.com http://moneycontrol.com http://www.indiabulls.com http://www.ShareKhan.com

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Indiabulls Securities Limited

http://www.kotaksecurities.com http://en.wikipedia.org/wiki/SEBI http://www.indiabulls.com/equities/equities.htm http://en.wikipedia.org/wiki/Electronic_Communication_Network http://en.wikipedia.org/wiki/Day_trading#Scalping http://www.chittorgarh.com/newportal/online-stock-brokers-detail.asp?a=3 NCFM Modules Investment Analysis and Portfolio Management (Prasanna Chandra)

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