Summer Project

A PROJECT REPORT ON BRAND AWARENESS AND COMPARISON OF INDIABULLS AND PEER GROUP IN PUNE REGION BY KOMAL SHARMA Roll
No.: 520856394 SUBMITTED TO SIKKIM MANIPAL UNIVERSITY 2008- 10 UNDER THE GUIDANCE OF PROF. VIJAY RAO
Indiabulls Securities Ltd.
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DECLARATION
I, the undersigned, hereby declare that the Project Report entitled Brand awareness and comparison of Indiabulls and peer group in Pune region written and submitted by me to the Sikkim Manipal University in partial fulfillment of the requirements for the award of degree of PGP under the guidance of Prof. Vijay Rao, is my original work and the conclusions drawn therein are based on the material collected by myself.
Place: Pune Sharma) Date:
(Komal
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ACKNOWLEDGEMENTS
With due respect and deep gratitude, I would like to express my sincere thanks to Mr. Deepak Singh and Mr. Sharad Mapari for giving me an opportunity to work with Indiabulls Securities Ltd.
I would also like to thank all the Relationship Managers for their invaluable support, guidance and rendering all possible help at every juncture of the study. It was an honor to be under their guidance.
I also take the opportunity to express my profound gratitude and thanks to my project guide, Prof. Vijay Rao for their timely support.
Last, but not the least, I would also like to thank all the staff members and all my classmates for their valuable suggestions and support.
Signature
(Komal Sharma)
CONTENTS
Indiabulls Securities Ltd. Page 56
Sr. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 12. 13.
Particulars
Executive Summary Industry Profile Company Profile Introduction Objectives & Scope Research Methodology Data Analysis Conclusions Limitations Recommendations and Observations Bibliography and References Annexure
Page No.
5-7 8-24 25-30 31-36 37-38 39-42 43-52 53-54 55-56 57-58
59-60 61-64
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EXECUTIVE SUMMARY
In economics, a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities ( such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis. Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve liquidity. Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets
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work by placing many interested buyers and sellers in one place, thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non- market economy such as a gift economy. Financial markets facilitate The raising of capital (in the capital markets); The transfer of risk (in the derivatives markets); International trade (in the currency markets)
Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends. Earlier, less than a decade ago, people were investing only in FDs, post office savings and assured return scheme of banks. The most aggressive foray for such an investor would have been either a small holding in equity funds or a small investment in direct equities which he would have acquired more by a default rather than a design. Today the time has change, investor are directly participating in the equities with considerable proportion of their savings. Also due to industrialization, development of market in national and international level Indian companies are growing worldwide and make a good profit so people also trusted on such companies and interested in investing them. Thats why BSE and NSE are gaining a lot. Since retail investors are directly participating in to equities, brokers and online service provider have also got a lot of business. To invest in equities, retail investors have two options with them viz., through online share trading or through brokers. People have no doubt in their mind that the introduction of online trading is going to bring a great change in the security market. People have highly voted for transparency feature of online trading. People who often trade in the securities market are very much keen to go for online trading. The small investors or who seldom trade and often would like to hold the stocks for very long period are unwilling to go online. Minimum charges or an annual levied by e- trading companies is the barrier for the small investors. There is still one class of people who still depend on their broker due to unawareness of stock market and the brokers are also providing services on
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competitive charges and achieve customer satisfaction. This is the class of the people, which is comparatively less educated and consist of small traders and old generation people. India bulls has emerged as one of the leading and fastest growing financial company, serves the financial needs of more than 3,00,000 customers with its wide range of financial services and products from securities, derivatives trading, depository services, research and advisory services. In this project, the existing customers of India bulls Securities who were inactive from many days were contacted and were asked about their problems why they were not trading and whether they were interested at that time, if their previous problems were solved. To find out the interest of the people in equity market and compare the brand image of Indiabulls with its competitors. This helped to make some the inactive clients as active. The analysis of data which was collected helped to get the prospective clients and also to find out some suggestions which are helpful to company to raise its business and to be ahead of its competitors.
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INDUSTRY PROFILE
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INDIAN EQUITY MARKET
INDIAN EQUITY MARKET
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Equity is: 1. Stock or any other security representing an ownership interest. 2. On the balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses), also referred to as "shareholder's equity". 3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage. Equity is a term whose meaning depends very much on the context. In general, one can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity since he or she can readily sell the items for cash. Stocks are equity because they represent ownership of a company, whereas bonds are classified as debt because they represent an obligation to pay and not ownership of assets.
The ability of equities to deliver over longer time frames and even outperform other investment avenues like gold, property and bonds is an often chronicled fact. However, over shorter time frames, equities also hold the potential to be a very risky asset class and expose the portfolio to high levels of volatility. This is the primary reason why any fund manager worth his salt always recommends a sufficiently long (at least 3 years) time frame for an equity-oriented investment. Similarly financial planners advocate classification of the equity holdings with advancement in the investors age, when the investor is typically closer to retirement (shorter investment horizon) and has a lower risk appetite as well. Equity markets, the world over, grew at a great speed in the decade of the nineties. After the bear markets of the late eighties, the world markets saw one of the largest ever bull markets of more than ten years. The opening up of Indian economy in the 1990's led to a series of financial sector reforms, prominent being the capital market reforms. These reforms have led to the development of the Indian equity markets to the standards
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of the major global equity markets. All this started with the abolition of Controller of Capital Issues and subsequent free pricing of shares. The importance of equity market is increasing. Rightly, realizing the advantages of resource allocation through market, Government of India and Reserve Bank of India have been pushing reforms in equity markets. Series of steps are being taken to remove hurdles, increase market efficiency and to make it attractive for the retail investors to take part in the equity market. It may not be an exaggeration to say that the Indian markets are resourceful to put themselves on par with the markets of the developed countries. The Indian markets have assimilated in a relatively lesser time, many a developments that took long time in the developed markets.
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TWIN TOWERS OF EQUITY MARKET (BSE & NSE)

Traditionally, a stock exchange has been an association of individual members called brokers, formed for the express purpose of regulating and facilitating the buying and selling of securities by the public and institutions at large. A stock exchange in India operates with the recognition from the government under the securities and contracts (Regulation Act, 1956). The member brokers are essentially the middlemen, who transact in securities on behalf of the public for a communism or on their behalf. There are at present 26 stock exchanges in India. In India the main exchanges are the BSE and the NSE, which contribute to more than 90% of the trade in the capital market. These two exchanges are the movers and shakers of the equity market in India. Securities and Exchanges Board of India (SEBI) has been setup in MUMBAI by the Government to oversee the orderly development of stock exchanges in the country. All companies wishing to raise capital from the public are required to list their securities on at least one stock exchange thus, all ordinary shares, preferences shares and debentures of publicity held companies are listed in one are more stock exchanges. Stock exchanges also facilitate trading in the securities of the public sector companies as well as government securities.
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BOMBAY STOCK EXCHANGE (BSE)
The Stock Exchange, Mumbai, which was established in 1875 as The Native Share and Stockbrokers Association (a voluntary non-profit making association), has evolved over the years into it present status as the premier Stock Exchange in the country. It may be noted that the Stock Exchange is the oldest one in Asia. Bombay Stock Exchange Limited (BSE) which was founded with six brokers has now grown into a giant institution with over 874 registered Broker-Members spread over 380 cities across the country. Today, BSE's Wide Area Network (WAN) connecting over 8000 BSE Online Trading (BOLT) System Trader Work Stations (TWS) is one of the largest of its kind in the country. With a view to provide efficient and integrated services to the investing public through the members and their associates in the operations pertaining to the Exchange, Bombay Stock Exchange Limited (BSE) has set up a unique Member Services and Development to attend to the problems of the Broker-Members.
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NATIONAL STOCK EXCHANGE (NSE)
The National Stock Exchange (NSE) is Indias leading stock exchange covering various cities and town across the country. NSE was set up by leading institutions to provide a modern, fully automated screen based trading system with national reach. The exchange has brought about unparalleled transparency, speed and efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of micro structure, market practices and trading volumes. The market today uses slate of art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products and services viz., dematerialization of stock exchange governance, screen based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine turned risk management systems, emergence of clearing corporations to assume counter party risks, market of debt and derivative instruments and intensive use of information technology. NSE started trading in the equities segment (Capital Market segment) on November 3, 1994 and within a short span of 1 year became the largest exchange in India in terms of volumes transacted.
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Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs.17 crores during 1994-95 to Rs.14, 148 crores during FY 2007-08. During the year 2007-08, NSE reported a turnover of Rs.3, 551,038 crores in the equities segment.
November 1992 April 1993 May 1993 June 1994 November 1994 March 1995 April 1995 June 1995
Incorporation
Recognition as a stock exchange Formulation of business plan Wholesale Debt Market segment goes live Capital Market (Equities) segment goes live
Establishment of Investor Grievance Cell Establishment of NSCCL, the first Clearing Corporation Introduction of centralized insurance cover for all trading members
July 1995 October 1995 April 1996 April 1996 June 1996 November 1996 November 1996 December 1996 December
Establishment of Investor Protection Fund Became largest stock exchange in the country Commencement of clearing and settlement by NSCCL Launch of S&P CNX Nifty Establishment of settlement Guarantee Fund Setting up of National Securities Depository Limited, first depository in India, co- promoted by NSE Best IT Usage award by Computer Society of India
Commencement of trading/settlement in dematerialized securities Dataquest award for top IT User

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1996 December 1996 February 1997 Regional clearing facility goes live November 1997 May 1998 Promotion of joint venture, India Index Services & Products Limited (IISL) May 1998 July 1998 Launch of NSEs Web-site:www.nse.co.in Launch of NSEs Certification Programme in Financial Market August 1998 CYBER CORPORATE OF THE YEAR 1998 award Best IT Usage award by Computer Society of India Launch of CNX Nifty Junior
February 1999 Launch of Automated Lending And Borrowing Mechanism April 1999 October 1999 January 2000 CHIP Web Award by CHIP magazine Setting up of NSE.IT Launch of NSE Research Initiative
February 2000 Commencement of Internet Trading June 2000 September 2000 November 2000 December 2000 June 2001 July 2001 Commencement of trading in Index Options Commencement of trading in Options on Individual Securities November 2001 December Commencement of trading in Futures on Individual Securities Launch of NSE VaR for Government Securities
Commencement of Derivatives Trading (Index Futures) Launch of Zero Coupon Yield Curve
Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i- flex Solutions Ltd. Commencement of WAP trading
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2001 January 2002 May 2002 Launch of Exchange Traded Funds (ETFs) NSE wins the Wharton- Infosys Business Transformation Award in the Organization- wide Transformation category October 2002 January 2003 June 2003 August 2003 June 2004 August 2004 Launch of NSE Government Securities Index Commencement of trading in Retail Debt Market Launch of Interest Rate Futures Launch of Futures & Options in CNXIT Index Launch of STP Interoperability Launch of NSEs electronic interface for listed
companies March 2005 India Innovation Award by EMPI Business School, New Delhi June 2005 December 2006 January 2007 March 2007 Launch of Futures & Options in BANK Nifty Index Derivative Exchange of the Year, by Asia Risk magazine Launch of NSE- CNBC TV 18 media centre NSE, CRISIL announce launch of
IndiaBondWatch.com June 2007 October 2007 January 2008 NSE launches derivatives on Nifty Junior & CNX 100 NSE launches derivatives on Nifty Midcap 50 Introduction of Mini Nifty derivative contracts on 1st January 2008 March 2008 Introduction of long term option contracts on S&P CNX Nifty Index April 2008 April 2008 Launch of India VIX Launch of Securities Lending & Borrowing Scheme
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S&P CNX NIFTY INDEX

S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL has Marketing and licensing agreement with Standard & Poors (S&P), who world leaders are in index services.
The traded value for the last six months of all Nifty stocks is approximately 48.15% of the traded value of all stocks on the NSE Nifty stocks represent about 59.32% of the total market capitalization as on June 30, 2008. Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.14% S&P CNX Nifty is professionally maintained and is ideal for derivatives trading
S&P CNX Nifty is computed using market capitalization weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. The base period selected for S&P CNX Nifty index is the close of prices on November 3, 1995, which marks the completion of one year of
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operations of NSE's Capital Market Segment. The base value of the index has been set at 1000 and a base capital of Rs.2.06 trillion.
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
Government of India set up the Securities and Exchange Board of India (SEBI) on April 12, 1988 on the basis of the recommendations of the high-powered committee on the Stock Exchange Reforms headed by G. S. Patel. It was given a legal status under the ordinance of 1992. It was entrusted with a wide range of responsibilities in regulating the activities of almost all the players in the capital market. It aimed at creating a proper and conducive environment required for the raising money from the capital market through rules, regulation, trade practices, customs and relations among institutions, brokers, investors and companies. It also aimed at endeavoring to restore and safeguard the trust of the investors, particularly the interest of small investors. It has developed a proper infrastructure for facilitating automatic expansion and growth of business of brokers, jobbers, mutual funds and merchant bankers.
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The Central Government has constituted a Board by the name of SEBI under Section 3 of SEBI Act. The head office of SEBI is in Mumbai. SEBI may establish offices at other places in India. SEBI consists of the following members, namely: A Chairman; Two members from amongst the officials of the Ministries of the Central Government dealing with Finance and administration of Companies Act, 1956; One member from amongst the officials of the Reserve Bank of India;
From the five members, at least three shall be whole time members to be appointed by the Central Government. The general superintendence, the director and the management of the affairs of SEBI vests in a Board of Members, which exercises all powers and do all acts and things which may be exercised or done by SEBI. The Chairman and the other members are from amongst the persons of ability, integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline which, in the opinion of the Central Government, shall be useful to SEBI. The current chairman of SEBI is Mrs.Damodaran
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FUNCTIONS OF SEBI
SEBI has been obligated to protect the interests of the investors in securities and to promote and development of, and to regulate the securities market by such measures, as it thinks fit. The measures referred to therein may provide for: (a) Regulating the business in stock exchanges and any other securities markets; (b) Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner; (c) Registering and regulating the working of the depositories, participants, custodians of securities, foreign institutional investors, credit rating agencies and such other intermediaries as SEBI may, by notification, specify in this behalf; (d) Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds; (e) Promoting and regulating self-regulatory organizations; (f) Prohibiting fraudulent and unfair trade practices relating to securities markets;
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(g) Promoting investors' education and training of intermediaries of securities markets; (h) Prohibiting insider trading in securities; (i) Regulating substantial acquisition of shares and take-over of companies; (j) Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market, intermediaries and self-regulatory organizations in the securities market; (k) Calling for information and record from any bank or any other authority or board or corporation established or constituted by or under any Central, State or Provincial Act in respect of any transaction in securities which is under investigation or inquiry by the Board; (l) Performing such functions and exercising according to Securities Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government; (m) Levying fees or other charges for carrying out the purpose of this section; (n) Conducting research for the above purposes; (o) Calling from or furnishing to any such agencies, as may be specified by SEBI, such information as may be considered necessary by it for the efficient discharge of its functions;
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The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the countrys economy, we present in this section some of the industry insights gleaned from analysis of data received through primary research. BROKING MECHANISM:As per the rule laid down by the government no one can buy or sell securities directly so the SEBI the independent body who looks over all the matters of exchange has given this power to eligible candidate or organization after qualifying some terms & condition. Broking firms act as intermediately between customer who wants to buy or sell the securities in the market. They charge brokerage for rendering this service to the customer; the brokerage charge is different for different type of transaction. It may vary from the 0.5 to 0.2 or sometimes lower than this.
For the broking industry, we started with an initial database of over 1,800 broking firms that were contacted, from which 464 responses were received. The list was further short listed based on the number of terminals and the top 210 were selected for profiling. 394 responses, that provided
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more than 85% of the information sought have been included for this analysis presented here as insights. All the data for the study was collected through responses received directly from the broking firms. The insights have been arrived at through an analysis on various parameters, pertinent to the equity broking industry, such as region, terminal, market, branches, sub brokers, products and growth areas. Some key characteristics of the sample 394 firms are:
On the basis of geographical concentration, the West region has the maximum representation of 52%. Around 24% firms are located in the North, 13% in the South and 10% in the East
3% firms started broking operations before 1950, 65% between 19501995 and 32% post1995 On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities
From this study, we find that almost 36% firms trade in cash and derivatives and 27% are into cash markets alone. Around 20% trade in cash, derivatives and commodities
In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges
Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% are located in South and 5% in East In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% in North and 4% in East Trading, IPOs and Mutual Funds are the top three products offered with 90% firms offering trading, 67% IPOs and 53% firms offering mutual fund transactions
In terms of various areas of growth, 84% firms have expressed interest in expanding their institutional clients, 66% firms intend to
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increase FII clients and 43% are interested in setting up JV in India and abroad
In terms of IT penetration, 62% firms have provided their website and around 94% firms have email.
PROFILE OF INDIABULLS
Indiabulls Securities Ltd. Page 56
PROFILE OF THE ORGANIZATION

Indiabulls has emerged as one of the leading and fastest growing financial company in less than two years, since its initials public offering in September 2004. It has a market capitalization of around USD 800 million and consolidated net worth of around 500 million. Indiabulls financial services Ltd. is established as Indias one of the first trading platforms with the development of an in house team. It expands its services offering to include Equity, F&O, and wholesale Debts, mutual fund, IPO distribution and Equity Research. Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and franchise model. Indiabulls came out with its initial offer (IPO) in September 2004. Indiabulls started its consumer finance business. Indiabulls entered the India Real Estate market and become the first company to bring FDI in the Indian Real Estates. Indiabulls won bids for landmark properties in Mumbai. It has acquired over 115 acres of land in Sonepat for residential home site development. Merrill Lynch and Goldman Sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. It is a market leader in securities brokerage industries, with around 31% share in online trading. Farallon Capital and its affiliates, the world largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries viz. Indiabulls credit services Ltd. and Indiabulls Housing Finance Ltd.
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steel tycoon Mr. L N Mittal promoted LNM India internet venture Ltd. acquired 8.2% stake in Indiabulls credit securities Ltd. Indiabulls entered in 50/50 joint venture with DLF, Kenneth Builders and Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crores to develop residential apartments. Indiabulls Financial Services Ltd is included in the prestigious Morgan Stanley Capital International Index (MSCI). Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd.
ORANIZATIONAL STRUCTURE:
Following diagram shows the organizational hierarchy of Indiabulls Securities Ltd.
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Indiabulls is Indias leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Indiabulls serves the financial needs of more than 3,00,000 customers with its range of financial services and products from securities, derivatives trading, depository services, research and advisory services insurance, consumer secured and unsecured credit, loan against share and mortgage and housing finance with around 5000 Relationship Manager, Indiabulls helps its client to satisfy their customized financial goals. Indiabulls through its group companies has entered India Real Estate business in 2005. It is currently evaluating several large scale projects worth several hundred million dollars. Indiabulls Financial Services Ltd. is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The market capitalization of Indiabulls is around USD 500 million. Indiabulls and its groups have attracted USD 300 millions of equity capitals in Foreign Direct Investments (FDI) since March 2000. Some of the large share holders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Capital Internationals, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon Capitals. Indiabulls is ranked 82nd in the list of most valuable companies in India in BT500.business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 268%. Indiabulls 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. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties Indiabulls Securities Ltd.
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in Mumbai and Delhi. In April 2006, Indiabulls announced demerger of its real estate division to a separate entity. Indiabulls is on the 1st position in the Security Business in Pune City, having almost 40% of Total Revenue Share in the business.
INDIABULLS USPs:
Wide range of products offered under one roof 24/7 Customer Support and ease of access
Features:
Control:
One can stay on top of the investments with convenient access to their account online or by phone.
Confidence:
depth research.
Support for making investment decisions with premium in-
Value: Enjoy competitive brokerage and get the service and support at a fair
price.
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Benefits:
Priority Service:
The client gets direct access to his/her relationship Manager through our telephone service.
Premium Research:
Benefit from access to Indiabulls Equity Analysis, our objective, fact- based approach to rating stocks.
Online Accounting: Get access to account statement online and access

to digital contract notes.
GROWTH OF INDIABULLS SECURITIES LTD.

Indiabulls has emerged as one if the leading and fastest growing financial company in less than two years, since its initial public offering in September 2004. It has a market capitalization of around USD 800 million and consolidated net worth of around USD 500 million.
2000-01
Indiabulls Financial Services Ltd. established as Indias one of the first trading platforms with development of an in house team. Indiabulls expands its service offerings to include equity, F&O, wholesale debt, mutual fund, IPO distribution and equity research. Indiabulls ventured into insurance distribution and commodities trading. Company focused on brand building and franchise model.
2001-02
2001-04
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2001-05
Indiabulls came out with its initial public offer in September 2004.It started its consumer finance business. It enters the Indian real estate market and become the first company to bring FDI in Indian real estate. Indiabulls won bids for landmark properties in Mumbai.
Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Merrill Lynch and Goldman Sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, with around 31% share in online trading. Farallon capital and its affiliates, the worlds largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries viz. Steel Tycoon Mr. L.N. Mittal promoted LNM India internet venture Ltd. acquired 8.2% stake in Indiabulls Credit Services Ltd.
2005-06
2006-07
Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs. 450 crore to develop residential apartments. Indiabulls become the first company to bring FDI in Indian Real Estate through a JV with Forallon capital management LLC, a respected U.S. based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for land mark properties in Mumbai and Delhi.
2007-08
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INTRODUCTION
Investment:
The money earned is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle individual may use savings in order to get return on it in future. This is called as Investment.
Why should one invest?

One needs to invest to: Earn return on your idle resources
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Generate a specified sum of money for a specific goal in life Make a provision for an uncertain future
Beside these reasons, one of the important reasons why one needs to invest wisely is to meet the following factors: Cost of Inflation Need to live
Cost of Inflation:
Inflation is the rate at which the cost of living increases. The cost of living is simply what it costs you to buy the goods and services.
Need to live:
Inflation causes money to lose value because it will not buy the same amount of goods or services in the future as it does now or did in the past.
Perfect time to start investing:

As such there is no perfect time to start investing. The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding increases your income, by accumulating the principal and the interest or dividend earned on it, year after year.
Three golden rules for all investors are:

Invest early Invest regularly Invest for long term and not short term
The options available for investment are: Physical Assets like Real Estate, Gold/ Silver, Commodities etc.
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Financial Assets such as FDs with bank, small instruments with post offices, insurance, PF etc or security market related instruments like shares, bonds, debentures etc.
Capital Market:
The capital market is the market for securities, where companies and governments can raise long- term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S. Securities and Exchange Commission, oversee the capital markets in their designated countries to ensure that investors are protected against fraud. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded.
Risk:
Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event, or we say that Risks are events or conditions that may occur, and whose occurrence, if it does take place, has a harmful or negative effect. Exposure to the consequences of uncertainty constitutes a risk. In everyday usage, risk is often used synonymously with the probability of a known loss. Risk communication and risk perception are essential factors for all human decision making.
Categories of risks:
Political: Change of government, cross cutting policy decisions (e.g.,
the Euro).
Regulatory: Change of policy by state, national or multinational
regulatory bodies.
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Market: Fundamental change in supply and demand functions or
global prices for commodities.

Professional: Associated with the nature of each profession. Economic: Ability to attract and retain staff in the labor market,
exchange rates affect costs of international transactions, effect of global economy on UK economy.
Socio- culture: Demographic change affects demand for services,
stakeholder expectations change.

Health and safety: Buildings, vehicles, equipment, fire, noise,
vibration, asbestos, chemical and biological hazards, food safety, traffic management, stress, etc.
Technological: Obsolescence of current systems cost of procuring
best technology available, opportunity arising from technological development.

Contractual: Associated with the failure of contractors to deliver
devices or products to the agreed cost and specification.

Environmental: Buildings need to comply with changing standards;
disposal of rubbish and surplus equipment needs to comply with changing standards.
Physical: Theft, vandalism, arson, building related risks, storm, flood,
other related weather, and damage to vehicles, mobile plant and equipment.
Operational: Relating to existing operations- both current delivery
and building and maintaining.
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COMPARISON OF INDIABULLS AND ITS PEER GROUP IN DIFFERENT AREAS
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Name of the compan y
A/c openi ng charg es
Demat opening is compuls ory or not Compulso ry Compulso ry Compulso ry
A/c mainten ance charges
Availabi lity of online/ offline
Softwa re & its charge s
RM Facili ty
Expos ure facility
Daily tip throu gh sms or call
Brokerag e charges
IntradayDel
ivery
Sharekh an
750/350/900/-
320/400/Free
Both Both Both
Free 650/750/-
Yes Yes Yes
4 times Yes
Yes Yes
0.10%0.5 0% 0.20%0.2 0% 0.10%0.5 0%
Karvy Indiabu lls
12 Yes times (intrada y)
Angel 850/Broking Religar e HDFC ICICI Relianc e Money Motilal Oswal LKP Net Worth IDBI Bonanz a India 500/750/975/750/-
Compulso ry Compulso ry Compulso ry Compulso ry Compulso ry
450/250/300/450/200/-
Both Online Both Online Both
Free On site Free On site Free
Yes Yes Yes Yes Yes
Yes Yes Yes Yes Yes
Yes Yes On site Yes Yes
0.10%0.5 0% 0.05%0.5 0% 0.15%0.5 0% 0.30%0.5 0% 0.01%0.0 1% 0.02%0.2 0% 0.10%0.5 0% 0.30%0.5 0% 0.05%0.5 0% 0.05%0.5 0% 0.10%0.5
500/810/520/700/600/555/-
Compulso ry Compulso ry Compulso ry Compulso ry Optional
400/Free 450/350/250/Free
Online Both Both Online Both Both
1500/799/750/600/Free Free
Yes No No No No Yes
Yes Yes Yes Yes Yes Yes
Yes Yes Yes Yes Yes Yes
Compulso
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Infoline
ry
0%
OBJECTIVE & SCOPE
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The main objectives & scopes of this study are as follows:

To know the awareness about equity market. To know how much people are aware about Indiabulls Securities Ltd. To know while opening a demat account what factors influences their decision. To know the things which customers like about Indiabulls Securities Ltd. To compare Indiabulls with its groups in terms of their brokerage charges, Relationship manager facilities, Online trading facilities, annual maintenance charges etc.
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RESEARCH DESIGN & METHODOLOGY
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Define Method of Research Market research can be defined as The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services American Marketing Association (AMA). Types of Research The quality of research project depends, among the other things, upon the suitability of the method selected for it. Hence care should be taken in selecting the appropriate method of research for any project. There are basically 5 types of research.
1. Pure Research: - Pure research is undertaken for the sake of
knowledge without any intention to apply it in practice. It is not necessarily problem oriented. It aims at extension of knowledge. It may lead to either discovery of a new theory or refinement of an existing theory.
2. Applied Research: - Applied research is carried on to find solution
to a real life problem requiring an action or policy decision. It is thus problem oriented and action directed.
3. Exploratory Research: - Exploratory research is preliminary study
of an unfamiliar problem about which the researcher has little or no knowledge. It is similar to doctors initial investigation of a patient suffering from an unfamiliar malady for getting some clues for identifying it.
4. Descriptive Research: - Descriptive study is a fact- findings
investigation with adequate interpretation. It is the simplest type of research. It is more specific than an exploratory study, as it has focus on particular aspects or dimensions of the problem studied. The
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methods of research utilized in descriptive research are survey methods of all kind, including comparative and correlation methods.
5. Analytical Research: - It is primary concerned with testing
hypothesis and specifying and interpreting the relationship. Reason of Selecting Descriptive Research: Descriptive study is a fact- findings investigation with adequate interpretation. It is the simplest type of research. It is more specific than an exploratory study, as it has focus on particular aspects or dimensions of the problem studied. A descriptive study aims at identifying the various characteristics of a community or institution or problem under study, but it does not deal with the testing of hypothesis. The major purpose of descriptive research is description of the state of affairs as it exists at present. Descriptive studies help us to understand the customers profile. Data Type:There are two types of data type are as follows: A. Primary Source of DataPrimary data had been collected through survey method which had done at starting of project and by filling the questionnaire of customer.
B. Secondary Source of DataSecondary database had been collected through 1. Yellow Pages 2. Newspapers 3. Companys database 4. Internet
Data Collection: Researcher has to gather data that are appropriate. The data should be divided into primary and secondary data.
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1. Primary data 2. Secondary data

1) Primary Data:- Primary data had been collected through survey
method which had done at starting of project and by filling the questionnaire of customer.
2) Secondary Data:- As the name specified is second hand data which
has been earlier published in the magazines, newspaper and websites .
Research Design: In the later stage, the researcher tried to carry out descriptive research. Descriptive research is a facts and findings investigation with adequate interpretation. It is more specific than an exploratory study, as it is focused on particular aspect or dimensions of the problem studied. Research Design includes following manner
Sampling Plan: It includes all the information about sample size, sample unit, sampling method.
(i) (ii) (iii)
Sample size: 100 customers Sample universe: In Pune region only Sample frame: I met around 60 customers of middle age and 40 customers of older age as sample frame
Sampling Unit: Sampling unit may be a geographical one such as state, district, village etc. It may be a social unit such as family, school etc. For the research, the investigator has considered small and medium industry as sampling unit.
Sampling Method: For the research, the researcher has used nonprobability sampling. It is also called as purposive sampling. Under nonprobability sampling the organizers of the inquiry purposively choose the particular unit of the universe. There is always the danger of bias entering
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into this type of sampling technique. Following are the advantages of this type of sampling. This sampling scheme is very easy and convenience to operate. Low cost of selection and low cost of field work. It is use full for testing a questionnaire. Time required is very less as there is no set of rules for selection.
Processing and analysis of data: Analysis means the computation of certain indices or measures along with searching for patterns of relationship that exist among the data group. For analyzing the data the researcher used various tools such as average, percentage, pie- charts, bar graphs etc.
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DATA ANALYSIS, RESULT AND INTERPRETATION
Q.1.
Are you aware about equity market? Yes No
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Interpretation: From the above figure, I came to know that more than 90% of the population is aware about the equity market.
Q.2.
Do you have a demat account? Yes No
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Interpretation: As most part of the population is aware about the equity market but all are not investing their part of savings in that. I found that its because of the uncertainty of the market or their orthodox mentality. Not to put their savings in the market its better to put in banks.
Q.3. If yes, then through which broking company? Indiabulls Securities Ltd. ICICI Direct Sharekhan Religare
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Any other (Please Specify)
Interpretation: I found that Indiabulls Securities Ltd. is market leader but its close competitor is Sharekhan. ICICI Direct comes at position 3rd. There are other broking firms which have good hold in the market like Angel Broking, Reliance Money, Motilal Oswal etc.
Q.4. How do you trade? Online Offline
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Interpretation: In todays era, still most of the customers prefer offline trading rather than online. More than 50% do trading through offline. Every company has its software in which you can see market scenario very easily but clients are not so friendly with that.
Q.5. How frequently do you do trading? Intraday Once a week
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Once a fortnight Once a month Long term investment
Interpretation: Most of people prefer long term trading. As shown in graph, a large percentage of clients are in long term investment and once a month followed by intraday trading. In todays market, its better to invest your money in long term. As this market is high risk high returns but you take that much risk which you can bear.
Q.6. What influences your decision while opening an account? (Tick as many as applicable) Location Charges
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Trading calls Brand name Exposure facility Any other (Please Specify)
Interpretation: As most clients trade offline thats why, while opening an account they prefer to open in that broking firm either near their home or working place. At the same time exposure facility is also very important factor. Location and exposure facility ranked first followed by trading calls, various charges and in the last brand matters for them.
Q.7. Have you seen any promotional campaign of brokering company? Yes
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No
Interpretation: 80% of the clients dont know see any promotional campaign of any broking firm. Few of them have seen but they do not remember which one does they like the most. This shows that promotional campaign does not matter for its the service which they remember at the end of the day.
Q.8.(a) If you are the clients of Indiabulls Securities, which features you like the most? Brokerage charges
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RM facility Power Indiabulls Software Account opening charges Any other (Please Specify)
Interpretation: While opening an account in Indiabulls Securities. Ltd., clients like RM facility the most. As RMs gives trading calls to their clients regularly, they guide throughout the market hour. They give the best tip to trade. These are some features which clients like about their RM. It followed by Power Indiabulls Software which is very user friendly. Brokerage charges and account opening charges also play a role.
Q.8.(b)
If you are not, why you not prefer Indiabulls Securities Ltd.?
Brokerage charges
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Brand awareness Account opening charges Any other (Please Specify)
Interpretation: Customers do not prefer Indiabulls Securities Ltd., they thought that account opening charges are quite high i.e. Rs. 900/-. Some thought that brokerage charges are very high and brand awareness of the company is quite low.
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CONCLUSION
1. Indiabulls Securities Ltd. is a customer oriented broking firm which focuses on the needs of the customers by introducing services like Power Indiabulls Software which help the customer
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to see the current market position and help them to take the decisions. 2. Customers prefer service with moderate expenses, which are easily accessible and provide full value for their time and money. 3. Quality is the first aspect that customer considers while any services. 4. While opening account customers prefer those Relationship Managers which send them tips regularly and guide their portfolio well. 5. In service industry, how to solve your customers problems matter the most? You should always stand behind your customers in their each and every need. 6. In broking firms, most of the big clients want to negotiate on brokerage. 7. People are influenced by friends mostly to take any decision.
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LIMITATIONS
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The study had the following limitations too: 1. The market condition was dropping during the project period. So people didnt show interest in trading. Many people had suffered great losses, so they were not interested in doing trading. 2. The duration of project was very short.
3. Due to lack of time, some respondents were reluctant to give proper
information and some didnt show interest in opening an account as they were saying that we were there only for two months and who would take care of them after we will leave the company. 4. Since some accounts were very old and the clients were not in contact, so their contact numbers were not updated. Hence they couldnt be contacted.
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RECOMMENDATIONS
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From the analysis of the feedback of the clients and from the data, I have derived some suggestions:
The number of Relationship Managers should be increased so that
each RM has less number of clients to handle and thus he can give proper attention to each and every client. This will help in reducing the complaints of clients regarding service and also will reduce the feeling of being neglected. The new Relationship Managers must contact all of their clients, so that the clients get to know about their new RMs and contact them whenever they are interested in trading. Some sessions must be organized for those clients who are interested in trading but could not trade due to lack of knowledge about the market. The clients who have account in other firms should be given special attention, because they are trading already and if we give them proper service and solve their problems then they might trade with Indiabulls too. Futures and Options trading must be focused. The clients must be given regular tips for trading, even if they dont trade regularly, as a part of Customer Relationship Management. This would help in building good image of the RM as well as the firm in the minds of the clients.
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BIBLIOGRAPHY & REFERENCES
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1. National Stock Exchange website 2. Bombay Stock Exchange website 3. Moneycontrol.com 4. Indiabulls website 5. Motilal Oswal website 6. Religare website 7. Reliance Money website 8. Angel Broking website 9. ICICI Direct 10. 11. 12. NSEs NCFM Books Wikipedia.com The Business Standard
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ANNEXURE
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QUESTIONNAIRE
Q.1. Are you aware about equity market? i. ii. Yes No
Q.2. Do you have a demat account? i. ii. Yes No
Q.3. If yes, then through which share broking company? i. ii. iii. iv. v. Indiabulls Securities Ltd. ICICI Direct Sharekhan Religare Any other (Please specify)
Q.4. How do you trade? i. ii. Online Offline
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Q.5. How frequently do you do trading? i. ii. iii. iv. v. Intraday Once a week Once a fortnight Once a month Long term investment
Q.6. What influences your decision while opening an account? (Tick as many as applicable) i. ii. iii. iv. v. vi. Location Charges Trading calls Brand Name Exposure facility Any other (Please specify)
Q.7. Have you seen any promotional campaign of brokerage company? i. ii. Yes No
If yes, which one does you like the most (Please specify) .
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Q.8.(a) If you are the clients of Indiabulls Securities, which features you like the most? i. ii. iii. iv. v. Brokerage charges RM facility Power Indiabulls Software Account opening charges Any other (Please specify)
Q.8.(b) If you are not, why you not prefer Indiabulls Securities Ltd.? i. ii. iii. iv. Brokerage charges Brand awareness Account opening charges Any other (Please specify)
Something about you Name: Mr. / Mrs. / Ms.
Age group: Kindly tick whichever is applicable <25 25-34 35-44 45 and above
Address:
Occupation:
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A PROJECT REPORT ON BRAND AWARENESS AND COMPARISON OF INDIABULLS AND PEER GROUP IN PUNE REGION BY KOMAL SHARMA Roll

Indiabulls Securities Ltd.

Place: Pune Sharma) Date:

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

INDIAN EQUITY MARKET

INDIAN EQUITY MARKET

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

TWIN TOWERS OF EQUITY MARKET (BSE & NSE)

Indiabulls Securities Ltd.

BOMBAY STOCK EXCHANGE (BSE)

Indiabulls Securities Ltd.

NATIONAL STOCK EXCHANGE (NSE)

Commencement of trading/settlement in dematerialized securities Dataquest award for top IT User

Indiabulls Securities Ltd.

S&P CNX NIFTY INDEX

Indiabulls Securities Ltd.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

PROFILE OF THE ORGANIZATION

Following diagram shows the organizational hierarchy of Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Support for making investment decisions with premium in-

Indiabulls Securities Ltd.

Online Accounting: Get access to account statement online and access

GROWTH OF INDIABULLS SECURITIES LTD.

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Why should one invest?

Indiabulls Securities Ltd.

Perfect time to start investing:

Three golden rules for all investors are:

Indiabulls Securities Ltd.

Indiabulls Securities Ltd.

Market: Fundamental change in supply and demand functions or

global prices for commodities.

stakeholder expectations change.

best technology available, opportunity arising from technological development.

devices or products to the agreed cost and specification.

and building and maintaining.

Indiabulls Securities Ltd.

COMPARISON OF INDIABULLS AND ITS PEER GROUP IN DIFFERENT AREAS

Indiabulls Securities Ltd.

Name of the compan y

A/c openi ng charg es

Demat opening is compuls ory or not Compulso ry Compulso ry Compulso ry

A/c mainten ance charges

Availabi lity of online/ offline

Softwa re & its charge s

Expos ure facility

Daily tip throu gh sms or call

Both Both Both

Yes Yes Yes

0.10%0.5 0% 0.20%0.2 0% 0.10%0.5 0%

Karvy Indiabu lls

12 Yes times (intrada y)

Compulso ry Compulso ry Compulso ry Compulso ry Compulso ry

Both Online Both Online Both