Tani .docx

A PROJECT REPORT ON “INVESTMENT IN SHARES” UNDERTAKEN AT

SHARE KHAN LTD

Submitted in partial fulfilment of the requirements for the award of the degree of Bachelors of Business Administration (BBA) UNDER THE GUIDANCE OF: Ms. DIVYA JAIN (ASSISTANT PROFESSOR)

Submitted By: TANISHKA BHAGOTRA 43216701716

SESSION: 2016-2019

SIRIFORT INSTITUTE OF MANAGEMENT STUDIES PLOT NO.8, INSTITUTIONAL AREA, SECTOR-25, ROHINI, NEW DELHI AFFILIATED TO G. G. S. INDRAPRASTHA UNIVERSITY, DELHI

i

CERTIFICATE

TANISHKA BHAGOTRA Roll no. 43216701716 certify that the Summer Traning Report

investors for equity market investment in India is done by me and it is an authentic work carried out by me at Sharekhan limited the matter embodied in this report has not been submitted ealier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of Student Date: Certified that the Summer Training Report entitled investors behavior for investing in equity market in various sectors in indea. Done by TANISHKA BHAGOTRA Roll no.43216701716, is completed under guidance.

Signature of guide Date Name of Guide: MS. Divya jain Designation: Assistant Professor

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DECLARATION I, hereby declare that that summer training project report, entitled “Investment in Shares”, is an authentic work carried out by me at “Share Khan Ltd”. It has not been submitted earlier for award of any degree or diploma to any institute or university.

Place: New Delhi

Candidate's signature

Date:

Name: Tanishka Bhagotra Enrolment no.: 43216701716

Countersigned Name: Supervisor

ii

ACKNOWLEDGEMENT It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behaviour and acts during the course of study. I express my sincere gratitude to Mr. MAHABR YADAV, the worthy Director of Sirifort Institute Of Management Studies, for providing me an opportunity to undergo summer training of doing this project under his leadership. I am thankful to Mr. YOGESH for his support, cooperation and motivation provided to me during the training for constant inspiration, presence and blessings at SHAREKHAN. I also extend my sincere indebtedness to MS. DIVYA JAIN who provided his/her valuable suggestion and precious time in accomplishing my project. I also take the opportunity to express my sincere gratitude to each and every person, who directly or indirectly helped me throughout the project and without anyone of them this project would not have been possible. ‘ TANISHKA BHAGOTRA

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TABLE OF CONTENT S. No. 1 2 3 4 5

6 7

8 9 10

Topic

Page no.

Certificate Declaration Acknowledgement Executive summary Chapter-1: Introduction  Overview of industry as a whole  Profile of the organization  History of the organization  Problems of the organisation  Competition information  S.W.O.T analysis of the organization  Objectives of the study  Scope of the study  Methodology Chapter-2: Conceptual Framework  Main topics & sub topics Chapter-3: Data Analysis and Interpretation  Only in case of Primary Data Chapter-4: Summary and Conclusion BIBLIOGRAPHY APPENDIX

i ii iii Iv 1-24

25-29 30-59

60-62 63

64-65

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CHAPTER 1: INTRODUCTION

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OVERVIEW OF INDUSTRY AS A WHOLE Evolution

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Other leading cities in stock market operations

Ahmedabad gained importance next to Bombay with respect to cotton textile industry. After 1880, many mills originated from Ahmedabad and rapidly forged ahead. As new mills were floated, the need for a Stock Exchange at Ahmedabad was realized and in 1894 the brokers formed "The Ahmedabad Share and Stock Brokers' Association". What the cotton textile industry was to Bombay and Ahmedabad, the jute industry was to Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange Association".

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In the beginning of the twentieth century, the industrial revolution was on the way in India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company Limited in 1907, an important stage in industrial advancement under Indian enterprise was reached. Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally enjoyed phenomenal prosperity, due to the First World War. In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning in its midst, under the name and style of "The Madras Stock Exchange" with 100 members. However, when boom faded, the number of members stood reduced from 100 to 3, by 1923, and so it went out of existence. In 1935, the stock market activity improved, especially in South India where there was a rapid increase in the number of textile mills and many plantation companies were floated. In 1937, a stock exchange was once again organized in Madras - Madras Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange Limited). Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base. On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and their number was swelled by numerous others. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into the Delhi Stock Exchange Association Limited. Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange was closed during partition of the country and later migrated to Delhi and merged with Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most of the other exchanges languished till 1957 when they applied to the Central Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well established exchanges, were recognized under the Act.

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Some of the members of the other Associations were required to be admitted by the recognized stock exchanges on a confessional basis, but acting on the principle of unitary control, all these pseudo stock exchanges were refused recognition by the Government of India and they thereupon ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India (mentioned above). The number virtually remained unchanged, for nearly two decades. During eighties, however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established exchanges - Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized stock exchanges in India excluding the Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). The above data portrays the overall growth pattern of Indian stock markets since independence. It is quite evident from the data that Indian stock markets have not only grown just in number of exchanges, but also in number of listed companies and in capital of listed companies. The remarkable growth after 1985 can be clearly seen and this was due to the favouring government policies towards security market industry.

4

INTRODUCTION OF STOCK MARKET Securities market has essentially three categories of participants namely the issuer of securities, investors in securities and the intermediaries and two categories of products, the services of the intermediaries the securities including derivatives. The securities market has two interdependent and inseparable segments: the new issue (primary market) and the stock (secondary market). The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued.

STOCK EXCHANGES IN INDIA - The BSE and NSE

NATIONAL STOCK EXCHANGE OF INDIA

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located in Mumbai. The NSE was established in 1992 as the first demutualized electronic exchange in the country. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country. Vikram Limaye is Managing Director & Chief Executive Officer (MD & CEO) of NSE. National Stock Exchange has a total market capitalization of more than US$2.27 trillion, making it the world’s 11th-largest stock exchange as of April 2018. NSE's flagship index, the NIFTY 50, the 50 stock index is used extensively by investors in India and around the world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by the NSE.

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BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai (formerly Bombay). Established in 1875, the BSE (formerly known as Bombay Stock Exchange Ltd.) is Asia’s first stock exchange. It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds. The BSE is the world's 10th largest stock exchange with an overall market capitalization of more than $2.3 trillion on as of April 2018. At the last count, the BSE had about 4,700 listed firms, whereas the rival NSE had about 1,200. Out of all the listed firms on the BSE, only about 500 firms constitute more than 90% of its market capitalization; the rest of the crowd consists of highly illiquid shares. Almost all the significant firms of India are listed on both the exchanges. NSE enjoys a dominant share in spot trading, with about 70% of the market share, as of 2009, and almost a complete monopoly in derivatives trading, with about a 98% share in this market, also as of 2009. Both exchanges compete for the order flow that leads to reduced costs, market efficiency and innovation.

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Settlement Cycle and Trading Hours Equity spot markets follow a T+2 rolling settlement. This means that any trade taking place on Monday, gets settled by Wednesday. All trading on stock exchanges takes place between 9:55 am and 3:30 pm, Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form, and each exchange has its own clearing house, which assumes all settlement risk, by serving as a central counterparty. Market Indexes The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE, which represent about 45% of the index's free-float market capitalization. It was created in 1986 and provides time series data from April 1979, onward.

PRIMARY MARKET

The primary market is also known as new issues market. Here, the transaction is conducted between the issuer and the buyer. In short, the primary market creates new securities and offers them to the public. For instance, Initial Public Offering (IPO) is an offering of the primary market where a private company decides to sell stocks to the public for the first time. An important point to remember here is that in the primary market, securities are directly purchased from the issuer.

Capital or equity can be raised in the primary market by any of the following four ways:

1.Public Issue - As the name suggests, public issue means selling securities to the public at large, such as IPO. It is the most vital method to sell financial securities. 2.Rights Issue - Whenever a company needs to raise supplementary equity capital, the shares have to be offered to present shareholders on a pro-rata basis, which is known as the Rights Issue.

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3.Private Placement - This is about selling securities to a restricted number of classy investors like frequent investors, venture capital funds, mutual funds, and banks comes under Private Placement. 4.Preferential Allotment - When a listed company issues equity shares to a selected number of investors at a price that may or may not be pertaining to the market price is known as Preferential Allotment.

The primary market is also known as the New Issue Market (NIM) as it is the market for issuing long-term equity capital. Since the companies issue securities directly to the investors, it is responsible to issue the security certificates too. The creation of new securities facilitates growth within the economy.



SECONDARY MARKET

The secondary market is an on-going market, which is equipped and organized with a place, facilities and other resources required for trading securities after their initial offering. It refers to a specific place where securities transaction among many and unspecified persons is carried out through intermediation of the securities firms, i.e., a licensed broker, and the exchanges, a specialized trading organization, in accordance with the rules and regulations established by the exchanges. Secondary market operates through two mediums:  Over the Counter (OTC) market – This market is informal and trades are negotiated here. Most of the trades in government securities take place in this market. Further, all the spot trades where securities are traded for immediate delivery and payment occur in OTC market.  Exchange traded market – Stock exchanges provide platform for purchase and sale of securities by investors. The stock market ensures free marketability, negotiability and price discharge. All the trades taking place over the trading cycle (day=T) are settled after a certain time (T+1 days). The trades executed are cleared and settled by a clearing corporation.

8

Share Broking Company offers two types of share trading facilities :(a)

Offline Share Trading

In this form of trading the customer has to place order to the dealer of the stock broking firm either in person or over phone. (b)

Online Share Trading

The client could place his order on his own from any place he wants, provided he has a computer with an Internet connection.

9

PROFILE OF THE ORGANIZATION Share khan is one of the retail brokerage firms in the country. It is the retail broking arm of the Mumbai based SSKI group, which has over eight decades of experience in the stock broking business. Share khan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, Depository services, online trading, investment advice etc. Sharekhan is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with real-time service & 24/7 accesses to all information and products. Our flagship Sharekhan Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers.

“Your guide to the Financial Jungle” Sharekhan offers a full range of financial services and products ranging from Equities to Derivatives enhance

your

wealth

and

hence,

achieve

your

financial

goals.

Sharekhan's Client Relationship Managers are available to you to help with your financial planning and investment needs. The Business Challenges • Easily access customer portfolio information in a secure contact centre environment. • Seamlessly integrate with back-end applications and streamline customer data to contact Center agents. • Easily manage upgrades and technology issues to accommodate growing customer base.

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HISTORY OF THE ORGANISATION Sharekhan is the retail broking arm of SSKI, an organization with more than eight decades of trust & credibility in the stock market. • Amongst pioneers of investment research in the Indian market. • In 1984 ventured into Institutional Broking & Corporate Finance. • Leading domestic player in Indian institutional business. • `ver US$ 5 billion of private equity deals. Sharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. Three component of company profile is Company, Competitor and Customer. And these are as follows:1. Share khan proposal Sharekhan is one of the leading retail brokerage firms in the country. It is the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, Depository services, Online Trading, Investment Advice, Mutual Funds, Online IPO's etc. 2. Innovation (a.)The firm's online trading and investment site-www.Sharekhan.com-was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. (b.) On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. 3. Network The number of trading members currently stands at over 6 lacs. While online trading currently accounts for just over 2 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 32 per cent of

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the volumes traded online. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. Share khan’s ground network includes over 588 centers in 148 cities in India, of which 32 are fullyowned branches. 4. Stakeholder The Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors. 5. Experience With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI's institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organization's revenue, with a daily turnover of over US$ 2 million. 6. Awards Sharekhan company has got three awards:i.Awaaz award from CNBC Channel in 2004. ii.Best Preferred Brokerage House Award from CNBC Channel in 2005. iii.Awaaz award in 2006. 7. Products offered by Share khan i.BOLT for offline trading. ii.NEAT for online trading. iii.Portfolio Management Services. iv.Offline Trade in Commodities. v.Mutual Fund Advisory

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8. Reasons to choose Share khan Limited Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia money broker’s poll held. SSKI won the ‘India’s best broking house for 2004’ award. Ever since it launched Sharekhan as its retail broking division in February 2000, it has been providing institutional level research and broking service to individual investors. Technology

With their online trading account you can buy and sell shares in an instant from any PC with an Internet connection. You will get access to their powerful online trading tools that will help you take complete control over your investment in shares. Accessibility

Sharekhan provides advice, education, tools and execution service for investors. These services are accessible through their centers across the country, over the country as well as over the voice tool. Knowledge In a business where the right information at the right time can translate into direct profits, you get access to a wide range of information on their content-rich portal, sharekhan.com. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions. Convenience

You can call their Dial-N-trade number to get investment advice and execute your transactions. They have a dedicated call-center to provide this service via a toll free number from anywhere in India. Customer Service

Their customer service team will assist you for any help that you need relating to transactions, billing, demat and other queries. Our customer service can be contracted via a toll free number, email or live chat on sharekhan.com. Investment Advice

Sharekhan has dedicated research teams for fundamental and technical research. Their analysis constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails, online chat, printed reports and SMS on your phone. 9. Benefits provide by the company

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a) Free Depository A/C, b)

Secure Order by Voice Tool Dial-n-Trade,

c) Instant cash transformation, d)

Multiple banking option,

e) Automated portfolio to keep track of the value of your actual purchases, f) 24 x 7 voice tool access to your trading account, g)

Special personal inbox for order and trade confirmations,

h)

On line customer service via web chat,

i) Buy or sell even single share, Personalized price and account alerts delivered instantly to your cell phone and e-mail address.

COMPETITOR’S INFORMATION The major brokerage firms:

 Religare.in  5paisa.com  KotakStreet.com  IndiaBulls.com  ICICIDirect.com  HDFCsec.com

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“R-ACE” R-ACE stands for (RELIGARE - ADVANCED CLIENT ENGINE). It is a 360˚ online investment platform that allows users to invest in  Equities,  F&O,  Commodities,  IPO and  Mutual Funds. It not only saves a lot of time and energy, but also does away with all the tedious paper work involved with these kinds of investments. The result is a completely hassle free investing experience. Platforms Depending on client’s requirements we have three platforms to offer for online trading:

1. R-ACE (Basic Version): This is a browser based online trading platform with all the basic features required to make transaction using Internet Explorer. o Account Opening Charges: Rs. 299 o Initial margin: Rs 5000

2. R-ACE Lite (Applet Version): This is a browser based version with streaming quotes facility which will help the client to monitor the market and make quick buy and sell transactions. o Account Opening Charges: Rs. 499 o Initial margin: Rs 5000

3. R-ACE Pro (Application Version): This is a trading terminal with streaming quotes, technical charting and many advanced features. The trading terminal can be downloaded from the website and can be run from any location. o Account Opening Charges: Rs. 999 o Initial margin: Rs. 10000

Note: The client has to maintain minimum cash margin of Rs. 500 at all times in all the three platforms. Salient Features

1)

Delivery:

i.Exposure in delivery would be 1 times of available cash margin; ii.Buying allowed in all scrips except ‘Z’ category shares and physical shares;

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iii.Selling allowed in all scrips available in DP-POA or Beneficiary. Shares would be compulsorily sent to DPPOA (in instances where the client has bought today and sold tomorrow, his scrips would lie in beneficiary); iv.Credit for sale would be provided to client v.Futures & Options Margin to be calculated on SPAN Margin

2)

Intraday:

i.Exposure in intra-day would be 6 times (20 times exposure in special product offering Race MaxTrade). ii.Clients will get intraday exposure on their holdings in Demat account (valued after applicable haircut). iii.Select scrips would be allowed for intra-day trading. iv.Auto-square-off

of

all

intraday

orders

3)

Online Equity, Mutual Fund1, IPO* and Commodities* in a single a/c.

4)

3% rate of interest on the margin deposited.

5)

Lifetime free DP. ( No Annual maintenance charges)

6)

NSE cash segment, NSE F&O and BSE on single platform.

7)

Online transfer of funds through multiple banks.(ICICI, UTI, HDFC & CITI)

8)

Minimal Brokerage as low as 0.01% & 0.1% (Under special scheme)

9)

Technical charting (Intraday and End Of Day )

at

3:10.pm.

10) Integrated DP, back office and trading account. 11) Obligation selling allowed (in selected scrips).

Brokerage Schemes: RACE Classic Scheme This is a purely volume based brokerage plan and brokerage chargeable will be as follows:

Monthly Traded Volume

Intraday

Delivery

Less than 1 Crore

0.05%

0.50%

1 Crore – 5 Crore

0.04%

0.40%

More than 5 Crore

0.03%

0.30%

“5 PAISA” Company Background Indiainfoline was founded in 1995 and was positioned as a research firm .In 2000 e-broking was started under the brand name of 5 paisa. Com Apart from offering online trading in stock market the company offers

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mutual funds online. It also acts as a distributor of various financial services i.e. Company Fixed Deposits, Insurance. Limited ground network, present in 20 Cities

Online Account Types • Investor Terminal: Investors / Students • Trader Terminal: Day Traders / HNI’s

PRICING FOR RETAIL CLIENTS Investor Terminal • Account Opening: Rs 500 • Demat 1st Yr: Rs 250 • Initial Margin: Rs 2500(Compulsory) • Min Margin Retainable: Rs 1000 •Brokerage: Intraday 0.10% each side + ST Delivery 0.50% each side + ST PRICING FOR HNI CLIENTS Trader Terminal • Account Opening: Rs. 500 • Demat 1st Yr: Rs. 250 • Initial Margin: Rs. 5000(Compulsory) • Min Margin Retainable: Rs. 1000 Brokerage: Intraday 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.25%) Account Access Charges Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage “Kotakstreet” Company Background Kotakstreet is the retail arm of Kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs.

Pricing For Kotak Account Opening: Rs 500

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Demat: Rs 22.5 p.m Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 1000

Brokerage Slab wise:

Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure w.e.f 1/4/2004

“INDIABULLS”

Company Background

An India bull is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and Products ranging from Equities to Insurance.450 + Relationship Managers who act as personal financial advisors. Pricing of IB Accounts (1) Signature Account • Account Opening: Rs 250 • Demat: Rs 200, No AMC for this DP • Initial Margin: NIL Brokerage: (Negotiable) Intraday 0.05%+ST Delivery 0.25%+ST

(2) Power India Bulls

 Account Opening: Rs 750  Demat: Rs200  Initial Margin: NIL  Brokerage: Negotiable

“ICICI Direct” Company Background ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPO’s, Mutual Funds and Bonds. Trading is available in BSE and NSE. Type of Account

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1.Share Trading Account Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader.

2.Wise Investment Account Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds and Bonds online. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPO’s, Bonds and stock trading.

3.Active Trader Account Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also provides commodity trading.

Brokerage and fees: Account opening fees: Rs 750/- (One time non-refundable) Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

How to open account with ICICI Direct? For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICI Bank Account, ICICI

Direct

Trading

Account

and

ICICI

Demat

Account

(DP

Account).

Note: If you already have a bank account or demat account with ICICI, you could link it with new ICICIDirect trading account. Opening trading account with ICICI is easy. You could use one of the following options to open account with ICICIDirect.  Visit ICICIDirect.com and fill the "Open an Account" form.  Call ICICI and tell them that you are interested in opening an account with them.

In both the cases ICICI representative contact you in a day or two and tell you about the procedure to open the account. They usually send somebody to your home to collect documents, signature and for demo if required.

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“HDFC Securities” Company Background The HDFC BANK, HDFC and Chase Capital Partners and their associates promote HDFC SECURITIES LTD. They are Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers

Pricing of HDFC Account Account Opening: Rs 750 Brokerage: (Negotiable) Intraday 0.10%+ST Delivery 0.50%+ST

SWOT ANALYSIS

STRENGHTS

WEAKNESSES

 India’s 3rd leading brokerage firm

 Less advertisement

 Services

 Customer Satisfaction

 Distribution Network

 Competition from banks

 Products  User friendly applications  Research team  Strong management team  Competitive pricing

OPPORTUNITIES  Ever increasing market

THREATS  Needs of customers

 Improving technology  Penetration in developing cities  Education level

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 Competition  Market uncertainty  New entrants  External changes (government policies, taxes etc.)

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3.1 OBJECTIVE OF THE STUDY  The main objective of my summer training is to gain knowledge about how an organization works and in particular setup of a stock broking house.  To learn various terminologies of stock market  To gain an understanding of the process used by the firm to examine the investment goals of the client.  To gain knowledge about the various investment products offered by the firm.  To develop skills needed in communicating with customers regarding their investment accounts.  To understand the various rules and regulations pertaining to the sales of the investment products.  To gain insight into customer service focus of the firm.  To learn to meet with prospective clients and how to build a client base.

 To learn to use the proprietary software used by the firm to analyze the investment needs of the client.

SIGNIFICANCE OF THE STUDY Every research is conducted to fulfill certain objective and these objectives in turn fulfill some purpose. MBA curricular is designed to give more practical exposes to the student so that he can make use of theoretical knowledge in the real life situation, with this thrust dissertation study has been included which provides opportunity to research to gain practical insight of the market. This hand on experience helps him in identifying the critical factor of consumer buying behavior. This rich experience will be great help in researcher’s future endeavors and it also solves the purpose for the partial fulfillment of MBA curriculum. I sincerely believe that road to improvement is never- ending and one always learns from a new experience. This project is a step towards gaining knowledge about real world and putting the theory of practice. I shall look forward to and gratefully acknowledge all suggestion on this small step I have taken. The report consists of a step–wise efforts towards meeting the objectives of the study. It covers the stepwise collection of data collection and the representation of the data together with the analysis. It also includes some suggestions put forward hoping it would help the company achieve its vision.

RESEARCH SECTION IN SHAREKHAN LIMITED Sharekhan Limited has its own in-house Research team. It comprises of experts like Surjeet Kakkar, Ajit Mahuli, Kapil Mokashi who constantly keep an eye on the share market and do research on the various

22

aspects of the share market. Generally the research is based on the Fundamentals and Technical analysis of different companies and also taking into account various factors relating to the economy. Sharekhan Limited’s research on the volatile market has been found accurate most of the time. Sharekhan's trading calls in the month of November 2007 has given 89% strike rate. Out of 37 trading calls given by Sharekhan in the month of November 2007, 33 hit the profit target. These exclusive trading picks come only to Sharekhan Online Trading Customer and are based on in-depth technical analysis. As a customer of Sharekhan Limited, one receives daily 5-6 Research Reports on their emails which they can use as tips for investing in the market. These reports are named as Pre-Market Report, Value Guide report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market Report.

A. 

Methodology: Primary data: A questionnaire schedule was prepared and the primary data was collected.

Tools/Technique of data collection - Personal Interview, Close observation, Survey conduction 

Secondary data: Under Secondary sources, we tapped information from internal & external

sources. We made use of Internet, journals etc. B.

Period of study:

The study is conducted in the period of 15th April 2018 to 15th June 2018 with help of data source available. Period of study and analyzing primary data. C.

Type of research:

This is a descriptive research where survey method is adopted to collect primary information from the investors using different scales as required secondary information for the analysis. D.

Sampling technique:

The sampling technique followed in this study is no-probability convenient sampling. Simple random techniques are used to select the respondent from the available database. The research work will be carried on the basis of structured questionnaire. The study is restricted to the investors of Delhi city only.

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E.

Sample size:

The population being short the survey will be carried among 17 respondents. They will be considered adequate to represent the characteristics of the entire population.

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CHAPTER 2: CONCEPTUAL FRAMEWORK

25

LITERATURE REVIEW The online trading is growing with a rapid pace with the rising level of education among the Investors. The other factors being that the Indian Investor now a days wants to deal himself in trading rather than depending upon other middlemen. They also consider the factors like time saving in doing the online transactions, convenience etc. Although some people feel that online trading is not secure but the people doing the trading online is happy about the increasing security concerns among the companies. The year 2011 has not been so good for the stock market and the Sensex and Nifty has been dipping and affecting the business negatively for these companies.This is due to the fact that at these times people do not prefer to open the DMAT and Trading accounts. So the companies have to reduce their account opening fees to attract more and more Investors. Also people trade very less in the bearish market and the company’s profits against brokerage fees soars downwards. It is also a found fact that during the bearish market the ratio of online trading becomes very less. Also there is an intense competition among the companies and the companies come up with new and new promotion schemes such as discounted and negotiable brokerages, Zero balance accounts, waiving a/c opening fee and AMC etc.As the internet penetration is growing in India this business holds a huge potential for growth. Now if the existing company will have to capture the market they will have to look for the innovation in their product as well as service mix The mantra for success in the current situation will be educating the Investors about the benefits of online trading and the amountof ROI that can be generated through it.

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PROCESS TO OPEN ACCOUNT WITH SHAREKHAN To do online trading, you first need to open a trading account with Sharekhan. Following are the steps to open account: Either you can call them with your phone number and tell them that you want to open an account with them or just visit the nearest branch of Sharekhan. Use toll free number 1-800-22-7500 to talk to customer care executive or you can also write at [email protected] You can also search for the nearest branch at https://stockbroker- branch.sharekhan.com/ If you wish to chat with customer care representative, you can join the chat session at the website. One can also visit the site www.sharekhan.com and click on the option ―Open an Account‖ to fill a small query form which will ask the individual to give details regarding his name, city he lives in, his email address, phone number, pin code of the city, his nearest Sharekhan Ltd. shop and his preferences regarding the type of account he wants. NOTE: These information are compiled in the headquarter of the company that is in Mumbai from where it is distributed through out the country’s branches in the form of leads on the basis of cities and nearest share shops. After that the executives of the respective branches contact the prospective clients over phone or through email and give them information regarding the various types of accounts and the documents they need to open an account and then fix appointment with the prospective clients to give them demonstration and making them undergo the formalities to open the account. After that the forms that has collected from the clients, is scrutinized in the branch and then it is sent to Mumbai for further processing where after a few days the clients’ account are generated and activated. After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the clients’ address mentioned in the documents provided by them. As soon as the clients receive the Welcome Kit, which contains the clients’ Trading ID and Trading Password, they can start trading and investing in shares.

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DOCUMENTS REQUIRED FOR OPENING DEMAT ACCOUNT As per KYC guidelines given by SEBI, following are the required document which need to be submitted for opening the account: Self attested copy of PAN card and Aadhaar card Proof of Identity (POI) – List if documents admissible as Proof of Identity are: 1. PAN card with a valid photograph. This is a mandatory requirement for all applicants except those who are specifically exempt from obtaining PAN (listed in Section D). 2. Unique Identification Number (UID) (Aadhaar) / Passport / Voter ID card / driving license. 3. Identity card/ document with applicant's Photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks.

Proof of Address (POA) - List if documents admissible as Proof of Identity (*Documents having an expiry date should be valid on the date of submission.): 1. Passport/Voters Identity Card/Ration Card/Registered Lease or Sale Agreement of Residence/Driving License/Flat Maintenance bill/Insurance Copy. 2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old. 3. Bank Account Statement/Passbook - Not more than 3 months old. 4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts. 5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-Operative

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Bank/Multinational Foreign Banks / Gazetted Officer / Notary public/Elected representatives to the Legislative Assembly / Parliament / Documents issued by any Govt. or Statutory Authority. 6. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members. 7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostilled or consularised) that gives the registered address should be taken. 8. The proof of address in the name of the spouse may be accepted.

2 passport size photographs Two cheques drawn in the favor of Sharekhan Ltd.: One cancelled cheque with the person’s name written on it and another cheque for the margin money. (minimum margin money is Rs 5000.) Online Trading Acade

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CHAPTER 3: DATA ANALYSIS AND INTERPRETATION

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DATA ANALYSIS To make our research project most effective in a given time period of two months surveyed the information of the competitors. We undertook both Explorative as well as Conclusive Research Design. The data has been collected from both Primary as well as Secondary sources and we also did the fieldwork for which utmost care has been taken to keep project unbiased from personal opinion. Following are the results of the survey:

1.Age of the Respondent AGE 20 – 30 31 – 40 41 – 50 50 +

No. of Respondents 8 7 2 3

2.Do you invest in stock market?

mutual funds

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3.If yes, then where are you investing?

Particulars Equity Shares Insurance Mutual funds No where

No. of Respondents 8 4 6 2

Mutual funds

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4.What is the primary objective of your investment?

Capital Appreciation Wealth Preservation Source of Income Retirement Planning Other

No. of Respondents 5 4 4 2 5

6 5 4

3 2 1 0

5.From which brokerage house are you do trading?

Choice of firm Indiabulls Banks Alankit Angel Broking Motilal Oswal Sharekhan by BNP Paribas Swastika Investments

No of Respondents 4 2 2 3 2 4 1

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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

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6.Do you trade online or offline? MODE OF TRADE

NO. OF RESPONDENTS

ONLINE

15

OFFLINE

5

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7.Have you ever heard about Sharekhan broking firm?

PARTICULARS

NO. OF RESPONDENTS

% OF RESPONDENTS

16 YES NO

80% 4

20%

SHAREKHAN by BNP Paribas

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ANALYSIS AND EVALUATION OF BUSINESS PROCESS

This part contains the analysis or evaluation of the business process on which I have worked. “Don’t put all your eggs in one basket”

Stocks are also classified on the basis of the market value of the total shareholding of a company. This is calculated using market capitalization, where you multiply the share price by the total number of issued shares. There are three kinds of stocks on the basis of market capitalization:

Small Cap - As the name suggests, these are stocks with the smallest values in the market. They often represent small-size companies. Generally companies that have a market capitalization in the range of up to Rs. 250 crore are small cap stocks.

These stocks are the best option for an investor who wishes to generate significant gains in the long run; as long he does not require current dividends and can withstand price volatility. This is because small companies have the potential to grow rapidly in the future. So, an investor may profit by buying the stock when it is cheaply available in the company’s initial stage. However, many of these companies are relatively new. So, it is difficult to predict how they will perform in the market.

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Following is the snapshot of few Small Cap stocks registered in BSE:

MID CAP - Mid-cap stocks are typically stocks of medium-sized companies. Generally, companies that have a market capitalization in the range of Rs. 250 crore and Rs. 4,000 crore are mid-cap stocks.

These are stocks of well-known companies, recognized as seasoned players in the market. They offer you the twin advantages of acquiring stocks with good growth potential as well as the stability of a larger company.

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Mid-cap stocks also include baby blue chips – companies that show steady growth backed by a good track record. They are like blue-chip stocks (which are large- cap stocks), but lack their size. These stocks tend to grow well over the long term.

Following is the snapshot of few Mid Cap stocks registered in BSE:

LARGE CAP - Stocks of the largest companies in the market such as Tata, Reliance, ICICI are classified as large-cap stocks. They are often blue-chip firms. - Being established enterprises, they have at their disposal large reserves of cash to exploit new business opportunities. However, the sheer size of large-cap stocks does not let them grow as rapidly as smaller capitalized companies and the smaller stocks tend to outperform them over time.

39

- Investors, however, gain the advantages of reaping relatively higher dividends compared to small- and mid-cap stocks, while also ensuring the long-term preservation of their capital. Following is the snapshot of few Large Cap stocks registered in BSE:

MUTUAL FUND SCHEMES SELECTED FOR DAILY ANALYSIS 1. Aditya Birla Sun Life Tax Relief 96 2. BNP Paribas Long Term Equity Fund 3. ICICI Prudential Bluechip Fund 4. IDFC Focused Equity Fund 5. SBI Bluechip Fund

40

Brief about these funds: 

ICICI PRUDENTIAL BLUE CHIP FUND SCHEME NAME AMC FUND MANAGER MF CATEGORY LAUNCH BENCHMARK MINIMUM SIP INVESTMENT RISKOMETER ASSETS EXPENSES ENTRY LOAD EXIT LOAD

ICICI PRUDENTIAL BLUECHIP FUND ICICI Prudential Asset Management Company Ltd Rajat Chandak & Sarkaran Naren Equity: Large cap May 23, 2008 NIFTY 100 500 Moderately High Rs. 17,427 crore (As on May 31, 2018) 2.12% (As on Apr 30, 2018) 1% for redemption within 365 days

0.44

9.54

41



SBI BLUECHIP FUND SCHEME NAME AMC FUND MANAGER MF CATEGORY LAUNCH BENCHMARK MINIMUM SIP INVESTMENT RISKOMETER ASSETS EXPENSES ENTRY LOAD EXIT LOAD

SBI BLUCHIP FUND SBI Funds Management Private Ltd. Sohini Andani Equity: Large Cap February 14, 2006 S&P BSE 100 TRI 500 Moderately High 19,121 crore (As on May 31, 2018) 1.97% (As on May 31, 2018) 1% for redemption within 365 days

42

ASSET ALLOCATION 1.15 5.65

93.2

43



IDFC FOCUSED EQUIT SCHEME NAME AMC FUND MANAGER MF CATEGORY LAUNCH BENCHMARK MINIMUM SIP INVESTMENT RISKOMETER ASSETS EXPENSES ENTRY LOAD EXIT LOAD

IDFC FOCUSED EQUITY FUND IDFC Asset Management Company Ltd Sumit Agrawal Equity: Mutli Cap March 16, 2006 NIFTY 50 1000 Moderately High 1,639 crore (As on May 31, 2018 2.42% (As on May 31, 2018) 1% for redemption within 365 days

ASSET ALLOCATION 6.92

91.14

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

ADITYA BIRLA SUN LIFE TAX RELIEF 96

SCHEME NAME AMC FUND MANAGER MF CATEGORY LAUNCH BENCHMARK MINIMUM SIP INVESTMENT RISKOMETER ASSETS EXPENSES ENTRY LOAD EXIT LOAD

ADITYA BIRLA SUN LIFE TAX RELIEF 96 Birla Sun Life Asset Management Company Ltd Ajay Garg EQUITY: TAX SAVING March 29, 1996 S&P BSE 200 500 Moderately High 6,102 crore (As on May 31, 2018) 2.10% (As on May 31, 2018) -

45

ASSET ALLOCATION 2.9

97.1

46



BNP PARIBAS LONG TERM EQUITY FUND SCHEME NAME AMC FUND MANAGER MF CATEGORY LAUNCH BENCHMARK MINIMUM SIP INVESTMENT RISKOMETER ASSETS EXPENSES ENTRY LOAD EXIT LOAD

BNP PARIBAS LONG TERM EQUITY FUND BNP Paribas Asset Management India Pvt Ltd Abhijeet Dey AND Karthikraj Lakshmanan EQUITY: TAX SAVING January 5, 2006 NIFTY 200 TRI 500 Moderately High 538 crore (As on May 31, 2018) 2.26% (As on May 31, 2018) -

ASSET ALLOCATION 1.35 5.01

93.64

47

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COMPARATIVE STUDY ON THE BASIS OF GIVEN PARAMETERS: Following are the parameters over which the mutual funds can be compared: 

NAV (Net Asset Value)

The Net Asset Value or the NAV is the price at which a single unit of a particular mutual fund is traded. It is calculated by dividing the total net value of the assets held by the fund, to the number of outstanding units.0

NAV = Net Assets / Outstanding Units As on

Change 52 – Week from Previous High

As on

52 – Week Low

As on

Aditya Birla SL Tax 161.44 Relief 96

Jun 22, 2018

0.62

173.80

Nov 03, 2017

151.68

Jun 27, 2017

BNP Paribas Long Term 36.73 Equity Fund

Jun 22, 2018

0.42

40.24

Jan 08, 2018

34.80

ICICI Pru Bluechip Fund

40.17

Jun 22, 2018

0.70

42.30

Jan 23, 2018

35.54

IDFC Focused Equity

39.53

Jun 22, 2018

0.38

41.85

Jan 23, 2018

33.51

Jun 27, 2017

SBI Bluechip Fund

38.26

Jun 22, 2018

0.69

39.78

Jan 23, 2018

34.74

Jun 28, 2017

SCHEME

NAV

Jun 28, 2017 Jun 27, 2017

Interpretation: A fund could have a lower NAV because its net assets are low or the no. of outstanding units is high (due to a temporary transition like NAV split, etc). Also, a fund's NAV decreases proportionately, whenever it pays out dividends. A high NAV could be because of a good performance over the years.



Return

The cumulative return that the scheme has generated over different holding period helps assess if the fund is able to generate returns to meet the investment objectives. The

49

comparison of the returns with that of the scheme’s benchmark helps assess the ability of the portfolio manager to outperform the markets.

SCHEME NAME ADITYA BIRLA SUN LIFE TAX RELIEF 96 BNP PARIBAS LONG TERM EQUITY FUND ICICI PRU BLUECHIP FUND IDFC FOCUSED EQUITY FUND SBI BLUECHIP FUND

1MONTH

3MONTH

1-YEAR

3-YEAR

5YEAR

10-YEAR

1.62

5.15

16.14

14.14

23.45

14.1

0.26

3.26

3.47

7.13

18.3

11.89

1.41

4.26

11.4

11.31

17.71

15.41

0.78 1.43

4.29 3.88

15.8 8.36

12.78 10.56

16.66 19.18

11.06 13.05

The time period over which returns should be compared and evaluated has to be the same over which that fund type is meant to be invested in. If you are comparing equity funds then you must use three to five year returns. But this is not the case of every other fund. Their main aim is to preserve the principal and earn a modest return. So the money you invest will eventually be returned to you with a little something added. Compare a fund with it's own stated benchmark, not another.



Portfolio structure and Asset allocation

The description of the way the portfolio will be managed in terms of how assets will be allocated and securities selected will help investors assess the suitability of the scheme to investors. In case of equity funds, strategy adopted based on market capitalization (large vs mid vs small) and valuation (growth vs value), will determine the risk and returns. In case of debt funds, the tenor and credit quality of securities as well as strategies adopted will determine the risk and return. The main purpose of asset allocation is optimal diversification. Different assets do well over different periods. This means the only way to ensure portfolio stability is investing in different assets depending upon your goals, time horizon and risk appetite. Asset allocation does not ensure a profit or guarantee against a loss. The aim is to deliver better

50

risk-adjusted returns over time. Hence, active asset allocation adjusted for the risk profile could provide good results.



P/E ratio - The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures

its current share price relative to its per-share earnings. The price- earnings ratio is also sometimes known as the price multiple or the earnings multiple. P/E ratio = Market Value per Share / Earnings per Share SCHEME NAME ICICI PRU BLUECHIP FUND BNP PARIBAS LONG TERM EQUITY FUND IDFC FOCUSED EQUITY FUND SBI BLUECHIP FUND ADITYA BIRLA SUN LIFE TAX RELIEF 96

P/E ratio 21.71 28.19 35.21 22.80 16.93

Higher PE ratio signifies that investor expectation from these shares is higher. A high PE ratio suggests that market participants are bullish on the stock and expect the company to post higher earnings growth going forward. However, it can also be interpreted as an overpriced stock in some cases. A low PE ratio can either be interpreted as an undervalued stock or market participants are not too bullish on the company’s future earnings growth. A low P/E indicates the market has less confidence that the company's earnings will increase.



Fund factsheets – The fund factsheets are an official source of information of the fund’s

objective, performance, portfolio and basic investment requirements. The factsheet is also used by the fund manager to communicate their views on the economy and the markets to the investors and other observers such as research analysts, rating agencies and media.

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

Fund objectives :



ADITYA BIRLA SUN LIFE TAX RELIEF 96 - The scheme seeks long-term capital growth

and will invest approximately 80 per cent of its assets in equity, while the balance would be a invested in debt and money market instrument. It was converted to an open-ended scheme with effect from July 1999. A combination of top down & bottom up approach will be followed in the stock selection process. 

BNP PARIBAS LONG TERM EQUITY FUND - The scheme aims to generate long-term

capital growth from a diversified and actively managed portfolio of equity and equity related securities along with income tax rebate, as may be prevalent from time to time. 

ICICI PRUDENTIAL BLUECHIP FUND - The scheme seeks to generate long term capital

appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity related securities of large cap companies. 

IDFC FOCUSED EQUITY - The scheme aims to generate capital appreciation by investing in

a concentrated portfolio of equity & equity related instruments of upto 30 stocks. 

SBI BLUECHIP FUND - The scheme seeks to provide investors with opportunities for long-

term growth in capital through an active management of investments in a diversified basket of large cap equity stocks (as specified by SEBI/AMFI from time to time)

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Generally the process of opening an account follows the following steps:

53

BROKERAGE RATES

CASH BROKERAGE

F & O BROKERAGE

INTRADAY

0.05%

DELIVERY

0.25%

ON FIRST LEG (BUY)

0.10%

SAME DAT SQUARE OFF

0.02%

(SELL) SECOND LEG

0.10%

MARKETING STRATEGIES The marketing strategy was mainly focused on reaching to every segment of people SEGMENTATION: Sharekhan segmented the whole market in to three types of clients which are as follows: Retail investors High net worth investors Day traders(or) speculators Most of the retail investors are salaried persons and middle income class people. They enter with initial capital around Rs.5000-25000. High net worth investors are clients who invest more than Rs.5 lakhs. They are mostly high income group. Day traders are clients who are professional speculators and day traders. TARGETING: As most of clients are middle income people, Sharekhan targets mainly on retail investors such as salaried people and middle income people. POSITIONING: Positioning strategy adopted by Sharekhan is they associated themselves with technology. Standardized procedures are the first thing that comes to mind of a client when he thinks of Sharekhan. PROMOTIONAL STRATEGIES Telemarketing: In the organization, database of contact numbers of various category of people are maintained who may or may not know about the services. Sales executives and assistant managers make phone calls to these people and if they are interested, give various details about the services and products. This will make people to opt for

54

Sharekhan in future even if they are not interested to enter stock market currently. Seminars: The sales personnel of Sharekhan prepare seminars depending upon the type of people they are going to meet i.e. students or corporate people. They go to respective institutions and take seminars giving various details suiting that category people and the contact numbers of Sharekhan sales personnel to contact further if interested. Doorsteps: The sales personnel also go to domestic homes of people and various institutions(meet every person in person, not like seminars).They explain to them in detail, various schemes, products and services. They also explain about the documents required to open an account with Sharekhan. If the person is interested the sales personnel will acquire the documents and will proceed further. KIOSKS: The sales team puts up stalls in various locations and provide pamphlets containing details about various products and services of Sharekhan. They also explain orally to people who are interested. Online advertising: Sharekhan has links to various websites through which they market their products and services i.e. through pop up windows and flash texts which when clicked directly leads to Sharekhan’s website. Media: Sharekhan also uses advertisements in TV channels like CNBC.

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APPROACHES TO SECURITY ANALYSIS

1. FUNDAMENTAL ANALYSIS: It is based on the premise that in the long run true or fair value of an equity share is equal to its intrinsic value. The intrinsic value of an asset is the present value of all expected future cash inflows (or earnings) from that asset.

The various factors of interest in fundamental analysis can be broadly classified into three categories: o Economic Analysis - At the economy level (Economic Analysis) one studies the economic data to assess the present and future growth of the economy. Various economic factors analyzed are: GDP growth rate, Inflation, Interest rates etc. o Industry Analysis - Supply demand scenario is studied through the industry data (Industry Analysis). Industry analysis covers wide range of factors such as type of industry, nature of industry product, industry life cycle, industry growth rate, government policy towards industry etc. o Company Analysis - A combination of these along with the study of the financial data, management and business concepts of the company (Company Analysis) form the basis of fundamental analysis. These help in calculating the intrinsic value of any stock. The company level data is primarily collected from the annual financial statements of company such as Balance sheet, income statement, Cash flow statement, Notes to financial statements, auditor’s report etc. Thereby, fundamental analysis, studies all that can affect the intrinsic value of a stock, be it macro-economic factors or individual specific factors. If the intrinsic value is higher than the market price then it is recommended to buy the share. If it is equal to market price, then hold the share. If it is less than market price, then sell the share.

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2. TECHNICAL ANALYSIS: Technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. It involves the study of various charts, ratios and patterns to predict future direction of stock prices.

TOOLS OF TECHNICAL ANALYSIS 1. CHARTS: Charts are the basic tools for performing technical analysis. It provides a visual assistance to the technical analyst in detecting evolving and changing patterns of price behavior. There are various types of charts that are used in technical analysis like: o Line chart o Bar chart o Bar chart of prices with volume o Point and figure chart o Candlestick chart

CANDLESTICK CHART A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows one day, thus a one-month chart may show the 20 trading days as 20 "candlesticks". Shorter intervals than one day are common on computer charts, longer are possible. It is like a combination of line-chart and a bar-chart: each bar represents all four important pieces of information for that day: The open, the close, the high and the low. Being densely packed with information, they tend to represent trading patterns over short periods of time, often a few days or a few trading sessions.

57

Generally four prices are of interest to an investor: o Open price: It is the price at which the trading on a share starts on a particular day. o High price: It is the highest price at which the share has been traded on a particular day. o Low price: It is the lowest price at which the share has been traded on a particular day. o Close price: It is the price at which the trading on a share closes on a particular day.

Candlesticks are shown for the following 5 days: Day 1 2 3 4 5

Open 16 12 16 20 11

High 20 17 19 23 14

Low 6 9 12 16 10

Close 14 15 14 17 12

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High Low

Following is the candlestick chart of TCS as dated on 22nd June, 2018:

59

CHAPTER 4: SUMMARY AND CONCLUSION

60

FINDINGS AND OBSERVATIONS

 Fluctuations are more in secondary market than any other market.  There are more speculators than investors.  Information plays a vital role in the secondary market.  Previously rolling settlement is T+5 days, now it changed to T+2 days and further it will be changing to T+1 day.  It was also observed that many broking houses offering internet trading allow clients to

use their

conventional system as well just ensure that they do not lose them and this instead of offering ebroking services they becomes service providers.  I also found out that 32% of investors are expects 15%-20% return from Equity market and 26% of investors are expects 20%-25% return from Equity market. Here, investors are more expects from Equity market.  42% of investors are satisfied with the current performance of the Equity Market in terms of expected return, while 28% of investors are Neutral about equity market.  I found that most of investors are motivated by their friends to enter in the equity market and some investors are motivated by Advisers, Media, Research Report and other factors like and self study of current scenario of equity market.

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RECOMMENDATIONS

On surveying various people who are involved in share trading both as trader as well as investor, we found that brokerage is the most important factor on which people select / opt a broking house, followed by image , convenience in trading , customer service, features, tips & suggestion & AMC. What is interesting to note is the weighted contribution of these factors towards decision making. Although brokerage house leads the major contribution, and is closely followed by banks. Sharekhan need to do its advertisement since only 82 % of the respondents have heard about the brokerage firm’s name. Many people don’t trade in stock market. It could be either because they don’t get enough time or they don’t have sufficient knowledge. Try to reduce cost, so that benefits can be passed on to customers. Senior managers at Sharekhan keep on telling that it is difficult to reduce cost, because of services we provide. But the fact is, India being a price sensitive market, people at times go for monetary benefits rather than for long term non- monetary benefits. If charges can’t be reduced because of costs involved, make the services customized, so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services. Concept of margin funding should be introduced, as more and more people are asking for nowadays.

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CONCLUSION

From the very first day of my internship, I have learned something new everyday. My corporate mentor Mr. Bhanu Kharbanda (Assistant Sales Manager) taught me everything in a friendly manner so that I could understand each and everything very clearly. Moreover his advices were not just about the project, but he also taught corporate way of life and how to excel in such an environment. Mr. Bhanu Kharbanda gave me brief about the organization structure. The information about the company’s history, products, processes, locations etc. were also provided to me within first week of internship. The roles, responsibilities and duties which I needed to perform were also briefed to me by him. I was the only intern in my branch. Mr Sunny (sales executive) also kept supervision over me. Ms. Bharti, who handles the operations department was the one to whom I approach for the further processing of documents provided by client. Through this project I came to the conclusion that Sharekhan by BNP Paribas is one of the best brokerage firm and it is at the verge of its success.

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BIBLIOGRAPHY

BOOKS

 Marketing management by Philip Kotler  Marketing research by Gilbirt A. Churchill, Jr, Dawn Iacobucci  Times of India  The Economic Times WEBSITE

o https://www.financewalk.com/primary-market-secondary-market/ o https://creately.com/diagram/example/iembze6n1/Financial%20Markets o https://www.investopedia.com/terms/f/financial-market.asp o https://www.sharekhan.com/ o https://www.salesforcesearch.com/blog/the-5-biggest-challenges-in-a-sales-role/ o https://www.lucidchart.com/documents#docs?folder_id=home&browser=icon&sort=save d-desc o https://www.investopedia.com/terms/p/portfoliomanagement.asp o https://www.kotaksecurities.com/ksweb/Research/Investment-Knowledge-Bank/whattypes-of-stocks o https://www.moneycontrol.com/news/business/personal-finance/what-is-price-earningsratio-1309847.html

are-different-

ratio-or-pe-

o http://www.morningstar.com/InvGlossary/price_earnings_ratio.aspx o https://www.valueresearchonline.com/funds/fundanalysis.asp?schemecode=3083 o https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=24

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QUESTIONNAIRE 1)

Name:

2)

Sex :

3)

Age :

4)

Occupation :

5)

Income :

Q1. Do you invest in Stock Market? o Yes o No

Q2. Are you aware of online Share trading? o Yes o No

Q3. If you want to invest, which investment option will provide the best returns? o Equity Share o IPO o Mutual Funds o Bonds o Fixed Deposits o Other

Q4. In which of these Financial Instruments do you invest into? o Mutual fund o Bond o Online trading o Derivatives

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Q5. Heard about SHAREKHAN Pvt. Ltd.? o Yes o NO Q6. Do you know about the facilities provided by SHAREKHAN? o Yes o NO Q7. What average amount do you invest in equity market? o Less than 5,000 o 5,000 to 10,000 o 10,000 to 15,000 o More than 15,000 Q8. How often you do trading? o Daily o Weekly o Monthly o Yearly Q9. According to you, which market is best for investment? o Equity market o Debt market

Q10. Which factors motivates you for investing in Stock Market? o Return o Liquidity o Safety o Capital appreciation o Others

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