a summer training report viju

8/7/2019 A Summer Training Report Viju

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A SUMMER TRAINING REPORT

ON

MARKET ANALYSIS OF STOCK BROKING

INDUSTRY

AND

MARKETCOMPETITION ANALYSIS

OF

INVERTIS INSTITUTE OF MANAGEMENT STUDIES, BAREILLY

2009-2011

Submitted in partial fulfilment of the requirement for MBA Degree

Programme of Uttar Pradesh Technical University, Lucknow

Institute Guide: Submitted by:-

Mrs. Neha Joshi Vijendra Mani Yadav

IIMS (Bareilly) 0901570113

MBA (IIMS),Bareilly


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PREFACE

The successful completion of this project was a unique experience for me because by

visiting many place and interacting various person, I achieved a betterknowledge about sales. The experience which I gained by doing this project wasessential at this turning point of my career this project is being submitted which contentdetailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledgeand competencies required during the technical session.

The research is on the topic COMPETITORS OF SHAREKHAN.


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Acknowledgement

It was a great opportunity for me to work with Sharekhan Ltd., pioneers in the field of

Finance Industry. I am extremely grateful to all those who have shared their expertiseand knowledge with me and without whom the completion of this project would have

been virtually impossible. Firstly, I would like to thank our Company Guide Mr.PAWAN KUMARSur who has been a constant source of inspiration for us during thecompletion of this project. He gave us invaluable inputs during our endeavor to completethis project.

I am indebted to all staff of Sharekhan Ltd for their valuable support and

cooperation during the entire tenure of this project. Not to forget, all those who havekept our spirits surging and helped delivering our best.

I thank our faculty guide Mrs.Neha Joshi who helped us out at every critical situationthat we faced in our project and gave me his valuable advice to solve the problems.


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CERTIFICATE OF COMPLETION

This is certifying that the Project report entitled MARKET ANALYSIS OF

STOCK BROKING INDUSTRY & MARKET COMPETITION ANALYSISsubmitted by VIJENDRA MANI YADAV,MBA ,IIMS (2009-11) Batch on SummerInternship report of the requirement for the degree of MBA is a work carried out byunder my supervision and guidance.

Company Guide:

RAHUL KUMAR


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Introduction of Share Market

Company Profiles

SWOT Analyses

Discussion on Training

Demat Account of Sharekhan Ltd.

Buying and Selling

Need for the Study

Competitors

Objective

Research Methodology

Data analysis and Interpretation

Observation

Finding

Limitations

Suggestions

Conclusion

Bibliography

Introduction of Stock Market


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Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200years ago. The earliest records of security dealings in India are meager and obscure. TheEast India Company was the dominant institution in those days and business in itsloan 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 placein 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 witnesseda rapid development of commercial enterprise and brokerage business attracted manymen 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 UnitedStates 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).

In 1887, they formally established in Bombay, the "Native Share and StockBrokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895,the Stock Exchange acquired a premise in the same street and it was inauguratedin 1899. Thus, the Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges wereincreased and at currently it reached to the figure of 24 stock exchanges.

TRANSACTION CYCLE:


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A person holding assets (Securities/Funds), either to meet his liquidity needs or toreshuffle his holdings in response to changes in his perception about risk and return ofthe assets, decides to buy or sell the securities. He selects a broker and instructs him to

place buy/sell order on an exchange. The order is converted to a trade as soon as itfinds a matching sell/buy order. At the end of the trade cycle, the trades are netted to

determine the obligations of the trading members securities/funds as per settlementcycle. Buyer/seller delivers funds/ securities and receives securities/funds and acquiresownership of the securities.

A securities transaction cycle is presented above. At the end of the American Civil War,

the brokers who thrived out of Civil War in 1874, found a place in a street (nowappropriately called as Dalal Street) where they would conveniently assemble andtransact business. In 1887, they formally established in Bombay, the "Native Share andStock Brokers' Association" (which is alternatively known as The Stock Exchange ").

Decision

to Trade

Placing

Order

Clearing

Trades

Settleme

nt Trade

Funds or

Securities

TradeExecution

Transaction Cycle


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In 1895, the Stock Exchange acquired a premise in the same street and it wasinaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

HISTORY OF ONLINE TRADING:


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Online stock trading is very old concept for big institutions who trade thru private networks owned by Reuter's "Instinet" and a system called Posit"since 1969. But it becomes internet based for lay men only in late 90s.

Funny, that actually idea was first time used by a company making Beer

called WIT beer" to help its shareholders trade its shares. Thats how "WITCapital" was born which is considered pioneer of this concept. It was mademainstream and household name by an offshoot of Charles Schwab & Co called Schwabwhich is used by millions of people in USA. Lot of NRI's I know playing US stockmarket even when they come to India for holidays via website of Schwab.

There are other serious players like E*TRADE, DATEK online etc. All thiscompanies ask you to start account with US $5000 and you can buy and sellstock using these funds. They also issue you a check book which you can use tomake payments from this account. Or use their ATM card to withdraw cash from your

stock trading account.

Today practically every big name brokerage firm offers online stock trading E-Broking - A small beginning:

You have some money to dabble with. Trading shares on BSE/NSE has always beenyour dream. When will you ever find the time? And besides, the hassle of finding a

broker is not easy. Realizing there is untapped market of investors who want to be ableto execute their own trades when it suits them, brokers have taken their trading rooms tothe Internet. Known as online brokers, they allow you to buy and sell shares via Internet.

There are 2 types of online trading service: discount brokers and full serviceonline broker. Discount online brokers allow you to trade via Internet at reduced rates.Some provide quality research, other dont. Full service online brokerage is linked toexisting brokerages. These brokers allow their clients to place online orders with theoption of talking/ chatting to brokers if advice is needed. Brokerage rates here arehigher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojitsecurities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online

broking sites in India. With net trading in securities and rapid consolidation between multiple stock exchanges, the international securities marketplace is fast

becoming a "global village" through the creation of a universal virtual equity market.

Compared to the Western countries, online trading is still in its infancy in India. Withtrading turnover at around Rs. 10 crores per day from online trading compared

to a combined gross turnover of around Rs. 9000-10,000 crores handled by the BSE andNSE together, online trading has a long way to go.


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The development of broking in India can be categorized in 3 phases: 1. Stock brokersoffering on their sites features such as live portfolio manager, live quotes, marketresearch and news to attract more investors. 2. Brokers offering on line broking andrelationship management by providing and offering analysis and information toinvestors during broking and non-broking hours based on their profile and needs, that is,customized services. 3. Brokers (now e-brokers) will offer value management orservices such as initial public offerings on line, asset allocation, portfolio management,

financial planning, and tax planning, insurance services and enable the investors to takebetter and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line brokingmarket is expected to be of $8 billion and is likely to rise fivefold by 2002. In India,

presently Internet trading can take place through the order routing system, which willroute client orders to exchanges trading systems for execution of trades on stock

exchanges (NSE and BSE). This will also require interface with banks to facilitateinstant cash debit or credit and the depository system for debit or credit of securities.

OBJECTIVES OF INTERNET TRADING

Increase transparency in the markets.


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Enhance market quality through improved liquidity, by increasing quotecontinuity and market depth.

Reduce settlement risks due to open trades, by elimination of mismatches.

Provide management information system (MIS).

Introduce flexibility in system, to handle growing volumes easily and to supportnationwide expansion of market activity.

Besides, through Internet trading three fundamental Ahmadabad gained importancenext to Bombay with respect to cotton textile industry. After 1880, many millsoriginated from Ahmadabad and rapidly forged ahead. As new mills were floated, theneed for a Stock Exchange at Ahmadabad was realized and in 1894 the brokers formed"The Ahmadabad Share and Stock Brokers' Association. What the cotton textile

industry was to Bombay and Ahmadabad, the jute industry was to Calcutta. Also tea andcoal industries were the other major industrial groups in Calcutta. After the ShareMania in 1861-65, in the 1870's there was a sharp boom in jute shares, which wasfollowed by a boom in tea shares in the 1880's and 1890's; and a coal boom between1904 and 1908. On June 1908, some leading brokers formed "The Calcutta StockExchange Association".

In the beginning of the twentieth century, the industrial revolution was on the way inIndia with the Swadeshi Movement; and with the inauguration of the Tata Iron and SteelCompany Limited in 1907, an important stage in industrial advancement under Indian

enterprise was reached. Indian cotton and jute textiles, steel, sugar, paper and flour millsand 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 exchangefunctioning in its midst, under the name and style of "The Madras StockExchange with 100 members. However, when boom faded, the number ofmembers 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 rapidincrease in the number of textile mills and many plantation companies were floated. In1937, a stock exchange was once again organized in Madras - Madras Stock

Exchange Association (Pvt) Limited. (In 1957 the name was changed to MadrasStock Exchange Limited).

Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged withthe Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth:


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They were anxious to join the trade and numerous others swelled their number. Manynew associations were constituted for the purpose and Stock Exchanges in all parts ofthe country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited

(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhitwo stock exchanges - Delhi Stock and Share Brokers' Association Limited andthe Delhi Stocks and Shares Exchange Limited - were floated and later in June1947, amalgamated into the Delhi Stock Exchange Association

RANGE OF PRODUCT AND SERVICES:

Market Size: Growth of Online Brokerage market:


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In five years of its existence in India, online broking has grown to account for a tenth ofthe total trading volumes. If the numbers are considered for only the retail segments,the growth is starker. Almost half of the Rs 5,000 crore-6,000 crore daily marketvolumes on the NSE are accounted for by non-retail entities such as foreigninstitutional investors, domestic institutions, mutual funds and arbitrage traders.Institutions arent online customers anyway. Of the rest of the retail segment,current estimates suggest that online bookings reach is close to 30 per cent.

As of September this year, there were 11.7 lakhs Internet trading accountsregistered with the NSE, of which roughly 9.5 lakhs are unique users. It's still a small

proportion of the estimated 3 crore Internet users in the country. As more surfers take totrading online, analysts expect their number to keep doubling every year until 30-40 per

cent of India's overall trades are done online, as is the case in some mature Internetmarkets like South Korea's.

The Internet's effect here has more to do with the bandwidth it has created for both brokers and clients. Banga, director of India bulls offers an example. "Traders fromAjmer use our online platform. It would otherwise have been prohibitively loss-making

to open a branch there." Thanks to the new channel, volumes are growing faster in thenon-metros, where transparency is low in offline trading. "These customers weremade to pay higher charges by small brokers, since they weren't aware of the marketrates," says Vikash Shankar of Sharekhan.com. That is one of the reasons why morethan 60 per cent of Sharekhans online trading turnover comes from non-metros.

Formation of the National Stock Exchange (NSE):

With the liberalization of the Indian economy, it was found inevitable to lift the Indianstock market trading system on par with the international standards. On the basis of the


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recommendations of high-powered Pherwani Committee, the National Stock Exchangewas incorporated in 1992 by Industrial Development Bank of India, IndustrialCredit, and Investment Corporation of India, Industrial Finance Corporation of India, allInsurance Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories :

(a) Wholesale debt market and (b) Capital market.

Wholesale debt market operations are similar to money market operations -

institutions and corporate bodies enter into high value transactions in financialinstruments such as government securities, treasury bills, public sector unit bonds,commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and(b) Participants. Recognized members of NSE are called trading members who tradeon behalf of NSE has several advantages over the traditional trading exchanges. Theyare as follows:

NSE brings an integrated stock market trading network across the nation.

Investors can trade at the same price from anywhere in the country since inter-marketoperations are streamlined coupled with the countrywide access to the securities.

Delays in communication, late payments and the malpractices prevailing in the

traditional trading mechanism can be done away with greater operational efficiency andinformational transparency in the stock market operations, with the support of totalcomputerized network.

Unless stock markets provide professionalized service, small investors and foreign

investors will not be interested in capital market operations. And capital market beingone of the major sources of long-term finance for industrial projects, India cannot affordto damage the capital market path. In this regard NSE gains vital importance in the

Indian capital market system.

Why people trust NSE?


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Unbiased:

The National Stock Exchange of India (NSEIL) has been trusted by the securitiesmarkets for its unbiased independence and professionalism. The function offorecasting has become more meaningful as the information comes from a source, which

is not only reliable but has no vested interest of its own in the market

Transparent: The reference rate is released to all the market participants simultaneously

through various media, making it transparent with the aspiration of the market. Ensuingtransparency helps the market participants to judge the market mood and the

probable rate one is likely to encounter in the market. This information is useful not onlyto the banks but also to the issuers and investors.

Reliable:

The high level of co-relation between actual deals and the reference rate gives anindication of its reliability. The bootstrapping technique guards against the

possibility of cartelization and of extreme observations influencing the mean.

Scientifically Computed:

The methodology of "Polling" with "Bootstrapping" is scientific and the values aregenerated through a system that has been extensively tested. The technique

involves generating multiple data sets based on the rates polled with a dynamicallydetermined number of iterations, identification of outliers, trimming the data set of itsextreme values and computation of the mean and its standard deviation. Elimination of

Noise: The trimming procedure is vulnerable to market manipulation of the rates due tothe amount of sampling noise. Excessive trimming may lead to loss of informationwhereas no trimming may lead to excessive influence of the extreme values. To derive atrue representative benchmark for the market NSE ensures that trimming at any pointdoes not exclude more than 20% of the observation for the bid and for the ask rates.

Consistency:


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Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group which isrunning successfully since 1922 in the country. It is the retail broking arm of theMumbai-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 servicesincluding trade execution on BSE, NSE, Derivatives, depository services, onlinetrading, investment advice etc. The firms online trading and investment site -www.sharekhan.com was launched on Feb 8, 2000. The site gives access tosuperior content and transaction facility to retail customers across the country. Knownfor its jargon-free, investor friendly language and high quality research, the site has a

registered base of over one lakh customers. The content-rich and research oriented portal

has stood out among its contemporaries because of its steadfast dedication to offeringcustomers best-of-breed technology and superior market information. The objectivehas been to let customers make informed decisions and to simplify the process ofinvesting in stocks.

On April 17, 2002 Sharekhan launched Speed Trade, a net-based executableapplication that emulates the broker terminals along with host of other informationrelevant to the Day Traders. This was for the first time that a net based trading stationof this caliber was offered to the traders. In the last six months Speed Trade has becomea de facto standard for the Day Trading community over the net.

Sharekhans ground network includes over 331 centers in 137 cities in India whichprovide a host of trading related services.

Sharekhan has always believed in investing in technology to build its business. Thecompany has used some of the best-known names in the IT industry, like SunMicrosystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. To build its tradingengine and content. The Morakhiya family holds a majority stake in the company.HSBC, Intel & Carlyle are the other investors. With a legacy of more than 80 years inthe stock markets, the SSKI group ventured into institutional broking and corporatefinance 18 years ago. Presently SSKI is one of the leading players in institutional

broking and corporate finance activities. SSKI holds a sizeable portion of the market ineach of these segments. SSKIs institutional broking arm accounts for 7% of the marketfor Foreign Institutional portfolio investment and 5% of all Domestic Institutional

portfolio investment in the country. It has 60 institutional clients spread over


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India, Far East, UK and US. Foreign Institutional Investors generate about 65% of theorganizations revenue, with a daily turnover of over US$ 2 million. TheCorporate Finance section has a list of very prestigious clients and has many firsts toits credit, in terms of the size of deal, sector tapped etc. The group has placed over US$1 billion in private equity deals. Some of the clients include BPL Cellular Holding,Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.

PROFILE OF THE COMPANY:

Name of the company : Sharekhan ltd.

Year of Establishment : 1925Headquarter : ShareKhan SSKI A-206 Phoenix House Phoenix Mills

Compound Lower Parel Mumbai- Maharashtra,INDIA- 400013.

Nature of Business : Service Provider

Services : Depository Services, OnlineServices and Technical

Research.

Number of Employees : Over 3500

Website : www.sharekhan.com

Slogan : Your Guide to The FinancialJungle.

ACHIEVEMENTS OF SHAREKHAN:


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Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etcby Business Today, January 2004 edition. Awarded Top Domestic Brokerage House four times by Euro money and Asiamoney. Pioneers of online trading in India amongst the top 3 online trading websites fromIndia. Most preferred financial destination amongst online broking customers. Winners of Best Financial Website award. Indias most preferred brokers within 5 years. Awaaz customers Award 2005.


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(VISION MISSION)

Future Plans:

2, 00,000 plus retail customers being serviced through centralized callcenters/ web solutions. Branches / Semi branches servicing affluent / aggressive traders throughhigh skill financial advisor.

250 independent investment managers/ franchisee servicing 50,000 highly valuedclients. New initiatives Portfolio management Services and commodities trading.

REASON TO CHOOSE SHAREKHAN LIMITED

Experience:

SSKI has more than eight decades of trust and credibility in the Indian stockmarket. In the Asia Money broker's poll held recently, SSKI won the 'India's Best

Broking House for 2004 award. Ever since it launched Sharekhan as its retail brokingdivision in February 2000, it has been providing institutional level research and brokingservices to individual investors.

Technology:

With its online trading account one can buy and sell shares in an instant from any PCwith an internet connection. One can get access to its powerful online trading tools thatwill help him take complete control over his investment in shares.

Accessibility:

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTIONservices for investors. These services are accessible through its centers across thecountry over the internet (through the website www.sharekhan.com) as well as overthe Voice Tool.

Knowledge:


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SHAREKHAN LIMITEDS MANAGEMENT TEAM:

Mr. Dinesh Murikya Owner of the company:

The Sharekhan Group of Companies was brought to life by Mr. Dinesh Murikya. Heventured into stock trading with an intention to raise capital for his ownindependent enterprise. However, he recognised the opportunity offered by the stockmarket to serve individual investors. Thus Indias first retail-focused stock-brokinghouse was established in 1925. Under his leadership, Sharekhan became the first broking

house to embrace new technology for faster, more effective and affordable services toretail investors.

Mr. Tarun Shah Chief Executive Officer (CEO) of the company:

A science graduate from St. Xaviers College, Mumbai, Mr. Tarun Shah started his professional life in sales and marketing in a chemicals company. His hands onapproach and rigorous experience in sales led him to higher challenges that the capitalmarkets provided.

In 1987, he joined SSKI, a brokerage firm with over five decades of legendary service toits credit. The capital markets at that time was undergoing a sea change in its characterand SSKI under the vision and guidance of Shripal Morakhia and the commitment andhard work of Mr. Shah was able to change and adopt the new business practices toachieve significant growth in a competitive environment.

Accepting new challenges is a way of life for Mr. Tarun Shah. To ensure that SSKIsforay into retail stock broking business through Sharekhan meets with the same successevery other SSKI venture has, Mr. Tarun Shah moved in to spearhead this neweffort as CEO of the Sharekhan.

Mr. Shankar Vailaya Director (Operations) of the company:


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A graduate in commerce from the University of Mangalore and an Associate of TheMember of the Institute of Chartered Accountants of India,

Mr. Shankar Vailaya heads the operations, finance and legal functions. He is responsiblefor settlements, depository operations, risk and compliance and regulatory & other legal

commitments and Treasury.

Shankar has managed broking operations through the most turbulent times of the postsecurities scam period in 1992 and has managed to steer clear of a flurry of bad papers inthe market during 1994-95.

Mr. Jaideep Arora Director (Products & Technology) of thecompany:

Jaideep Arora completed his B.Tech from IIT (Kanpur) and his PGDM from IIMKolkata.

Jaideep worked with ICICI for 8 years where his work spanned a gamut offunctions, which included project finance, equity sales and brokerage, investments etc.

During his tenure there he set up and headed the Institutional Equity BrokerageDesk at ICICI Securities & Finance Co. Ltd.

Jaideep joined Sharekhan in June 2000 as Head of Product Development. A year later hetook over the reins of the online business at Sharekhan. At present Jaideeps

responsibilities include spearheading Sharekhans online foray and overallcustomer acquisition effort.

Pathik Gandotra : Head of Research

Rishi Kohli : Vice President of Equity Derivatives

Nikhil Vora : Vice President of Research

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED:


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The different types of products and services offered by Sharekhan Ltd. are as follows:

Equity and derivatives tradings

Depository services

Online services

Commodities trading

Dial-n-trade

Portfolio management

TECHNICAL

RESEARCH


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Share shops

Fundamental research

Technical research

FINANCIAL PRODUTS AVAILABLE AT SHAREKHAN:

SERVICES:

Always wanted help on what the stock market is all about? Been wondering about howall this works? Well, you don't need to fret any more - the Sharekhan FirstStep is a brandnew program designed especially for those who are new to investing in shares. All youhave to do is open a Sharekhan FirstStep account and we'll guide you through theinvesting process.

Sharekhan

Equity Derivativeness

Share

BondsMutual

Funds

IPOs

Cash

Future

Global

Margin

Purchase

Option


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Share Khan has dedicated research teams for fundamental and technical research.Which constantly track the pulse of the market and provide timely investment advicefree of cost to its clients which has a strike rate of 70-80%?

Weakness:

Localized presence due to insufficient investments for country wide expansion.

Lack of awareness among customers because of non-aggressive promotionalstrategies (print media, newspapers, etc).

Lesser emphasis on customer retention.

Focuses more on HNIs than retail investors which results in meager market-shareas compared to close competitors.

Opportunities:

With the booming capital market it can successfully launch new services and raiseits clients base.

It can easily tap the retail investors with small saving through promotional channelslike print media, electronic media, etc.

As interest on fixed deposits with post office and banks are all time low, more and

more small investors are entering into stock market.

Abolition of long term capital gain tax on shares and reduction in short termcapital gain is making stock market as hot destination for investment among smallinvestors.

Increasing usage of internet through broadband connectivity may boost a whole newbreed of investors for trading in securities.

Threats:

Aggressive promotional strategies by close competitors may hamper Share Khansacceptance by new clients.

Lack of sufficient branch-offices for speedy delivery of services.


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Other players are providing margin funds to investors on easy terms where as there isno such facility in share khan.

More and more players are venturing into this domain which can further reduce theearnings of Share Khan.

DISCUSSION ON TRAINING

Students work profile (role and responsibilities):

I worked there with SHAREKHAN LTD. With a profile of sales trainee. This profileoffers me to understand the need of customer and provide them the best deal possiblewith maximization of the profit, both for the company as well as for the customer.

The most important aspect for the role of trainee is trust. So far fulfillment of the targetsone needs to:

Capitalize on the old and loyal clientage which can be building slowly by advisingpeople in the best possible way.

Generating new leads through various activities. Generation of leads:

Since I was new in the field so I had to start from scratch and generate new leads tosustain in the market.

Cold calling is one of the trusted ways of getting to the customers without meeting them.Although the rate of conversion remained very less, for cold calling the quality andaccent remains a very important criterion. This activity gives me mixed result. I oftengot success and generated many leads through it but it also landed me in awkward

position where the customer were in different mood and made us hear words for which a


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marketer should be always prepared to hear. Corporate calls always remained moredifficult to crack with respect to retail sector.

The corporate were the most difficult and most temping to get the business from. It tookme one day to crack Hi-tech Gears. At SHAREKHAN LTD. after getting the product

knowledge in the first week at the branch I was also allotted distributor to work with. Inthe initial phase I was accompanied by more experienced staff. After I became known tothe market and procedure I started attending calls alone only.

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

LIMITATIONS:

1. Cold Calling:

Voice and accent plays a major role.

The right time to call a customer cannot be decided, as the customer may in a

different mood at the time of calling.

Time consuming

Less success rate

2. Corporate:

Time consuming

Contacts with higher authorities play a major role

Description of live experience:

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


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While making cold calls, we need to have:

Good Communication Skills (Voice quality is clear and articulate)

Persistent and able to bounce back from rejection

Good organizational skills.

Ability to project a telephone personality (Enthusiasm, friendliness)

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

Using a good database is very essential.

Eighty percent of our business comes from 20 percent of our customers" is a frequentstatement at any sales convention. There's hardly a sales executive who is not aware ofthe 80/20 rule.

While talking to customers, I analyze their needs. Whether they want to go forinvestment purpose or insurance or both. Suggest them the plan that best suits them.If they agree to it then either we send across the agents to close the deal or close itthemselves.

Professional Staff

Systamatic Plan &Process

DatabaseTelecommunication

Equipment


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Problems faced while selling products: Customer dissatisfied with the services.

People fear that Sharekhan Being a Private company and a new entrant may beable to sustain or not.

Past experience, word of mouth.

Misguidance by agents.

People do not want insurance products.

Lack of knowledge and less awareness about Demat account

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

Share khan Demat Accounts

Service

Followup

Close Sale-Purchase

Proposal

Sale sDesire-Responce

Information

Inquiry

Awareness


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Overview of Demat Account:

Demat account allows you to buy, sell and transact shares without the endless

paperwork and delays. It is also safe, secure and convenient.

In India, a Demat account, the abbreviation for dematerialized account, is a type of

banking account which dematerializes paper-based physical stock shares. Thedematerialized account is used to avoid holding physical shares: the shares are

bought and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India (SEBI)

mandates a Demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a Demat account should possess a

Permanent Account Number (PAN), and the deadline for submission of PAN details tothe depository lapsed on January 2007.

Is a Demat account a must?

Now a day, practically all trades have to be settled in dematerialized form.Although the market regulator, the Securities and Exchange Board of India (SEBI), hasallowed trades of up to 500 shares to be settled in physical form, nobody wants physicalshares any more. So a Demat account is a must for trading and investing. Why Demat?

The Demat account reduces brokerage charges, makes pledging/hypothecation of shares

easier, enables quick ownership of securities on settlement resulting in increasedliquidity, avoids confusion in the ownership title of securities, and provideseasy receipt of public issue allotments.

It also helps you avoid bad deliveries caused by signature mismatch, postal delays andloss of certificates in transit. Further, it eliminates risks associated with forgery,counterfeiting and loss due to fire, theft or mutilation. Demat account holders canalso avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling

up of transfer deeds, and obtain quick receipt of such benefits as stock splits andbonuses.

What is dematerialization?

Dematerialization is the process by which physical certificates of an investor areconverted to an equivalent number of securities in electronic form and credited into theinvestors account with his/her DP.


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Why DEMAT a/c likes a BANK a/c?

Just as you have to open an a/c with a bank if you want to save your money, makecheque payments etc, you need to open a Demat a/c if you want to buy or sellstocks. So it just like a bank a/c where actual money replaced by shares.

Example: lets say your portfolio has 100 of SATYAM, 200 of IBM and 120 of TCSshares. All these will show in your a/c. so you dont have to possess any physicalcertificate that you own these shares. They all are held electronically in youre a/c. Stepsinvolved in opening a Demat account:

First an investor has to approach a DP and fill up an account opening form. The accountopening form must be supported by copies of any one of the approved documents toserve as proof of identity (POI) and proof of address (POA) as specified bySEBI. Besides, production of PAN card in original at the time of opening ofaccount has been made mandatory effective from April 01, 2006.All applicantsshould carry original documents for verification by an authorized official of thedepository participant, under his signature.

DP

NSDL

Investors

R&T Agent


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Further, the investor has to sign an agreement with DP in a depository prescribedstandard format, which details rights and duties of investor and DP. DP should providethe investor with a copy of the agreement and schedule of charges for their futurereference. The DP will open the account in the system and give an account number,which is also called BO ID (Beneficiary Owner Identification number).

The DP may revise the charges by giving 30 days notice in advance. SEBI hasrationalized the cost structure for dematerialization by removing account openingcharges, transaction charges for credit of securities, and custody charges vide circulardated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with effect fromJanuary 09, 2006, no charges shall be levied by a depository on DP andconsequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all thesecurities lying in his account to another branch of the same DP or to another DP of the

same depository or another depository, provided the BO Account/s at

In case the BO Account at transferor DP is a joint account, the BO Account at transfereeDP should also be a joint account in the same sequence of ownership.

Rights:

1. You can open more than one depository account in the same name with single DP/multiple DPs.

2. No minimum balance is required to be maintained in a depository account.

3. You can give a onetime standing instruction to your DP to receive all the creditscoming to your depository account automatically.

DEMAT Benefits?

A safe and convenient way to hold securities. Immediate transfer of securities.No stamp duty on transfer of securities (0.5 % on physical shares). Elimination of risks associated with physical certificates such as bad

delivery, fake securities, delays, theft etc. Reduction in paper work. Reduction in transaction cost.No odd lot problem, even one share can be sold.Nomination facility.


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Holding investment in equity and debt instruments in a single account.etc.

DEMAT Conversion:-

1. Surrender the certificates of physical shares for dematerialization to your depositoryparticipants.

2. Depository participant intimates depository of the request through thesystem.

3. Depository participant submit the certificates to the registrar to the issuer company.

4. Registrar confirms the dematerialization request from depository.

5. After dematerializing the certificates, registrar updates accounts and informsdepository of the completion of dematerialization.

6. Depository updates its accounts and informs the depository participant.

7. Depository participant updates Demat a/c of the investor.

What is a Depository?

A depository is an organization which holds securities of investors in electronic form atthe request of the investors through a registered Depository Participant. It also providesservices related to transactions in securities. SEBI registered depositories:-

NSDL: - National securities depository limited CDSL: - Central depository serviceslimited Minimum net worth required for a depository is 100 crores

Although India had a vibrant capital market, which is more than a century old, the paper- based settlement of trades caused substantial problems like bad delivery and delayed

transfer of title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. Thisdepository promoted by institutions of national stature responsible for economicdevelopment of the country has since established a national infrastructure ofinternational standard that handles most of the trading and settlement indematerialized form in Indian capital market. Using innovative and flexible technologysystems, NSDL works to support the investors and brokers in the capital market of the


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country. NSDL aims at ensuring the safety and soundness of Indian marketplaces bydeveloping settlement solutions that increase efficiency, minimize risk and reduce costs.At NSDL, we play a quiet but central role in developing products and services that willcontinue to nurture the growing needs of the financial services industry.

In the depository system, securities are held in depository accounts, which is more orless similar to holding funds in bank accounts. Transfer of ownership of securitiesis done through simple account transfers. This method does away with all the risks andhassles normally associated with paperwork. Consequently, the cost of transacting in adepository environment is considerably lower as compared to transacting in certificates.

DEPOSITORY PARTICIPANTS:

A Depository Participant (DP) is described as an agent of the depository. They are theintermediaries between the depository and the investors. The relationship betweenthe DPs and the depository is governed by an agreement made between the two underthe Depositories Act. In a strictly legal sense, a DP is an entity that is registered as such

with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, aDP can offer depository-related services only after obtaining a certificate ofregistration from SEBI. SEBI (D&P) Regulations, 1996 prescribe a minimum net worthof Rs.50 lakh for stockbrokers, R&T agents and non-banking finance companies

(NBFC), for granting them a certificate of registration to act as DPs. If astockbroker seeks to act as a DP in more than one depository, he should comply with thespecified net worth criterion separately for each such depository. No minimum networth criterion has been prescribed for other categories of DPs. However, depositoriescan fix a higher net worth criterion for their DPs. NSDL requires a minimum net worthof Rs.100 lakh to be eligible to become a DP as against Rs.50 lakh prescribed by SEBI(D&P) Regulations. Instruments:

The changes in the regulatory framework of the capital market and fiscal policies havealso resulted in newer kinds of financial instruments (securities) being introduced

in the market. Also, a lot of financial innovation by companies who are now permittedto undertake treasury operations has resulted in newer kinds of instruments - all ofwhich can be traded being introduced. The variations in all these instruments dependon the tenure, the nature of security, the interest rate, the collateral security offered andthe trading features, etc


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Debentures

Bonds

Preference Share

Equity Shares

Government securities

Capital Market Processes

Initial Public Offering (IPO)

Private Placement

Preferential Offer/Rights Issue

Private Placement Benefits of Depository System:

In the depository system, the ownership and transfer of securities takes place by means

of electronic book entries. At the outset, this system rids the capital market ofthe dangers related to handling of paper. NSDL provides numerous direct andindirect benefits, like:

Elimination of bad deliveries

In the depository environment, once holdings of an investor are dematerialized, the

question of bad delivery does not arise i.e. they cannot be held "under objection". In the physical environment, buyer was required to take the risk of transfer and faceuncertainty of the quality of assets purchased. In a depository environment good moneycertainly begets good quality of assets.

Elimination of all risks associated with physical certificates

Dealing in physical securities have associated security risks of theft of stocks,mutilation of certificates, loss of certificates during movements through and from theregistrars, thus exposing the investor to the cost of obtaining duplicate

certificates and advertisements, etc. This problem does not arise in the depositoryenvironment.

No stamp duty


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For transfer of any kind of securities in the depository. This waiver extends toequity shares, debt instruments and units of mutual funds. Immediate transfer andregistration of Securities

In the depository environment, once the securities are credited to the investors

account on pay out, he becomes the legal owner of the securities.

There is no further need to send it to the company's registrar for registration. Having purchased securities in the physical environment, the investor has to send it to thecompany's registrar so that the change of ownership can be registered.

This process usually takes around three to four months and is rarely completed withinthe statutory framework of two months thus exposing the investor toopportunity cost of delay in transfer and to risk of loss in transit. To overcome this, thenormally accepted practice is to hold the securities in street names i.e. not to register the

change of ownership.

However, if the investors miss a book closure the securities are not good for delivery andthe investor would also stand to lose his corporate entitlements.

Faster settlement cycle

The exclusive Demat segments follow rolling settlement cycle of T+2 i.e. Thesettlement of trades will be on the 2nd working day from the trade day. This will enablefaster turnover of stock and more liquidity with the investor.

Faster disbursement of non-cash corporate benefits like rights, bonus, etc.

NSDL provides for direct credit of non-cash corporate entitlements to an investorsaccount, thereby ensuring faster disbursement and avoiding risk of loss of certificates intransit.

Reduction in brokerage by many brokers for trading in dematerialized securities

Brokers provide this benefit to investors as dealing in dematerialized securitiesreduces their back office cost of handling paper and also eliminates the risk of

being the introducing broker. Reduction in handling of huge volumes of paper

Periodic status reports to investors on their holdings and transactions, leading to bettercontrols.

Elimination of problems related to change of address of investor, transmission, etc

In case of change of address or transmission of Demat shares, investors are saved fromundergoing the entire change procedure with each company or registrar. Investors


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have to only inform their DP with all relevant documents and the requiredchanges are effected in the database of all the companies, where the investor isa registered holder of securities.

Elimination of problems related to selling securities on behalf of a minor

A natural guardian is not required to take court approval for selling Dematsecurities on behalf of a minor.

Ease in portfolio monitoring

Since statement of account gives a consolidated position of investments in allinstruments.

TYPES OF ACCOUNT IN SHAREKHAN LIMITED:

Sharekhan offers two types of trading account for its clients:

Classic Account (which include a feature known as Fast Trade Advanced Classic

Account for the online users) and

Trade Tiger Account

CLASSIC ACCOUNT:

This is a User Friendly Product which allows the client to trade through websitewww.sharekhan.com and is suitable for the retail investor who is risk-averse and hence

prefers to invest in stocks or who does not trade too frequently. This account allow

SHARE

KHAN

ONLINEA/C

CLASSICA/C

FASTTRADE

OFFLINEA/C

TRADETIGER


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investors to buy and sell stocks online along with the following features like multiplewatch lists, Integrated Banking, Demat and digital contracts, Real-time portfoliotracking with price alerts and Instant credit & transfer. This account comes with thefollowing features:

a. Online trading account for investing in Equities and Derivatives

B.

Free trading through Phone (Dial-n-Trade):

I. Two dedicated numbers (1800-22-7500 and 39707500) for placing the orders

using cell phones or landline phonesII. Automatic funds transfer with phone banking facilities (for Citibank and HDFC

bank customers)

III. Simple and Secure Interactive Voice Response based system for authentication

IV. Get the trusted, professional advice of Sharekhan limiteds Tele Brokers

V. After hours order placement facility between 8.00 am and 9.30 am.

c. Integration of: Online Trading + Demat Account + Cash to Margin.

d. Instant cash transfer facility against purchase & sale of shares.

e. IPO investments.

f. Instant order and trade confirmations by e-mail.

g. Single screen interface for cash and derivatives.


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TRADE TIGER ACCOUNT:

This is an internet-based software application, which enables one to buy and sell in aninstant. It is ideal for active traders and jobbers who transact frequently during dayssession to capitalize on intra-day price movement.

This account comes with the following features:

a. Instant order Execution and Confirmation.

b. Single screen trading terminal for NSE Cash, NSE F&O & BSE.

c. Technical Studies.

d. Multiple Charting.

e. Real-time streaming quotes, tic-by-tic charts.

f. Market summary (Cost traded scrip, highest value etc.)

g. Hot keys similar to brokers terminal.

h. Alerts and reminders.


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2nd Year 415/-

PREPAID ACCOUNT:

There are three types of prepaid account are provided to the customers accordinglythey make transactions more and more. All Prepaid accounts are valid for One year only.

Scheme of Prepaid Brokerage:

Prepaid Brokerage(p.a)

Cash Futures and Options

Futures Options

2000/- Intra-day 0.07%(SingleSide)Delivery 0.40%

0.07 2% or Rs.90, whicheveris higher

6000/- Intra-day 0.05%Delivery 0.25%

0.05 1.5% or Rs.75,whichever is higher

18000/- Intra-day 0.04%Delivery 0.20%

0.04 1% or Rs.50, whicheveris higher

EXPOSURE:

Sharekhan also helps their customers by providing them a four time Exposure. Example:

- If a customer invests Rs. 20000, then he will get an exposure of 4 times of Rs. 20000that means Rs. 20000 * 4 = Rs. 100000.


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But only for Five days, within 5 days the customer have to pay back the amountotherwise they will sell your shares. But yes, they will sell the loss making shares first. Ifyou make any fraud, then also you may face the same problem.

But Exposure always helps the customer to invest more and more in profit making

scripts. It is like an Overdraft which you have to return within 5 days.

HOW TO OPEN AN ACCOUNT WITH SHARE KHANLIMITED?

For online trading with Sharekhan Ltd., investor has to open an account. Following are

the ways to open an account with Sharekhan Ltd.:

One need to call them at phone number provided below and asks that hewant to open an account with them. a. One can call on the Toll Free Number: 1-800-22-7500 to speak to

a. Customer Service executive

b. Or if one stays in Mumbai, he can call on 022-66621111

One can visit any one of Sharekhan Limiteds nearest branches. Sharekhanhas a huge network all over India (640 centers in 280 cities).

One can also log on to http://sharekhan.com/Locateus.aspx link to findout the nearest branch. one can send them an email at [email protected] toknow about their products and services.

One can also visit the site www.sharekhan.com and click on the optionOpen an Account to fill a small query form which will ask theindividual 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.

These information are compiled in the headquarter of the company that is in Mumbaifrom where it is distributed throughout the countrys branches in the form of leads on

the basis of cities and nearest share shops. After that the executives of therespective branches contact the prospective clients over phone or through email and givethem information regarding the various types of accounts and the documents they needto open an account and then fix appointment with the prospective clients to givethem demonstration and making them undergo the formalities to open the account.


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After that the forms that has collected from the clients, is scrutinized in the branchand then it is sent to Mumbai for further processing where after a few days theclients account are generated and activated. After the accounts are activated, a WelcomeKit 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 containsthe clients Trading ID and Trading Password, they can start trading and investing inshares.

Apart from two passport size photographs, one needs to provide with the followingdocuments in order to open an account with Sharekhan Limited.:

Photocopy of the clients PAN Card which should be duly attached Photo copy of any of the following documents duly attached which will

serve as correspondence address proof:

a. Passport (valid)

b. Voters ID card

c. Ration Card

d. Driving License (valid)

e. Electricity Bill (should be latest and should be in the name of the client) f. TelephoneBill (should be latest and should be in the name of the client)

G. Flat Maintenance Bill (should be latest and should be in the name of the client)

h. Insurance Policy (should be latest and should be in the name of the client)

i. Lease or Rent Agreement.

j. Saving Bank Statement** (should be latest)

Two cheques drawn in favor of Sharekhan Limited, one for the AccountOpening Fees and the other for the Margin Money (the minimum margin money is Rs.5000).

** A cancelled cheque should be given by the client if he provides Saving BankStatement as a proof for correspondence address.

NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening anaccount. Generally the process of opening an account follows the following steps:


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TRADING

SENDING ACCOUNT OPENING KIT TO THE CLIENT

LOGIN OF THE FORM

SUBMISSION OF THE FORM

FILLING UP THE FORM

DOCUMENTATION

GIVING DEMONSTRATION

FIXING AN APPOINTMENT WITH THE PERSON

CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

NOYES


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Sharekhan Demat Account Services:

Sharekhan Transacting and investing simplified. Get ready to change the way youtransact and invest in financial products and services. Whether you wish to transact inequity, equity & commodity derivatives, IPOs offshore investments or prefer to invest

in mutual funds, life & general insurance products or avail money transfer and moneychanging services, you can do it all through Angel. Simply open an Angel account andenjoy the convenience of handling all your key financial transactions through this onewindow. Benefits of having a Sharekhan account:

Its cost effective

You pay comparatively lower transaction fees. As an Introductory offer, we invite you topay a flat fee of just Rs. 750/- and transact through Sharekhan.

Its offers single Through Sharekhans associates, you can transact in equity, equity andcommodities derivatives, offshore investments mutual funds, IPOs life insurance,general insurance, money transfer, money changing and credit cards, amongst others.

Its convenient

You can access Sharekhans services through

The internet

Transaction kiosks

The phone (calls & transact)

Our all India network of associates on an assisted trade. Its Safe your account is

safeguarded with a unique security number that changes every 32 seconds. Thisnumber works as a dynamics password to keep your account extra safe. It provide youvalue- added services at

www.sharekhan.com, you get

Reliable research, including views of external experts with an enviable track record.

Live news updates from Reuters and Dow Jones

CEOs / expert views on the economy and financial markets


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Tools that help you plan your investments, tax, retirement, etc. in the personal financesection.

Risk Analyzer for analysis of your risk profile

Asset allocators to build an appropriate investment portfolio Innovative use of technology for facilitating

The benefits:-

Benefits of Demat Account

A safe and convenient way to hold securities;

Immediate transfer of securities;

No stamp duty on transfer of securities;

Elimination of risks associated with physical certificates such as bad delivery, fakesecurities, delays, thefts etc.

Reduction in paperwork involved in transfer of securities;

Reduction in transaction cost;

No odd lot problem, even one share can be sold;

Nomination facility; Change in address recorded with DP gets registered with all companies in whichinvestor holds securities electronically eliminating the need to correspond with eachof them separately;

Transmission of securities is done by DP eliminating Correspondence withcompanies;

Automatic credit into demat account of shares, arising out ofbonus/split/consolidation/merger etc.

Holding investments in equity and debt instruments in a single account. Benefit forInvestors

Demat account has become a necessity for all categories of investors for thefollowing reasons/ benefits:


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SEBI has made it compulsory for trades in almost all scrips to be settled inDemat mode. Although, trades up to 500 shares can be settled in physical form,

physical settlement is virtually not taking place for the apprehension of baddelivery on account of mismatch of signatures, forgery of signatures, fakecertificates, etc.

It is a safe and convenient way to hold securities compared to holding securities inphysical form...

No stamp duty is levied on transfer of securities held in Demat form.Instantaneous transfer of securities enhances liquidity. It eliminates delays, thefts, interceptions and subsequent misuse of certificates. Change of name, address, registration of power of attorney, deletion of

deceased's name, etc. - can be affected across companies by one singleinstruction to the DP.

Each share is a market lot for the purpose of transactions - so no odd lot problem.Any number of securities can be transferred/delivered with one delivery order.Therefore, paperwork and signing of multiple transfer forms is done away with. Itfacilitates taking advances against securities on low margin/low interest.

Points To Remember:

1. You may choose your DP based on your evaluation of their reputation, servicestandards, charges, other conveniences, etc.2. Open depository account with the same holding pattern as there on existing

physical securities. You will need to open separate accounts for every differentcombination of holding pattern. E.g.: If 100 securities of company ABC & 200

Securities of company PQR are registered in the name of X as first holder & Y as secondholder, one account in name of X as first holder & Y as second holder is sufficient.Whereas, if 100 securities of company ABC are registered in the name of X as first

holder & Y as second holder & 200 securities of company PQR are registered in thename of Y as first holder & X as second holder, you will need to open two accounts,

one in the name of X as first holder & Y as second holder and the second in thename of Y as first holder and X as second holder.3. Account opening procedure should typically take 2-5 days.4. In case of holdings of a partnership firm, the account should be opened in the name ofthe partner(s).5. In case of holdings of a HUF, the account should be opened in the name of the Karta.


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6. In case of a minor, the depository account should be opened in the name of the minorand the guardians name should be mentioned. The guardian will sign as signatory on

behalf of the minor. For selling the securities of the minor, a court order should beobtained.7. In case of any difficulties, contact your DP.8. Only securities admitted by NSDL can be dematerialized. The list is available withyour DP.9. Only securities registered in the name of the account holder can

be dematerialized.10. Dematerialization is normally completed within 15 days after the sharecertificates have reached the issuer/their R&T Agent. Thus it may take you a monthfrom the date you hand over shares, to receive Demat credit.11. Dematerialization would be done only when the issuer / their R&T Agent is satisfiedof genuineness of securities & ownership status12. All the joint holders should sign the DRF.

13. The pattern of holding in the DRF should match the pattern of holding on the sharecertificate & the pattern in which account is opened.14.Demat requests with name(s) not matching exactly with the name(s) appearing on thecertificates merely on account of initials not being spelt out fully or put after or prior tothe surname, would be processed, provided the signature(s) of the client(s) on the DRFtallies with the specimen signature(s) available with the issuer/ their R & T agent.

15.If the signature in the DRF does not match with the signature available with theissuer/ their R & T agent, the issuer/ their R & T agent may at the time of Dematconfirmation, ask for additional documentation (like bank attestation/ notarization, etc.)To prove that the certificate belongs to the person who forwarded the DRF.16. In case there is any problem in processing the DRF, contact youre DP and if hecannot resolve the problem you may contact NSDL.


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RESEARCH SECTION IN SHAREKHAN LIMITED:

Sharekhan Limited has its own in-house Research Organization which is known asValue line. It comprises a team of experts who constantly keep an eye on the share

market and do research on the various aspects of the share market. Generally theresearch is based on the Fundamentals and Technical analysis of differentcompanies and also taking into account various factors relating to the economy.Sharekhan Limiteds research on the volatile market has been found accurate most of thetime. Sharekhan's trading calls in the month of November 2007 has given 89% strikerate.Out of 37 trading calls given by Sharekhan in the month of November 2007, 33hit the

profit target. These exclusive trading picks come only to Sharekhan Online TradingCustomer and are based on in-depth technical analysis.

As a customer of Sharekhan Limited, one receives daily 5-6 Research Reports on theiremails which they can use as tips for investing in the market. These reports are named asPre-Market Report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market Report. Apart from these, Sharekhan Limited issues a monthly subscription bythe name of Value line which is easily available in the market.


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Buying and Selling of Dematerialization

INTRODUCTION:

The procedure for buying and selling dematerialized securities is similar to the procedure for buying and selling physical securities. The difference lies in theprocess of delivery (in case of sale) and receipt (in case of purchase) of securities.

In case of purchase:-

The broker will receive the securities in his account on the payout day. The broker will give instruction to its DP to debit his account and credit investorsaccount. Investor will give Receipt Instruction to DP for receiving credit by fillingappropriate form. However one can give standing instruction for credit in to ones

accounts that will obviate the need of giving Receipt Instruction every time.

In case of sale:-

The investor will give delivery instruction to DP to debit his account and credit thebrokers account. Such instruction should reach the DPs office at least 24 hours beforethe pay-in as otherwise DP will accept the instruction only at the investors risk.

Rights

1. Dematerialized securities can be traded on those stock exchanges connected to NSDL.At present, NSE, BSE, CSE, DSE, LSE, BGSE, OTCEI, MSE, ISE & ASE areconnected to NSDL. At these stock exchanges, two segments would be available to tradein dematerialized securities:Unified (erstwhile physical) segment - In this segment delivery obligation can be

met by delivering dematerialized or physical securities at the option of the seller.

However, for a select list of securities prescribed by SEBI, securities cannot be deliveredin physical form in the unified segment, of stock exchanges connected to NSDL.This list presently covers 160 securities. This list has been expanded to cover a total of200 securities with effect from January 17, 2000. Over a period, this list would cover allactively traded securities.Exclusive Demat segment - In this segment delivery obligation can be met by

delivering dematerialized securities only. Physical securities cannot be delivered inthe exclusive Demat segment ProcedureTrading in dematerialized securities is done through your broker just like trading in

physical securities. After your broker executes the trade, your DP will help todeliver shares to your broker (in case you sell) on the basis of valid instruction given byyou to your DP and receive shares from your broker (in case you buy) on basis of validinstruction given by your broker to his DP.


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clearing corporation/ clearing house of the stock exchange. Your depository account iscredited only when your broker gives a delivery instruction to his DP. Securities are notdirectly credited to your account by the clearing corporation/ clearing house of the stockexchange. In case your broker does not give a delivery instruction, contact him orconcerned stock exchange or SEBI. If your depository account is not credited, in spite ofyour broker giving valid instruction to his DP, contact the DP and if he fails to resolvethe same you may contact NSDL.

3. When you sell securities, you have to give a delivery instruction to your DP to transferthe securities to your brokers clearing account. They are not automaticallydebited from your account by NSDL or by the clearing corporation/ clearinghouse of the stock exchange. In case the DP defaults in executing your instruction, the

DP is liable to compensate you for the loss incurred, provided your instruction wasin order and has been submitted to the DP at least 24 hours i.e. one working day prior to

the pay-in date or before the deadline prescribed by DP. In case the DP fails to resolveyour problem, you can contact NSDL.


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Need for the Study

The need of the study arises because of the reason that a trainee must understand thecompany, its achievements and tasks, products and services and also to collectinformation about its competitors, its products and services offered. So that, afterunderstanding and collecting information about the organization and itscompetitors, a trainee will be able to work well for the organization.

From the study we have learned very much, about the company as well as thestrategy of the customers, which helps us a lot at our working days


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Competitors

HDFC BANKis one of the leading Depository Participant (DP) in the country with over8 Lac Demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track ofyour securities and investments, over a period of time, without the hassle of handling

physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with National Securities DepositoriesLimited (NSDL) and Central Depository Services Limited (CDSL).

Features & Benefits:

As opposed to the earlier form of dealing in physical certificates with delays intransaction, holding and trading in Demat form has the following benefits:

Settlement of Securities traded on the exchanges as well as off market transactions.

Shorter settlements thereby enhancing liquidity.

Pledging of Securities.

Electronic credit in public issue.

Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS.

Auto Credit of Public Issue refunds to the bank account.

No stamp duty on transfer of securities held in Demat form.


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No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power ofattorney, transmission etc. can be effected across companies held in Demat form by asingle instruction to the Depository Participant (DP).

Holding / Transaction details through Internet / email.

In case you need any more information or have any queries , feedback &complaints, you may please mail us at [email protected]

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet basedtransaction) whereby account holder can submit delivery instructions electronicallythrough SPEED-e website (https://speede.nsdl.com). SPEED-e offers secured

means of transaction processing eliminating preparation of instruction slips andsubmission of the same across the counter to the depository participant. The'IDEAS' facility helps in viewing the current transactions and balances (holdings) ofDemat account on Internet on real time basis.

Disclaimer:

Whatever have been stated above are in the good interest of the Investor / DematApplicants / holders to provide a brief picture about the depository system. You arerequested go through the guidelines of the depositories before taking any further action.

For detailed guidelines, you are requested to approach your nearest HDFC Bank branch.HDFC Bank will not be responsible for any misunderstanding / act based on the above.Also HDFC Bank might ask for additional information / documentation thanwhat has been stated above to process your application / instruction.


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ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along withstock trading and trading in derivatives in BSE and NSE, it also provides facility toinvest in IPOs, Mutual Funds and Bonds.

Trading is available in BSE and NSE.

ICICI Direct offers 3 different online trading platforms to its customers.

Type of Account:

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 Tomorrowand Call and Trade on phone.

ICICIDirect.com website is the primary trading platform for this trading account. Theyalso provide installable application terminal based application for high volumetrader.

2. Wise Investment Account:

1. Online Mutual funds investment allows investor to invest on-line in around 19 MutualFund companies. ICICI Direct offers various options while investing in MutualFunds like Purchase Mutual Fund, Redemption and switch between differentschemes, Systematic Investment plans, Systematic withdrawal plan and transferringexisting Mutual Funds in to electronic mode. This account also provides facility toinvest in Government of India Bonds and ICICI Bank Tax Saving Bonds.

2. Active Trader account gives more personalized investment options to the investors. Itallows investor to use online and offline stock trading. It also provides with

independent market expertise and support through a dedicated RelationshipManager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees: Rs 750/- (One time nonrefundable)


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Brokerage: ICICIDirect.com brokerage varies on volume of trade andinclusive of Demat transaction charges, service taxes and courier charges for contractnotes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared offtrades and 0.4% to 0.85% on delivery based trades.

Disadvantages of ICICI Direct:

Getting access to ICICIDirect.com website during market session can be frustrating.


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5 paisa.com

5 paisa is the trade name of India Infoline Securities Private Limited (5paisa),member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is awholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance

and investment portal. 5paisa has emerged as one of leading players in e-broking spacein India. The companys brokerage is one of the lowest in the industry. It also providesthe research on commodities. Investors can benefit from its analysis andadvice available at the click of the mouse. For those who prefer to trade the traditionalway, India Infoline investor points are available across the country.

India Infoline was founded by a group of professionals in 1995. Its institutional investorsinclude Intel Capital, one of the leading technology companies in the world

promoted by the U K government, ICICI, TDA and Reeshanar. The companyoffers a slew of products such as stock and derivatives broking,

commodities broking and mutual funds.


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India Bulls

Indiabulls is Indias leading retail financial services company with 77 locations spreadacross 64 cities. Its size and strong balance sheet allows providing varied products andservices at very attractive prices, our over 750 Client Relationship Managers arededicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested crores of

rupees into a world class Infrastructure that provides real-time service & 24/7 access toall information and products. The Indiabulls Professional Network offers real-time

prices, detailed data and news, intelligent analytics, and electronic trading capabilities,right at your finger-tips. This powerful technology is complemented by ourknowledgeable and customer focused Relationship Managers. Indiabulls offers afull range of financial services and products ranging from Equities, Derivatives,Demat services and Insurance to enhance wealth.


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Kotak Securities Limited (kotakstreet.com):

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank andGoldman Sachs (holding 25% - one of the worlds leading investment banks and

brokerage firms) is Indias leading stock broking house with a market share of 5 - 6 %.Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked numberOne in 2003-04 as Book Running Lead Managers in public equity offerings byPRIME Database. It has also won the Best Equity House Award from Finance Asia -April 2004.

The company has a fully fledged research division involved in Macro Economic studies,sect oral research and company specific equity research combined with a strong and wellnetworked sales force which helps deliver current and up to date market information andnews. Kotak Securities Ltd is also a depository participant with NationalSecurities Depository Limited (NSDL) and Central Depository Services Limited(CDSL) providing dual benefit services wherein the investors can use the

brokerage services of the company for executing the transactions and the depositoryservices for settling them.

The company has 42 branches servicing around 1, 00,000 customers.

Kotakstreet.com the online division of Kotak Securities Limited offers Internet Brokingservices and also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 1700 crores under PortfolioManagement Services (PMS) which is mainly to the high end of the market. KotakSecurities Limited has newly launched Kotak Infinity as a distinct discretionaryPortfolio Management Service which looks into the middle end of the market.


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Motilal Oswal Securities Ltd.

One of the top-3 stock-broking houses in India, with a dominant position in bothinstitutional and retail broking, MOSt is amongst the best-capitalized firms in the

broking industry in terms of net worth.

MOSt was founded in 1987 as a small sub-broking unit, with just two peoplerunning the show. Focus on customer-first-attitude, ethical and transparent

business practices, respect for professionalism, research-based value investing andimplementation of cutting-edge technology have enabled it to blossom into a

thousand-member team. The institutional business unit has relationships withseveral leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and

Singapore. In a recent media report MOSt was rated as one of the top-10 brokers interms of business transacted for FIIs.

The retail business unit provides equity investment solutions to more than 50,000investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services,Depository Services, Commodities Trading, and IPO and Mutual Fund InvestmentAdvisory Services. Its Value PMS Scheme gave a 160% post-tax return for the yearended March 2004.

With value investing at the core of its investment philosophy, a strong research teamconsistently provides high-performance ideas. MOSts equity research has beenconsistently ranked very highly in surveys conducted by leading international

publications like Asia money and Institutional Investor. In Asia Money Brokers Poll2003 MOSt has been rated as the Best Domestic Research House - Mega Funds,while in 2000 and 2002 it has been rated as the Best Domestic Equity ResearchHouse and Second best amongst Indian Brokerage firms respectively.


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IDBI Capital Market Services Ltd.

IDBI Capital is a leading Indian securities firm offering a complete suite of products and services to individual, institutional and corporate clients.IDBI CapitalMarket Services Ltd. (IDBI Capital), a wholly owned subsidiary of IndustrialDevelopment Bank of India (IDBI), is a leading Indian securities firm, offering acomplete suite of products and services to individual, institutional and corporate clients.Our services include fixed income trading, equities brokerage, debt and equityderivatives, research, private placements, depository services, portfolio

management and distribution of financial products. Over the last five years, wehave emerged as a leading player in each of these businesses. March 1995 -Commenced Equity Broking on NSE CM segment

July 1995 - Built agent Distribution Network across the country October 1996 - Commenced Debt Broking on NSE WDM segment December 1996 - Started operations as a Depository Participant 1996 - Started to act as Arranger to Privately Placed Bond issues April 1998 - Commenced operations as a Portfolio Manager February 1999 - Acquired membership of BSE, MumbaiNovember 1999 - Started operations as a Primary Dealer June 2000 - Acquired Derivatives memberships of BSE and NSE March 2002 - Achieved an outright secondary market turnover exceeding

Rs100,000 cr in G-Secs October 2002- Commenced trading in Interest Rate Swaps


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Refco - Sify Securities India Pvt. Ltd

Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venture between the Refco Group Holding Ltd., USA; and Satyam Infoway Limited(NASDAQ: SIFY) to offer online and offline equity and derivatives trading for retailcustomers as well as execution and clearing services for financial institutions.

Refco also provides clients with prime brokerage services, fixed income, equities,foreign exchange, OTC derivatives and asset management.

Refco is a leader in providing clients with the latest technological advances in products and services. Its proprietary systems and global infrastructure provide theflexibility to meet all client requirements.

Client service is what sets Refco apart from its competitors. Refco understands theunique business requirements of each of its clients and tailors its products andservices to meet those requirements.


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UTI SECURITIES LTD.: (UTISEL)

UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a 100%subsidiary and on the repealing of the UTI Act, the capital is now held by theAdministrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTISecurities has been working as an independent professional entity for

providing financial intermediary and advisory services to its corporate and retailclientele.

The Company has presence in major cities with 20 branches and 50 franchisees toservice a wide range of clients. The company has also invested in the joint-venture

company with Standard Chartered Bank viz. Standard Chartered UTI Securities (P) Ltd.That is engaged in primary dealership and Government securities. The company isvery soon going to start Commodity Trading through its subsidiary, USEc CommoditiesLtd, which provides facility of commodity trading on NCDEX and MCX.


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KARVY

Karvy is a premier integrated financial services provider, and ranked among the topfive in the country in all its business segments, services over 16 millionindividual investors in various capacities, and provides investor services to over 300corporate, comprising the who is who of Corporate India. Karvy has a

professional management team and ranks among the best in technology, operations andresearch of various industrial segments.

History of Karvy: - The birth of Karvy was on a modest scale in 1981. It began with thevision and enterprise of a small group of practicing Chartered Accountants who founded

the flagship company, Karvy Consultants Limited. They started with consulting andfinancial accounting automation and carved inroads into the field of registry and share

accounting by 1985. Since then, karvy utilized its experience and superlative expertise togo from strength to strength, to better their services, to innovate, diversify and in the

process, evolved as one of Indias premier integrated financial service enterprise.


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Religare Securities Limited (RSL)

Religare Securities Limited (RSL),

a summer training report viju

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