comparative analysis of bro king firms u 1303488265833 b u
TRANSCRIPT
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Contents
S/NO. TOPICS PAGE NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Acknowledgement
Declaration
Objectives
Introduction
Company Profile
Different players in the Industry
Activation and Other Charges Of
Different Co.
Data Analysis
Findings
Annexure
Bibliography
3
4
5
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14
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Acknowledgement
Preservation, inspiration and motivation have always played a key
role in the success of any venture. In the present world of competition and
success understanding of theoretical and practical working makes you
aware about the real Business; willingly we prepared this particular project.
We would like to thank our faculty Prof. Samarjeet Sen Gupta to give
us the opportunity to do this project.
We would also like to thank the Microsec Capital Ltd. for helping us
to provide the information about their broking firm.
And finally, we would like to thank EIILM for providing us the
platform to do this project and to learn about the different broking firms.
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Declaration
We the student of Eastern Institute for Integrated Learning in Management,
Kolkata , declare that this project report title ACOMPARITEIVE STUDY OFVARIOUS BROKING FIRMS submitted, is our original work and has not
been previously submitted as a part of any other degree or diploma of
another Business school or University.
The findings and conclusions of this report are based on our personal study
and experience.
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Objectives
1. To know the customers preference in different sector of
investment and to know what are the factors consider mostimportant in order to choose their broking firm.
2. To know the different companies Activation and Other charges.
3. To know about the different broking firms and to make a
comparison between them with the help of primary and
Secondary Data.
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Introduction
The Bombay Stock Exchange (BSE) and
the National Stock Exchange of India Limited
(NSE) are the two primary exchanges in India.
In addition, there are 22 Regional Stock Exchanges. However, the BSE andNSE have established themselves as the two leading exchanges and account
for about 80% of the equity volume traded in India. The NSE and BSE are
equal in size in terms of daily traded volume.
The average daily turnover at the exchanges has increased from
Rs851crore in 1997-98 to Rs1284crore in 1998-99 and further to
Rs2273crore in 1999-2000. NSE has around 1500 shares listed with the
total market capitalization of around Rs9, 21,500crore.
The BSE has over 6000 stocks listed and has a market capitalization
of around Rs9, 68,000crore. Most key stocks are traded on both the
exchanges and hence the investor could buy on either of the exchanges.Both exchanges have a different settlement cycl e, which allows investors to
shift their position on the bourses. The primary index of BSE in BSE Sensex
comprises 30 stocks. NSE has the S&P NSE 50 Index (Nifty), which consists
of fifty stocks. The BSE Sensex is the older and most widely followed index.
Both these indices are calculated on the basis of market capitalization and
contain the heavily traded shares from key sectors.
The markets are closed on Saturdays and Sundays.
Both the exchanges have switched over from the open
outcry trading system to a fully automated computerizedmode of trading known as BOLT (BSE On Line Trading)
and NEAT (National Exchange Automated Trading)
system. It facilitates more efficient processing, automatic
order matching, faster execution of trades and
transparency.
The scrip traded on the BSE has been classified into A,
B1, B2, C, F, and Z groups. The A group shares represent those, which
are in the carry forward system (Badla). The F group represents the dept
market (fixed income securities) segment. The Z group scrip is the
blacklisted companies. The C group covers the odd lot securities in A,
B1, & B2 groups and Rights renunciations. The key regulator governing
Stock Exchanges, Brokers, Depositories, Depository participants, MutualFunds, FIIs and other participants in Indian secondary and primary market
is the Securities and Exchange Board of India (SEBI) Limited.
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Financial Market
MONEY MARKET:
The Money Market refers to the market where borrowers and lenders
exchange short-term funds to solve their liquidity needs.
CAPITAL MARKET:
The Capital Market is a market for financial investments that are
direct or indirect claims to capital (Gart, 1988).
SECURITIES MARKET:
It refers to the markets for those financial
instruments/claims/obligations that are commonly and readily
transferable by sale. It has two inter-dependent and inseparable segments,
the new issues (primary) market and the stock (secondary) market.
Primary Market
Securities generally have two stages in their lifespan. The first stage is
when the company initially issues the security directly from its treasury
at a predetermined offering price. This is a primary market offering. It is
referred to as the Initial Public Offering (IPO). In Primary market,
securities are offered to public for subscription for the purpose of
raising capital or fund.
Secondary Market
Secondary market refers to a market where securities are traded after
being initially offered to the public in the primary market and listed on
the Stock Exchange. Majority of the trading is done in the secondary
market. Secondary market comprises of equity markets and the debt
markets.
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Company Profile of Microsec
Microsec endeavors to provide services in the arena of Financial
Services which includes Equity & Derivatives Trading on NSE and
BSE, Commodities Trading on MCX & NCDEX, Investment Banking,
Insurance, Depository Services, Portfolio Management Services, Mutual
funds-SIP, Mediclaim.
Microsec Capital Limited has its principal offices in Kolkata and Mumbai
with another 250(app.) business locations in 49 Indian Cities/Towns in 13
States. It is an ISO 9000 Certified Process.
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EQUITIES
Microsec Capital Limited is a member of National Stock Exchange of India
and Bombay Stock Exchange and is in the business of distribution of
financial savings products to its clients.
Microsec Group provides services to a wide range of clients. In order to
keep the pace going we have developed our equity broking team which is
equipped with research team, relationship manager, dealers and round the
clock back office.
Microsec add value to people by:
y Providing data source from Bloomberg
y Research Team
y Online Back office support
y Transaction mailed on daily basis & also through SMS.
y Margin Trading
y Man to man interaction
y In house DP
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PRODUCT AND SERVICES PROVIDE BY MICROSEC CAPITAL
LTD.
Equity & Derivatives Trading on NSE and BSE
Commodities Trading on MCX& NCDEX
Investment Banking
Insurance
Depository Services
Portfolio Management Services
Mutual funds-SIP
Mediclaim
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DE-MAT ACCOUNT
Definition:
De-mat account is a safe and convenient means of holding securities
just like a bank account is for funds. Today, practically 99.9% settlement (of
shares) takes place on De-mat mode only. Thus, it is advisable to have a
Beneficiary Owner (BO) account to trade at the exchanges.
Benefits Of De-mat Account:
1. A safe and convenient way of holding securities. (equity and debt instruments
both).
2. Transactions involving physical securities are costlier than those involvingdematerialized securities (just like the transactions through a bank teller are
costlier than ATM transactions). Therefore, charges applicable to an investor are
lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the trading hours
(between 9:00 AM to 3:30 PM on all working days), and payment can be received
in a very short period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with
physical certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).10.Nomination facility available.
11.Any change in address or bank account details can be electronically intimated to
all companies in which investor holds any securities, without having to inform
each of them separately.
12.Securities are transferred by the DP itself, so no need to correspond with thecompanies.
13.Shares arising out of bonus, split, consolidation, merger etc. are automaticallycredited into the De-mat account of the investor.
14.Shares allotted in public issues are directly credited into De-mat account of the
applicants in quick time.
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), has allowed trades of up to 500 shares to be settled in physical form,
nobody wants physical shares any more. So a de-mat account is a must for
trading and investing.
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Diffe e Playe s in the Industry
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Activation and other Charges of firms
COMPANY
A/c
Opening
Charges
Brokerage
(Intraday,
Delivery)
AMC Trading
Exposure
Interest
Rate
Debit
Period
Mode of
Trading
Margin
Money
Software
used
Microsec
Capital LtdNIL 3p,30p Rs350pa 5 times 18% T+2 Online/
Offline
Rs5000 NOW
SharekhanNIL 5p,50p 1styr free,
2nd yr
Rs400
4-6 times 19% T+4 Online/
Offline
Rs5000
ICICI DirectRs750 50p,75p Rs500pa 3-4 times 18% T+2 Online/
Offline
NIL Accesed
through net
IndiabullsRs900 3-4p,
30-40p
NIL 4-5 times 17% T+2 Online/
Offline
NIL Power
India Bulls
Angel
brokingRs660 3p,20p Rs225 4-6 times 18% T+2 Both
online/
Offline
Rs5000
/10,000
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Data Analysis
Primary Data collection
Structured questionnaire for customer.
Secondary Data Collection
Journals
Websites
News papers
Research Approach
Descriptive approach
Techniques to be used in Research Approach
Survey and Interview
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D
Fi
di
Tot Sample Si e : 82
Male : 47
Female : 35
Online/Offline Tr
ding
Tot l S pl (82)
online(64)
offline(18)
21.95%
78 04%
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InvestmentPr ductPreference
05
101520
2530
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Mode OfA
reness
05
1015
202530
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Preference forBroking Firm
0
51015
2025
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Factors while choosing a Broking firm
FAC ORS 1 2 3 4 5
L w
br kerage 2.44% 14.63%31.7% 39. 2% 12.2%
Better cust.
service 1.21% 23.17% 37.8% 2 .73%
Brand l yalty
3.65% 7.31% 19.51% 4 .24% 29.26%
Margin
M ney 2.44% 4.87% 31.7% 43.9% 17. 7%G d trading
Tips 1.21% 6.1% 35.36% 3 .48% 26.82%
Timely
Research
rep rt
% 13.41% 45.12% 29.26% 12.2%
Friends refer 1.21% 17. 7% 45.12% 26.82% 9.75%
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Annexure
QUE
TIONAIRE
1. Are you interested in share trading?
a Yes b No
2. Which mode of trading would you prefer?
a
Online b
Offline
3. Which type of product do you invest in?
a
Mutual fund b
Equity c
Commodity d
Insurance e
Others
4. If you trade in future, which broking firm would you prefer?
a
Share khan bIndia Bulls c
Angel broking d
ICICI Direct e
Microsec f
Others
5. How did you come to know about the broking firm?
a
Newspaper bJournals c
TV Advertisement d
Friends e
Internet f
Others
6. How important do you think these factors influence in choosing a broking firm?
Select one
a Low brokerage
Not very important 1 2 3 4 5 Extremely important
b Better customer service
Not very important 1 2 3 4 5 Extremely important
c Brand loyalty
Not very important 1 2 3 4 5 Extremely important
d Margin money
Not very important 1 2 3 4 5 Extremely important
e Good trading tips
Not very important 1 2 3 4 5 Extremely important
f Timely research report
Not very important 1 2 3 4 5 Extremely important
g Friends recommendations
Not very important 1 2 3 4 5 Extremely important
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NAME: AGE:
GENDER: MALE/FEMALE
CONTACT NO:
Bibliography
Internet Referrals:
www.sharekhan.comwww.icicidirect.comwww.nseindia.comwww.google.comwww.indiabulls.com
www.angelbroking.com