A

SUMMER TRAINING REPORT

ON

Comparative Analysis of SHAREKHAN and other Stock Broker House

At

SHARE KHAN PVT.LTD.

In partial fulfillment for the degree of

Master of Business Administration

(Session 2012-2014)

Submitted to

RANCHI UNIVERSITY, RANCHI

Under the guidance of: Submitted by:

Mr. RAVI VERMA NAME - AJAY KUAR MAHTO

(ASST. MANAGER) R0LL NO 12MBA01020

Share khan Ltd. SPECIALIZATION- MARKETING MANAGEMENT

DELHI. COLLEGE S.N. SINHA INSTITUE OF BUSINESS

MANAGAMENT, RANCHI.

DECLARATION

I hereby declare that this project work titled COMPARATIVE ANALYSIS OF SHARE BROKER AT SHAREKHAN PVT. LTD is a record of Original work done by me under the guidance of MR. RAVI VERMA and that this project work has not formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or similar title to any candidate of any University.

Name:-AJAY KUMAR MAHTO

SPECIALIZATION:-MBA

(MARKETING)

ROLL NO: - 12MBA01020

PLACE- RANCHI

ACKNOWLEDGEMENT

A project report is never the sole product of a person whose name appears on the cover. I deem it a time bound privilege and function to dedicate this page of mine to helping hands for their cooperation & guidance that enabled me to dedicate time and effort in framing analysis in conceivable system.

I would like to take this opportunity to thanks and acknowledge my deep sense of gratitude to MR. RAVI VERMA, Assistant manager of SHAREKHAN LTD. for his guidance and pain taking supervision during course of my project work. His valuable advice, constructive criticism and suggestion for assigning my study really helping me out in the project. I also thanks him for providing full facilities required in submitting our report within a limited time span.

I also wish to place on record my gratitude to my faculty guide, col. S.K. Sinha and to my mentor Mrs. K.K. Banerjee whose keen interest, timely and constant encouragement and generous cooperation gave me confidence and strength to progress this report. I would be failing my duty if I dont mention my friends and classmates who helped me at various moments during my project

SUBMITED BY:-

AJAY KUMAR MAHTO

EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose. Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market.

This study suggests that people are reluctant while investing in stock and commodity market due to lack of knowledge.

Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge.

Through this report we were also able to understand, what are our Companys (Share khan Ltd). Positive and strong points, on the basis of which we come to know what, can be the basis of pitching to a potential client.

We also gave suggestions to the company, what improvement can be done to our product.

TABLE OF CONTENT

Chapter 1: Introduction .7-18

Introduction.7

Back ground of stock exchange in India....8-10

Basics of stock market.......11-14

Securities available for trading...15-18

Chapter 2: Company profile.19-32

Introduction to company..19

Work structure of share khan ltd20-28

Market strategies.................28-30

SWOT Analysis...31-32

Chapter 3: On line share trading and competitors.33-48

Online share trading..33

Share khan Trade Tiger account .34-35

Process on account opening..36-37

Competitors information..............38-47

Comparative analysis.................48

Chapter 4: Research Methodology49-52

Research methodology.49-50

Method of data collection.50-52

Chapter 5: DATA Analysis and Interpretation53-62

Chapter 6: Observation and Finding63-65

Observation 63

Finding .....64

Suggestion...65

Chapter 7: Advantages and Limitation..66-67

Chapter 8: Conclusion68-

Chapter 9: Bibliography69

Chapter 10: Annexure70-71

CHAPTER-1

INTRODUCTION

In most industrialized countries, a substantial part of financial wealth is not managed directly by savers, but through a financial intermediary, which implies the existence of an agency contract between the investor (the principal) and a broker or portfolio manager (the agent). Therefore, delegated brokerage management is arguably one of the most important agency relationships intervening in the economy, with a possible impact on financial market and economic developments at a macro level.

In most of the metros, people like to put their money in stock options instead of dumping it in the bank-lockers. Now, this trend pick pace in small but fast developing cities like Delhi, Chandigarh, Gorgon, etc. My research is based on the residents of Delhi and its nearby areas.

As the per-capita-income of the city is on the higher side, so it is quite obvious that they want to invest their money in profitable ventures. On the other hand, a number of brokerage houses make sure the hassle free investment in stocks. Asset management firms allow investors to estimate both the expected risks and returns, as measured statistically. There are mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy

2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal expectation input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities.

2. Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.

BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the Articles of Association of the Exchange. On or about 9th day of July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association.

As a meeting held in the broker Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as The Stock Exchange

The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are

1. Stockbrokers

2. sub-broker

3. market makers

4. Portfolio consultants etc.

1.) Stockbrokers

Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registered brokers as on 31.03.2008

Total no. of sub-brokers as on 31.03.2008

9000

24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.

4.) Portfolio consultants

A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients.

Partial fulfillment for degree of M.B.A. programmed, we received the opportunity from Share khan Ltd. for our summer training project report. It is basically stock brokering company which deals in security and derivative market, Commodity market, mutual funds and Insurance etc.

INTRODUCTION OF STOCK MARKET

Before getting familiar with share market, the first and foremost things we should know is to know are the basic of share market.

1. WHAT IS SHARES?

A Share or stock is a document issued by a company which entitles its holder to be one of the owners of the company. A share is directly issued by a company through IPO or can be purchased from the stock market. By owning a share you can earn a portion of the company's profit called dividend.

Also, by buying and selling the shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.

2. WHAT ARE STOCK MARKETS?

Stock Market is an organized set-up with a regulatory body and the members who trade in shares are registered with the stock market and regulatory body SEBI.

A stock market is a market for the trading of company stocks, share and derivatives.

Thus, the shares listed in the Bombay Stock Exchange (BSE) will be different from those in the Delhi Stock Exchange (DSE), because a company may not want to be listed in a particular stock exchange or may not fit the eligibility requirements of the particular exchange.

The stock market is also called the secondary market as it involves trading between two investors.

Primary markets

The primary markets is that part of the capital markets that deals with the issuance of new securities are bought by way of the public issue directly from the company.

Secondary markets

The secondary marking is the financial market for trading of securities that have already been issued in an initial private or public offering. In the secondary market, securities are sold by and transferred from one investor or speculator to another.

3. WHAT IS A STOCK EXCHANGE?

A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stock and other securities.

The Bombay stock exchange limited or BSE has a nation-wide reach with a presence in 417 cities and towns of India. Its index or market indicator is known as the sensex.

The S&P CNX NIFTY or simply NIFTY is the leading for large companies on the National Stock Exchange of India. It consists of 50 companies representing 24 sectors of the economy, and representing approximately 47% of the traded value of all stocks on the National Stock Exchange of India.

4. WHO IS A BROKER?

A stockbroker is person who is licensed to trade in share in shares. Broker also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee. They can also offer additional serves like advice on debentures, government bonds and listed property trusts and non-listed investment options (cash management trusts, property and equity trusts.

5. WHAT IS ADEMAT A/C?

Investor who wish to trade in the market need to have a dematerialized, or de-mat account. In India, the government has mandated two entities- National Securities Depository, or NSDL and Central Depository Services (India), or CDSL to be the custodian of dematerialized securities.

6. BUYING AND SELLING OF DEMARTERIALISED SECURITIE

What is the procedure for selling dematerialized securities?

The procedure for selling dematerialized securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your brokers clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to you by your DP at the time of opening the account.

How can I purchase dematerialized securities?

For receiving de-mat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later, alternatively, you may choose to give separate receipt instruction every time some securities are to be received.

7. HOW TO RECEIVE INCOME FROM SHARE?

We invest in share to make money- either through a shares capital growth, i.e the amount by which the share price increase in value over time, or through the dividend it pays to its share holders. Dividends are payments made by companies to share holders from their profits.

8. HOW TO MAKE INVESTMENT DECISIONS?

The stock market has, perhaps, the most exciting investment opportunities for the investor community. At the same time, it could be unnerving and scary. In fact, equity investment has always remained a big challenge, not only for retail but institutional investors too.

In short, investing in equities can be a difficult proposition for retail investors. However, equity must from a part of every investors age, monetary requirement, risk appetite etc.

To cope with volatility, it is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them religiously, indeed, the mantra for successful equity investment is a well thought-out, disciplined investment and decisions based on company fundamental are essential ingredients for successful investment.

SECURITIES AVAILABLE FOR TRADING

The capital market (equities) segment of NSE facilities trading in the following instruments:

1. Share

Equity share

Preference share

2. Debentures

Partly convertible debentures

Fully convertible debentures

Non convertible debentures

Warrants/coupons/secured premium notes/other hybrid

Bonds

3. Units of mutual funds

open ended

close ended

STOCK EXACHAGE

The stock exchange in India, under the overall supervision of the regulatory authority, the securities and exchange Broad of India (SEBI), provide a trading platform, where buyers and sellers can meet to transact in securities.

ROLE OF STOCK EXCHANGE

Facilities listing of securities

Register members stock brokers, and sub brokers

Make and enforce bylaws

Provides trading platform to investors

Manage risk in securities transactions

Provide indices

VARIOUS EXCHANGE IN INDIA

Ahmadabad Stock Exchange

Bangalore Stock Exchange

Bombay Stock Exchange

Calcutta Stock Exchange

Delhi Stock Exchange Association

Hyderabad stock exchange

Inter-connected stock exchange of India

Jaipur stock exchange

Ludhiana stock exchange association

Mumbai stock exchange

National stock exchange of India (NSE)

OTC exchange of India

SOME FOREIGN STOCK EXCHANGE

NASDAQ

HANG SANG

S&P 500

DOWJONES

Leading stock exchange in India

NATIONAL STOCK EXCHANGE

NSE, promoted by leading financial institution, was incorporated in 1992 as a corporate entity

Trading in equity and debt market commenced in 1994.

Its largest exchange in the country in terms of trading volumes.

The stock exchange, Mumbai, popularly known as BSE was established in 1875 as the Native Share and Stock Brokers Association.

NIFTY

Nifty is an indicator of all the major companies of NSE.

The Nifty index is a composite of the top 50stocks listed on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand whathappen in the stock market by extension, the economy.

BOMBAY EXCHANGE STOCK

The BSE or Bombay stock exchange sensitive

Index is a value weighted index.

It consists of the 30largest and most actively traded stocks, representative of various sectors, on the BSE.

These companies account for around one fifth of the market capitalization of the BSE.

SENEX

Sensex is an index, an index is basically indicator. It gives you a general idea about whether most of the stock share gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)

MARKETING TIMINGS

Trading on the equities segment takes place on all days of the week (except Saturday and Sunday holiday declared by the exchange in advance).

The market timing of the equities segment is:-

Normal market timings ( NSE & BSE): 09.55pm to 03.30pm

Post closing timings (NSE)-03.50pm to 04.00pm

Post closing timing (BSE)- 03.40pm to 04.00pm

After market close, NSE and BSE both have introduction

CHAPTER-2

INTRODUCTION OF THE COMPANY

Share khan is one of the leading retail brokerage of City Venture which is running successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Share khan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million.

The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks.

VISION

To be the best retail brokering Brand in the retail business of stock market.

MISSION

To educate and empower the individual investor to make better investment decisions through quality advice and superior service.

WORK STRUCTURE OF SHAREKHAN

Share khan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The City Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Share khan launched Speed Trade and Trade Tiger, are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net.

Share khans ground network includes over 700+ Share shops in 130+ cities in India.

The firms online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over 3 Lacks customers. The number of trading members currently stands at over 7 Lacks. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India, Share khan alone accounts for 27 per cent of the volumes traded online.

The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.

Finally, Share khan shifted hands and City venture get holds on it.

SERVICES PROVIDED BY SHAREKHAN

BENEFITS OF SHARE KHAN

Free Depository A/c

Instant Cash Transfer

Multiple Bank Option.

Secure Order by Voice Tool Dial-n-Trade.

Automated Portfolio to keep track of the value of your actual purchases.

24x7 Voice Tool access to your trading account.

Personalized Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address.

Live Chat facility with Relationship Manager on Yahoo Messenger

Special Personal Inbox for order and trade confirmations.

On-line Customer Service via Web Chat.

Enjoy Automated Portfolio.

Buy or sell even single share

Anytime Ordering.

Share khan offers the following products:-

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via www.sharekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and De-mat Account.

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges.

Instant order and trade confirmation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personalized market watch.

Single screen interface for Cash and derivatives and more.

Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE

Speed trade is an internet-based software application that enables you to buy and sell in an instant.

It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement.

Features

Instant order Execution and Confirmation.

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

Technical Studies.

Multiple Charting.

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

Market summary (Cost traded scrip, highest clue etc.)

Hot keys similar to brokers terminal.

Alerts and reminders.

Back-up facility to place trades on Direct Phone lines.

Live market debts.

DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this service, one can dial share khans dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office Phone and Mobile to resolve customer queries.

SHAREMOBILE

Share khan had introduced Share mobile, A mobile based software where one can watch Stock Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile.

(As per SEBI regulations, buying-selling shares through a mobile phone are not yet permitted.)

PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Beside this, great discount are also available (up to 50%) on brokerage.

Prepaid Classic Account : - Rs. 2000

Prepaid Speed trade Account : - Rs. 6000

IPO ON-LINE

Customers can apply to all the forthcoming IPOs online. This is quite hassle-free, paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.

MUTUAL FUND ONLINE

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential, SBI, Birla, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Share khan.

ZERO BALANCE ICICI SAVING ACCOUNT

Share khan had tied-up with ICICI bank for Zero Balance Account for Share khans Clients. Now their customers can have a Zero Balance Saving Account with ICICI Bank after your de-mat Account creation with Share khan.

CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge

Classic Account

Speed Trade Account

Account Opening

Rs. NIL

Rs. NIL

Monthly

Commitment

Rs. NIL

Rs. NIL

Brokerage

Intra-day 0.05 %

Delivery - 0.50 %

Intra-day - 0.05%

Delivery - 0.50%

* Taxes as per govt.

Depository Charges

Account Opening Charges

Rs. NIL

Annual Maintenance Charges

Rs. NIL first year.

Rs. 300/= p.a. from second calendar year onward

REASONS TO CHOOSE SHAREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money broker's poll held recently, SSKI won the 'India's best broking house for 2004' award. Ever since it launched Share khan as its retail broking division in February 2000, it has been providing institutional-level research and broking services to individual investors.

Technology

With their online trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investment in shares.

Accessibility

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through many centers across the country (Over 650 locations in 150 cities), over the Internet (through the website www.sharekhan.com) as well as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct profits, investors get access to a wide range of information on the content-rich portal, www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will empower them to take informed decisions.

Convenience

One can call Share khans Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to transactions, billing, de-mat and other queries. Their customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice

Share khan has dedicated research teams of more than 30 people for fundamental and technical research. Their analysts constantly track the pulse of the market and provide timely investment advice to customer in the form of daily research emails, online chat, printed reports etc.

MARKETING STRATEGIES OF THE COMPANY

Tele calling:-The Company uses the Telecalling/ phone calling to reach the customers, which are interested. This is the most important technique to save time and giving demo of the companys product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc.

LMS: It is leads management system which means leads are generated by the customer who wants to purchase the product of the company. Company provides facility to the customer on online to fill the registration form through which the companies executives can provide more information to the customer.

Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.

Canopys: This is the most important technique used by share khan securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides this company executives ask customer to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main

Markets, cinemas, hotels, atm or etc where people come in good numbers.

Direct Marketing: Share khan executives reaches to the does of the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better.

Advertising: Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. Share khan use banners, distribution of pamphlets, and advertisement in newspapers, magazines.

References: Share khan strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funs by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advice and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company.

Competitiveness: The Company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. Share khan makes it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer.

Internet: Company provides detailed information about the products on Internet so that customer can know about the product easily and completely

SHAREKHAN BUSINESS

1. Brokering business

2. White feathering house production.

Branches all over India

SWOT ANALYSIS

Strengths:

It is a pioneer in online trading with a turnover of Rs.400crores and more than 800 peoples working in the organization.

SSKI the parent company of Share Khan has more than eight decades of trust and credibility in the Indian stock market. In the Asian Money Brokers poll SSKI won the Indias best broking house for 2004 award.

Share Khan provides multi-channel access to all its customers through a strong online presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center based Dial-n-Trade facility

Share Khan has dedicated research teams for fundamental and technical research. Which constantly track the pulse of the market and provide timely investment advice free 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 promotional strategies (print media, newspapers, etc).

Lesser emphasis on customer retention.

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

Opportunities:

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

It can easily tap the retail investors with small saving through promotional channels like 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 term capital gain is making stock market as hot destination for investment among small investors.

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

Threats:

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

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

Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan.

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

CHAPTER-3

ONLINE SHARE TRADING AND COMPETITORS

Online share trading

With a Share khan online trading account, you can buy and sell shares in an instant! Anytime you like and from anywhere you like.

You can choose the online trading account that suits your trading habits and preferences - the Classic Account for most investors and Trade tiger for active day traders. Your Classic Account also comes with Dial-n-Trade completely free, which is an exclusive service for trading shares by using your telephone.

KEY FEATURES OF ONLINE TRADING

Freedom from paperwork

Instant credit and money transfer

Trade from any net enabled PC

After hour orders

Online orders on the phone

Timely advice and research reports

Real-time Portfolio tracking

Information and Price alerts

When beginning your foray in investing in shares, we need a lot of things - from the right tools and the right information at your disposal, to assistance when we need it and advice on investing. SHAREKHAN has been in this business for over 80 years now, and we can get a host of services and tools that are difficult to find in one place anywhere else. The Share khan First Step program, built specifically for new investors is testament to their commitment to being our guide throughout our investing lifecycle.

SHAREKHAN TRADE TIGER ACCOUNT

These accounts for active traders who trade frequently during the day's trading session .Following are few popular features of Speed Trade account.

Features of trade tiger account

Real-time streaming quotes with Instant order Execution & Confirmation

Hot keys similar to a traditional broker terminal

Alerts and reminders

Back-up facility to place trade on Direct Phone lines

A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs

Multiple Market Watch available on Single Screen

Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies

Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD, RSI, etc

Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines

User can save his own defined screen as well as graph template, that is, saving the layout for future use

User-defined alert settings on an input Stock Price trigger

Tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator

Shortcut key for FAST access to order placements & reports

Online fund transfer activated with 12 Banks

SAMPLE OF TRADE TIGER

PROCESS ON ACCOUNT OPENING

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

(NoOoooOooooooOO)AGREE DISAGREE

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

How to open account with Share khan?

For online trading with Share khan, investor has to open an account. Following are the ways to open an account with Share khan:

Call them at phone number provided below and ask that you want to open an account with them.

Call on Toll free number: 1-800-22-7500 to speak to a Customer Service executive

If you are in Mumbai call on 022-66621111

Visit one of their branches. Share khan has a huge network all over India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest branch. Just select the place near you and you'll find a manager to assist you there.

You can send them an Email on info@sharekhan.com to know about their products and services.

If you wish to chat with customer service representative, you can join the chat session

COMPETITORS INFORMATION

There are many competitors in the north region like KARVY, HDFC SECURITIES, INDIABULL, ICICI DIRECT, 5PAISE.COM, INDIA INFORLINE, AND KOTAK.

But i have selected above mention5 companies to compares with share khan ltd.

The selected five companies are follows-

1. 5paisa.com

2. Kodak Street

3. India Bull

4. ICICI Direct

5. HDFC Security

5PAISE.COM

Company Background

India info line was founded in 1995 and was positioned as a research firm in 2000 e-broking was started under the brand name of 5paisa.com. Apart from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance, Limited ground network, present in 20 Cities.

Online account types

1. Investor terminal

Account opening: 500

De-mat 1st year 250

Initial margin: 2500(compulsory)

Min margin retainable: 1000

Brokerage:

Intraday- 0.10% + ST

Delivery 0.50% + ST

2. Trader Terminal

A/c opening: 500

De-mat: 250

Initial Margin: 5000(compulsory)

Min margin retainable: 1000

Brokerage

Intraday- 0.10% + ST

Delivery - 0.50% + ST

Account access charges

Monthly: Rs. 800

Downtime

Recent past 5 paisa trader terminal is experiencing high frequency downtime between 3:00 to 3:30 pm due to server load

Manual accounting

The 5 paisa accounting system is manual, online fund transfer through bank is not credited unstably.

Limit is provided EOD for shares sold from DP, or call. Similarly limit released for shares sold under BTST is manual. Delay in receiving payout of clear funds from trading to bank account.

Min account balance

Min Rs.1000 is to be maintained in form of cash/securities to keep account active. This can be withdrawn only on closure of account.

KOTAK STREET

Company Background

Kotak Street is the retail arm of kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs.

Online account type

Twin advantage/ green signal: 2 DPs, limit against shares.

Free way: flat Rs 999 cover charge p.m. 0.03% per transaction.

High traders: 6 times exposure cash and derivatives, auto sq off 2:55

Cash expressway: spot payment, additional 0.5% charges.

For kotak fast lane/ keatlite/ keat desktop are trading interfaces keat desktop with advanced tools comes at a charge of Rs. 500 non refundable.

Pricing of kotak

A.O. 500, De-mat 22.5 per month, Initial margin: Rs 5000, Min margin retainable: Rs. 100 Brokerage slab wise: - Higher the volume, lower the brokerage. Even older customers (on 0.25% and 0.40%) have been moved to the slab wise structure.

Slab structure of kotak

Delivery volume

P.M

Brokerage

Square volume off P.M

Brokerage

2 cr.

0.20%

* DP charges extra

* Brokerage is inclusive of taxes

INDIABULLS

Company Background

India Bulls has retail financial Services Company present in 70 locations Covering 62 cities. It offers a full range of financial services and Products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors

Online account type

Signature account: Plain vanilla account with focus on equity analysis. The equity analysis is a paid service even for account holders.

Power India bulls: Account with sophisticated trading tools, low commissions and priority access to R.M.

Pricing of India bulls accounts:

Signature account:

Account opening: 250/=

De-mat Rs. 200 if POA is signed, No AMC for this DP

Initial Margin Nil

Brokerage: negotiable

Power India bulls:

Account opening: 750/=

De-mat Rs. 200 if POA is signed, No AMC for this DP

Initial Margin Nil

Brokerage: negotiable

Paid Research

Scheme

Facility

Web based 1 month 500

View and print on website

Web based 1 year 6000

View and print on website

Print report 1 month 750

View and print on website + 10 reports delivered

Print report 1 year 9000

View and print on website + 10 reports delivered

Deal clinchers V/S India bulls.

POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account

Paid research services

Access to a research even for and IB trading account hold is charges a min. of Rs 500 a month.

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T + 1 day itself @ 21 % p.a., on a daily basis.

The role of relationship manager

Each RM is looked upon as revenue generator and he gets a % on business generator from client. This can lead to over leveraged (interest) & high frequency (brokerage) trading, which may no be in the best interest of the client.

ICICI Direct

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Account opening: Rs. 750/=

Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These schemes are introduced 3-4 times a year.

De-mat nil 1st year charges included in account opening plus a facility open additional 4 DPs

Without 1st year AMC.

Initial margin nil

Brokerage:

Delivery vol. per qtr.

Brokerage