An industrial visit report

On

Prepared By

MANIYAR BHAKTI R.

(S.Y. B.B.A.)

Academic Year: - 2006-07

Roll No.: - 33

Submitted To

SAURASHTRA UNIVERSITY

College Guided By

R.P.Bhalodiya College Miss. Kyati Pandya

1

Preface

A thing can learn by experience cannot learn

by theory. Theory just shows direction towards our goals

and how to achieve those targets. But practical

knowledge teaches us to experience things. It may be

possible that what theory says might that what theory

says might leads to wrong decision, but if we experience

that thing practically, we will come to know that in reality

such thing happen in this way. Therefore all the time to

have only bookish knowledge is not important, but to have

some practical knowledge is also essential.

I think that, that is why university has make

compulsory to prepare project report for students who are

in B.B.A.

In this regard, I took a visit of SHERKHAN

This visit has enhanced my knowledge. I got a practical

experience in this field. I learned many new things, which

might not possible by reading various books.

Hence, I have tried to cover all aspects of this

firm and this project report includes as much information

as required.

2

Acknowledgeme

nt

This project report requires many things. I am

thankful to Saurastra University that it has implemented

such a nice practical work for the student of B.B.A.

I would like to extend my gratitude towards-

Mr.Narendra Tanna(Branch Manager)

Mr.Vimal Rajyaguru(Asst.Branch Manager)

Mr.Bhavesh Madhak(Business Development Executive)

Mr.Deepak Chauhan.

I especially thank to Mr. Dushyantsinh and

Mr. Devendra who gave me great response, warm

welcome and provided all details of SHAREKHAN.

I also thank to our project guide Mr. Niraj Pandya who gave me support and essential information too.

I would have to regret if I do not mention

name of my parents who are really source of my inspiration for

me. I am also thankful to Manojbhai & all my classmates, as

they helped me at any time.

3

Declaration

I undersigned MANIYAR BHAKTI, a student

of S.Y.B.B.A. of R. P. Bhalodiya College of commerce

and management, RAJKOT. Here by Declare that the

project work, presented in this report is my own and has

been carries out under the supervision of Ms. Khayti

Pandya of R.P. Bhalodiya College, RAJKOT.

This work has not been previously submitted

to any other university for any examination.

Date: -

Place: -

Signatory of the student

4

INDEXSr. No. CONTENTS PAGE NO.

1 Introduction to Sherkhan

2 Marketing Department

3 Finance Department

4 Human Resource Department

5 Operations Department

6 SWOT Analysis

7 Suggestions & Recommendations

8 Conclusion

9 Bibliography

5

Introduction to SharekhanSharekhan is an equities focused organization tracing its

lineage to SSKI, a veteran equities solutions company with

over 8 decades of experience in the Indian stock markets.

If you experience our language, presentation style,

content or for that matter the online trading facility, you’ll find

a common thread; one that helps you make informed

decisions and simplifies investing in stocks. The common

thread of empowerment is what Sharekhan is all about.

Sharekhan is also about focus. Sharekhan does not

claim expertise in too many things. Sharekhan’s expertise lies

in stocks and that’s what he talks about with authority. So

when he says that investing in stocks should not be confused

with trading in stocks or a portfolio-based strategy is better

than betting on a single horse, it is something that is spoken

with years of focused learning and experience in the stock

markets. And these beliefs are reflected in everything

Sharekhan does for you!

To sum up, Sharekhan brings to you a user-friendly

online trading facility, coupled with a wealth of content that

will help you stalk the right shares.

6

Those of you who feel comfortable dealing with a

human being and would rather visit a brick-and-mortar outlet

than talk to a PC, you’d be glad to know that Sharekhan offers

you the facility to visit (or talk to) any of our share shops

across the country. In fact Sharekhan runs India’s largest chain

of share shops with over hundred outlets in more than 80

cities! What’s a share shop? How do you locate a share shop in

your city?

To find the answers of these questions, you must visit

Sharekhan. In other words Sharekhan is a company that

provides you an outstanding trading facility with a wide

variety of products and acts as an investment consultant to

manage your portfolio and secure a high rate of return on your

investments in the securities market.

Basically, the company is a market leader in providing

broking services and has a top turnover in trading and the high

turnover makes it the no. 1 in the market. The main difference

is the services that they provide to the investors who really

need it. the services are discussed in more detail in the

marketing activities. The clients are managed with a friendly

corporate culture to give him more benefited investment ideas

and motivate him whenever he needs. The company is

providing as many tips to the clients for more and more

trading ideas and the manager helps each client to concentrate

on a few scripts so that he can manage the profit/lose.

7

In short, Sharekhan is currently having a good position

in the market with the highest no of transactions and also the

highest turnover (buying & selling) in India and a leader in

providing better services to the investors. Sharekhan, India’s

leading stock broker is the retail arm of SSKI, and offers you

depository services and trade execution facilities for equities,

derivatives and commodities backed with investment advice

tempered by decades of broking experience. A research and

analysis team is constantly working to track performance and

trends. That’s why Sharekhan has the trading products which

are having one of the highest success rate in the industry.

Sharekhan is having 180 share shops in 90 cities, the largest

chain of retail share shops in India is of Sharekhan.

In future, Sharekhan is planning to enter in Mutual

funds, Insurance sector and banking sector to expand beyond

the market currently covered by it. And it has started MFs on

priority basis but wants to grow in it.

8

Mission Statement

To provide the best Customer Service and Product

Innovation tuned to diverse needs of individual and

corporate clientele.

Continuous up-gradation with changing technology,

while maintaining human values.

Respond to progressive globalization and achieving

international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through

Providing quality service effectively and

efficiently

“Smile, it enhances your face value” is a service

quality stressed on

Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People

9

Branch Head (Mr. Narendra Tanna)

Assistant Manager (Mr. Vimal Rajyaguru)

10

Back Office Marketing Officer (Mr. Bhavesh Madhak)

Accounts DP

Marketing DepartmentThe main aim or marketing activities at Sharekhan is

that the customer should get enough guidance to joint the

company and how he can get the best service than any other

stockbroker. There is an officer for handling the marketing

activities followed by two executives and it is not limited to

them but the other people are also having some responsibilities

to increase the no. of clients and retain them by providing

them the services needed by them.

There are many services those are designed such that the

specific target segments of the customers are covered and the

products are positioned in the minds of customers as the best

one in India. The services are as given below:

Sharekhan is India’s leading national network of stock-

broking outlets. It is having the largest retail distribution chain

in India. Sharekhan is not only a share-broking firm, but it

avails of various services and other financial products to its

clients.

11

(1) Offline Trading facility

(2) Online BSE and NSE executions (through BOLT, i.e. BSE

Online Trading and NEAT, i.e. National Exchange

Automated Trading)

(3) Free access to investment advice from Sharekhan’s

Research team.

(4) Depository services: Demat and Remat transactions

(Sharekhan is registered with NSDL, i.e. National

Securities Depository Ltd., as a Depository Participant)

(5) Derivatives trading, i.e. Futures and Options (through

NEAT F&O)

(6) Internet based online trading.

(7) Other investment products: Mutual Funds, RBI Bonds,

Insurance, etc

12

Online BSE and NSE Trading

Sharkhan is a registered Stock Broker with the Bombay

Stock Exchange and National Stock Exchange to trade on

behalf of clients. The screen-based trading is done on BOLT-

BSE Online Trading and NEAT – National Exchange

Automated Trading, terminals. There are two types of

transactions executed on these terminals viz. intra-day and

delivery based transactions. Intraday transactions are those, in

which the squaring up of deal is done on the same day, while

in delivery based transaction the squaring up of deal is done on

the same day, while in delivery based transaction the squaring

up is not done on the same day, but the stock is to be traded on

the basis of rolling settlement i.e. T+2. The Brokerage of

Intraday transaction is 0.10% single side, while brokerage on

delivery based transactions is 0.50% on both side, i.e. while

purchasing as well as selling.

13

Free Access to Investment Advice through R&D

The Research and Development at Sharekhan is done at

its Head office Mumbai. From there it forwards the relevant

data and tips on particular shares and scripts at the relevant

time. The R&D department Head Mr. Hemang Jani forwards

all the details regarding all stocks and scripts to all the

branches through internet. At the end of each trading day there

is a Teleconference, through which the R&D department Head

Mr. Hemang Jani talks with each Branch heads and discusses

about each day’s closing position and shows their predictions

about next days opening position. The quarries regarding stock

positions and other relevant matter of the branch heads of each

branch is being solved through teleconference. The various

publications of Sharekhan viz. Commodities Buzz,

Commodities Beat, Commodity Trader’s corner, Sharekhan

Xclusive, etc. are being prepared by the research team of

Sharekhan made up of highly experienced people from diverse

field.

14

Depository Participation

15

DEPOSITORY ISSUER/R&T AGENT

CLEARING CORPORATION

CLEARING MEMBER

DEPOSITORY PARTICIPANT

STOCK EXCHANGE

TRADING MEMBER INVESTOR

Sharekhan is a registered Depository Participant (DP)

with National Securities Depository Ltd. (NSDL). The

participants are required to enter into an agreement with

beneficial owners. It is required that separate accounts shall be

opened by every participant in the name of each of the

beneficial owner and the securities of each beneficial owner

shall be segregated and shall not be mixed up with the

securities of other beneficial owners or with the participant’s

own securities. The participants are obliged to reconcile the

records with every depository on a daily basis. Participants are

required to maintain the following records for a period of five

years.

Records of all the transactions entered into with a

depository and with a beneficial owner;

Details of security dematerialized, rematerialized on

behalf of beneficial owners with whom it has entered

into an agreement;

Records of instructions received from beneficial

owners and statements of account provided to beneficial

owners; and

Record of approval, notice, entry and cancellation of

pledge or hypothecation as the case may be.

16

Derivatives Trading

Sharekhan is a Trading Member registered with the

Stock Exchange, according to the norms and Guidelines given

by the SEBI. Two types of users access the NEAT F&O

trading system. The Trading Members and the Clearing

Members. The Trading Members (TM) has access to functions

such as, order matching, order and trade management. The

Clearing Member (CM) uses the trader workstation for the

purpose of monitoring the trading member(s) for whom he

clears the trades. Additionally, he can enter and set limits to

position, which a trading member can take. Sharekhan

provides the service of derivatives trading on NEAT F&O to

its clients.

17

Commodities Trading

Sharekhan is providing the facility to trade with the

commodities through MCX (Multi-Commodity Exchange)

and NCDEX (National Commodities & Derivatives

Exchange). The commodities market in India is an emerging

market, which will become the largest market in the world

within the next 5 years, as the trends in the commodities

market shows its performance. The company also provides

research reports on daily, weekly and monthly basis for the

investors in the commodities. It is just like the futures and is

having a fixed lot of goods with the margin for each

commodity and the trading is based on the theory of futures

and therefore, it is also called Vayda Market. In short

Sharekhan also provides brokering in commodities and the

brokerage charges are 0.10% on total trade value and if carry

forwarded an additional 0.02% charge on total trade.

18

Online IPO

Online IPO (Initial Public Offering) is a new service

started by Sharekhan for providing the application form of any

company’s issues of just like the TCS issue can be subscribed

by filling an online form to reduce the paper work and the fund

transfer facility is also provided to the clients for transferring

the funds online. It is given on its web-site for helping the

clients who are not able to collect the forms manually and the

speed of filling and reducing the risk of misplacing of forms,

not reaching in time, etc.

19

Internet Based Online Trading

The Online trading facilities provided by Sharekhan is

basically divided into two types of accounts, viz. Classic

Account and Speed Trade and Speed Trade Plus.

(1) Classic Account:

This account allows the client to trade through the

website and is suitable for the retail investor. The online

trading through Sharekhan website also comes with Dial-n-

Trade service that enables you to buy and sell shares by calling

our dedicated toll-free number.

(2) SpeedTrade and SpeedTradePlus:

SPEEDTRADE is a next-generation online trading

product that brings the power of broker’s terminal to the

client’s PC. Through SPEETTRADE PLUS the client is also

allowed to trade on Derivatives.

(3) Streamer:

Streamer account is just for the new learners of market

and is a new service offered by Sharekhan to give the view of

the market online to the customers who don’t have nay

experiences of the stock market and it is a software provided

to see the ups and downs of market with the screen on your

PC. It costs Rs.2000 per quarter and there will not be any

facility for trading and just you can see how trading is done on

the market.

20

The various benefits the client gets form the online

trading are:

Freedom from Paperwork: Integrated trading, bank

and demat account (auto pay-in and pay-out of

securities) with digital contracts removes all paperwork.

Instant Credit and Transfer: Instant transfer of

funds from bank accounts of client’s choice to his/her

Sharekhan trading account.

Trade Anywhere: Enjoy the ease of trading from

any part of the world in a completely secure

environment.

Dial n Trade: Call Sharekhan on a toll free number

to place orders through sharekhan’s tele-brokers.

Timely Advice: Make informed decisions with

expert advice, investment calls and live market

commentary.

Real-Time Portfolio Tracking: Benefit from real-

time information of your investment and current

portfolio value.

After-Hour Orders: The Client can place orders

after the market hours, which get executed as soon as

markets open.

21

Marketing Mix

The marketing mix of Sharekhan is an excellent example

we have seen in the industry because no other brokering

organization has such products to target the investors of

different minds, incomes and aims. There is an objective of

satisfying the customer as to make him delighted with

affordable prices and convenient services. The fourth P of the

marketing mix is the best at Sharekhan in India because the

total no. of share shops are widespread all over to have the

maximum contacts and awareness about Sharekhan, and we

can say that it has achieved that because it is having the

maximum turnover than any other broker in India. The

Classic, Speed Trade and Speed Trade Plus are the trading

products, which are one of the bests in the market.

The marketing is done based on leads generated through

the web contact, tele-contact and personal contact with the

customer and is a planned procedure to find out new

customers. The marketing management is carried out in an

excellent way at Sharekhan.

22

SERVICE (Product)

Service is an act or performance that one party offers to

another for sell and it is not a physical product that you can

touch but it is that one can feel. It is not likely to result into the

ownership of anything. A service can be a fully service or a

mixture of service and physical product.

The trading products of Sharekhan are such a mixture of

services like DP service (managing the demat account),

providing reports for investment advice etc. and thus we can

define its service mix as a hybrid product mix of different

physical products with accompanying services.

Therefore, the two types of accounts offered by

Sharekhan i.e., Offline and Online are the two main product

lines in the product mix of the company. The offline a/c with

Sharekhan is defined as the account having which you can

trade anywhere in the share shop of Sharekhan and the online

a/c is that you can trade on your PC through the software

provided by Sharekhan and it also offers tele-trading in both

the cases but the major difference is of the service and prices

for opening an account. The product mix is as shown below:

23

Sharekhan

The product mix is showing the products offered by

Sharekhan to its customers and it is one type of a tree structure

diagram that shows the products of a company.

The products are actually services and are at the

completion of the second stage of Product-Life-Cycle, i.e.,

Growth and are entering into maturity stage. So there should

be some changes in the marketing strategies of the company.

24

Offline A/c. Classic A/c. Speed Trade A/c.

Speed Trade Plus A/c.

Streamer A/c.

Price

Prices for the trading products are as given below:

Classic Rs.750 (onetime) Demat free for 1 year

(other facilities included)

Speed Trade Rs.1000 (brokerage

deposit of

3000/quarter)

Online trading on your pc

with Demat free and other

facilities

Speed Trade

Plus

Rs.1500 (brokerage

deposit of 6000/half)

Facilities as per Speed

Trade with F&O trading

Streamer Rs.2000/quarter Facility for viewing the

market online

25

Promotion

Promotional activities at Sharekhan are done by web, e-

mails and personal contact. Sharekhan is also organizing

seminars and presentations and promotes its services to the

clients. It is spending Rs.20000 per month for promotional

activities.

As explained earlier, Sharekhan is having the largest

distribution chain of retail outlets of share shops. And it can be

seen also because there are 180 share shops in 90 cities,

which gives the maximum awareness to Sharekhan. The

distribution of Sharekhan is also proved by its turnover and

awareness among the investors in the stock market.

The marketing strategies followed by Sharekhan at this

point are as given below:

The excellent marketing mix i.e., the Product-Price-

Place-Promotion and for services additional 3Ps viz.

People, Process and Physical evidence, are managed

according to the needs of the customers and try the best

to deliver the maximum value to the customers for what

they pay a price.

The HR and Operations are one of the best at Sharekhan

to help the customers for getting the needs fulfilled with

a family culture and atmosphere of harmony, peace and

brotherhood and it is focusing on the specific segments

like HNI, Delivery-based and Intra-day traders.26

Finance Department

Like blood is the most important factor in our body,

Finance is the blood of any business. Finance is needed for all

the activities like production or services as well as their

distribution. The finance department directly influences all the

functions of the other departments. Also finance has to give

equal importance to all departments. Finance is that

administrative area or set of administrative function in an

organization may have the means to carry out its objective as

satisfactorily as possible. Sharekhan has special accounts

department for separate calculation of pay-in and pay-out of

funds according to the client’s Proft/Loss. Finance

management is done at Sharekhan is done by managing the

stocks in the demat accounts and funds in the margin &

trading accounts

27

Finance

Finance is the lifeblood of an organization to continue its

activities and the finance management at Sharekhan can be

divided into two major parts viz. DP (Depository

Participation) and Accounts management, which are shown in

the figure given above.

DP means providing the facility to the clients for

managing the stock bought/sold by them. DP covers two major

terminologies viz. settlements and the auctions which is a

part of managing demat account. Settlements as defined by

SEBI are T+2, currently and it means that the demat account

of the clients are prone to be sufficient for selling a script with

no debit at all, i.e., the account must have the sold amount of

stock to fulfill the settlement after 2 days from trade-day.

Generally, the timings are 9:30 and 3:00 as a deadline for the

client and he must provide the stock for giving a delivery to

the buyer. The chart show the total transaction between two

clients:

28

DP Accounts

The chart shows the process that the request for selling

and buying passes through the DPs of the respective clients

and finally the exchanges like SKSE (Saurashtra Kutch

Stock Exchange) becomes the controlling intermediary for the

delivery of stocks and this process is done in two days.

Nowadays, as banks are becoming fast for E-Fund Transfer

(EFT) and Phone-banking is getting more popularity, SEBI is

thinking to make the financial market of India to have a

maximum speed of transactions just like the other nations in

the world and proposing for T+1 settlement scheme but the

system is not enough competent for that thing. But soon or

later we will have such a settlement system in India, as said by

Mr. J. N. Bajpai, chairman of SEBI.

29

C DP (Sharekhan) E DP (anyone) C

The client, if not capable of providing the delivery of

say, 1000 shares of SAIL then the Auctions are initiated by

the exchanges and the client has to pay for the price prevailing

in the market with 4-5% penalty. The penalty can go on

maximum to 20% more than the market price of the sold stock.

Generally, it is known as a buying auction and a same kind of

auction is for selling the stock for which the buyer was proved

unable to pay the price is carried out by exchange, known as

the selling auction. And a debit or credit note is provided in

the respective case of auction to the clients, i.e., for buying

auction debit note is given on the T+4 basis and in case of

selling auction the credit note is given on T+5 basis. There are

two types of auctions called as Internal auctions & Market

auctions, the internal auctions are defines as the auctions

carried out between the other shops of Sharekhan and market

auctions are those as explained earlier, the auction carried out

in the market.

This is all about settlements but now switch to funds

management or accounts management at Sharekhan. The

accounts are different that is the margin a/c for deposits of the

client and trading a/c for which Profit/Loss are settled. The

collection of funds from the clients who had a debit balance or

made a loss are made on the next day of trading and the

payments to the profiting traders are made after two days of

trading because the cheques are received from H/O and then

pay-out is done and Pay-in is as explained that amounts to be

30

taken from the clients. In this way, accounts are managed but

in case if the client is unable to pay, the deposit from the

margin a/c is cut down to the payments and in case if a client

is having a credit balance in F&O trading though he had a

debit balance in cash-NSE & BSE trading, a JV request is sent

to H/O for totaling the three balances. The main aim for

accounts management is that the clients must have a credit or

no debit on the next day.

The DP services provided by Sharekhan are falling

under the regulation of NSDL (National Securities

Depository Limited) and CDSL (Central Depository

Services Limited), organizations governed by SEBI to

regulate the depository services in the interest of the investors.

So, the financial market in India is governed by Ministry of

finance under which two major bodies viz. SEBI & RBI are

covered and under RBI the banks and other financial

institutions are covered while SEBI covers the exchanges,

NSDL & CDSL and the whole DP service providers with the

brokers to the investors.

In this way we have gained a meaningful knowledge

about India’s financial market and its structure from this

training at Sharekan. In this way, the finance function is

carried out at Sharekhan by following the guidelines given by

SEBI. And the company is a private limited one with its own

policies for disclosing its financial statements.

31

Human Resource

Department

Human resource is the crucial resource that a company

can use to grow with the work of the employees. HRM

activities at Sharekhan start form induction to the specific job

training and are done by H/O at Mumbai. H/O takes a written

test and selection interview for filling up vacancies in branches

but the recruitment is done by the branch itself and the

selection is performed by H/O from the screened applicants.

Any new recruit is firstly inducted to the company and

sent to T & D department that is covered under HRD and T &

D programmes makes employees aware about all the

activities/jobs within the department he/she is to be recruited.

Suppose if, I would be recruited for finance department then

the finance related employees are known to me wit their work

profiles, that is, what they really do?

Then the specific job training is provided at H/O and the

person has to keep in touch with the concerned department at

H/O on internet because he/she has t solve many conflicts

arising in the investor’s mind and to have an up-to-date

information regarding the procedures and any new facilities or

policies to resolve the problems of the clients. It is a must for

32

each employee because the employee is the people by whom

the company gets its customers and retains them.

HRP (Human Resource Planning), HRIS (Human

Resource Information System), Recruitment & Selection,

Career planning and development, Assessment & development

of employees for Performance appraisal, etc. activities of

managing the HR at Sharekhan is maintained in a way to meet

the requirements.

The corporate culture at Sharekhan is maintained in such

a way that the people are helpful to each other and eager to get

the work done as soon as possible with a co-operative

thinking. An additional Rs.10000 is provided for each outlet of

Sharekhan to motivate its employees by performance appraisal

and also the heads of each departments and branches has to go

through a 3606 performance appraisal for maintaining the

consistency in growth of the company.

In the end we can say that the human resource of

Sharekhan is a best managed and used for the continuous

growth and development of the company for its future plans to

be achieved time-to-time.

33

Operations Department

Inputs

There are many inputs to the production & operations

viz., land & buildings, machinery & equipments, furniture &

fixtures, employees, technology, capital (invested by

promoters & deposited by the customers) and the most

important input, i.e., management functions carried out at

national, regional and branch level in Sharekhan.

Conversion Process

The main aim of it is to make profit with customer

satisfaction. The conversion of inputs works as the Sharekhan

earn brokerage from the customers. The profits are generated

from getting a higher return on the invested amount of money

than the amount payable to the customers. The process is

facilitated by a centralized computer system in which the data

is stored and recovered for the whole INDIA and it is having

the CPU at the H/O in Mumbai, Sharekhan is regulating the

brokerage rates all over India by keep watch on each

transaction done from the branch office. The data of a

customer will be stored in the central computer and all

facilities such as bills, credit/debit reports etc. are provided by

that computer to all customers on-line on the internet.

34

The conversion process is also facilitated by some

adjustments to the inputs and then the random fluctuations are

also handled in the process and lastly the monitoring of the

process is done and a feedback is given to do the adjustments

for the process as indicated in the figure given.

Outputs

Outputs are those services generated by Sharekhan with

the help of the inputs and using the conversion process. These

services are as listed in the figure above.

Table Sharekhan

Consumer

Services

Retail

brokering

Channels Financial

advisory

Services

Complain

resolvance

Corporate

Broker

Capital

markets

advisor

Nationwide

electronic

data

transfer

Depository

participant

Others

35

Operations Strategy at Sharekhan

Operations strategies are implemented in Sharekhan as

shown in the chart given above and the main points of

consideration are Efficiency, Dependability, Quality and

Flexibility.

The points demand a facility mission that is made up of

process, capacity, facilities, vertical integration, and

infrastructure facilities provided to get the desired outputs as

per the plan.

The main aim of the operations strategy at Sharekhan is

that the efficiency of the organization and high level of it is

desired outputs with low costs, i.e., productivity with

effectiveness. Quality should be high and consistent in

delivering services; Flexibility is related with fast introduction

of new services and providing a wide range to select an option

to the customer. This is facilitated by the process of

operations, capacity/ability of the organization, competitive

advantages, vertical integration and the infrastructure created

by the firm.

36

Sharekhan plans the strategies to get a working plan

from it and the planning is done from top-to-bottom level, i.e.,

national level, regional level, divisional level and the branch

level planning is carried out by the managers.

In this way, the Operations are managed with the best

efforts in a direction that is to facilitate future plans by

achieving success in time and create milestones in the industry

by driving the company with excellence.

37

SWOT ANALYSISDuring this training at Sharekhan, we had come to know

the Strengths – Weaknesses – Opportunities – Threats for the

company and it is very useful for a company to analyze them.

Therefore, the SWOT analysis is presented here and the

suggestions for maintaining strengths and removing

weaknesses are explained.

Strengths:

Well-maintained infrastructure.

Dedicated, Intelligent and Loyal staff.

On-line Trading products.

Lowest brokerage and other charges w.r.t. competitors.

The best investment advice correct up to 70-90%

through dedicated research and reports.

Wide product range to enable the clients to choose the

best alternative.

One of the best DPs in India.

A positive image in the existing clients.

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Weaknesses:

Less awareness in the market.

Time consuming process for account opening, resolving

the problems of the customers, etc.

Service quality is not maintained accordingly how they

are promoted.

Opportunities:

Large primary market to sit as a book runner for the

other companies just like Kotak Securities Ltd. that runs

the books of share holdings for many companies.

Slope of stock market towards delivery based

transactions.

Large potential market for delivery and intra-day

transactions.

Open interest of the people to enter in stock market for

investing.

Attract the customers who are dissatisfied with other

brokers & DPs.

An indirect opportunity generated by the market from its

bullishness.

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Threats:

Decreasing rates of brokerage in the market.

Increasing competition against other brokers & DPs.

Poor marketing activities for making the company

known among the customers.

A threat of loosing clients for any kind of weakness of

the company.

Indirect threat from instable stock market, i.e., low/no

profit of Sharekhan’s clients would lead them to go for

other broker/DP.

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Suggestions and Recommendations

The suggested marketing & operations strategies to be

followed by Sharekhan at this point are as given below:

The modification of marketing mix i.e., the Product-

Price-Place-Promotion and for services additional 3Ps

viz. People, Process and Physical evidence, according to

the needs of the customers and deliver the maximum

value to the customers for what they pay a price i.e.,

improve old products.

The competitors are trying to get customers with better

services than Sharekhan viz., account opening process

time, low deposits with greater exposure for trading,

more focus on delivery-traders, etc. so Sharekhan must

take care with developing fighter products to retain old

customers and gain new customers with competitive

prices and services.

There are more customers waiting for the right kind of a

company and Sharekhan can get that segment of

customers by using the research reports like,

“Investment pattern of the investors” as attached with

this report. By finding the right needs of the clientele,

the company can develop new products suited to the

specific customers.

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For controlling the operations of the company it is

recommended that the employees should be motivated

for work and they should have a feeling of satisfaction

for working in Sharekhan, so that the investors get

maximum service and satisfaction.

The next is to improve the service quality as we have

studied in marketing that there are five gaps in

delivering services to customers and Sharekhan needs to

fill up those gaps, as listed below:

(1) The gap between company’s perception about the

needs of customers and the expectations of the

same.

(2) The gap between company’s perception and the

implemented service quality specification plan.

(3) The gap between service quality specification plan

and how it is delivered to the customers.

(4) The gap between delivered service and the

external communications done with the customers

to promote it.

(5) The gap between how customers perceive the

service and the expected service that is made by

WOM (word of mouth) communications, past

experience and the comparison among all

companies offering it.

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Sharekhan needs to fill up these gaps, which are

traditionally identified by Berry, Zeith and Parchuraman to

improve the quality of the services offered by a company.

To attract more investors many factor can be suggested,

but we cannot apply all of them. So, some suggestions are

given here for gaining more business for the investment

Company.

First of all, the company has to make good image in the

minds of investors, so they can feel safe and reliable to

invest in that company.

The companies that have dealing with stock market must

give proper knowledge to the investors and if any new

information is coming then it must be communicated

with the investors.

The share trading company must have strong R&D

department so they can give more accurate tips and

investment ideas to attract them.

To increase the knowledge of the investors the company

must have to do some commercial fair or any other

promotional activity, so that the investors who don’t

know about it can be aware and inspire for investing in

the stock market with Sharekhan.

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Recommendations for Derivatives

Derivatives can be a very effective tool to take

advantage of a raising and failing and range bound underlying.

The following points may be kept in mind while trading

in derivative products:

Choose a month that allows enough time for the

anticipated move in the underlying.

In-the-money calls are initially more responsive to

underlying price changes that out-of-the-money calls.

Choose a strike price level that offers a good

risk/reward ratio given the expected price movement.

Watch for Bid/Ask price offered for Spot, Future, &

Options simultaneously.

Liquidity of products involved.

Transaction costs.

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CONCLUSIONNow, to conclude the project there are few points in the

investment pattern of investor of Rajkot city, which can be

quoted and cited as below.

First of all most of the investor are very sensitive about

safety of their investment. They want more safety and

reliability. Current trend and easy access is not affected

the investor as much as safety and reliability.

Then after we can conclude that Bank and Insurance

sector have very good scope for gaining more business

due to more safety and reliability.

Most of the earning people invest their income up to

different level in any sector, so investment company

have also very much scope of gaining business.

Mutual fund, Bond is also gain popularity since few

years. So, they can also make business more if they are

well reputed and reliable.

Equity market has also popularity among investors due

to higher return, but due to uncertainty and lack of

proper knowledge investors do not invest in that sector.

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But investors who have proper knowledge and

willingness to take risk up to some extent are easily

invested in Equity market. One of the reasons to invest

in equity market is liquidity and change in government

policy.

Bank’s interest rate is also decrease since last few years

so, investors move towards other sector like mutual

fund, bond, equity market and others like land, gold,

building etc….

So, final conclusion on part is that investors of Rajkot

city invest their money with the balance of safety,

reliability and return on investment.

The last point to say that the conclusion of the summer

training project report is that if a company is really

interested in growing its business then it has to give an

attention to the customer’s needs, their potential and the

main thing what type of product/service they want. It is

because to stay in this competitive market is as difficult

as to climb up the Mt. Everest.

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BIBLIOGRAPHY www.sharkhan.com

www.stocks-investing.com

www.investopedia.com

www.nsdl.co.in

Sharekhan Tutorial

Financial Management by S. N. Maheshwari

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