A SUMMER TRAINING PROJECT REPORT ON

Comparative Analysis of Services provided by India Infoline Limited and other Broking Houses

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2012-14

UNDER THE GUIDANCE OF: Ms. Surbhi Gupta Associate Professor, RDIAS SUBMITTED BY: Ritika khurana Enrollment No.- 09180303912 MBA, Semester 3 Batch 2012-14

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2008 Certified Institute (Approved by AICTE, HRD Ministry, Govt. of India) Affiliated to Guru Gobind Singh Indraprastha University, Delhi 2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085

TABLE OF CONTENTS
Student declaration..i Certificate from Guide. .ii Acknowledgement..iii Executive Summary.iv A summary statement designed to provide a quick overview of the full length

report on which it is based.

List of Tables....v List of Graphs..vi List of Charts.vii List of Abbreviations, if anyviii

CHAPTER- 1: INTRODUCTION
1.1 About the Industry 1.2 About Organization/ Company Profile

CHAPTER 2:TOPIC INTRODUCTION& LITERATURE REVIEW

2. 1 About The Topic 2.2 Literature Review

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Purpose of the study..... 3.2 Research Objectives of the study.. 3.3 Research Methodology of the study. 3. 3.1 Research Design ...... 3.3.2 Data Collection Techniques 3.3.3 Sample design... 3.3.3.1 Population.. 3.3.3.2 Sample size 3.3.3.3 Sampling method... 3.3.4 Method of data collection.. 3.3.4.1 Instrument for data collection 3.3.4.2 Drafting of a questionnaire. 3.3.5 Limitations

CHAPTER 4: ANALYSIS& INTERPRETATION

CHAPTER- 5: FINDINGS

CHAPTER-6: RECOMMENDATIONS AND CONCLUSION BIBLIOGRAPHY ANNEXURES

STUDENT DECLARATION
This is to certify that I have completed the Project titled Comparative Analysis of Services provided by India Infoline Limited and other Broking Houses under the guidance of Ms Surbhi Gupta in the partial fulfillment of the requirement for the award of the degree of Master in Business Administration from Rukmini Devi Institute of Advanced Studies, New Delhi. This is an original work and I have not submitted it earlier elsewhere.

Name of the student: Ritika khurana Course: MBA- 3 Enrolment No: 09180303912 Batch: 2012-2014

(Signature)

CERTIFICATE OF GUIDE

ACKNOWLEDGEMENT
It gives me pleasure to present this Summer Training Report, which is an outcome of the study Comparative Analysis of the services provided by India Infoline Limited and other Broking houses Completing a task is never a one-man effort. It is often the result of valuable contribution of number of individuals in a direct or indirect manner that helps on shaping and achieving an objective.

Firstly, I would like to acknowledge my sincere thanks to Mr. Nomit Kochar (A.V.P.) who gave me an opportunity to carry out this project and had been a constant source of advice, motivation and inspiration. I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced Studies, GGSIP University, New Delhi for imparting us very valuable professional training in MBA.

I pay my gratitude and sincere regards to Surbhi Gupta, my project Guide for giving me the cream of her knowledge. I am thankful to her for giving her suggestions and encouragement throughout the project work. I also thank ms. Geeta lomas for her continuous guidance and suggestions in IIFL office. It gives me immense pleasure to express my gratitude towards India Infoline-IIFL, Moti Nagar New Delhi for providing me the opportunity to learn so much in my first summer training project. I would like to thank each and every employee of Finance and Marketing dept for imparting their knowledge and helping me with my project which resulted in this project being a personally rewarding experience throughout my 2 months tenure at India Infoline-IIFL.

EXECUTIVE SUMMARY
This project provides an insight into the financial service industry of which insurance, stocks and mutual funds form an integral part. The project focuses on the dematerialization and stock trading services provided by India Infoline Limited. The project also includes the services industry in which India Infoline Limited plays an important role. The organization structure, history of the company, ownership patterns, divisions and branches and different departments in the organization are also mentioned.

The project provides an overall view on the financial standing of the company, products offered and services provided the competitors in the industry and the competitive edge of India Infoline Limited to have a distinctive position in the industry .Lastly the project involves an analysis and comparative study of the product of India Infoline Limited with two of its competitors and recommendations to provide a horizon of improvement and growth.

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 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. I hope India Infoline Ltd. will recognize this as well as take more references from this project report.

LIST OF TABLES
1. Preference of Investment.....Table No. 4.1 2. Knowledge about Demat account....Table No. 4.2 3. Intend to open a Demat account..Table No. 4.3 4. Years you trade........Table No. 4.4 5. Types of trading...Table No. 4.5 6. Occupation...Table No. 4.6 7. Priorities while opening a demat accountTable No. 4.7 8. Company you have Demat and Trading accout ......Table No. 4.8 9. Satisfaction of your present broking firm ...Table No. 4.9 10. Satisfaction of the software for online trade........Table No. 4.10 11. Satisfaction with the charges charged..Table No. 4.11 12. Company providing daily research e-mail.......Table No. 4.12 13.Company providing printed reports..Table No. 4.13 14. Best broking firm .. .Table No. 4.14 15. Future customer of India Infoline Limited ..Table No. 4.15

LIST OF GRAPHS
1. Preference of Investment...Graph No. 4.1 2. Knowledge about Demat account. Graph No. 4.2 3. Intend to open a Demat accountGraph No. 4.3 4. Years you trade.....Graph No. 4.4 5. Types of trading.Graph No. 4.7 6. Occupation.Graph No. 4.8 7. Saving you invest yearlyGraph No. 4.9 8. Priorities while opening a demat account..Graph No. 4.10 9. Company you have Demat and Trading accout Graph No. 4.11 10. Satisfaction of your present broking firm ....Graph No. 4.12 11. Satisfaction with the charges charged. Graph No. 4.11 12. Company providing daily research e-mail.....Graph No. 4.12 13.Company providing printed reports ..Graph No. 4.13 14. Best broking firm ..Graph No. 4.14 15. Future customer of India Infoline Limited.Graph No. 4.15

LIST OF CHARTS
1. 2. 3. 4. Corporate structure.Chart No. 1.1 SWOT Analysis of IIFL Limited...Chart No. 1.2 DematerialisationChart No. 1.3 RematerialisationChart No. 1.4

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CHAPTER- 1: INTRODUCTION

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CHAPTER- 1: INTRODUCTION
1.1 ABOUT THE INDUSTRY
A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are two primary stock exchanges in India. In addition, there are 22 Regional Stock Exchanges. However, the BSE and NSE 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.

BSE
The Bombay Stock Exchange (BSE) was established in 1875. The BSE India Stock Exchange serves as the most important for companies to raise money. The Bombay Stock Exchange is the oldest exchange in Asia. The BSE SENSEX, also called "BSE 30" comprises 30 stocks, is a widely used market index in India and Asia. The BSE has over 6000 stocks listed and has a market capitalization of around Rs.9,68,000 crore. The chief function of the Stock Market of India is to help raise money as capital for the growth and expansion of various private and public sector enterprises. Besides, the stock market of India provides able assistance to the individual investors through daily updates on current position of the stocks of the respective companies that are enlisted in the Stock Index in which the movement of prices in a section of the market are captured in price indices. The popular acronym for Stock Index is Sensitive index or sensex. Moreover, the liquidity provided by the exchange enables the investors to sell securities owned by them easily and quickly. Hence a person, who is subjected to sudden dearth of funds, can immediately sell his shares for cash in India Stock Market. 12

NSE
T he National Stock Exchange (NSE) stock exchange located at Mumbai, India. The National Stock Exchange of India Ltd. (NSE) was set up in the year 1993. It is the 16th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization of around US$98 billion and over 1,646 listings as of December 2011. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation. NSE has set up a sophisticated electronic trading, clearing and settlement platform and its infrastructure serves as a role model for the securities industry. The standards set by NSE in terms of market practices; products and technology have become industry benchmarks and are being replicated by many other market participants.

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 cycle, which allows investors to shift their position on the bourses. The markets are closed on Saturdays and Sundays. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE Online 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 debt 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, Mutual Funds, FIIs and other participants in Indian Secondary and Primary Market is the Securities and Exchange Board of India (SEBI) of India.

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1.2ABOUT THE COMPANY

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd and its subsidiaries, is one of Indias premier providers of financial services. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other small savings instruments.

Vision:
Our vision is to be the most respected company in the financial services space.

Mission:
To become a full-fledged financial services company known for its quality of advice, personalized services and cutting edge technology

Products:
IIFL has their presence in:

Equities: IIFLs core offering, gives the company a leading market share in both retail and institutional segments. Over a million retail customers rely on IIFLs research, as do leading FIIs and MFs that invest billions.

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Private Wealth Management services cater to over 2500 families who have trusted IIFL with close to Rs 25,000 crores ($ 5bn) of assets for advice.

Investment Banking services are for corporates looking to raise capital. IIFLs forte is Equity Capital Markets, where the company has executed several marquee transactions.

Credit & Finance focuses on secured mortgages and consumer loans. IIFLs high quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong capital adequacy of approximately 20%.

IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF. Other products include Fixed Maturity Plans.

Life Insurance, Pension and other Financial Products, on open architecture complete IIFLs product suite to help customers build a balanced portfolio.

IIFL has received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by Finance Asia and the Most improved brokerage, India in the Asia Money polls. India Infoline was also adjudged as Fastest Growing Equity Broking House Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia.

IIFLs research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities besides others where it is amongst one of the most read Indian brokers.

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IIFL is a listed company with a consolidated group net worth of about Rs1,800 crores. The income and net profit during FY2010-11 were Rs.14.7 billion and Rs.2.1 billion respectively.

The Group has a consistent and uninterrupted track record of profits and dividends since its listing in 2005. The company is listed on both Exchanges and also trades in the derivatives segment.

IIFLs Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+) respectively. For long term, IIFL has been rated ICRA(AA-) by ICRA and CRISIL AA/Stable by CRISIL indicating high degree of safety for timely servicing of financial obligations. IIFL is present in every nook and cranny of the country, with over 3,000 business locations across 500 cities in India. IIFL can be reached in multiple ways including online, over the phone and through the branches. All the offices of IIFL are connected with the corporate office in Mumbai with cutting edge networking technology. . The group caters to a customer base of about a million customers.

IIFLs physical presence in key global markets includes subsidiaries in Colombo, Dubai, New York, Mauritius, London, Singapore and Hong Kong.

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History & Milestones:

1995 Commenced operations as an Equity Research firm

1997 Launched research products of leading Indian companies, key sectors and the economy

1999 Launched www.indiainfoline.com

2000 Launched online trading through www.5paisa.com Started distribution of life insurance and mutual fund

2003 Launched proprietary trading platform Trader Terminal for retail customers

2004 Acquired commodities broking license Launched Portfolio Management Service

2005 Maiden IPO and listed on NSE, BSE

2006 Acquired membership of DGCX Commenced the credit & finance

2007 Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

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2008 Launched IIFL Wealth Transitioned to insurance broking model

2009 Acquired registration for Housing Finance Obtained Venture Capital license

2010 Received membership of the Singapore Stock Exchange and Colombo Stock Exchange Commenced operations in Singapore & Colombo

2011 Received SEBI final approval for IIFL Mutual Fund

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Chart No. 1.1

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COMPANY PHILOSOPHY:
The India Infoline Group is committed to placing the Investor first, by continuously striving to increase the efficiency of the operations as well as the systems and processes for use of corporate resources in such a way so as to maximize the value to the stakeholders. The Group aims at achieving not only the highest possible standards of legal and regulatory compliances, but also of effective management.

SWOT Analysis of IIFL Limited

Strength

Weakne ss

Opportu nities

Threats

Chart No.1.2

Strengths:

Wide range of financial products. Successful implementation of Insurance Broking. Online Portals successful branding as 5paisa.com. 3,000 business locations across 500 cities in India. First Indian Brokerage House to get membership of Singapore Exchange. IIFL has been awarded the Best Broker, India, Most Improved Brokerage, India, Fastest Growing Equity Broking House. 20

Weakness:
High risk exposure as seen by conservative population. Less emphasis on Advertising causes lack of brand visibility.

Opportunities:
High income urban families. More penetration into the growing cities.

Threats:
Stringent Economic measures by Government and RBI. Entry of foreign finance firms in Indian Market.

Major Players in the Region

Angel Broking Limited Sharekhan Securities Indiabulls Securities Limited Religare Securities Limited SMC Securities ICICI Direct HDFC Securities Kotak Securities

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 Angel Broking Limited

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL.

Products and Services offered by Angel Broking Limited

Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance IPO Depository Services Investment Advisory Personal Loans Quality Assurance

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 Sharekhan Securities

Sharekhan Securities is one of the leading retail brokerage of Citi 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 companies. Launched on February,8,2000 as an online trading portal, Sharekhan has today a pan-India presence with over 1,529 outlets serving 950,000 customers across 450 cities. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice, etc.

Products and Services offered by Sharekhan Securities:

Equity Trading Platform (Online/Offline) Commodity Trading Platform (Online/Offline) Portfolio Management Services (PMS) Mutual Fund Advisory and Distribution Insurance

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 Indiabulls Securities

Indiabulls Securities (ISL) is one of India's leading capital markets companies providing securities broking and advisory services. Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of online securities trading in India. Indiabulls Securities in-house trading platform is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL. Indiabulls is a corporate member of Capital market and derivative segment of The National Stock Exchange of India Limited.

Products and Services offered by Indiabulls Securities Limited:

Equity & Debt Broking Commodity trading Depostiory Services Derivative Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution Insurance

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Religare Securities Limited

Religare Securities Ltd. (RSL) is a wholly owned subsidiary of Religare Enterprises Limited (REL), an emerging markets financial services group. RSL is one of the market leading securities firms in India serving over a million clients across both Offline and Online platforms. Through its extensive footprint extending to over 500 cities, the company offers Equity, Commodity and Currency broking services as well as depository participant services. RSL is a member of the NSE, BSE, MCXSX, USE and a depository participant with NSDL and CDSL. RSL also offers TIN facilitation & PAN facility at select branches - a unique service to help an individual with PAN, TAN and TDS/TCS returns related requirements.

Products and Services offered by Religare Securities Limited:

Equity & Commodity Broking Derivatives Portfolio Management Services Online Investment Portal Depository Services Investment Banking Institutional Broking Corporate Broking Corporate Finance Insurance

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 SMC Securities

SMC Group, founded in 1990, is Indias best Equity Broking House and the Largest Distribution Network, providing a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us achieve this landmark. Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2500+ offices spread across 500+ cities/towns in India. We are also amongst the first financial firms in India to expand operations in the lucrative gulf market, by acquiring license for broking and clearing member with Dubai Gold and Commodities exchange (DGCX).

Products and Services offered by SMC Securities:

Equity, Commodities & Currency Trading Derivatives Portfolio Management Wealth Advisory Online Trading Investment Banking Depository Services Institutional Broking Loan against Securities Clearing Services Mutual Funds Insurance & IPO Commodity Research

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 ICICI Direct

ICICI Web Trade Limited is a company that is venture of ICICI Bank, ICICI Limited to produce an integrated offering of e-broking services. This service is the combination of these entire three organizations. Promotions are looked after ICICI web Trade that has made e-invest facility, commonly known as ICICI Direct.com possible. This company is 100% subsidiary of ICICI Limited. The company enables to have the facility of having all the facilities online. One can view his banking transactions online, view the Demat balance with the latest market values and at the same time buy and sell shares online. This company has pioneered the concept of e-broking in India. The company went online with NSE on 15th April 2000.

Products and Services offered by ICICI Direct:

Investing in Mutual Funds Personal Finance Customer Service Features IPOs Margin Trading Margin PLUS Trading Call Trade Trading on NSE/BSE Trade in Derivatives

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 HDFC Securities

HDFC Securities Ltd., a trusted financial services intermediary is a subsidiary of Indias respected private sector Bank- HDFC Bank. A leading stock broking company having completed 10 years in operation serves a diverse customer base of retail and institutional investors. Discerning investors experience a robust platform to trade in Equities, derivatives, currency futures and mutual funds through both NSE & BSE and other investment options like IPO's, bonds, corporate fixed deposits, insurance etc.

Products and Services offered by HDFC Securities:

Equity Derivative Cash-n-carry on both NSE & BSE Trade on Futures & Options on the NSE IPO NRI Offerings Mutual Funds Insurance Fixed Deposits & Bonds Loans

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 Kotak Securities

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network of more than 1400 branches, franchisees representative offices and satellite offices across 448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore. It process more than 400000 trades a day which is much higher than some of the renowned international brokers. The company is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE).

Products and Services offered by Kotak Securities:

Equity Trading Derivatives: Futures & Options, Foreign Indices Mutual Funds Currency Derivatives Fixed Deposits and Bonds Debentures

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CHAPTER 2: LITERATURE REVIEW

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CHAPTER 2: TOPIC INTRODUCTION & LITERATURE REVIEW 2.1. TOPIC INTRODUCTION

2.1.1 STOCK BROKERAGE FIRM
A brokerage firm is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers. Stock brokerage firms are registered members of the stock exchange. Only members of a stock market are authorized to trade in the stock market. The members or stock brokers can trade for themselves or on behalf of other investors who are not members. The members are further grouped into stock broking services firms who offer a wide variety of stock market services. The stock broking firm or stock brokers charge a commission from the general investor for trading on their behalf.

How is Trading Done by Stock Brokerage Firms or Stock Brokers?

With the advance in communication technology, in stock exchanges such as the NASDAQ, stock brokers and stock broking firms use sophisticated computer networks to facilitate online trading. This has enabled the creation of an online or virtual stock market.

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The Bombay Stock Exchange (BSE) too has a private computer network connecting 417 cities to enable online share trading. Stock broking firms extend online trading services to their clients - the investors. Share trading by stock brokers has come a long way from the vocal -based system of yesteryears to the virtual stock market of today.

What are the Services Offered by a Stock Broking Firm?

The standard services of buying and selling shares on behalf of the investor is offered by the stock broking firm.

Some other market-related services offered by Stock broking firms may be: 1. Online Share Trading or the Virtual Stock Market - The facility allows investors to open an online account with the stock broking firm to utilise their services. All investor transactions can be via the internet, therefore functioning as virtual stock market. 2. Stock Portfolio Management - While some investors may like to choose stocks to invest in on their own and wish to make own trading decisions, inexperienced investors can avail the services of stock portfolio managers of the stock broking firm. The portfolio managers may advise the investor as to which stocks to invest in, and when to buy or sell stocks. 3. Initial Public Offerings (IPO) issue purchase - The stock brokerage can inform the investor regarding upcoming IPOs and bid for IPO shares on behalf of the investor. 4. Mutual Fund investment - Investors can choose and invest in a variety of mutual funds through the stock brokerage. The stock broking firm may advise the investor on the type of mutual fund to invest in. 5. Market Advisory Services - The stock broking firm may offer its own analysis from its market experts. It may issue reports and advise on areas such as choosing 32

stocks, stock market trends, analysis regarding specific companies and general economic analysis. 6. Margin Funding Services or Margin Trading - When an investor starts an account with a stock broking firm and starts trading, he or she has to deposit a certain amount called margin in the account. For purchase of shares, some stock broking firms provide margin funding where the investor pays only 50% (percentage varies) of the share value, and the rest is funded by the stock broking firm as a loan. Interest rates are charged on margin funding. This procedure is referred to as margin trading. Some experts advise inexperienced investors to be cautious of margin trading, as it is a risky strategy.

2.1.2 INTRODUCTION TO DEMAT ACCOUNT Definition:

Demat 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 demat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.

Benefits Of Demat Account

1. A safe and convenient way of holding securities (equity and debt instruments both). 2. Transactions involving physical securities are costlier than those involving dematerialised 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. 33

4.

Increased liquidity, as securities can be sold at any time during the trading hours (between 9:55 AM to 3:30 PM on all working days), and payment can be received in a very short period of time.

5. 6.

No stamp duty charges. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated.

7. 8. 9. 10. 11.

Pledging of securities in a short period of time. Reduced paper work and transaction cost. Odd-lot shares can also be traded (can be even 1 share). Nomination facility available. 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 the companies.

2.1.3 HOW TO INVEST IN STOCK MARKET? Opening a Demat account

To start dealing in securities in electronic form, one needs to open a demat account with a DP of his choice. An investor already having shares in physical form should ensure that he gets the account opened in the same set of names appearing on the share certificate; otherwise a new certificate can be opened in any desired pattern by the investor.

Getting started:
1 . 2. Choose a DP. F i l l u p a n a c c o u n t o p e n i n g f o r m provided by DP, and sign an agreement with DP in a standard format prescribed by the depository.

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3.

DP provides the investor with a copy of the agreement and schedule of charges for his future reference.

4.

DP opens the account and provides the investor with a unique account number, also known as Beneficiary Owner Identification Number (BOID).

Documents to be attached:
Passport size photographs. Proof of residence (POR) - Anyone of Photo Ration Card with DOB / Photo Driving License with DOB / Passport copy /Electricity bill / Telephone bill. Proof of identity (POI) - Anyone of Passport copy / Photo Driving License with DOB /Voters ID Card / PAN Card /Photo Ration Card with DOB. PAN card

Note: The agreement required to be signed by the investor details the rights and duties of the investor and DP. DP may revise the charges by giving a 30 days prior notice.

Maximum Number of holders in a Demat Account A maximum of three persons are allowed to open a joint demat account in their names.

DEMATERIALISATION

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Dematerialisation is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialised form are held in a Demat account.

Dematerialisation Process
An investor having securities in physical form must get them dematerialised, if he intends to sell them. This requires the investor to fill a Demat Request Form (DRF) which is available with every DP and submit the same along with the physical certificates. Every security has an ISIN (International Securities Identification Number). If there is more than one security than the equal number of DRFs has to be filled in. The whole process goes on in the following manner:

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Dematerialisation Process
1. Investors surrenders the physical certificates to the DP for dematerialisation 2. DP informs the Depository about the request

3. DP submits the certificate to the registrar of the issuer company

4. Registrar communicates with the Depository to confirm the request

5. Dematerialisation of the certificates is done by the Registrar

6. Accounts are updated by the Registrar and the depository is informed about the completion of dematerialisation

7. Accounts are updated by the Depository and DP is informed about the same

8. Demat account of the investor is updated by DP

Flow Chart No.2

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REMATERIALISATION
The process of getting the securities in an electronic form, converted back into the physical form is known as Rematerialisation. An investor can rematerialise his shares by filling in a Remat Request Form (RRF). The whole process goes on as follows:

Rematerialisation Process

1. Investor makes a request for rematerialisation to the DP

2. DP informs the Depository about the request

3. Depository confirms the request to the registrar of the issuer company

4. Registrar updates accounts and prints certificates for the investor.

5. Accounts are updated by the depository and details are provided to the DP.

6. Investor receives the certificates from the registrar.

Flow Chart No.3

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Note: Depository An organization that facilitates holding of securities in the electronic form and enables DPs to provide services to investors relating to transaction insecurities. There are two depositories in India, namely NSDL and CDSL. As per SEBI guidelines, the minimum net worth stipulated for a depository is Rs.100 crore.

NSDL/CDSL The securities are held in depository accounts, like the funds are held in bank accounts. There are two depositories in India namely NSDL and CDSL. NSDL(National Securities Depository limited) was established in August 1996 and is the first depository in India. CDSL (Central Depository Securities Limited) is the other depository and was established in 1999.

DP (Depository Participant) A Depository Participant can be a financial organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors. There are a total of 538 DPs registered with SEBI, as on March 31, 2006 and each DP is assigned a unique identification number known as DP-ID.

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2.2 LITERATURE REVIEW

Chatrath, Ramchander and Song (1996)

They examined the relationship between the Indian stock market and the stock markets of the U.S. and other developed countries using daily data for the period 1984 to 1992. They used the Bombay Stock Exchange National Index (BSENI) and the Dow Jones Industrial Average (DJIA) as representative indexes for the Indian and U.S. markets, respectively. The authors identify two major concerns in portfolio diversification studies. First, return comparisons between countries are exposed to currency risk. Second, correlations between stock returns for various countries must be stable over time in order to be able to employ past correlations as a proxy in creating optimal portfolios. They find that the Indian stock market had low correlations with the markets of the developed countries. Therefore, the Indian market offered diversification benefits for investors in the developed countries for the period 1984 to 1992.

Nabhi Kumar Jain (1992) shares.

He specified certain tips for buying shares for holding and also for selling

He advised the investors to buy shares of a growing company of a growing industry. Buy shares by diversifying in a number of growth companies operating in a different but equally fast growing sector of the economy. He suggested selling the shares the moment company has or almost reached the peak of its growth. Also, sell the shares the moment you realise you have made a mistake in the initial selection of the shares. The only option to decide when to buy and sell high priced shares is to identify the individual merit or demerit of each of the shares in the portfolio and arrive at a decision.

40

David.L.Scott and William Edward4 (1990)

They reviewed the important risks of owning common stocks and the ways to minimize these risks. They commented that the severity of financial risk depends on how heavily a business relies on debt. Financial risk is relatively easy to minimize if an investor sticks to the common stocks of companies that employ small amounts of debt. They suggested that a relatively easy way to ensure some degree of liquidity is to restrict investment in stocks having a history of adequate trading volume. Investors concerned about business risk can reduce it by selecting common stocks of firms that are diversified in several unrelated industries.

Yasaswy J.N. (1993)

He disclosed how 'turnaround stocks' offer big profits to bold investors and also the risks involved in investing in such stocks. Turnaround stocks are stocks with extraordinary potential and are relatively under priced at a given point of time. He also revealed that when the economy is in recession and the fundamentals are weak, the stock market, being a barometer of the economy, also tends to be depressed. A depressed stock market is an ideal hunting ground for bargain hunters', who are aggressive investors. Sooner or later recovery takes place which may take a very long time. He concluded that the investors' watch work is 'caution' as he may lose if the turnaround strategy does not work out as anticipated.

Yasaswy J.N. (1993)

He evaluated the quantum of risks involved in different types of stocks. Defensive stocks are low risk stocks and hence the returns are relatively low but steady. Cyclical stocks involve higher risks and hence the rewards are higher when compared to the growth stocks. Growth stocks belong to the medium risk category and they offer medium returns which are much better than defensive stocks, but less than the cyclical stocks. The market price of growth stocks does fluctuate, sometimes even violently during short periods of boom and bust. He emphasised the financial and organisational strength of growth stocks, which recover soon, though they may hit bad patches once in a way. 41

The Economic Times Investors Year Book 5 (2000-01)

The Economic Times Investors Year Book5 commented on the "Paperless World and described what makes dematerialisation the preferred choice and how it reduces risk. The dematerialised trading was introduced in India in 1996 to reduce pains and risks in settlement through the loss of share certificates in transit, bad deliveries, delays in transfer and forged/fake/stolen certificates. It helps in doing away with the risk of loss in transit by directly crediting the account with bonus shares and rights. There is no risk of bad delivery because the ownership status is clearly captured in the Depository's computers.

L.C. Gupta (1992)

He revealed the findings of his study that there is existence of wild speculation in the Indian stock market. The over speculative character of the Indian stock market is reflected in extremely high concentration of the market activity in a handful of shares to the neglect of the remaining shares and absolutely high trading velocities of the speculative counters. He opined that, short- term speculation, if excessive, could lead to "artificial price". An artificial price is one which is not justified by prospective earnings, dividends, financial strength and assets or which is brought about by speculators through rumours, manipulations, etc. He concluded that such artificial prices are bound to crash sometime or other as history has repeated and proved.

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Securities and Exchange Board of India (SEBI)

According to SEBI, Professional Rating of market intermediaries, as a concept, is a matter of debate and discussions. The need for rating is felt not only from the point of view measuring the adequacy of systems and controls to meet internal as well as external compliance requirements. So that need for Intermediaries Rating services (Brokers),In view of the developments that are taking place in the capital markets, the need to constantly upgrade and improve systems and procedures in operation as well as skill sets has gained considerable importance. Besides compliance with regulatory requirements both in letter and spirit has assumed significance so as to mitigate risk and ensure adequate protection of investors interest. And Rating objectives / benefits are rated entit y would be in a position to brand its image and capitalize the same for generating more business. In a nutshell, the product may accrue significant benefits to all stake holders including the investors, stock brokers themselves, the regulator and others who will benefit from the transparency and the consequential focus on efficiency.

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CHAPTER 3: RESEARCH METHODOLOGY

44

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Purpose of the Study
The purpose of the study is To know the basics of Indian Stock Market. To make clients and let them know about the different services offered by India Infoline Limited.

3.2 Research Objectives of the study

Each research study has its own specific purpose. It is like to discover to question through the application of scientific procedure. But the main aim of our research is to find out the truth that is hidden and which has not been discovered as yet. Our research study has two objectives:

a) Primary Objectives- How India Infoline Ltd. is the best service provider as a Stock Broker in the NCR region.

b) Secondary Objectives To know about the awareness of the consumers towards Stock Brokers and Share Market. To study about the effectiveness and efficiency of India Infoline Ltd. in relation to its competitors. To aware people about product & services of India Infoline Limited and sale its products. To study and analysis of Services provided by India Infoline Limited To study and analysis of Services provided by other broking firms.

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3.3 Research Methodology:

Research methodology is a collective term for the structured process of conducting research. A research is carried out by different methodologies which have their own pros and cons. R e s e a r c h methodology is a way to solve research in studying and solving research problem along with logic behind them are defined through research methodology. The research was carried out through survey method, fieldwork in order to collect data. Data collected through questionnaire and verbal discussion.

3.3.1 Research Design:

Exploratory and Qualitative Research

Research Design is usually conducted during the initial stage of the research process. The preliminary activities undertaken to refine the problem into a researchable one need to be formal or precise.

Exploratory Research
The purpose of the Exploratory Research is to progressively narrow the scope of the research topic and to transform the discovered problems into defined ones, incorporating specific research objectives. This type of research can provide significant insight into a given situation. Exploratory research can be informal such as informal discussions with consumers, employee, management or competitors or formal such as formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies.

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Qualitative Research
The purpose of Qualitative Research is to explore issues, understand phenomenon and answer questions. In our research we need comparison between different stock brokers, so this is based on all quantitative data. Focus groups, in-depth interviews, content analysis, ethnography, evaluation and semiotics are among the many approaches that are used, but qualitative research in its most basic form involves the analysis of any unstructured data, including open-ended survey responses, literature reviews, audio recordings, pictures and web pages.

3.3.2 Data Collection Techniques

The following techniques are used for collecting the data in this research: Survey Face-to-Face Interview Telephonic Interview

3.3.3 Sample Design

A sample design is a definite plan for obtaining a sample from a given population. Sample Design is the technique or the procedure, the researcher would adopt in selecting items to be included in the sample research should select design which would be reliable and appropriate for the study. Generally, sample design are of two types: Probability Sampling Design- Probability sampling is a sampling technique where the samples are gathered in a process that gives all the individuals in the population equal chances of being selected. Non- Probability Sampling Design- Non-probability sampling is a sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

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We used the Non-Probability Sampling Design. Under Design, we used

Non-Probability

Sampling

Convenience sampling it is a non-probability sampling technique

where subjects are selected because of their convenient accessibility and proximity to the researcher Many researchers prefer this sampling technique because it is fast, inexpensive, easy and the subjects are readily available

3.3.3.1 Population
The population of the research was National Capital Region (NCR).

3.3.3.2 Sample size

This refers to the number of items to be selected from the universe to constitute a sample. The sample size in this project is 50. But we also study the six broker companies related to securities and commodities market like Angel Broking, SMC Securities, Sharekhan Ltd., HDFC Securities, ICICI Direct and for the appropriate collection of the data.

3.3.3.3 Sampling Method

Sampling methods are used to select a sample from within a general population. Proper sampling methods are important for eliminating bias in the selection process. Convenience sampling method is used in this project.

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3.3.4 Method of Data Collection

Data collection is a process of preparing and collecting data. While deciding about the method of data collection to be used for the study the researcher should keep two types of data: Primary Data Secondary Data

Primary Data
The primary data are fresh data collected directly from the field and therefore consist of original information gathered for the specific purpose. It is expensive, laborious, and time consuming. But it assures a greater degree of accuracy and reliability. The data have been collected by Survey using questionnaires, face-to-face interview and telephonic interview. Though the primary source was not enough for the study but it did give some accurate conclusions. Sources of Primary Data: Telephonic Interview Face-to-face interview Company Prospectus and Literature Questionnaire

Secondary Data
The secondary data are the data, which the investigator borrows from other who have collected it for various other purposes. Therefore it may not entirely be reliable. It is less expensive and involves less expensive and involves less time and labor than the collection of primary data.

Sources of Secondary data: Newspapers, Internet, Magazines and Trade Journals. Company Database Employees of the company. 49

Publication of books, company records, brochures, catalogues and other documents. Reports and publications of Government department and international bodies.

The secondary data was the most important source because it gave us information about company profile, its services, competitors, market scenario, market share, etc. The data collected from the websites and books was good enough to be included in the study analyzed and concluded but data from the employees of the companies was most accurate and reliable. Various newspapers, magazines, websites, trade journals, etc were checked out for information regarding the comparative analysis of various players in stock market. The secondary source didnt provide any personal views of the customers services but were a great help in completing the report and getting the details.

3.3.4.1 Instrument for Data Collection Questionnaires Telephone Internet

3.3.5 Limitations of the Study RESTRICTED SCOPE

As only National Capital Region (NCR) dealt in survey so it does not represent the view of the total Indian Market. Therefore, the scope of the study is restricted

TIME
Time duration of project work was short, and this was biggest limitation of my project. There was also a lack of time on the part of the respondents.

SAMPLE SIZE : Size of the research may not be substantial. My sample size was 50
among which 7 respondent were not investing anywhere and some respondent gave multiple answers. Hence, the level of significance may vary. 50

OPINION Information is presented from customers opinion only which may vary. The survey was carried through Questionnaires and the questions were based on perception. There may be biasness in information by market participant.

The project survey for comparison was carried only on the basis of demat
account.

Sampling was judgement based and simple random so chance of occurrence of

error is more.

Complete data was not available due to company privacy and secrecy.

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CHAPTER- 4: ANALYSIS & INTERPRETATION

52

CHAPTER- 4: ANALYSIS & INTERPRETATION

1. What is your preference of Investment?

Percent Equity Shares Mutual Funds Fixed Deposits Insurance Others Total 28% 20%

Valid Percent 28% 20%

Cumulative Percent 28% 48% 61% 92% 100%

13% 13% 31% 31% 8% 8% 100% 100% Table No. 4.1

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8% 31%

28%

Equity Shares Mutual Funds Fixed Deposits

13%

20%

Insurance Others

GraphNo.4.1

Interpretation: This pie-chart shows that although the Mutual Funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

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2. Do you know about Demat account?

Yes No Total

Valid Frequency Percent Percent 43 86% 86% 7 14% 14% 50 100% 100% Table No. 4.2

Cumulative Percent 86% 100%

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14%

Yes No 86%

Chart No. 4.2

Interpretation: Demat account has made trading convenient. As shown in the above pie-chart, as high as 86% people are aware of Demat account as these people are into share trading and have done Rematerialization of Share Certificates, easy accessibility for online trading, etc. Only 14% people are not aware of it because these people are not interested in share trading or they have lack of knowledge about the trading done through Demat account.

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3.

Do you intend to open a Demat account?

Yes Already have Total

Valid Frequency Percent Percent 15 30% 30% 35 50 70% 70% 100% 100% Table No. 4.3

Cumulative Percent 30% 100%

30% Yes 70% Already Have

Chart No. 4.3

Interpretation: As seen in the above pie-chart, out of 50 people surveyed, 35% people are already having an account and others (30%) were not having a Demat account but showed their interest in opening up a Demat account. The reason for putting up this question was to find out those people who were interested in Share Trading but did not know the online facility of trading done through Demat account and were looking forward to investment avenues in Stock Market which could give them good returns.

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4. Since how many years you trade?

1 Year 2 to 3 year 4 to 7 year More than 7 year Total

Frequency Percent 7 20% 10 29% 5 14% 13 35

Valid Percent 20% 29% 14%

Cumulative Percent 20% 49% 63% 100%

37% 37% 100% 100% Table No. 4.4

37%

20% 1 Year 2 to 3 year 29% 14% 4 to 7 year More than 7 year

Chart No. 4.5

Interpretation: According to above pie-chart, there are 20% people that are trading from last 1 year and 29% people that are trading from 2 to 3 years. Maximum people are trading for more than 7 year and minimum people are trading from 4 to 7 years.

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5. How frequently do you trade?

Valid Frequency Percent Percent 11 22% 22% Daily 10 20% 20% Weekly 10 20% 20% Fortnightly 12 24% 24% Monthly 7 14% 14% None 50 100% 100% Total Table No. 4.5

Cumulative Percent 22% 42% 62% 86% 100%

Frequency of Trading
30%

25%
20% 15% 10% 5% 0%

22%

24% 20% 20% 14%

Daily

Weekly

Fortnightly

Monthly

None

Chart No. 4.5

Interpretation: As per the above graph, there is a slight difference in the percentage of people who preferred Daily, Weekly, Fortnightly and Monthly. Daily Trading which is referred to as Intraday Trading where shares are bought and sold at the same day. Such people covered about 22% of the survey. Most of the people purchased shares and waited to a better opportunity to sell them off. This time duration is Weekly, Fortnightly and Monthly.

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6.

What type of trading you prefer?

Valid Frequency Percent Percent 17 49% 49% Intraday 11 31% 31% Delivery 7 20% 20% Both Total 35 100% 100% Table No. 4.6

Cumulative Percent 49% 80% 100%

Trading Type
60%

50%
40%

49%

31%
30% 20% 20% 10% 0% Intraday Delivery Chart No. 4.6 Both

Interpretation: From the above graph, we can conclude that maximum people do intraday trading to earn the short-term income. In Intraday, shares are bought and sold at the same day while those who wish for the safe investment, they prefer Delivery trade. It is a very secure trading. 20% people prefer both intraday and delivery trading.

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7.

What type of trading you prefer? Offline or Online.

Valid Frequency Percent Percent 18 51% 51% Online 8 23% 23% Offline 9 26% 26% Both Total 35 100% 100% Table No. 4.7

Cumulative Percent 51% 74% 100%

Types of Trading
60% 51% 50% 40% 30% 20% 10% 0% Online Offline Both Total 23% 26% Percent

Chart No. 4.7

Interpretation: As per the above graph, we found that 51% people preferred online trading, 23% of people liked offline trading and 26% of people were using both type of trading. Online trading consumes less time as compared to offline trading but online trading is expensive as compared to offline trading.

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8. What is your Occupation?

Valid Parameters Frequency Percent Percent 14 40% 40% Business 12 34% 34% Service 9 26% 26% Professionals Total 35 100% 100% Table No. 4.8

Cumulative Percent 40% 74% 100%

Occupation
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 34% 26%

Business

Service Chart No. 4.8

Professionals

Interpretation: As per the above graph, we found that 40% people were in Business who trade, these people mostly did a high volume of trading as for having more of finance at their disposal. 34% people doing services did trade, although they invested a less portion in Share Market as compared to business people. and only 26% of the people were professionals who trade as it is a side income-generating business for them.

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9. What amount of money savings you invest yearly?

Parameters 1000-50000 50000100000 100000150000 Above 150000 Total

Frequency Percent 17 48% 12 3 3 35 34% 9%

Valid Percent 48% 34% 9%

Cumulative Percent 48% 82% 91% 100%

9% 9% 100% 100% Table No. 4.9

50% 40% 30% 20%

48% 34%

10%
0%

9%

9%

Chart No. 4.9

Interpretation: As per the above graph, 48% of people were investing between Rs.1000-50000, 34% of people spread fund between we found that 51% people preferred online trading, 23% of people liked offline trading and 26% of people were using both type of trading. Online trading consumes less time as compared to offline trading but online trading is expensive as compared to offline trading. 63

10. What is your first priority while opening a demat account?

Parameters Account Opening Charges Brokerage Customer Service Security in Transaction Convenience Total

Frequency Percent

Valid Percent

Cumulative Percent

1 18 7 5 4 35

3% 51% 20%

3% 51% 20%

3% 54% 74% 88% 100%

14% 14% 12% 12% 100% 100% Table No. 4.10

60% 50% 40% 30% 20% 10% 0%

51%

20% 3%

14%

12%

Chart No. 4.10

Interpretation: According to graph, 51% voted for brokerage charge as their first priority. About 20% witnessed the feature of customer service like SMS alerts, telephonic help,etc. as a second important factor. Security in transaction and convenience was tied up at 14% and 12%. Account opening charges were of least consideration at 3% 64

11. In which company you have Demat and Trading account?

Parameters Frequency Percent 9 25% India Infoline 4 11% Angel Broking 4 11% Religare 5 13% India Bulls 10 29% Sharekhan 4 11% Others Total 35 100% Table No. 4.11

Cumulative Percent 25% 36% 47% 60% 89% 100%

29%

30%
25% 20% 15% 10% 5% 0%

25%

11%

11%

13%

11%

Chart No. 4.11

Interpretation: As per the above graph, 29% have demat and trading account in Sharekhan because of better services and no annual maintenance for the first year and other charges, 25% are with India Infoline because of their web portal 5paisa.com and 13% are with India Bulls because as they provide one of the fastest and most efficient trading facility in India.

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12. Are you satisfied with the services of your present broking firm?

Parameters Completely Satisfied Somewhat Satisfied Totally Dissatisfied None Total

Frequency Percent 19 11 3 2 35 54% 31%

Valid Percent 54% 31%

Cumulative Percent 54% 85% 94% 100%

9% 9% 6% 6% 100% 100% Table No. 4.12

60% 50% 40% 30% 20% 10%

54%

31%

9%

6%

0%
Completely Satisfied Somewhat Satisfied Totally Dissatisfied None

Chart No. 4.12

Interpretation: As per the above graph, the maximum people were satisfied with their broking firms

as the customer start trading which become directly fruitful to broking firms and they provide good service to broking firms. 31% people were partially satisfied. About 6% of the people were neither satisfied nor dissatisfied with their firms and 9% people were not satisfied with their broking firms.

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13. Are you satisfied with the software provided by the broking firm for online trade?

Valid Parameters Frequency Percent Percent 30 86% 86% Yes 5 14% 14% No Total 35 100% 100% Table No. 4.13

Cumulative Percent 86% 100%

86% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes Chart No. 4.13

14%

No

Interpretation: As per the above graph, only 86% respondents are satisfied with the software facility provided by the broking firms as a single firm has many up gradation with the software which is only provided to the premium customer. 14% respondents were not satisfied with their broking firms software facility.

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14. Do you operate demat account by yourself or through an agent of your broking firm?

Valid Parameters Frequency Percent Percent 25 71% 71% Yourself 10 29% 29% Agent Total 35 100% 100% Table No. 4.14

Cumulative Percent 71% 100%

71% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yourself Chart No. 4.14

29%

Agent

Interpretation: As per the above graph, most of the customers about 71% did trading by themselves. But still 29% of the people still used the help of agents due to lack of their knowledge about the online trading of shares in the indirect form such as through phone, SMS, mail and Online Chat.

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15. Which is the Best Broking Firm, according to you?

Parameters Frequency Percent 13 37% India Infoline Angel 5 14% Broking 3 9% Religare India Bulls Sharekhan Others Total 4 6 4 35

Valid Percent 37% 14% 9%

Cumulative Percent 37% 51% 60% 71% 89% 100%

11% 11% 18% 18% 11% 11% 100% 100% Table No. 4.15

37% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 2 3 Chart No. 4.15 4 5 6 14% 11% 9% 11% 18%

Interpretation: As per the above graph, we found that the best preferred broking house among the people of NCR is India Infoline Limited with 37% followed by Sharekhan (18%), Angel Broking (14%), India Bulls (11%), Religare (9%), ICICI Direct, HDFC Securities, SMC Securities, Kotak Securities, etc

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16. Will you be the future customer of India Infoline Limited?

Valid Parameters Frequency Percent Percent 9 26% 26% Yes 12 34% 34% No 14 40% 40% Can't Say Total 35 100% 100% Table No. 4.16

Cumulative Percent 26% 60% 100%

40% 40% 35% 30% 26% 34%

25%
20% 15% 10% 5% 0%

Yes

No
Chart No. 4.16

Can't Say

Interpretation: As per the above graph, we found that after explaining about the various offers of Infoline 26% of the people were ready to get the new demat account with India Infoline Limited while 34% of the people strongly neglected as they are satisfied with their current broking firm.

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CHAPTER- 5: FINDINGS

71

CHAPTER- 5: FINDINGS
FINDINGS
According to the survey, we found that in todays market people still prefer insurance for the purpose of security and tax-savings. Equity shares are second most preferred as shares are liquid and it gives more profit in less time. Then mutual funds are preferred because it has less risk than equity shares. Fixed Deposits are least

considered as an investment option because it is a low-income earning type of investment.

Most of the people know about the Demat account which holds shares in electronic form. Few people are not aware of it because either they are not interested in trading or they still find shares in paper form much more convenient.

Most of the people are already having a demat account. Some people not having a demat account but they showed their interest in opening a demat account as they put forward the benefits of share trading though they mentioned the risk factor of being in the volatile market.

Maximum people are trading for more than 7 years as these people have most of the knowledge about company and products offered by the company. 29% people are trading from 2 to 3 years, these people are of younger generation and they want to invest in market and earn some money. Minimum people are trading from 4 to 7 years.

Maximum people are investing monthly because it is easy for them to pay monthly installments. 22% of the respondents are trading daily, they are squaring off the shares while the market is bullish. Weekly and Fortnightly share traders covered 20% each of the survey, these people consider it safe to wait for the present moment and observing the market.

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CHAPTER- 6: RECOMMENDATIONS & CONCLUSIONS

73

CHAPTER- 6: RECOMMENDATIONS & CONCLUSIONS

6.1 RECOMMENDATIONS:
To increase awareness about the Share Market and the name India Infoline Limited itself, the company should organize campaign. The campaign can be weekly, monthly, yearly, it will give a good result to the company to capture market in the competitive position.

The company should reduce the margin money. It can help to acquire more customers, if the firms bring plans for no boundation of margin money.

The company should increase their focus on the less margin money customers also. It can help to make more customers of low margin money which can increase the revenue of the firm. The Relationship Managers focus only to the high margin money customer because from them they will get high brokerage.

Transaction error should be avoided. Transaction should be done properly, taken in consideration that is one of the most required quality of a firm. Wrong transaction or Default transaction may lead the prestige of the company down.

Brokerage rate should be reduced. Sharekhan Securities, Religare Securities Limited and Indiabulls are charging 0.5%, 0.3% and 0.25% for delivery and 0.1%, 0.03%, 0.05% for intraday whereas India Infoline is charging 0.5% for delivery and 0.05% for intraday. Though it is negotiable but for high margin money customer not for less margin money customer.

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The company should increase exposure. It is the good tool to capture the market. There should be more public awareness programs and advertisement related to companys product and services so that people should be more about India Infoline Limited.

The company should organize customer happiness survey for active and inactive clients both.

The company should be more aggressive toward its existing clients feedback and for their services after giving them products because it can increase the companys loyalty as well its brand name.

The company should offer demonstration for online share trading and other seminars for the cultivation of knowledge to the customers.

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6.2 CONCLUSION:
Through this study we get through all the differences between different broking firms and their benefits of investing individually, it was found that India Infoline Limited is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. India Infoline Ltd. provides the facility of One stop shop as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market.

From the above survey and observation it was found that most of the people who are trading in share market belongs to the business group, next comes the employees and other class of income people. As the share market value goes on increasing day by day the investor who wants to invest in shares also increasing. But investing in shares is as risky as earning yield.

Trading in online trading firm is easy as it all delivered with internet and within a few minutes the customer can buy and sell shares which save time as well as reduction of paper work. Hence trading in share market is increasing day by day and investors are ready to invest their investment in share market only. They expect all the information such as less rates, less brokerages, highly returns and better service level without delay. The needs of the customer differs from person to person, area, locality and occupation. Customer always want more service by paying less.

The young people should start investing earlier so that they can reap the benefits of investing in future. People should keep their eye open and keep updating themselves about various investment avenues so that they can get safe returns.

From this study we have also understand the point of view of the investors to invest their money with the right company at the right time.

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Bibliography

For Books:
1. Kothari C.R., Research Methodology, 2nd Revised Edition, 2004, New Age International (P) Limited Publishers, New Delhi

For Magazines, Periodicals, Journals, Newspapers:

1. Business World 2. Business Economy 3. Business Standard 4. The Economic Times 5. Daily Research Report of India Infoline- Market Mantra

Webliography:
1. www.indiainfoline.com 2. www.sharekhan.com 3. www.nse.india.com 4. www.indiabulls.com 5. www.religareonline.com 6. www.angelbroking.com 7. www.icicidirect.com 8. www.kotaksecurities.com 9. www.smcindiaonline.com 10. www.hfdcsec.com

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ANNEXURE QUESTIONNAIRE

Name: _____________________________________ Phone Number: ________________________ Date: ________________

1. What is your preference of investment? Equity Shares Mutual Funds Fixed Deposits Insurance Others

2. Do you know about Demat account? Yes No

3. Do you intend to open a Demat account? Yes Already Have

4. Since how many years you trade? 1 year 2 to 3 years 4 to 7 years More than 7 years

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5. How frequently do you trade? Daily Weekly Fortnightly Monthly None

6. What type of trading you prefer? Intraday Delivery Both

7. What type of trading you prefer? Online Offline

8. What is your occupation? Business Service Professionals

9. What amount of savings you invest yearly? 1000-50000 50000-100000 100000-150000 Above 150000

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10. What is your first priority while opening a Demat account? Account Opening Charges Brokerage Customer Service Security in Transaction Convenience

11. In which company you have Demat and Trading account? India Infoline Angel Broking Religare India Bulls Sharekhan Others

12. Are you satisfied with the services of your present broking firm? Completely Satisfied Somewhat satisfied Totally Dissatisfied None

13. Are you satisfied with the software provided by the broking firm for online trade? Yes No

14. Do you operate Demat account by yourself or through an agent of your broking firm? Yourself Agent

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15. Which is the best broking firm, according to you? India Infoline Angel Broking Religare India Bulls Sharekhan Others

16. Will you be the future customer of India Infoline Limited? Yes No Cant Say

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