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Tausif Summer Internship Training Report

The document is a summer internship training report submitted by Tausif Nazir to Oriental College of Management after completing an internship at MP Wealth Satna studying stock market analysis. It includes a declaration, certificate, acknowledgements, contents, preface, and executive summary sections. The executive summary indicates that the research aimed to understand which brokerage house people prefer when investing in the stock market and what factors people consider most important. The major findings were that people are interested in investing in the stock market but lack knowledge, and the report provides insights into the company's strengths that could be leveraged when pitching to potential clients.

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nidhi chouhan
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0% found this document useful (0 votes)
328 views84 pages

Tausif Summer Internship Training Report

The document is a summer internship training report submitted by Tausif Nazir to Oriental College of Management after completing an internship at MP Wealth Satna studying stock market analysis. It includes a declaration, certificate, acknowledgements, contents, preface, and executive summary sections. The executive summary indicates that the research aimed to understand which brokerage house people prefer when investing in the stock market and what factors people consider most important. The major findings were that people are interested in investing in the stock market but lack knowledge, and the report provides insights into the company's strengths that could be leveraged when pitching to potential clients.

Uploaded by

nidhi chouhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Summer Internship Training Report

On
Study of Stock Market Analysis
At
MP WEALTH SATNA (BUSINESS PARTNER ADITYA BIRLA MONEY
LTD & MASTER TURST LTD)

Submitted By
Tausif Nazir
M.B.A , F.T. Course, Semester III
Batch 2019-2021

Oriental College of Management

BARKATULLAH UNIVERSITY
Year 2021
DECLARATION
I hereby declare that my summer training report entitled A study on Stock market and
its analysis provided by MP Wealth ltd at Satna is an authentic work done by me as part
of study at MP wealth Satna.
The project was undertaken as a part of the curriculum of MBA Full Time Program of
Barkatullah University, Bhopal. This has not been submitted to any other examination
body earlier.

Date:

Signature –
Tausif Nazir,
MBA, Full Time III- Semester,
Oriental College of Management,
Bhopal
CERTIFICATE
ACKNOWLEDGE

“Gratitude is not a thing of expression; it is more a matter of feeling”.


There is always a sense of gratitude which one express for other for their help and
supervision in achieving the goals. I too express my deep gratitude to each and every
one who has been helped to me in completing the project report successfully. First, of
all I am highly thankful to Dr. Mamta Manshani (HOD), for allowing me to pursue my
summer Training Report on “A Study on Stock Market and its research by MP Wealth
Pvt Ltd”.

My special thanks to Advocate Mr. Sumit Tripath (Branch Sr. Manager) who
encouraged me, properly guided me in each and every possible way throughout my

Training Report .
I give my regard and sincere thanks to Professor. Amita Singh Rajput (Mentor) who
has devoted her precious time in guiding me and helped me in time.
Contents

Serial Particular Page no.


No.
1 Executive Summary 7
2 Introduction to Topic 8
3 Objective of Research 9
4 Stock Market in India 10-19
5 Functions of Stock Exchange 20

6 Online Trading 21-23


7 About Company 24-26
8 Area of Business 27
9 Services Provided 28-29
10 Products and Required Document 30-33

11 Wide Options while trading 34-38

12 Introduction to Study 39
13 Research Methodology 40-45

14 Data Collection and Analysis 46-72

15 Results Findings and Suggestions 73

16 Limitation 74
17 Conclusion 75-76
18 Bibliography 77-78
19 Annexure 79
20 Questionnaire 80-83
PREFACE

Indian stock exchanges host the greatest number of listed companies after United
States. About 2500companies are listed in the Bombay Stock Exchange and the
National Stock Exchange. Apart from foreign institutional investors, Indian stock
market has some 30 million domestic investors. The working of stock markets has
started in India as early as 1875, when 318 persons coming together to Native Share and
Stock Brokers Association, with Re.1 for membership free. Closest to BSE is National
Stock Exchange, also located at Bombay. Nifty is the market index of NSE. Indian stock
market has seen many ups and downs, but now is flying high, crossing every previous
record and zoom to even further heights. BSE-Sensex crossed the four-figure mark of
1000 in 1990and had a smooth bull ride till 1992, when the big-full of Indian stock market,
Harshad Mehta became a villain in the in famous Harshad Mehta scam broke out. The
Sensex lost 570 points in no time and some eight to 12 million investors were pushed to
bankruptcy. After that incidence, came the Securities and Exchanges Board of India.
With the enforcement of several regulations and strict guidelines, the confidence of
investors was somewhat regained. With the present technology and practices, it is next
to impossible to commit a fraud in Indian Stock market. So claims the SEBI. Under the
watchful eyes of SEBI, Indian Stock markets once again gained momentum. The Sensex
crossed reached and crossed 6000 mark in 2000 and crossed the 7000 and 8000 marks
in 2005.Foreign Institutional Investors are pumping in money into the market. This
research aims to analysis Stock broker on the basis of their Services, products, growth,
and their competitiveness. Because Stockbrokers are one of the main participants in
stock exchanges Worldwide, they often act as an agent for their clients, making trades
on their behalf. They also act as advisors, providing suggestions to their Clients on what
stocks to buy and sell
EXECUTIVE SUMMARY

STUDY OF STOCK EXCHANGE AT “ADITYA BIRLA CAPITAL”

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 is that
people are interested to invest in stock market but them Lack knowledge. Through this
report we were also able to understand, what our Company’s (ADITYA BIRLA CAPITAL)
positive are and strong points, on the basis of which we come to know what can be the
basis of pitching to a potential Client.
At the end of the report limitations, SWOT analysis, conclusion of the research and
Appendix which includes questionnaire and the list of the city where the Argent capital
are running. Last there is Bibliography, FAQ, and Glossary that has the technical terms
of the repo.
INTRODUCTION TO TOPIC
In most industrialized countries, a substantial part of financial wealth is not managed
directly by savers, but through a financial intermediary, which implies the existence of
an agency contract between the investor (the principal) and a broker or portfolio
manager (the agent). Therefore, delegated brokerage management is arguably one of
the most important agency relationships intervening in the economy, with a possible
impact on financial market and economic developments at a macro level. In most of
the metros, people like to put their money in stock options instead of dumping it in the
bank-lockers. Now, this trend pick pace in small but fast developing cities like Bhopal,
Gurgaon, jabalpur, guna,shahdoletc. My research is based on the job location of
SATNA and its nearby areas. As the per-capita-income of the city is on the higher side,
so it is quite obvious that they want to invest their money in profitable ventures. On the
other hand, a number of brokerage houses make sure the hassle free investment in
stocks. Asset management firms allow investors to estimate both the expected risks
and returns, as measured statistically. There are mainly two types of Portfolio
management strategies.
1. Passive Portfolio Strategy
2. Active Portfolio Strategy
OBJECTIVE OF RESEARCH

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 to find
out the truth that is hidden and which has not been discovered as yet. My research study
has two objectives:

PRIMARY OBJECTIVE:
• How stock market works and to know its various attributes.
• To find out which age groups of investors are actively participating in the market,
people perception and preference towards equity market in Satna.

SECONDARY OBJECTIVE:
• To find out the most preferred avenues for investment in Satna.
STOCK MARKET IN INDIA
STOCK MARKETS IN INDIA

“Stock exchange means anybody or individuals whether incorporated or not,


constituted for the purpose of assisting, regulating or controlling the business of
buying, selling or dealing in securities.” The securities include: Share of public company,
Government Securities bonds.

Stock exchange are the perfect type of market for securities whether of government
and semi-govt., bodies or other public bodies as also for shares and debentures issued
by the joint-stock companies. In the stock market, purchases and sales of shares are
affected in conditions of free competition. Government Securities are trades outside
the trading ring in the form of over-the-counter sales or purchase. The bargains that
are stuck in the trading ring by the member of the stock exchanges are at the fairest
prices determined by the basic of laws of supply and demand.
History of Stock Exchange:

The only stock exchanges operating in the 19th century were those of Mumbai setup in
1875 and Ahmadabad set up in1894. These were organized as voluntary non-profit
marketing associations of brokers to regulate and protect their interests. Before the
control on securities under the constitution in 1950, it was a state subject and the
Bombay securities contracts (Control) act of 1925 used to regulate trading in securities
contracts (control) act of 1925 used to regulate trading in securities. Under this act, the
Mumbai stock exchange was recognised in 1927 and Ahmadabad in 1937. During the war
boom, a number of stock exchanges were organized. Soon after it became a central
subject, central legislation was proposed and a committee headed by A. D Gorwala went
into the bill for securities regulation. On the basis of the committee’s recommendation
and the public discussion, the securities contract (regulation) act became law in 1956.
National Stock Exchange
NSE (National Stock Exchange)

NSE was set-up with the main objective of: Ex=stablishing a nation-wide trading facility
for equities and debt instruments. Ensuring equal access to investors all over the
country through am appropriate communication network providing a fair, efficient and
transparent securities market to investors using electronic trading systems. Enabling
shorter settlement cycles and book entry settlements systems and meeting the current
international standards of securities markets. The standards set by NSE in terms of
market practices and technology markets. The standards set by NSE in terms of market
practices and technology, have become industry benchmarks and are being emulated
by other market participants. NSE is more than a mere market facilitator. It’s that force
which is guiding the industry towards new horizons and greater opportunities.
National Stock Exchange has a total market capitalization of more than US$3 trillion,
making it the world's 9th-largest stock exchange as of May 2021.
NSE account for only around 4% of the Indian economy, which derives most of its
income-related activity from the so-called unorganized sector and household
spending.
Bombay Stock Exchange
BSE (Bombay Stock Exchange)

Bombay stock exchanges linked is the oldest stock exchange in Asia with a rich
heritage. Popularly known as 'The native share and shareholders association" in 1875.
It is the first stock exchange in the country to obtain permanent recognition in 1956 from
the government of India under securities contracts (regulation) act, 1956. The
exchanges pivotal and pre-eminent role in the development of the Indian capital market
is widely recognized and is index, SENSEX, is tracked worldwide. Earlier an Association
of persons (AOP), the exchanges is now a de- materialized and corporative entity
incorporated under the provisions of the companies act, 1956, pursuant to the BSE
(Corporation and Demoralization) scheme, 2005. Notified by the Securities and
Exchange Board of India with denaturalization, the trading rights and ownership rights
have been de-linked effectively addressing concerns regarding perceived and real
conflicts of interest. The exchange is professionally managed under the overall
direction of the board of directors. The board comprises eminent professionals,
representatives of trading members and the Managing directors of the exchange. The
board is inclusive and is designed to before from the participation of market
intermediaries. In terms of organization structure, the board formulates larger policy
issues and exercises overall control the committees constituted by the board are broad
based. The day-to-day operations of the exchange are managed by the managing
director and a management team of professionals. The exchange has a nationwide
reach with a presence in 417 cities and towns of India. The systems and processes of the
exchange are designed to safeguard market integrity and enhance transparency in
operations. The exchange provides an efficient and transparent market for trading in
equity, debt instrument and derivatives.
SEBI (Securities and Exchange Board of India)

In 1998, the SEBI was established by the Government of India through an executive
resolution, and was subsequently upgraded as a fully autonomous body (a statutory
board) in the year 1992 with the passing of the SEBI act on 30th Jan 1992. In place of
Government control statutory and autonomous regulatory boards with defined
responsibilities, to cover both development and regulation of the market, and
independent powers have been set up. Paradoxically this is a positive outcome of the
securities scam of 1990-91. The basic objectives of the board were identified as: To
promote the interests of investors in securities. To promote development of securities
market. To regulate the securities market and for matters connected there with or
incidental there to. Since its inception SEBI has been working targeting the securities
and is attending to the fulfilment of its objectives with commendable zeal and
dexterity. The improvements in the securities markets like capitalizations
requirements, margining, establishments of clearing corporation etc. reduced the risk
of credit and also reduced the market. SEBI has introduced the comprehensive
regulatory measures prescribed norms, the eligibility criteria, the code of obligations
and the code of conduct for different intermediaries like, bankers to issue, merchant
bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating
agencies, underwriters and others. It has framed by-laws, risk identification and risk
management systems for clearing houses of stock exchanges, surveillance system
etc. which has made dealing in securities both safe and transparent to the end
investors.
Another significant event is the approval of trading in stock indices (like S&P CNX Nifty
and Sensex) in 2000. A market index is a convenient and effective product because of
the following reasons: It acts as a barometer for market behaviour. It is used to
benchmark portfolio performance. It is used in derivative instrument like index futures
and index options. It can be used for passive fund management as in case if index
funds. Two board approaches of SEBI is to integrate the securities market at the
national level, and also to diversify the trading products, so that there is an increase in
number of traders including banks, financial institutions, insurance companies,
mutual timid, primary dealers etc. to transact through the exchanges. In this context
the introduction of derivatives trading through Indian stock exchanges permitted by
SEBI in 2000 AD is a real landmark. SEBI appointed the LC. Gupta Committee in 1998 to
recommend the regulatory frameworks for derivatives trading and suggest by-laws
for regulation and control of trading and settlement of derivatives contracts. The board
of SEBI in its meeting held on May 11, 1198 accepted the recommendations of the
committee and approved the phased introduction of derivatives trading in India
beginning with stock index figures. The board also approved the "Suggestive by-laws"
as recommended by the Dr. L.C. Gupta Committee for regulation and control of trading
and settlement of derivatives contracts. SEBI then appointed the J. R. Verma
Committee to recommend Risk Containment Measures (RCM) in the Indian stock index
futures market. The report was submitted in November 1998. However, the Securities
Contracts (Regulation) act, 1956 (SCRA) required amendment to include "derivatives"
in the definitions of securities to enable SEBI to introduce trading in derivatives. The
necessary amendment was then carried out by the Government in 1999.
Functions of Stock Exchange

Stock exchanges provide liquidly to the listed companies. By giving quotations to the
listed companies, they he trading and raise funds from the market. Over the hundred
and twenty years during which the stock exchanges have existed in this country and
through their medium, the central and state government have raised mores of rupees
by floating public bans. Municipal corporations, trust and local bodies have obtained
from the public their financial requirements, and industry, trade and commerce- the
backbone of the country's economy-have secured capital of crows or rupees through
the issue of stocks, shares and debentures for financing their day-to-day activities,
organizing new ventures and completing projects of expansion, diversification and
modernization. By obtaining the listing and trading facilities, public investment is
increased and companies were able to raise more funds. The quoted companies with
wide public interest have enjoyed some benefits and assets valuation has become
easier for tax and other purposes.
ONLINE TRADING
ONLINE TRADING
Trading in the stock market has become less time consuming these days as you can
trade all by yourself without the assistance of a broker by means of online trading. Just
like shopping for groceries online, you can buy and sell stocks online. You need not be
an expert to begin online trading as these trading platforms are user friendly and do not
necessitate any special learning. have even made things easier for an investor or trader
as you can carry out any transaction in the stock market through your smartphone
itself. You can trade from anywhere anytime through the mobile trading app such as
Zerodha (KITE) Upstox.
Trading platforms provide all the necessary support and assistance by providing
secured real time access to trading, research reports, price analysis of stocks, market
news, etc. You can buy or sell shares if you have a trading account and an internet
connection. Not only that, you can trade in currency, commodity, etc. through one single
trading platform. platforms help you trade without any difficulty as these platforms
enable high speed trading. These platforms have revolutionized the way trading is done.
You can simply download these to your system or mobile and can begin trading.
You can place trade orders or cancel orders at your will from the comforts of your home.
It allows you to make your own decision with regards to trading without any
interference of the broker. You can buy shares or invest in IPO or buy mutual funds as
well.
Online trading can be done by simply opening a Demat and trading account with any
SEBI registered broker. Account opening can be done in a matter of 15 minutes. The
documents required to open an account are PAN card, address proof, AADHAAR card,
mobile number linked to AADHAAR, bank statement, cancelled cheque leaf and
passport photograph.
The Advantages of Online Trading are:

• It’s Simple: It enables a trader to have a hassle-free trading experience. Anyone


can use these platforms as specific skill is not required to carry out trading
online.
• It is Less Expensive: It is less expensive as compared to traditional mode of
trading. Brokers also promote online trading as it reduces maintenance and
other costs incurred by the broker.
• Quick & less time consuming: Trading can be done in a seamless manner and in
less time. Before the advent of online technologies, trading was a cumbersome
process as you had to visit the broker or call your broker for placing or cancelling
trade orders. Now, you can carry out trading even through a smartphone in the
simplest way.
• Complete Control: It allows you to have complete control over your portfolio. You
can place trade orders from anywhere anytime. That is the kind of flexibility you
get due to online trading.
• Chances of Error is less: In case of traditional offline trading, there were more
chances of errors due to miscommunication between the traders and brokers.
But in online trading, you can place trade orders or cancel without broker’s
interference and hence can manage trade transactions by yourself.
• Monitor Investment All time: You can monitor investments anytime. There are
mobile trading apps that can be downloaded in your smartphone which help you
stay in touch with the markets and also monitor your investment anytime and
take proper strategic moves accordingly. Loss making stocks can be removed
and profit-making stocks can be added to your portfolio by observing the way the
market moves.
• Access Reports : You can get access to top research recommendations, reports,
analysis on stock price based on various charts. There are various brokerage
websites through which you can have discussions with research experts as
well. You can take the best move with the help of financial advisors too.
About Company
PROFILE OF THE COMPANY

Name of the Company: Aditya Birla Capital

Year of establishment: October 15 2009

Headquarter: Mumbai, Maharashtra

Nature of Business: Service Provider

Services: Depository Services, Fundamental and Technical Research

Employees: 22,500

Vision Statement:

“To be a leader and role model in a broad-based and integrated financial


services business”

Slogan: My World, My Way-Living

Mission : " To deliver superior value to our customers, shareholders,


employees and society at large.
About Aditya Birla Capital

Aditya Birla Capital Limited (ABCL) is the holding company for the financial services
businesses of the Aditya Birla Group.

ABCL’s subsidiaries have a strong presence across Protecting, Investing and Financing

solutions, ABCL is a universal financial solutions group catering to diverse needs of its

customers across their life stages. Powered by more than 22,500 employees, the

subsidiaries of ABCL have a nationwide reach with 850+ branches and more than

2,00,000 agents / channel partners and several bank partners.

As of March 31st, 2021, Aditya Birla Capital Limited manages aggregate assets under

management over Rs. 3350 billion, has a consolidated lending book of approx. Rs. 606

billion, and an active customer base of over 24 million, through its subsidiaries and joint

ventures.

Aditya Birla Capital Limited is a part of the Aditya Birla Group, in the league of Fortune

500. Anchored by an extraordinary force of over 140,000 employees, belonging to 100

nationalities, the Aditya Birla Group operates in 36 countries across the globe.
Areas of business

Aditya Birla capital has financial products and services in the following six sectors:
1. Distribution and broking: Third-party investment products, equity and commodity
trading for retail and institutional customers.

2. Mutual fund : selling mutual fund in active or progressive fund , liquid fund or balance
fund etc there is many option in mutual fund.

3. Government securities : it is also provide to buy or sell govt. securities like sgb etc
finance for capital equipment and infrastructure.

4. Investment banking: Advisory and debt and equity market products for corporate
and small and medium enterprises.

5. Private equity: Investments in India and other countries.

6. Wealth management: Suite of advisory and investment offerings for high-net-worth


individuals.

The company has entered into an understanding with Indian stock Securities Co to
promote an alliance in private equity, investment banking including cross border
merger and acquisition, securities business including broking and distribution,
structured finance and other business areas such as wealth management. It has also
entered into an understanding with Equifax Inc and CRISIL to develop plans to create a
credit information company in India.
Services provided by the ADITYA BIRLA CAPITAL
1. Equities and Derivatives
Our Retail Equity Business caters to the needs of individual Indian and Non-Resident
Indian (NRI) investors. Aditya Birla Capital offers broker assisted trade execution,
automated online investing and access to all IPO's. Through various types of brokerage
accounts, Aditya Birla Capital offers the purchase and sale of securities which includes
Equity, Derivatives and Commodities Instruments listed on National Stock Exchange of
India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

2. Aditya Birla Capital equity analysis


Building and maintaining your ideal portfolio demands objective, dependable
information. Aditya Birla Capital Equity Analysis helps satisfy that need by rating stocks
based on carefully selected, fact-based measures. And because we're not focused on
investment banking, we don't have the same conflicts of interest as traditional
brokerage firms. This objectivity is only one important difference in our ratings.

3.Depository Services
Aditya Birla Capital is a depository participant with the National Securities Depository
Limited and Central Depository Services (India) Limited for trading and settlement of
dematerialized shares. Aditya Birla Capital performs clearing services for all
securities transactions through its accounts. We offer depository services to create a
seamless transaction platform – execute trades through Aditya Birla Capital Securities
and settle these transactions through the Aditya Birla Capital Depository Services.
Aditya Birla Capital Depository Services is part of our value-added services for our
clients that create multiple interfaces with the client and provide for a solution that
takes care of all your needs.
World class services that we offer for you:

1. DEMAT A/C opening is free and after 1-year annual maintenance charge (AMC) Rs/-
750 only.

2. Trading software provided to its customers is made by ADITYA IT SERVICES.

3. Calls made by ADITYA BIRLA dealer hit’s 85% to 90%.

4. Online Pay In-Pay out by self if you have trading software.

5. All market info. Regarding shares will notify you by calls, messages and email.

6. Providing one stock dealer.

Our Brokerage rates:


INTRADAY DELIVERY
.03 paisa (Flexible) .30 paisa (Flexible)
OPTION TRADING FUTURE TRADING
RS 50 PER LOT 0.03%
Products and Required Documents
DEMAT ACCOUNT
This account allows the client to trade through our website and mobile app
and is suitable for the retail investor who is risk-averse and hence
prefers to invest in stocks, commodities, options and futures.
Features
➢ Online trading account for investing in Equity and Derivatives
➢ Integration of On-line trading, Saving Bank and Demat Account.
➢ Instant cash transfer facility against purchase & sale of shares.
➢ Competitive transaction charges.
➢ Instant order and trade confirmation by E-mail.
➢ Streaming Quotes. (Cash & Derivatives)
➢ Personalized market watch.
➢ Single screen interface for Cash and derivatives and more.
➢ Provision to enter price trigger and view the same online in market
watch.
SPEEDTRADE
SPEEDTRADE is an internet-based software application, that enables you
to buy and sell in an instant.
Features
➢ Instant order Execution and Confirmation.
➢ Single screen trading terminal. (NSE AND BSE BOTH)
➢ Real-time streaming quotes, tic-by-tic charts.
➢ Market summary (Cost traded scrip, highest value etc.)
➢ Hot keys similar to brokers terminal.
➢ Alerts and reminders.
➢ Back-up facility to place trades on Direct Phone line transfer.
DOCUMENTS: Pan card is must.

Photo ID Proof Residence Proof


• Passport • Passport(valid)
• Pan Card • Voter's ID
• Driving License • Driving License(valid)
• Voter's ID • Bank Statement(latest)
• Telephone Bill(latest)
• Electricity Bill(latest)
• Ration Card
• Flat Maintenance Bill(latest)
• Insurance Policy(latest)
• Leave-License/Purchase
Agreement(latest)

2 Photographs
Customer can directly pay the opening charges through online banking. I.e
; UPI Transfer
ADDITIONAL DOCUMENTS FOR NON-INDIVIUALS:

1. Copy of the balance sheet for the last 2 financial years (copies of annual balance
sheet to be submitted every years)

2. Copy of latest share holding pattern including list of all those holding more than 5%
in the share capital of the company, duly certified by the company secretary/ whole
time Director/MD. (copy of updated shareholding patterns to be submitted every year)

3. Copies of the memorandum and articles of association in case of a company / body


corporate or partnership deed in case of a partnership firm

4. Copy of the Resolution of Board of Directors’ approving participation in equity /


derivatives/ debts trading and naming authorized persons for dealing in securities.

5. Photographs of partners/whole time directors, individual promoters holding 5% or


more, either directly or indirectly, in the shareholding of the company and of persons
authorized to deal in securities.

6. Net worth certified by Chartered accountant.

7. Declaration on letterhead of firm as per prescribed format for sole proprietorship


and partnership Firms.
WIDE OPTION WHILE TRADING:
A product for every need:.
Aditya Birla capitalist is the most comprehensive website, which allows you to invest
in shares, mutual funds, derivatives (Future and Option) and other financial products.
Simply put, we offer you products for every investment need of yours.

Trading in shares:
Aditya Birla capital offers you various options while trading in shares.

Cash trading:
This is a delivery based system, which is generally done with the information of

taking delivery of shares or monies.

Margin Trading:
You can also do an intra-settlement trading up to 3 to 4 times your available funds,
where in you take long buy/short sell position in stocks with in the intention of squaring

off the position within the same day settlement cycle.

In margin trading, you take buy/sell position in stocks(s) with the intention of acquiring
off the position within the same settlement cycle. If, during the course of the settlement
cycle, he price moves in your favour (rises in case you have a buy positioner falls in case
you have a sell position), you make profit. In case you have the option to take/give
delivery of buy/sell position respectively if you have sufficient cash/securities to do so.
Normally to buy shares, you have to place (ensure availability of limit) 100% of the order
value, while to sell shares, you need to have shares in your Demat account. However,
margins are blocked only to safeguard any adverse price movement

Margin PLUS Trading:.


• Through Margin PLUS you can do an intra-settlement trading up to 10 times your
available funds, where in you take long buy/sell position in stock with the
intention of squaring off the position within the same day’s settlement cycle.

Margin PLUS will give a much higher leverage in your limits .

• Margin PLUS is an order placement feature where you can take a position at
market price and also place a cover order for the position specifying the SLTP
and the limit price. This will minimize the loss cover at the time of taking the
position itself. There by it gives a clear view of maximum downside involved in a
particular position at a particular price, Aditya Birla capital won’t levy a normal
margin ranging from 21% to 50%. It would block he maximum loss which
customer can suffer.

Spot Trading:
.This facility can be used only for selling you is demitting stocks which already exist in
your Demat account. When you are looking at an immediate liquidity option, ‘cash on
spot’ may work the best for you, on selling shares through “cash on spot”, money is

certified to your bank a/c the same evening & not on the exchange payout date .

BTST: .Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on
1stand 2ndday after the buying order date, without you having to Waite for the receipt of

shares into your Demat account.

Call N Trade: Call N Trade allow you call on a local number in your city & trade on the
telephone through our customer services Executive.
Trading in NSE/BSE: through Tata securities you can trade on NSE and BSE
Market order:
This is an order to buy sell securities at the best price obtainable in the market at the
time it is matched by the exchange. Therefore, change of it getting executed are better.
In case of market order for NSE, all market order placed which are not executive fully;
it becomes a limit order for the balance quantity at the last traded price.

Market Order in BSE: Explanation:


Market order can be placed only during market hours (i.e., when the Exchanges is
open for trading).You could trade by placing market orders during market hours that
allows you to trade at the best obtainable price in the market at the time of execution of

the order.

Limit Order: Limit Order is an order to buy or sell securities in which you specify the
maximum price per unit in case of a buy order and the minimum price per unit in case of
sell order. The actual transaction can be at a price more favourable than the price
specified. Allow you to place a buy/sell order at a price defined by you. The execution can
happen at a price more favourable than the price, which is defined by you, limit orders

can be placed by you during holidays & non market hours too.

Online confirmation of Order and trade:


You get online confirmation of orders and trades-the status of any order is updated on
real-time basis in the Order Book. As soon as you place your order they are validated by
the system and sent to the exchange for execution. The entire process is fully
automation and there are no manual interventions.
GTC, GTD and IOC Order: A Good Till cancelled (GTC) order remains in the system
until the trading members cancels it. However, the system cancels this order if it is not
trade within a number of days parameterized by the Exchanges. A Good Till Days/Date
(GTD) order allows the user to specify the number of days/date till which the order
should stay in the system if not executed. The maximum number of days for which the
GTC/GTD order can remain in the system is notified by the exchange from time to
time after which the day/date on which the order is placed and inclusive of holidays. An
immediate or cancel (IOC) order allows the user to buy or sell a security as soon as the
order is released into the system, falling which the order is cancelled from the
system. Partial match is possible for the order and the unmatched portion of the order
is cancelled immediately.

Disclose Quantity (DQ) Order:


Normally, the order quantity is disclosed in full to the market. An order with a disclosed
quantity (DQ) condition/attribute allows the trading members to disclose only a part of
the order quantity to the market. For example, an order of 1000 with a disclosed quantity
condition of 200 will mean that 200 is displaced to the market at a time. After this traded,
another 200 is automatically released soon till the full order is executed. DQ (Disclosed
Quantity) should not be less that 10% of the order quantity and at the same time should
not be greater than or equal to the order quantity.

Stop Loss Order:


A stop loss order allows the client to place an order which gets activated only when the
market price of the relevant securities reached or crosses a threshold price specified
by the investors in the form of ‘stock loss trigger price’. When a stop loss trigger price
(SLTP) is specified in a limit order, the order becomes one which is conditional on the
market price of the stock crossing the specified SLTP. The order remains passive (i.e.
not eligible for execution) till the condition is satisfied. Once the last traded price of
the stock reached or surpasses the SLTP, the order becomes activated and then on
behaves like a normal limit order. It is used as a tool to limit the maximum loss on a
position.

Stoploss by Order:
‘A’ short sell reliance shares at Rs. 325 in experience that the price will fall. However, in
the event the price rises above his buy price ‘A’ would like to limit sell order specifying a
stock loss trigger price Rs. 305 and a limit price of Rs. 300.

Trade in derivatives:
Future:
Through Aditya Birla you can now trade in index and stock futures on the NSE in future
trading, you take buy/sell position in index or stock (S) contract having a longer contract
period of up to 3 month. Trading in FUTURE is simple if, during the course of the contract
life, the price moves in favor (i.e. rises in case you have a bye position or sell in case you
have a sell position), you make a perfect. Presently only selected stock, which meet the
certain liquidity and volume, have been enabled for future trading. Calculate index and
now your margin are tools to help you in calculating your margin requirement and also
the index & stock price movement

Option:
An option is a contract, which gives buyer the right to buy or sell shares at a specific
prices, on a before a specific date. For this, the buyer has to pay to the seller some
money, which is called premium. There is now obligation on the buyer to complete the
transaction if the price is not favorable to him. To take the buy/sell position on
index/stock option, you have to place certain % of order value as margin. With option
trading, you can leverage on your trading limit buy taken buy/sell position much more
that what you could have taken in cash segment.
INTRODUCTION OF STUDY
Research Methodology

Research Design:
A research design is a master plan or a model to conduct a formal investigation and

survey. It is a specification not method and procedures for acquiring the information

needs for solving the problem. It decides the sources of information and methods for

gathering data. A descriptive design is to be selected.

A good research design ensures that the information obtained is relevant to the

research question and that it was collected by objectives. Since research design

simplifies the study, it should be used as guide in collecting and analysing data.
TYPES OF RESEARCH

On the basis of theoretical study, a research has many types. All of these are distributed
on the nature of

research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One-time research

Our research is based on Descriptive, Qualitative and Quantitative research


Descriptive Research: - Descriptive research includes surveys and fact finding
enquires of different kinds. The major purpose of descriptive research is description of
the state of affairs as it exists at present. Researcher has no control over the variables
of this type of research.
Qualitative Research: - In our research we need comparison between different stock
brokers. So this based on all qualitative data. In short, Qualitative research is especially
important in the behavioural sciences where the aim is to discover the underline
motives of human behaviour. Through such research we can analyses various factors
which motivate to people to behave in a particular manner or which make people like or
dislike a particular thing.
Quantitative research: - Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomena that can be expressed in terms of quantity. So,

we can use it in our research for collection of all the numerical data .
Sample Design
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting item
for the sample” Generally Sample designs are two types
1. PROBABILITY RESEARCH DESIGN
2. NON-PROBABILITY RESEARCH DESIGN
We used the probability research design.
SAMPLING UNITS
Sampling unit may be a geographical one, such as state, district, village etc. The
researcher will have to decide one or more of such units that he has to select for his
study. In my research study Noida as a sampling unit.
SIZE OF SAMPLE
“This refers to the number of items to be selected from the universe to constitute a
sample.

SOURCES OF DATA COLLECTION


While deciding about the method of data collection to be used for the study the
researcher should keep to types of data.
1. Primary
2. Secondary Data.
We use in our research primary data, as well as secondary data. Primary means
collected a fresh, and the first-time data and secondary means which are already
available like annual report, magazines etc.

I used primary data, as well as secondary data in research. Primary means collected a
fresh, and the first-time data and secondary means which are already available like
annual report, magazines etc.

The research is conducted with the help of questionnaire therefore the main source of
information is the response of the respondents and fill up the structured questionnaire.
Sampling Method:
Sampling techniques can be broadly classified as non-probability sampling and

probability sampling. Here convenience sampling method of non – profitability

sampling techniques will be used.

Convenience sampling ( Also known as availability sampling) is a specific type

of non- probability sampling method that relies on data collection from population

members who are conveniently available to participate in study , Facebook polls or

questions can be mentioned as a popular example for convenience sampling.

Population

104 respondents selected from Satna city for this research

Methodology for Market Research I divided the entire city into zones and
drew out samples out of each zone. The size of samples drawn from each zone
depended on the prospective ness of the particular area. For e.g., if a particular
research area consisted of Offices then the sample size would obviously be higher than
an area like Shopping mall or BIG CINEMA. This is because Office employees constitute
the service sectors who are the active investors of today. Also, the office areas consist
of people from the business class who have always been in the hunt for quick money,
not to forget that smart and timely investment in the share market can yield to
enormous returns. After dividing the city into zones, the Target audience was probed
using Interviews and questionnaires. These were later analysed to draw out conclusive
results.
The Research Area Comprised of the following places:

Zone Areas Covered Sample Size

Satna M.P Sector LIC Colony 20

Satna M.P Sector Ward no. 031 24

Satna M.P Sector Siddharth Colony 35

Satna M.P Sector Nai Basti 25

The leads for customer acquisition primarily came from the questionnaires filled up by

prospective customers. Apart from these customers were also pitched through

personal references and contacts. Moreover, the organization takes every possible

effort in order to spread mass awareness. As a result of this publicity campaign,

influenced prospective customers approach the organization. There are various ways

to make people aware about the organization as such Marketing Research, Canopy,

Personal References, Pop-up windows having collaboration with various portals e.g.

googlequestionnaire.com etc. Person with adequate interest leaves his contact

information. Later on these leads are contacted personally for further development.
Data Collection, Analyses and

Interpretation
Market Share of Top 15 Broker Houses

Sr. no Name of Broker Participants %

1 ZERODHA BROKING LIMITED 3391059 18.85

RKSV SECURITIES INDIA PRIVATE


2 1960861 10.90
LIMITED (Upstox)

3 ANGEL BROKING LIMITED 1454167 8.08

4 ICICI SECURITIES LIMITED 1435356 7.98

5 HDFC SECURITIES LTD. 944091 5.25

6 5PAISA CAPITAL LIMITED 845879 4.70

7 KOTAK SECURITIES LTD. 717658 3.99

8 SHAREKHAN LTD 676631 3.76

NEXTBILLION TECHNOLOGY PRIVATE


9 656519 3.65
LIMITED (Groww)

MOTILAL OSWAL FINANCIAL SERVICES


10 543311 3.02
LIMITED

11 AXIS SECURITIES LIMITED 439273 2.44

12 SBICAP SECURITIES LIMITED 322353 1.79

13 IIFL SECURITIES LIMITED 287503 1.60

14 GEOJIT FINANCIAL SERVICES LIMITED 197001 1.10

15 EDELWEISS BROKING LIMITED 157198 0.87


Source : Secondary Data ( Online)

Interpretation: From the above table we can interpret that discount

brokers are having a large number of active clients and people are

preferring them as their charges are less compare to full time broker.

GRAPH
Perecentage of active clients
20
18
16
14
12
10
8
6
4
2
0

Perecentage of active clients


Analysis of the questionnaire

Q.1 Which age group you belong to?

Age Group Respondents

18-25 30

25-38 28

38-40 21

40-50 25

50+ 0

Source : Primary Data ( Questionnaire)

Interpretation: The above table classified the respondents according to their age

group. The majority of the respondents belong to the age group 18 to 25 years and the

second age group is 25 to 38 years .


GRAPH

Age Group
35

30

25

20

15

10

0
18-25 25-38 38-40 40-50 50+
Q.2 Are you aware about equity Investment?

YES/No Total no. of people %

Yes 98 94.23

No 6 5.76

Source : Primary Data ( Questionnaire)

Interpretation: There were almost all respondents are well aware about equity
investment except 6% of total respondents.

GRAPH

RESPONDENTS
Respondents
98

YES NO
Q.3 Which kind of investment do you prefer most?

Analysis :
Kind of Investment Respondents Percentage

Mutual fund 14 13.46

Gold 20 19.23

Equity market 30 28.84

Real estate 10 9.6

Debt market 8 7.69

Insurance 15 14.42

Fixed Deposits 7 6.7

Total 104 100

Source : Primary Data ( Questionnaire)

Interpretation: The most preferred mode of investment in Satna is investment in


equity shares. Though the real market prices are soaring high and the gold is becoming
costly day by day but from the above data it can be concluded that in order to get higher
returns people still prefer to invest in the equity market.
INVESTMENTS
Respondents Percentage

30
28.84
19.23
20

14.42
15
13.46
14

10
9.6

7.69
8

6.7
7

M U TU A L G OL D EQ U I TY R EA L D EB T INSURANCE F I X ED
FUND MARKET ES TA TE M A R K ET D EP OS I TS
RESPONDENTS
Q.4 Which type of trading you prefer ?
Respondents

Valid Respondents Percentage

Online 77 74.0
77

Offline 16 15.4

Not applicable 11 10.6

Total 104 100

Source : Primary Data (Questionnaire)

Interpretation: The result shows that online trading has taken the driver’s seat over
the conventional trading ever since internet triggered a revolution across the globe
16

3.5

ONLINE OFFLINE NOT APPLICABLE


Q.5 If you prefer online trading then the reasons for it?

Respondents Percent

Valid Privacy 20 19.2

User friendly
27 26.0
and time saving

Convenience 20 19.2

All of the above 21 20.2

Total 88 84.6

Missing System 16 15.4

Total 104 100

Source : Primary Data (Questionnaire)

Interpretation: The preferred choice of online trading itself is a proven fact that
most of them find it user friendly, time saving, convenient etc. Hence it does not come
as a surprise as 20% of the sample size preferred all the three options.
GRAPH

RESPODENTS
Respodents

27

21
20

20

PRIVACY USER FRIENDLY CONVIENCE ALL OF THE


AND TIME ABOVE
SAVING
Q.6 Which aspects do you prefer most for your investment decision ?
Analyses
Particular Risk Profit Dividend Regular Safety Other
aspect aspect Aspect Income

Respondents 9 41 15 14 18 3

Source : Primary Data (Questionnaire)

Interpretation: Respondents are ready to take risk as their investment decisions are
mainly guided by the profit aspect and dividend aspect. The respondents are interested
in regular income and that is why they invest in different schemes of mutual funds and
debt market. Mainly respondents are risk takers.

Respondents

3% 9%
18%

14%
41%

15%

Risk Aspect Profit Aspect Dividend Aspect


Regular Income Safety Other
Q.7 How much amount do you invest in a year?
Analyses
Total Investments Respondents Percentage

<100000 25 24.75

100000-1000000 53 52.48

>1000000 23 22.77

Source: Primary Data (Questionnaire)

Interpretation: From the data it can be interpreted that there is a large percentage of
people who invest between 1 lakh to 10 lakhs as compared to those who invest more
than 10 lakhs and less than 1 lakh. This shows that people with less income do not tend
to invest their money while the upper middle class and upper class that have high level
of earning tend to invest more. There are small investors who would like to make quick
gains.
GRAPH

Annual Investment

>1000000

100000-1000000

<100000

0 10 20 30 40 50 60
percentage respondents
Q.8 What factors motivates you to invest in securities?
Analyses
Particulars Respondents Percent

New IPO’s 25 24

Entry of FII’s 9 8.7

More Returns in less 63 60.6


time

Others 7 6.7

Total 104 100

Source: Primary Data (Questionnaire)

Interpretation: From the data it can be interpreted that there is a large percentage
of people who are motivated to invest in securities to get more returns in less time
followed by people who invest in new ipo’s.
GRAPH

Motivation Factors
70

60

50

40

30

20

10

0
New IPO's Entery of FII's More Return in Others
Less time
Resondents Percent
Q.9 In which sector do you prefer most in equity Instrument?
Analyses
Sector Respondents Percentage

IT 14 13.46

Pharmacy 10 9.61

Banking 21 20.19

Petroleum 19 18.26

Real Estate 9 8.65

Metal and Mining 16 15.38

Others 15 14.42

Source: Primary Data (Questionnaire)

Interpretation: It can be concluded from the above data that people tend to invest
more in banking sector, the reason behind this may be because it is regulated by the RBI
and the health of the economy is closely related to the soundness of its banking system.
Hence it is less subject to the market risk and induces people to invest in it. While there
is also a good proportion of people who do invest in real estate sector and the petroleum
sector mainly because there is high level of speculation in these sectors and the
petroleum sector mainly because there is high level of speculation in these sectors.
Investors are risk takers and want to invest in companies which are giving returns in a
short period.
GRAPH

25

20

15

10

0
Percentage1
Respondents

Respondents Percentage1
Q.10 What percentage of your earnings do you invest in share trading?
Analyses
UPTO Respondents Percentage

Up to 10% 41 39.42

Up to 25% 34 32.69

Up to 50% 14 13.46

Above 50% 15 14.42

Total 104 100

Source: Primary Data (Questionnaire)

Interpretation: It can be concluded from the above data that people tend to invest
only 10 % of their annual income followed 25%. People resist towards taking more risk
and likes to save their income.
GRAPH

Percentage of Investment
45

40

35

30

25

20

15

10

0
Upto 10% Upto 25% Upto 50% Above 50%
Respondents Percentage
Q.11 How long are you ready to hold your shares ?
Analyses
Holding year Respondents Percentage

<1 Year 22 21.15

1-3 Year 24 23.07

3-5 Year 41 39.42

>5 Year 17 16.34

Total 104 100

Source: Primary Data (Questionnaire)

Interpretation: From the above data it can be concluded that 39.42% of people are
investing in the equity market are willing to trade for more than 3 Years that is they
would hold the share for more than three years, which implies that they are more
interested in long term gains as compared to those who want to trade for less than a
year.
Percentage of Respondents

16%
21%

23%
40%

<1 Year 1-3 Year

3-5 Year >5 Year


Q.12 How Often do you Trade ?
Analyses
Time Period Respondents Percent

Daily 55 52.88

Weekly 30 28.84

Monthly 13 12.5

Yearly 6 5.7

Total 104 100

Source: Primary Data (Questionnaire)

Interpretation: This shows how stock market has swept the nation as a whole. Most
of the investors prefer daily and weekly trading to keep a watch on the volatility of the
stock market so as to take decisions accordingly.
GRAPH

55

30

13

Daily Weekly Monthly Yearly


Respondents
Q.13 Rank the company "ADITYA BIRLA CAPITAL" according to the quality
of service?

Analyses

Ratings Frequency Percent

Excellent 30 28.84

Very Good 25 24.03

Good 29 27.88

Average 17 16.34

Below Average 3 2.9

Total 104 100

Source: Primary Data (Questionnaire)

Interpretation: More than half of the sample population was satisfied with the kind
of service that Aditya Birla capital offers to its customers.
GRAPH

35

30

25

20

15

10

0
Excellent Very Good Good Average Below Average
Respondents Percentage
RESULTS AND FINDINGS

1. It can be concluded that from among 104 people surveyed, around 78% of people
prefer to invest in primary market.
2. People with an eye for investment prefer to invest in shares
3. Aditya Birla Capital is a well-known Full Time Broker in the Stock market industry.
4. Although the stock market is highly volatile, people still prefer to invest in sectors
such as petroleum and real estate while the investment in banking sector remains
the highest, followed by real estate sector and petroleum sector.
5. Form 2019 we have seen a boom in stock market trading people are now more
aware towards stock market.
6. Majority of the people are preferring Discount Broker to trade and to invest in
stock market.
7. Zerodha and Upstox are now number one discount broker.
8. Another fruitful finding is that the small investors are mostly willing to trade for
less than 3 years as they are more interest in the short-term gains.
9. In online share trading brokerage and research reports are the major criteria for
selecting a broking company.

SUGGESTIONS

1. The account opening charges of full-time broker should be reduced.

2. Customer care is at its best at Aditya Birla Capital. This should be improved by

prompt customer handling.

3. Company should work on its mobile app UI as it is very complex to understand

and execute orders.

4. Company should advertise more as now the market is getting bigger it’s a

great opportunity to gain more customers.

5. The Account opening time takes about 4-7 days. This should be improved.
Limitations of the Study

1. The main limitation of the research was generated from the small size of the

sample. Under time, the study was performed only with a small portion from

the whole population. This may get the incorrect results.

2. Respondents might have felt hesitation in proving information related to

their age, income, etc. So, there can be some data that might questionable

because of unwillingness of respondents to give right information.

3. Usual sampling errors may exist

4. The universe selected was Satna region. So, the result cannot be

generalized
Conclusion
• It is a good experience for me to conduct research about study of stock market
analysis and perception in stock market. It will prove very helpful to me in my
future career.
• Aditya Birla capital aims to provide better services by consistently
improvement.
• The study concluded: -Aditya Birla capital. has better Portfolio Management
services than Other Companies Aditya Birla capital Ltd. keeps its process more
transparent. It is giving more returns to its investors.
• While conducting the research I can understand of the investor who have
invested in stock market. Their experience of stock market, frequency of stock
market, expected return on what basis they invest and their views about stock
market.
• Market is becoming complex & it means that the individual investor will not have
the time to play stock game on his own. People are less aware about the Services
provided by Aditya Birla capital.
BIBLIOGRAPHY
Books Referred:

• R. C Kothari, Research Methodology, 5thEddition, Vikas Publication


• Philip Kotler , Marketing Management, 7thEddition, Pearsion
• Google search or Wikipedia

Websites
www.nseindia.com
www.bseindian.com
www.adityabirla.com
www.adityabirlacaptial.com
www.tradebrains.in

Journal / Magazines and News Paper

• Equity and Derivatives VOL.8-NISM


• Economic Times
• Mint Newspaper
• Training KIT by Aditya Birla Capital
ANNEXURE
QUESTIONNAIRE
QUESTIONNAIRE

Q.1 Which age group you belong to?


• 18-25
• 25-38
• 38-40
• 40-50
• 50

Q.2 Are you aware about Equity Investment?


• YES • NO

Q.3 Which kind of investment do you prefer most ?


• Mutual Fund
• Gold
• Equity Market
• Real Estate
• Debt Market
• Insurance
• Fixed Deposits
Q.4 Which type of trading you prefer ?
• Online
• Offline
• Not Applicable
Q.5 If you prefer online trading then the reasons for it?
• Privacy
• User Friendly and Time saving
• System
• All of the above
Q.6 Which aspects do you prefer most for your investment decision ?
• Risk Aspect
• Profit Aspect
• Dividend Aspect
• Regular Income
• Safety
• Other
Q.7 How much amount do you invest in a year ?
• <100000
• 100000-1000000
• >1000000
Q.8 What factors motivates you to invest in securities?
• New IPO’s
• Entry of FII’s
• More Returns in less time
• Others
Q.9 In which sector do you prefer most in equity Instrument?
• IT
Pharmacy
• Banking
• Petroleum
• Real Estate
• Metal and Mining
• Others
Q.10 What percentage of your earnings do you invest in share trading?
• Up to 10%
• Up to 25%
• Up to 50%
• Above 50%
Q.11 How long are you ready to hold your shares?
• <1 Year
• 1-3 Year
• 3-5 Year
• More than 5 Year
Q.12 How Often do you Trade?
• Daily
• Weekly
• Monthly
• Yearly
Q.13 Rank the company "ADITYA BIRLA CAPITAL" according to the quality of service?
• Excellent
• Very Good
• Good
• Average
• Below Average

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