Documente Academic
Documente Profesional
Documente Cultură
On
“Business Process Analysis of
Kotak Securities at Lucknow”
For
Kotak Securities Ltd.
Session 2010-11
Department of Management
1
ACKNOWLEDGEMENT
Learning and acquiring knowledge has no leaps and bounds. It is one resource that
never gets exhausted, the more you preach the better it gets and the more it lives
down through ages. From the day since man set his foot on earth learning process
had begun and is still evolving making life happier and memorable. One can only
lead a person to things he needs to know, but never can teach him how to learn.
I express my sincere gratitude towards Mr. Kulbhushan Singh Cluster Head at Kotak
securities for giving need and opportunity to undergo summer training in one of the
I also take the opportunity to thank my Course Co-ordinator Mr. Jatin Srivastava to
provide me with relevant insights to understand the project and guided at every step.
Without his guidance and undivided attention, the project would not have taken this
shape.
2
PREFACE
Any kind of learning is incomplete till it is practically applied in the concerned field.
Only then does a person understands and get hold of even the minutest details of
what he/she has learnt in their stay at the institute doing his/her MBA. So, to
practically apply what I had gained in the past one year in the MBA programme, I
depth knowledge of specific analytical tools, geared to the solution of real life
problems. No doubt every real situation is unique but a set of theoretical tools of
mechanism for handling such situation. So, the MBA curriculum has been desired to
provide to the future manager’s ample practical exposure to the business world. The
opportunity to the student to understand the industry with special emphasis on the
of management.
3
DECLARATION
I, ROHIT SINGH Student of M.B.A. IInd year, Babu Banarasi Das National
declare that all the information facts and figures produced in this report is based on
my own experience and study during my open market research in analyzing the
I further declare that all the information and facts furnished in this
ROHIT SINGH
Roll no.-0905470089
Lucknow
4
TABLE OF CONTENT
Introduction 1- 3
History 4- 6
Company Profile 7- 10
The Group 11- 15
Product Profile 16- 32
CDSL and SEBI 33- 38
Depository Participants 39- 47
Market Share 48- 49
Job Description 50- 53
Objective of the Study 54
Research Methodology 55- 60
Difficulties Faced and Major Limitations 61- 64
Findings and Analysis 65- 75
SWOT Analysis 76- 79
Conclusion and Suggestions 80- 83
Annexure 84- 89
Bibliography 90- 92
5
INTRODUCTION
Practical knowledge is an important suffix to theoretical knowledge. One cannot
merely depend upon the theoretical knowledge. Classroom lectures make the
practical things. However, classroom lectures must be correlated with the practical
indeed an ancient art, it has been practiced in one form of the other since the day of
Adam & Eve. Its emergence is of relatively recent origin for success of any business
& with in this relatively short period it has joined a carry great deal of importance.
achieve profession competence manager ought to be fully occupied with theory and
will increases their Decision making ability and sharpens their tools for this purpose.
As an essential part of our course, I got the privilege to have training in kotak
securities Ltd. (A member of NSE and BSE of India) the work has carried over a
span of 2 months. My job profile includes making customer relation in Lucknow for
the opening of trading & Demat A/c. and to know customer views about our services
6
It has been rightly said that knowledge is power. It is common knowledge that money
has to be invested wisely. If you are a novice at investing, not terms such as stocks,
bonds, equity etc. Relax. It takes years to understand the art of investing. You are
not alone in the quest to crack the jargon. To start with take your investment decision
with as many facts as you can assimilate. But, understand that one can never know
everything. Learning to live with the anxiety of the unknown is part of investing.
Being enthusiastic about getting started is the first step, through daunting at the first
instance. That’s why our investment course begins with a dose of encouragement.
With enough time and a little discipline, you are all but guaranteed to make the right
moves in the market. Patience and the willingness to pepper once savings across a
portfolio of securities tailored to suit once age and risk profile will propel once
revenues at the same time cushion you against any major losses.
Investing is not about putting all your money into the various means . Investing isn’t
gambling or speculation; it’s about taking reasonable risks to reap steady rewards.
Investing is a method of purchasing assets in order in order to gain profit in the form
7
The investing options are many, to name a few-
• Equity
• Bonds
• Mutual funds
• Fixed deposits
• Other
8
HISTORY
9
HISTORY OF THE COMPANY
The Kotak Mahindra group was born in 1985 as Kotak capital management financies
ltd. Uday Kotak, Sindey A.A Pinto promoted the company. Industrialists Harish
Mahindra and Anand Mahindra Took a stake in 1886 and that’s when the
1986: Kotak Mahindra Finance Limited starts the activity of bill discounting.
Kotak Securities.
1996: The auto finance business was hived off into a separate company- Kotak
1998: Enters the mutual fund market with launch of Kotak Mahindra Company
2000: Kotak Mahindra ties up with old mutual for the life4 insurance business. Kotak
10
Kotak securities limited is a subsidiary of Kotak Mahindra Bank Limited is one of
largest private brokerage and distribution house Set up in 1994 by Mr. Uday Kotak.
Kotak securities have been the largest in IPO distribution and were ranked no.1 in
the year 2003-2004 as book running lead managers in I PO’s by prime database.
The core strengths are the expertise in equity research and wide retail distribution
studies, industry and company specific equity research with analysts specializing in
particular economic sectors and large cap stocks. Kotak securities manage assets
11
COMPANY
PROFILE
12
Main areas of business Kotak Securities are :-
• Institutional broking business
• Depository services
• Online trading
institutional business also incorporates a comprehensive research cell with sect oral
Private client group is a special investment division for high net worth individuals.
Nonresident Indian investors, trust corporate and banks the investments product
range at private client group is among the widest in the country and covers debt and
13
Client money management:-
This division provides professional portfolio management services to high net worth
and stock broking gives it the right perspectives from which it provide its clients
7000 agents, 13 branches and over 20 franchisees across India. This network
is used for the distribution and placements of a range of financial products that
includes company fixed deposits, mutual funds initial public offerings, equity
Depository services:-
Kotak Securities is a depository participant with national securities depository limited
broking business investors who use its depository services get dual benefit.
14
Online trading:-
Kotak Securities online broking service kotaksecurities.com offers services for retail
investors who like to trade on net its unique product offering securities as
margins and its market watch facility with real time prices combined in an order
15
The Group
16
THE GROUP
Kotak Mahindra
Venture Capital Fund
Kotak Mahindra ( U K )
Ltd.
Kotak Mahindra
(International) Ltd.
17
Kotak Mahindra Bank
In Feb. 2003 Kotak Mahindra Bank finance limited the group’s flagship company was
given the license to carry on banking business by RBI. This approval creates
banking history since Kotak Mahindra Finance limited is the first company in India to
convert to a bank. Mr. K.M. Gherda is the chairman and Mr. Uday Kotak is the vise
Limited and Ford credit formed to finance all non – ford passenger vehicles. The
company was incorporated on 20th February 1996 and commences its operation on
1st November 1996. The net worth on 31st March was 464 crore. Mr. Kotak is the
chairman and Mr. Dipak Gupta, Mr. C. Jairam, Mr. Gaurang Shah, Mr. Pankaj Desai,
Mr. Nishchal , Mr. Gregery Coham and Mr. Raghu Nandan are the directors of Kotak
Mahindra Bank limited is the asset manager of Kotak Mahindra Mutual Fund.
KMAMC started operation in December 1998 has over 1, 35,000 investors in various
schemes.
18
Kotak Mahindra Venture Capital Fund
KMVCF sponsored by Kotak Mahindra Bank limited was formed to cater the needs
of the modern day entrepreneur. The fund partner with companies for their first and
company could range from Rs. 20 millions to Rs. 100 millions. KMVKF is a SEBI
registered VCF with KMBL as the principal investor and 30 other private investors.
Group and was incorporated in 1994 in Mauritius; with a brand in Dubai and now
international operation are cover the United Kingdom through Kotak Mahindra UK
limited in USA through Kotak Mahindra Inc. USA. These companies are subsidiaries
international banking and brokerage firm and Kotak Mahindra Bank limited. KMCCL
in its franchisee business focuses in fine care areas capital markets, mergers
19
KMCCL has advised some of the largest telecom and cement deals in India. KMCCL
is a leading player in the field of Media and advertisement. KMCCL is also RBI is
approved primary deals in the government securities market. Mr. Kotak is the
U.K. Kotak Mahindra Bank limited believes that life insurance is a logical expansion
of its exiting financial services business. Old mutual is a leading financial services
provider in the world, providing a wide range of financial services in the area of
20
PRODUCT
PROFILE
21
PRODUCT OF THE COMPANY
Technology is revolutionizing every field of human endeavor and activity. The rapid
growth in number volume and value and securities in the Indian capital market
modes, shortcoming of the market became manifest in terms of bad deliveries, delay
in transfer and irregular settlements etc. electronic medium of trading introduced first
by national stock exchange (NSE) followed by the stock exchange Mumbai (BSE) in
1995 by the help of online trading. Share traders can easily purchase and sell their
shares through their own terminals or through broker’s terminal without any paper
work.
nationwide online fully automated screen based trading system (SBTS) where a
member can punch into the computer quantities securities and the prices at which he
likes to transact and the transaction executed as soon as it finds a matching sale or
by orders from a counter party SBTS electronic matches orders on a strict price/ time
priority and hence cuts down on time cost and risk of errors as well as on fraud
22
sensitive information into prevailing prices, thus increasing the informational
efficiency of market.
NSE has main computer, which is connected through very small aperture terminal
(V-SAT) installed at its office, Brokers have terminal installed at their premises which
Investors inform a broker to place an order on his behalf. The broker enters the
orders though his PC and sends signal to the satellite vie V-SAT. The signal is
immediately displayed on the PC of the broker. By the help of given diagram we can
The online division of Kotak securities offers its customers the facility e-broking and
can place orders on the trading engine of the e- broker and the orders are routed the
stock exchange and executed there on. Electronics broking services offered on the
on the NSE the scripts on which NSE moves are fifty which are as follows:
23
ONGC
RELIANCE IND.
TATA CONSULTANTS
INFOSYS TECHNOLOGY
WIPRO
BHARTI AIRTEL
ITC
HLL
SBI
ICICI BANK
HDFC
BHEL
SAIL
RANBAXYLABS
TISCO
HDFC BANK
GAIL
SATYAM COMPUTERS
TATA MOTORS
L&T
BAJAJ AUTO
24
MARUTI UDYOG
RELIANCE ENC
HCL TECHNOLOGY
HERO HONDA
HINDALCO
BPCL
SUN PHARMA
HPCL
GRASIM INDS
CIPLA
NATIONAL ALU
TATA POWER
MTNL
GLAXO SMITH P
ACC
VSNL
M&M
25
ORIENTAL BANK
ZEE TELEFILM
DR. REDDYS
ABB
IPCL
SHIPING COPORATION
TATA CHEMICALS
DABUR
TATA TEA
COLGATE
kotaksecurities.com.
26
Internet bank account with a banking partner to move funds to
partners are Kotak Mahindra bank HDFC, CITI bank or UTI bank.
27
• Initial brokerage payment as per the lowest brokerage slab to be recalculated at
One can open KVA account with any amount between Rs. 10, 00,000 and 5, 00,000
as initial margin.
5 times exposure on the margin initial brokerage payment as per the middle
brokerage slab to recalculated at the end of the month as per the turnover.
28
Access to KEAT desktop free and discount on KEAT premium charge of Rs. 300
Call and trade facility with 20 calls free thereafter Rs. 15 per call.
margin.
Access to KEAT desktop free of cost and KEAT premium for Rs 500 only per
month.
Research advice via SMS for a fee of Rs. 100 per month.
Call and trade facility with 20 calls free thereafter Rs. 20 per call
29
Kotak freeway account:-
Free account can be opened with any amount less than Rs. 1, 25,000 as initial
margin.
• Zero brokerage plans on square off trades, only levy, service tax and other
• And auto square off product where all the cash order would be squared off after
3.10 PM.
30
• Can trader in the derivative segment on the high trader with the normal limit i.e.
31
20 lakhs-60 lakhs 0.27%
60 lakhs-2 crores 0.23%
Kotak Securities has tie up with Citi bank, AXIS bank, KOTAK Mahindra bank, ICICI
Bank and HDFC bank for online fund transfer. Any money owed to client credited
directly into Internet bank account of customer by Kotak securities on the next day.
32
Cheque for margin amount+ application fee in the name of kotaksecurities.com +
a cancel cheque.
Mutual funds:-
One has the same convenience while investing in mutual funds; one can easily
purchase or invest in mutual funds without the hassles of filling application forms.
The bank account will be credited directly by the fund house after T+3 days. To suit
the changing needs you can switch your money online from one scheme to another
33
Franklin Templeton Mutual fund
Cash Squaring Up
of the specified shares that one has purchased before you receive the delivery of the
34
Securities accepted in lieu of cash margin – green channel.
demat account with Kotak securities, bank account with a banking partner. Demat
account can be with Kotak securities or Kotak bank or even with Citi bank. Account
opening fee as per the margin paid up front. Kotak Securities has Internet banking
tie-up
process of application filling, cheque signing and submission. One need to do is fill
the requisite details in the online screens of IPO application. Kotaksecurities.com will
dot the paper work for you on the basis of information provided by you. This is done
35
on the authority of the power of attorney executed by you in favor of
kotaksecurities.com
36
In physical form In demat form
Receipt of corporate benefits need Faster and hassle free receipt of corporate
monitoring and risk of loss in transit not benefits.
ruled out
BUYING:-
37
Posted and handling charges for No posted and handling charges
lodgments and transfers
SELLING:-
Off market transaction are costly Facility for off market transaction
and risky market transactions, specially within
the group
Jumbo lots need to be split into No need to split
market lots for selling
CDSL is another depository after NSDL its promoters are Bombay Stock Exchange,
38
The Calcutta Stock Exchange Association Limited, Bank Of India, HDFC Bank Ltd.
Standard charted bank, State Bank Of India, Bank Of Baroda, Union Bank of Indian,
As on 30th June 2001, CDSL which are to instead to benefit the ultimate investors,
• CDSL choose the Centralized Data Base Architecture with online connectivity
with the DP’s who provide the services to the investors, because of the online
low. CDSL have urged the DP”S to pass on the benefit of lower cost of set up to
investors.
• CDSL on its part have kept its tariff as low as possible. It has virtually nil charges
under all the major heads except against transactions. CDSL might add that right
from the stage of its conceptions,. Its promoters, in the main the BSE, have taken
a public stand that there shall be no custody charge on the ground that
(1) Investors who otherwise keep their scripts at Home, do not insure that charge
and
(2) That they can get more and more investors enthused about Dematerialization
• Software offer to clearing houses of the stock exchange free of cost permits
39
having go route it through a broker account. this facility is a safeguard against
possible mis-directions
• Of client’s securities and it cuts down time taken for Completion of transaction. It
40
Major part of liberalization process was the repeal of the capital Issues (control) Act,
1947, in May 1992. With this, government’s control over issues of capital, pricing of
the issues, fixing of premium and rates of interest on debentures etc. ceased, and
the office which administered the Act Was abolished: the market was allowed to
market, SEBI Act 1992 was enacted to establish SEBI with Statutory powers for:
Its regulatory jurisdiction extends over corporate in the issuance of capital and
securities market. SEBI can specify the matters to be disclosed and the standards of
disclosure required for the protection of investors in respect of issues; can issue
directions to all intermediaries and other person associated with the securities
and can conduit Enquirer, audits and inspection of all concerned and adjudicate
offences under the Act. In short, it has been given necessary autonomy and authority
41
in the market, such as broker and sub broker and sub broker, underwriters, merchant
bankers, bankers to the issues, share transfer agents and registrar to the issues, are
now required to register with SEBI and are governed by its regulations. A code of
conduct for each intermediary has been prescribed in the regulation; capital
adequacy and norms have been specified; a system of monitoring and inspecting
their operations has been instituted for compliment; and discipline action are being
Functions of SEBI
SEBI has been obligated to the interest of the investors in securities and to promote
and development of, and to regulate the securities market by such measures as it
thinks fit.
42
• an issue, merchant bankers ,underwriters, portfolio managers, investment adviser
and such other intermediates who may be associated with securities markets in
any manner;
of securities, foreign institutional investors , credit rating agencies and such other
• Registering and regulating the working of venture capital funds and collective
audits of the stocks exchange, mutual funds and other persons associated with
the securities market and intermediates and self regulating organization in the
securities market;
• Leaving fees or other charges for carrying out the purpose of this sections;
43
• Calling from or furnishing to any such agencies as may be specified by SEBI
such information may considered necessary by it for the efficient discharge of its
functions.
44
ROLE OF THE DP (DEPOSITORY PARTICIPANTS)
for securities traded. Securities are then held in the electronic from through the
Limited (NSDL) is the first depository in India. The functions of NSDL are
• The depository is not just another custodian the depository can legally transfer
• To utilize the services offered by a depository, you must open an account with the
depository through a DP. The DP’s are the link between the shareholder, the
• Depending on the DP, there may or may not be an opening account fee. DP’s
45
• Banks, financial institutions custodians and stockbrokers can become DP’s
NSDL publishes the list of DP’s registered with them, from time to time.
• If you lose your “Statement of Account”, inform the DP and obtain a duplicate.
• If you receive an incorrect dividend amount or do not receive it at all, contact the
company or register.
46
TRADING SYSTEM
THE Exchange, as stated earlier, had an open outcry trading system till March 1995
known as BOLT (BSE online Trading) System w.e.f. March 14, 1995. Through the
BOLT system, the member-broker now enters orders for purchase or sell of
securities from Trader Work Stations (TWSs) installed in their offices instead of
assembling in the trading ring. This system, which was initially both order and quote
driven, is currently only order driven. The system, which is now only order driven,
is not revealed the buyer and sellers of securities do not know the names of each
other.
The member-brokers of the Exchange were permitted to open trading terminals only
within the city limits of Mumbai till1996. The Exchange obtained permission from
SEBI for expansion of its BOLT network to locations outside Mumbai. The expansion
the Finance Minister, Government of India on August 31, 1997. The Exchange was
47
except in the jurisdictional areas of other Regional Stock Exchanges, for setting-up
trading terminal in the jurisdictional areas of other Regional Stock Exchanges, the
However, with certain modification in this regard announced by SEBI towards the
end of the year 1999, the member-broke of the exchange are now free to install their
trading terminals at any place in the country including in the jurisdictional areas of
In order to expand the reach of BOLT network to centers outside Mumbai to reach
out to investors in these centers and provide them access t the trading facilities in all
scripts listed and permitted to be traded in the Exchange and to support the smaller
Regional Stock Exchange, the Exchange has admitted subsidiary companies formed
by 15 Regional.
the Exchange.
Trading on the BOLT System is conducted from Monday to Friday between 9:55
a.m. and 3:30 p.m. the scripts traded on the Exchange have been classified into ‘A’,
The Exchange has for the guidance and benefit of investors classified the scripts in
the Equity Segment in A’, ‘B1’,&’B2’ based on certain qualitative and quantitative
48
parameters which include number of trades, values traded, etc. for the guidance and
benefit of investors.
The ‘F’ group represents the fixed income securities wherein 730 securities were
The Exchange has commenced trading in Govt. Securities for retail investors under
“G” group w.e.f. January 16, 2003 and 85 Govt. Securities are traded on the
The ‘Z’ group was introduced by the Exchange in July 1999 and includes the
companies which have failed to comply with the listing requirement of the Exchange
and have failed to resolve investor complaints or have not made the required
arrangement with both the Depository Ltd. (NSDL) for dematerialization of their
securities. Companies in ‘Z’ group numbered 2776 as on June 30, 2003.of these,
1275 companies were in “Z” group for not complying with the provisions of the Listing
Agreement and not resolving pending investor complaints and the balance 1501
securities with both the Deposotories.1501 companies have been put by the
Exchange in “Z” group as a temporary measure till they make arrangement for
49
MEANING OF DEPOSITORY SYSTEM
Depository system is concerned with conversion of securities from physical to
custody of securities.
In the depository system, the ownership and transfer of securities place by means of
electronics books entries. This Rids the Capital market of the dangers and risks
related to handling of paper. Its transaction costs are also less as compared to that
of physical transactions.
While investors will continuous to exercise the option of holding securities in the
from the depository by requesting the issue of physical certificate again. Share
transaction costs in the depository shall be lower than the cost of buying and selling
physical shares.
50
Holding and handling of securities in electronic form eliminates problems that are
cycles.
Bank Depository
Holds funds in an account Hold securities in an account
51
Mutual funds
Mutual Funds are an attractive means of saving taxes and diversifying your
investment portfolio. So if you are looking to invest in mutual funds, Kotak Securities
offers you a host of mutual fund choices under one roof; backed by in-depth
Kotak securities have made investing in Mutual funds so simple. All you have to do is
one phone call and that’s all. No paperwork no queues. Simply pick the phone or
To start investing in NFOs, all you need to do is open an online trading account.
Choose from our wide range of accounts to suit your investment needs. You can call
easymf@kotaksecurities.com
52
• Sundaram Mutual fund
Kotaksecurities.com will do the paper work for you on the basis of information
provide by you. This is done on the authority of the power of attorney executed by
53
MARKET SHARE
54
MARKET SHARE
Kotak Securities is one of the world’s leading brokerage firms with a market share of
9%. Kotak Securities limited has been the largest in IPO distribution.
It was ranked no. 1 in year 2003 – 2004 as book running lead managers in public
equity offerings. It has also won the best equity house award from finance Asia in the
year 2004.
Again in the year 2005 Kotak has also won the Asia’s biggest brokerage firm award.
9% share of the total market has been captured by Kotak, 8.5% by ICICI Direct.com,
8% by IF & FS, 2% by India Bulls and rest 72.5% by other local brokers like Motilal
55
Job
Description
56
DETAILED JOB PROFILE
Kotak Securities online trading products, studying its current scenario and studying
The study helps to know about the market position of Kotak securities as compared
to other market players, through the opinion of customers and promoting the
Through directly and data available, we used to do telemarketing for the investors
and the non investors and try to convince them about the kotaksecurities.com and
how it is better from others, then personally meeting them and providing them with
the company brochures and giving them detailed knowledge about how with a
minimum amount of money he can start with on line trading .Telling him about the
various accounts, which he can open with Kotak and telling him the process how
new join his e-trading account, demat account with his saving account.
At the same time, handling back office work, which included solving the clients’
queries, placing orders, giving daily recommendation to the existing clients. Also
57
Terminal) through which the clients can buy and sell his shares and can do all the
Area assigned
Area assigned to me was Lucknow city only. Where I surveyed the investors of
Target assigned
As my work was mainly generating leads and converting them into the clients, and I
was also handling back office work but there was no target.
58
DAY TO DAY JOB EXPERIENCE
As kotak securities is one of the leading financial institution in India, so for the first 10
days was the training period to about the profile the company, the knowledge of
kotak securities, the product of Kotak securities, account opening process in Kotak
Securities, complete knowledge of market watch, also about the ups and downs of
the market how NIFTY and SENSEX moves, what are the main scripts on which they
After the training of the ten days, I was very familiar to all the products, the account
opening process and about the software and Kotak securities products and various
I used to do telemarketing to generate leads and converting them into the clients of
Kotak Securities. At the same time I was handling the back office work which
included giving daily recommendations to the existing clients, solving the clients’
During my training period I was the one to generate maximum leads. During the last
seven to ten days I have done a survey of the investors of Lucknow city and found
that still people are not aware of Kotak Securities and those who are aware are
mainly above the age of 50 as they have a deep knowledge of share markets.
59
OBJECTIVE OF THE STUDY-
II. To understand the various terms & procedure involved in functioning of share
market.
60
RESEARCH
METHODOLOGY
61
Research Methodology:
and Quantitative. Qualitative refers to the characters of the data or process by which
research study has been undertaken. Why a research study has been undertaken,
how the research problem has been defined, in what way and why the hypothesis
has been formulated, what data has been collected and what particular method
has been adopted and a host of similar other question are usually answered when
Sampling:
A decision has to be taken concerning a sample unit before selecting the number of
Size of Sample:
62
RESEARCH DESIGN
The formidable problem that follows the task of defining the research problem is the
preparation of the design of the research project, popularly known as the “research
design”. Decisions regarding what, where, when, how much by what means
design is the arrangement of conditions for collection and analysis of data in manner
that aims to combine relevance to the research purpose with economy in procedure.”
In fact, the research design is the conceptual structure within which research is
conducted; it constitutes the blueprint for the collection, measurement and analysis
of data. As such the design includes on outline of what the researcher will do from
writing the hypothesis and its operational implications to the final analysis of data.
63
It is necessary for a researcher to define conceptual structure which research would
relevant evidence with minimal expenditure of efforts, time and money. In this
64
Data compilation is an intermediate stage between data collection and analysis. Data
amenable to analysis.
In dealing with any problem, once the sample has been selected the data must be
collected from the sample population. There are several ways of collecting
appropriate data which differ considerably in context of money cost, time and other
1. Primary Source
2. Secondary Source
The Primary Data that I collected were the first hand information which I received
through personal interviews with the consumers and through questionnaires. This
data gave the most vital information for making my analysis more precise.
65
Secondary Data involved in my research were the information that I collected
through the various broachers and pamphlets of the company which were provided
RESEARCH DESIGN :
The research design which has been used in the project report is descriptive in
nature.
SAMPLE DESIGN:
The sample design which has been use in this project report is simple random
sampling.
SAMPLING UNIT :
A decision has to be taken concerning a sample unit before selecting the number of
66
DIFFICULTIES
FACED & MAJOR
LIMITATIONS
67
DIFFICULTIES FACED
• Call and trade: - Call and trade facility is payable which is not convenient
68
MAJOR LIMITATIONS
Uncertainty of market
As with any in securities, the NAV of the units issued under the scheme can go up or
down depending on the factors and forces affecting the capital market.
Tough Competition
Due to the large number of local brokers investors are confused that where to invest
and where not to invest. Local brokers are ready to give the same investment plan in
The people believe investing in bank FD’s and post office saving and are reluctant to
invest in mutual fund. People like to secure money in terms of leading to the people
69
Socio-economic factors
The most of the people of the country are agriculture dependent. So they invest less
Political factors
Due to volatile government and their policies regarding investors and investment,
stoke market is not integrated which in turn affect the capital market.
70
Finding and
Analysis
71
72
AggressiveInvestors
10%
40%
IPO
Equity
Cash
50%
In the above diagram we can see that aggressive investors invest more in equity as
compare to cash and debt. As these types of investors are risk takers and ready to
fund diversified, IPOs 10% in cash like government securities, liquid funds, long term
deposits and 40% in debt, like company fixed deposits, bonds, pensions schemes,
73
ModerateInvestors
10%
Debt
30% Equity
Cash
60%
Moderate investors are those investors who get ready to invest when they get
assured that they will get good returns on their investment. They give a lot of thought
before investing.
They types of investors invest more in debt like company fixed deposits, pensions
schemes,
74
ConservativeInvestors
10%
20%
Debt
Equity
Cash
70%
As we can see from the above diagram that conservative investors invest very much
debt as they run behind the trend, they are a kind of choosy investors. In equity they
invest only in some specified scripts, which are less risky for example Infosys,
Reliance.
In the above diagram conservative investors comprises of 70% in debt, 20%in equity
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VeryConservative Investors
15%
10%
Debt
Equity
Cash
75%
Very conservative investors are least bothered about the market and invest their
maximum amount in debt, cash and lastly in equity market with more up the downs.
In the above the diagram very conservative investors comprises of 75% in debt like
schemes and pensions schemes. 15% in cash as they get high returns on their cash
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Expectationof investorsregarding
their investmentto grow
25%
Average Rate
Fast Rate
Stesdy Rate
13%
62%
In the above diagram 62% of the surveyed investors expected their investments to
grow at an average rate, 25% expected to grow at fast rate that is more returns on
their investments and 13% of the surveyed investors expected their investments to
grow steadily.
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Perceptionof investors
towardsreturn
15%
Safe Return
64%
From the above diagram it was found that 64% of the surveyed investors were more
concerned about earning returns above inflation rate, 21% were more concern about
earning high returns and 15% had a primary motive of the safety of principal.
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Investor’sknowledgeabout various
Investmentschemes
8%
23%
Average Knowledge
Good Knowledge
Nil knowledge
69%
In the above diagram we can see that out of total surveyed investors 69% were
found with average investment knowledge, 23% were found with good investment
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Age group was also a rational issue to know while doing the survey. It was found that
17% of the total surveyed investors were between 20-30 years 32% were between
30-50 years and 51% of the total surveyed investors were above 50 years.
It was found that investors above the age of 50 years are having great potential and
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Viewsof theInvestorsif the stock
Marketcrashed down
19%
29%
Out of the total surveyed investors we can see from the above diagram that 52% of
investors wait and watch when the market crashed down they have a lot of patience.
29% will invest more as they are risk takers and hope that in future market will grow
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SWOT
ANALYSIS
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SWOT ANALYSIS
STRENGTHS
Brand Name
The biggest strength is the tag of Kotak being one of the largest groups in finance
sector
Compatible Brokerage
Brokerage under various products of Kotak securities is much more compatible than
others.
Diversified Product
The company has diversified product to suit the requirements of various clients
Research Advice
Portfolio Advice
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Provides with free portfolio advice and constantly monitor the value of the client’s
WEAKNESS
Returns to broker
There is a very tough competition because of large number of local brokers for e.g.
OPPORTUNITIES
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We have tailor made products like customers specified schemes for example Kotak
Assist.
Branch Expansion
Large number of branches are opening day by day and ever we are trying to tap
THREATS
Tough competition
There is a tough competition in finance sector, as almost all the companies are
Unawareness
As major part of GDP is coming from several markets so there people are unaware
of this market.
Changing scenario
Our market scenario is changing day-by-day i.e. our market is fluctuating, so this
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CONCLUSION AND
SUGGESTIONS
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Conclusion and Suggestions
Suggestions
1. According to the analysis the investor above the age of 50 years must be
investment.
2. Time taken in account opening too long they should reduce it.
4. Documents required for an account opening are too unique and confusing.
address proof.
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6. No. of signatures, which are made by the lines are too many, therefore should
be reduced.
7. Kotak must lay some sound strategies to trap more customers by providing
Conclusion
From the analysis of the responses receive from the investors in Lucknow city, a
We have very good market in Lucknow which comprises potential investors but
due to lack of basic promotion and publicity these investors are not fully aware of
our company and who so ever is aware of the company their investment
decisions are done on the basis of security, analysis of risk yield and return few
share trading account as no other depository provides all the three facilities
together.
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So my findings are that Kotak securities should make little more efforts to trap the
and business meets and building a good relationship with potential business,
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ANNEXURE
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QUESTIONNAIRE
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QUESTIONNAIRE
NAME :
AGE :
PROFESSION :
GENDER :
CONTACT NO.:
a. ICICI Bank
b. Kotak Securities
c. HDFC
d. India bulls
a. Yes b. No
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3. Are you satisfied with the time taken by Kotak Securities in account
opening process?
a. Yes
b. No
a. Intraday
b. Delivery base
a. Daily
b. Weekly
c. Monthly
d. Fortnight
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6. Which recommendations do you follow?
a. market news
b. Newspaper
c. Brokers tips
b. 10,00,000<25,00,000
c. 25,00,000>1,00,00,000
a. Satisfactory
b. Very satisfactory
c. Not
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9. Brokerage taken by Kotak is reasonable
a. Yes b. No
b. State of withdrawal
c. State of investment
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BIBLIOGRAPHY
`
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BIBLIOGRAPHY
Books
Magazines
• Business world
• Business today
• Brand Equity
• CFA Analyst
Newspaper
• Economic times
• Times of India
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• Business standard
Websites
• www.kotak.com
• www.kotaksecurities.com
• www.google.com
• www.nseindia.com
• www.bseindia.com
• www.tradeonline.com
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