A Project Study Report On Training Undertaken at

"SHAREKHAN Pvt. Ltd." ON

Competitive Analysis of Broking Firms

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted ToMs Bharati Chaudhary

Submitted ByAditya Kumar Mishra Session 2011-13

APEX INSTITUTE OF MANAGEMENT & SCIENCE, MANSAROVAR, JAIPUR Affiliated to Rajasthan Technical University, Kota

PREFACE
Project are very important for the beginners to gain practical Knowledge about organization and market.Theory till not used in practical field is of no use.So our institute has fixed a period for a summer training when we can enter into the market through some organization in order to gain some real knowledge. The underlying aim of the summer training in Sharekhan Jaipur is a sincere attempt to analyze its COMPARATIVE ANALYSIS IN BROKING FIRMS by making use of different financial appraisal techniques the data for the studies were obtained from the published annual reports of the company. Among all the problems of financial Management, the problems of equity research have probably been recognized as the most crucial one. It is because of the fact that working capital always helps a business concern to gain vitality and life strength. The objective of this study is to critically evaluate equity research management as practiced in Sharekhan, Jaipur.

ACKNOWLEDGEMENT
A summer project is a golden opportunity for learning and self development. I consider myself very lucky and honored to have so many wonderful people lead me through in completion of this project. My grateful thanks to Mr. Ankit Vedi(Regional manager, Jaipur branch) who in spite of being extraordinary busy with his duties took time out to hear, guide and keep me on the correct path. I do not know where I would have been without him. A humble Thank you sir. Mr Rahul jain, HR Department monitored my progress and arranged all facilities to make Life easier. I choose this moment to acknowledge his contribution gratefully. Ms. Bharti Choudhary (project coordinator) whose patience I have probably tested to the limit. She was always so involved in the entire process, shared her knowledge, and encouraged me to think. Thank you, Dear madam. I would like to thanks Mr. Jyotsana Khandelwal (H.O.D. of MBA) for his efoorts and help provided to me to get such an excellent opportunity. Last but not the least there were so many who shared valuable information that helped in the successful completion of this project.

(ADITYA KUMAR MISHRA)

Content s
ACKNOWLEDGEMENT ...................................................................................................... ..................... . GENESIS OF THE REPORT ...................................................................................................................... . INTRODUCTION OF THE COMPANY.................................................................................................... . Profile of the company......................................................................................................................... ..... Services offered by sharekhan ............................................................................................................... . Products of Sharekhan ........................................................................................................................... . NATURE AND SCOPE OF THE PROJECT............................................................................................ . SWOT Analysis of sharekhan................................................................................................................ . The major players in online Trading...................................................................................................... . Comparative analysis of various stock broking companies ................................................................... . Sharekhan.................................................................................................................... ........................ ICICIDirect ................................................................................................................. ........................ India Infoline Securities ...................................................................................................................... Angel Trade .................................................................................................................................. ...... Religare ...................................................................................................................... ......................... OBJECTIVES OF THE STUDY ............................................................................................................... . RESEARCH METHODOLOGY ............................................................................................................... . MANAGEMENT TOOLS & TECHNIQUES........................................................................................... . Chi square .................................................................................................................................... ........ Formulation of Hypothesis: ................................................................................................................... . Outcome....................................................................................................................... ........................... INTERPRETATION ............................................................................................................

...................... . FINDINGS ....................................................................................................................... .......................... . LEARNING EXPERIENCE................................................................................................................... .... LIMITATION................................................................................................................... ......................... . APPENDIX....................................................................................................................... ......................... . Appendix I .................................................................................................................................... ....... Appendix II ..................................................................................................................................... .....

REFERENCES................................................................................................................................. Bibliography.................................................................................................................................

Webliography...............................................................................................................................

GENESIS OF THE REPORT

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. The Broad objective of the project is to meet clients and let them know about the different services offered by the Share khan. Also to convince them about how Share khan services out score their rivals. And how, in future they will be benefited from the services offered by Sharekhan. This project accomplishes to understand the problem faced by the existing client and find ways to solve their queries. This research has put light on positive and strong points of Sharkhan ltd. An attempt has been made to find out the customer preference in choosing broking firm with the help of Questionnaire

INTRODUCTION OF THE COMPANY

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks.

Profile of the company

Name of the company: Year of Establishment: Headquarter :

Sharekhan ltd.

1925
ShareKhan SSKI

A-206 Phoenix House Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA- 400013
Nature of Business: Service Provider Depository Services, Online Services and Technical Research. Over 3500 www.sharekhan.com

Services:
Number of Employees: Website:

Slogan:

Your Guide to The Financial Jungle.

Vision

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

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

Sharekhan is infact Among the top 3 branded retail service providers No. 1 player in online business Largest network of branded broking outlets in the country serving more than 7,00,000 clients.

Services offered by sharekhan

1- Equity Trading Platform (Online/Offline). 2- Commodities Trading Platform (Online/Offline). 3- Portfolio Management Service. 4- Mutual Fund Advisory and Distribution. 5- Insurance Distribution.

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Products of Sharekhan

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

Features
Online trading account for investing in Equity and Derivatives via www.sharekhan.com Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. Integration of On-line trading, Saving Bank and 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.

TRADE TIGER
TRADE TIGER is an internet-based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement.

Features
A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs Multiple Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies Graph Studies include Average, Band- Bollinger, Know SureThing, MACD, RSI, etc Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines User can save his own defined screen as well as graph template, that is, saving the layout for future use User-defined alert settings on an input Stock Price trigger Tools available to guage market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator Shortcut key for FAST access to order placements & reports Online fund transfer activated with 12 Banks

DialnTrade:
Free with your Sharekhan Trading Account, the Dial-n-Trade service enables you to place orders for buying and selling shares through your telephone. All you have to do is dial any one of our dedicated numbers (1-800-22-7050 or 30307600 or 1800-270-7050 ), enter your TPIN number (which is provided at the time of opening your account) and on authentication you'll be directed to a telebroker who will buy and sell shares for you.

Features of Dial-n-Trade
Simple and Secure Interactive Voice Response based system for authentication No waiting time. Enter your TPIN to be transferred to our telebrokers You also get the trusted, professional advice of our telebrokers After hours order placement facility between 8.30 am and 9.00 am Reliable service, wherever you are

NATURE AND SCOPE OF THE PROJECT

This report identifies the performance and marketing strategy of brands with which Sharekhan competes. Competitive environment under which Sharekhan operates including strengths, weaknesses, opportunities and threats has been studied. An indepth analysis of competitor's products, prices, services, promotional activities and brand image has been done with due emphasis on customers attitude towards it. Finally, customer behavior and expectation has been captured through a structured questionnaire covering various parameters. Thus, this report gives an insight into competitive advantage and disadvantage of different leading broking firms in the area of Mumbai.

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SWOT Analysis of sharekhan

Strengths
High R&D Online growth Loyal customers Market share leadership Strong management team Strong financial position Pricing Real estate Reputation management Unique products diverse products and offers for the customers strong brand recall strong reach to the masses among the top 5 brokerage houses in the country

Weaknesses

Diseconomies to scale Not innovative Not diversified omnipresent products, services high employee turnover less small investors employees not properly skilled infrastructure not up to the mark

Opportunities

Threats

Financial markets (raise money through debt, etc) Innovation Online Product and services expansion penetration in developing cities increase in awareness of people about stock market increase in wealth positive market sentiments growth of technology and awareness increased internet usage

Competition Cheaper technology Economic slowdown External changes (government, politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Price wars Product substitution

The major players in online Trading

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Different Players in Share Industry

In the share market there are many DPs amongst which SHAREKHAN is one of them. There are many competitors in the market which are giving direct competition to the company, but because of the research based services and wealth management services Offered by Sharekhan (Services Truly Personalized), it is unique in the market.

In the competitors list there are big names such as:

5 paisa Religare Angel Broking HDFC Sec. Kotak Street ICICI DIRECT etc.

Comparative analysis of various stock broking companies

Sharekhan:

Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs.

You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

Brokerage details for various plans of Sharekhan : 1. CLASSIC NORMAL:-

A/c. opening charge 750/- (total adj. in brok.within six month) min. margin req. 5000/- (total investable, refundable) brok. (intraday) 0.10% (buy only) brok. (delivery) 0.50% (both side)

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2. TRADE TIGER:-

A/c. opening charge 1000/- (total adj. in brok.within six month) min. margin req. 5000/- (total investable, refunable) brok. (intraday) 0.09% (buy only) brok. (delivery) 0.45% (both side)

3. PREPAID 2000/-

A/c. opening charge 0/adv. brok. req. 2000/- (valid 1 year) brok. (intraday) 0.07% (buy only) brok. (delivery) 0.40% (both side)

4. PREPAID 6000/A/c. opening charge 0/adv. brok. req. 6000/- (valid 1 year) brok. (intraday) 0.05% (buy only) brok. (delivery) 0.25% (both side)

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Advantages of Sharekhan:
Online trading is very user friendly and one doesn't need any software to access. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC

Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of Sharekhan:
They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will lose majority of your money in brokerage).

Lots of hidden rules and charges. Classic account holders cannot trade commodities.

ICICIDirect

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.

Type of Account
ICICIDirect offers 3 different online trading platforms to its customers:

1. Share Trading Account

Share Trading Account by ICICIDirect is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader.

2. Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds and Bonds online. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax
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Saving Bonds.

3. Active Trader Account

Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time non-refundable)

Brokerage : ICICIDirect.com brokerage varies on volume of trade and inclusive of

demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

Advantages of ICICIDirect
1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are

from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment. 2. Unlike most of the online trading companies in India which require transferring money to the broker's pool or towards deposits, at ICICIDirect you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICIDirect receive it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard.
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Disadvantages of ICICIDirect
1. Getting access to ICICIDirect.com website during market session can be frustrating. 2. ICICIDirect brokerage is high and not negotiable. 3. Not all stocks are available under Margin Plus

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India Infoline Securities

5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of popular business portal Indiainfoline.com. Besides high quality investment advice from an experienced research team, the site offers real time stock quotes, market news and multiple tools for technical analysis

Trading Terminals:
5Paisa offers 2 different online trading terminals to its customers:

1. Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa.

2. Trader Terminal (TT)

Trader Terminal is design for high volume equity traders or day traders. Trader Terminal provides high volume trading with powerful interface and fast order execution.

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Few popular features of trader terminal are:

Fast trade execution with instant trade confirmation. Live streaming quotes and price watch on any number of stocks. Intra day charts, updated live, tick-by-tick. Top Gainers, Top Losers, Most Active, updated live. Index information; index chart, index stock information live. Market depth, i.e. Best 5 bids and offers, updated live for all stocks. Online access to both accounts and DP to check live updated Order and Trade Book. Facility to place after market orders. Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks. Online intra-day technical calls.

Brokerage and Account opening fees:

Account opening fees: Rs 500/- one time non refundable. 5 paisa offer competitive rates. They charge only 5 paisa for Rs 100 of trade done,

which is 0.05% brokerage. In case of trade that result in delivery, they charge an additional 0.20% for back office and securities handling.

Advantages of 5paisa
1. Very fast execution speed. 2. Rates are very competitive then other providers. 3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks. 4. Free facility of subscribing to mutual funds, equity IPOs and other investment products.

Disadvantages of 5paisa
1. No intra-day tick by tick charts in Investor Terminal (IT). 2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect. 3. Learning 5paisa Trading Terminal is little hard.

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Angel Trade

Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a depository participant with CDSL. Angel's retail stock broking house offering a gamut of retail centric services. Ebroking Investment Advisory Portfolio Management Services Wealth Management Services Commodities Trading

Trading Platforms:
Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based.

1. Angel investor
It is a browser based trading platform. The rates are updated on clicking the refresh button. This facility ensures it is not blocked by firewall. Thus it is useful for investor who needs to access information from places where firewall blocks such data.

2. Angel Trade
It is a browser based trading platform. The rates are updated automatically. This platform is useful for investors & traders to access market from different terminals.
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3. Angel Diet
It is an application based trading platform where rates are updated automatically. All segments are available on a single screen. This is ideal platform for the daily traders.

4. Angel Anywhere
It is an application based trading platform where rates are updated automatically. This is ideal for investors & traders who are inclined towards trading based on charts & technical tools.

Brokerage and fees:

1. Account opening fees:

Stock trading account - Rs 575/Demat account - Rs 200/Commodity trading - Rs 625/2. Brokerage:

For trade up to the range of Rs 1 - 3 Crore: Cash Based: 0.50%

Day trading: 0.05% Derivatives: 0.05%

For trade more than Rs 3 Crore, brokerage is about 0.03%

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Advantages of Angel Trade

1. User friendly browser-based / application based online trading platform. 2. The auto square off time is at 3:15 and an investor can buy up to 4 times the value in his account. 3. Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank, UTI bank etc.

Disadvantages of Angel Trade

Online money transfer from trading account to bank account is not available:

Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank, UTI bank etc. A trader can transfer money from his bank to the trading account online. But the reverse transactions are not yet available online.

This means money, a trader gets after selling shares doesnt get credited in his bank account directly. The trader has to call Angel Trade and request for the deposit. This takes couple of working days

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Religare

Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product and service Provider Company. Religare provide its service in three different segments including Retail, Wealth management and the Institutional spectrum. Company offers wide range of services including equities, commodities, insurance broking, wealth advisory, portfolio management services, personal finance services, Investment banking and institutional broking services. Religare retail network has more than 900 locations in 300 cities and towns in India. Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd and involve in equity related services include online trading at BSE and NSE, Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional broking services.

Type of Account
Religare offers its wide range of financial services though a sophisticated and customized trading platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R-ACE accounts available to the investors.

1. R-ACE (Basic)
R-ACE (Religare Advanced Client Engine) the basic online trading account provided by Religare. Investor can trade and access their account information online and over the phone as well. This account comes with a browser based online trading platform and no additional software installation needed.

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2. R-ACE Lite (Advanced)

R-ACE Lite is the advanced trading platform for the investor of Religare. This trading account provides the entire feature of R-ACE (Basic) account. In addition it also provides real-time streaming stock quotes and alerts. This trading platform is also browser based and no software installation is needed.

3. R-ACE Pro (Professional)

As the name indicates this account is for high volume traders. Along with the features from above 2 accounts, this account also comes with Trading Terminal software which needs to install on your computer. This terminal directly connects the investor to stock market and having all industry standard Treading terminal features including technical charting (intra-day and EOD), multiple watch list, advanced hot-key functions for faster trading, derivative chains, futures & options calculator etc. As in basic and advance account, trading is available online through internet and offline though phone.

Brokerage and Account opening fees:

Religare offers three kinds of accounts as above. Below are detail about fees and activation charges for each account: 1. R-ACE Account activation charges Rs.299/-. Minimum margin of Rs.5000/- required.

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2. R-ACE Lite Account activation charges Rs.499/-. Minimum margin of Rs.5000/- required. 3. R-ACE Pro Account activation charges Rs.999/-. Minimum margin of Rs.10,000/- required. 4. Brokerage at Religare On the basis of volume and frequency of trading, Religare provide different options for brokerages. On the broader way they divided into three categories:

Classic Account
Intraday brokerage varies from 0.03% to 0.05%. Delivery brokerage varies from 0.30% to 0.50%. Derivatives brokerage varies from 0.3% to 0.5%.

Classic Plus
Fees: Rs 600 Validity Period 6 Months Intraday brokerage varies from 0.03% to 0.05%. Delivery brokerage varies from 0.30% to 0.50%.

Freedom Account
In this payment plan, investor has to pay a fix amount in advance for Monthly (Rs 500), Quarterly (Rs.1400), Half-yearly (Rs 2500) or Annual Subscription (Rs 4000). This onetime

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payment enable account holder to trade for Rs. 3,00,000 intraday & derivative trading and Rs. 40,000 of delivery based trading for zero brokerage.

Advantages of Religare
1. Religare gives interest on unutilized cash when investor is waiting to make next trade or online investment. 2. They provide intraday reports and historical charting. 3. Varity of fee structure to fulfill need of different type of investors

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OBJECTIVES OF THE STUDY

The study has been undertaken to analyze the services and brokerage of different broking firms in Mumbai. To study the competitive position of Sharekhan Ltd in Competitive Market To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its

competitors To study level of satisfaction towards Sharekhans Services & products To study about the difficulties faced by customers while Trading with Sharekhan. To study about the need of improvement in existing Trading system.

RESEARCH METHODOLOGY
Research Method:
The study uses Conclusive Research method wherein hypothesis of the research problem are tested so as to draw definite conclusions for implementation.

Research Design:
A research design is a statement or specification of the methods and procedures used for acquiring the information needed for the solution of some specific problems. It provides a scientific frame work for conducting a research. On the basis, research design can be classified into three classes Exploratory, Descriptive and Casual. When a research is conducted for some specific purpose using structural questionnaire to gather information the research is said to be descriptive in nature.

Research Boundary:
Data collection from the respondent has been limited to the area of south Mumbai.

Sampling Process:

Taking into account the practical considerations the study selects a sample survey as the means of gathering primary information. A sample survey allows an individual to devote his attention upon a relatively small number of people and hence, to devote more time and energy to ensure that the information collected from them is more accurate.

Defining the Population:

The first thing that a sample plan must include is the definition of the population to be investigated. The population should be defined as clearly as possible. The population chosen for the study, taking into consideration the objective of the study is defined as, all the customers of stock broking firm.

Types of Sample:
The study uses Non-Probability type sampling method .Among the various non probability types of sampling, the study uses Purposive Sampling. In purposive sampling the sampling units of the sample are identified from the population selectively which prevents inclusion of other sample units in the sample.

SIZE OF SAMPLE
This refers to the number of items to be selected from the universe to constitute a sample In our research sample size is 80. But we also study the 5 stock broker companies like Angel Broking, ICICI direct, HDFC securities, Indiainfoline, Religare for the appropriate collection of the information.

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SOURES 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 Data

The primary source used for gathering data required for this survey is Survey method. A planned effort is made using structured questionnaire to interview the respondents. 2. Secondary Data.

Secondary means which are already available like annual report, magazines, Websites etc.

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MANAGEMENT TOOLS & TECHNIQUES

Chi square
The best-known situations in which the chi-square distribution is used are the common chisquare tests for goodness of fit of an observed distribution to a theoretical one, and of the independence of two criteria of classification of qualitative data. Many other statistical tests also lead to a use of this distribution. A statistical analysis has been carried out in this report to find out the overall effect of varied parameters on different brokerage firms by making use of test for independence.

Formulation of Hypothesis:

Null Hypothesis: There is no significant difference in preference for the broking firm brands
under study. That is Religare, Angel broking, ICICI Direct, IndiaInfoline & Sharkhan are at par in terms of product and services being offered.

Alternate Hypothesis: There is significant difference in preference for the broking firm
brands under study.

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Outcome
Chi square test for Independence: Calculated value of chi square = 14.466 Table value of chi square at 2.5% level of significance = 34.2

(Since it is two tailed analysis level of significance will be 5/2 = 2.5 %) Thus, calculated value > tabular value.

Null Hypothesis has been rejected and alternative hypothesis has been accepted i.e There is no significant difference in preference for the broking firm brands under study.

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INTERPRETATION
In order to collect primary data for research, 100 customers o Sharekhan Pvt. Ltd. In Jaipur city were surveyed for personal interview, irrespective of the educational level of the customer same schedule was used for all customers. The educational level of customers surveyed was given by:ANALYSIS OF AGE GROUP OF CUSTOMERS WHO ARE INTERESTED TO ABOUT CAPITAL MARKET RESPOND

Age Group Up to 25 Years 26-35 Years 36-45 years 46-60 60 and above Total

Respondents 10 25 30 20 15 100 Age Group of Customers (respondents)

30 30 25 20 15 10 5 0 Respondents 10 25 20 15

Upto 25 Years 26-35 Years 36-45 years 46-60 years 60 and above

Intrepretation: from the above chart, it is cleared that

EDUCATIONAL LEVEL OF CUSTOMERS SURVEYED RESPOND

EDUCATIONAL LEVEL Undergraduate Graduate Postgraduate Professionals Total SURVEYED CUSTOMERS 12 33 42 13 100

Educational level of customer surveyed

13

12

42 Undergraduate Graduate Postgraduate Professionals

33

IN WHICH PROFESSIONS ARE YOU ENGAGED IN?

PROFESSIONS BUSINESS SERVICE PROFESSIONAL ENTREPRENEURS OTHERS

SURVEYED CUSTOMERS 38 25 10 20 07

Profession of respondents

40 35 30 25 20 15 10 5 0

38 Business 25 20 Service Professional Entrepreneur s others

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Respondents

DO YOU TRADE IN STOCK MARKET?

1.) Yes 2.) No

85 15

15

Yes

No

85

WOULD YOU LIKE TO TRADE IN MARKET?

1.) Yes 2.) No

80 20

20

Yes

No

80

BROKING INVESTORS INTEREST ACCORDING TO THEIR MARITAL STATUS:

Marital Status Married Unmarried

Respondents 70 30

30

Married

Unmarried
70

REASON FOR PREFERING SHAREKHAN

Reason Safety and Confidentiality Value Added Services Professional staff Services

Respondents 30 15 20 35

35 30 25 20 15 10 5 0 15 20 30

35

Safety & Confidentiality Value Added Services Professional Staff Services

Respondents

CUSTOMERS INVESTING SCENARIO ABOUT BROKING INSTITUTIONS:

Broking institutions Sharekhan Indiabulls Indiainfolines Religare Globe Capital

Respondents 50 25 10 10 5

60

50

50

40

Sharekhan Indiainfolines

30 25

Indiabulls Religare

20 Globe Capital

10

10

10 5

0 Sharekhan Indiabulls Indiainfolines Religare Globe Capital

WHAT EXTRA SERVICES DO YOU EXPECT FROM YOUR BROKER?

EXTRA SERVICES DEPOSITORY SERVICES MARGIN FINANCING PORTFOLIO MANAGEMENT SERVICES TRADING RESEARCH & TECHNICAL SERVICES ALL ABOVE

Respondents 4 8 10 28 20 30

30 25 20 15 10 5 0 4 10 8

30 28

DEPOSITORY SERVICES

MARGIN FINANCING

20
PORTFOLIO MANAGEMENT SERVICES

TRADING

RESEARCH &

Respondents

TECHNICAL SERVICES

ALL ABOVE

DO YOU INVEST IN SHARE? 1) Yes 2) No 65 35

Investment Respondents

35 Yes No 65

DO YOU HAVE DMAT ACCOUNT? 1) Yes 2) No 70 30

30 Yes No 70

WITH WHICH DEPOSITORY PARTICIPANTS YOU HAVE A DMAT ACCOUNT?

Religare Sharekhan ICICI Direct Globe Capital Indiabulls Aditya Birla Money Others

10 % 27 % 23 % 9% 18 % 8% 5%

30

27

25

23 18 Religare Sharekhan ICICI Direct Globe Capital 9 8 5 Indiabulls Others

20

15 10 10

Respondents

SINCE HOW LONG YOU HAVE BEEN ASSOCIATED WITH SHAREKHAN

TIME PERIOD 3 months 3-6 months 6-12 months More than 1 year

No. of Respondents 6 11 27 56

3 m ontha

11 6

27 83 56

3-6 m onths 6-12 m onths More than 1 year

HOW DO YOU FIND THE BEHAVIOR OF THE STAFF OF SHAREKHAN?

Behavior of Staff Conservative Bureaucratic Cooperative Friendly

No. of Respondents 2 9 56 33

33

9
Conservative Bureaucratic Cooperative

56

Friendly

HOW DO YOU COME TO KNOW ABOUT SHAREKHAN?

Mode of Reference Advertisement Friends Broker SHAREKHAN Customers Press Articles Franchise

No. of Respondents 9 25 49 11 4 2

49 50 45 40 35 30 25
Geojit Customers Advertisement Friends

25

Broker

20 15 9 10 4 5 0 2 11
Press Articles Franchise

WHICH MODE OF TRADING DO YOU PREFER?

1.) Online

75

2.) Offline 25

75

80 70 60 50 40 30 20 10 0 Online Offline 25

ARE YOU SATISFIED WITH YOUR CURRENT DP? 1) Yes 2) No 60 40

40 Yes No 60

WHAT HAS BEEN YOUR INVESTMENT EXPERIENCE IN STOCKS? 1.) Excellent 2.) Good 3.) Average 4.) Poor 66 21 06 07

6 Poor Average Good Excellent 21

66 100 7 50 0

Excellent Good Average Poor

WHAT DO YOU LOOK FOR WHEN YOU ARE GOING TO INVEST IN THE STOCK MARKET? 1.) Low Risk Low Return 10 63 27

2.) Medium Risk Medium Return 3.) High Risk High Return

MEDIUM RISK 70 60 50 40 30 20 10 0 LOW RISK LOW RETURN HIGH RISK HIGH RETURN MEDIUM RETURN

HOW OFTEN DO YOU TRADE IN THE STOCK MARKET?

1.) Daily 2.) Weekly 3.) Monthly 4.) On a Special News

54 13 11 22

22 11 54 13

Daily Weekly Monthly On a Special News

HOW WOULD RATE THE SERVICES PROVIDED BY YOUR BROKER?

Service rate Core Services Facilitatory Services Advisory Services

Poor 42 51

Average 65 69

Good 68 63

Excellent 21 17

Cant Say 4 6

40

71

62

23

100% 40 80% 60% 40% 20% 0% 42 POOR 65 AVERAGE 68 21 51 71 62 23

69

63

17

4 CAN'T SAY

GOOD

EXCELLENT

CORE SERVICES

FACILITATORY SERVICES ADVISORY SERVICES

CUSTOMER OVERALL EXPERIENCE WITH SHAREKHAN

Options
Excellent Very Good Good Fair Poor Total

Respondents
15 32 25 22 6 100

Poor 6

Excellent 15

Excellent Fair 22 Very Good Good Fair Poor Very Good 32

Good 25

FINDINGS

1. In the analysis of consumer satisfaction with 100 investors were interviewed who are Daily consumer of capital market.

2. Most of customers interviewed were married and well educated.

3. The investors were interviewed, by visiting to their places like to their residents, offices, shops etc. The 90% of the data that has been collected is of primary data.

4. Respondents were segmented on the basis of Income, Occupation, Price, Causes, Source of awareness, Comparative analysis with other brands.

5. As per Income group maximum percentage of Investors are in the Income group of 3-5 lakhs and above.

6. As per Occupation group 40% are professionals, 30% are business owners, 10% are government employees.

7. When the source of awareness was analyzed, it was found that the awareness of the SHAREKHAN more from Friends and Relatives and also from T.V. ads.

8. Less of customers are aware about value added services.

9. Staff was cooperative and friendly.

10.Most of customers were not face any problem in dealing through SHAREKHAN, and those who face some problem was due to some misunderstanding which can be removed.

CONCLUSION

Through the competitors following the market penetration pricing strategy but SHAREKHAN has an advantage of having existence of more than one sector along with value added services.

Most of the customer of SHAREKHAN are brand loyal and think their services are more reliable than services of other organizations.

People like this new system of e-trading and believe that it promotes investment rather then speculation and gambling

The maximum customers of SHAREKHAN were occasional traders and wanted form SHAREKHAN to provide their services on Sunday also.

The most influencing factor in selection of DP was safety and confidentiality.

People wants SHAREKHAN to become more communicate of helping in providing information about its various value added schemes through local media also.

Customers are not satisfied with tariff structure.

The competition was emerging in the market and competitors try to penetrate in the market

Most of the people of city are unknown from company existence and their value added services so advertisement is required.

SUGGESTIONs

The company should provide proper clients services, as one of the major factors, which clients expect from the company, is assistance from their RMs.

There is a lack of customer satisfaction, so company should provide customer awareness programmes and camps.

The Relationship Manager of company should provide proper consultancy to those clients who trade in the market on special news so they can be persuaded to trade on normal days also.

The broker should provide the current information in stock market as their main problem was that they are not getting information on time.

24*7 service should be provided in offline products also.

Quality of service has been rated highly important by all demographic factors as a reason for brokerage firms.

Company should increase their number of staff in branches to facilitate services.

The RM should also suggest his client portfolio management so he can reduce his risk & can maintain a balance I the investment which he has done so far.

 For the awareness of the company existence and their reputation, company should give the local advertisement with the local reference.

*QUESTIONNAIRE*

Name: ..

Age: .

Gender:

Occupation: ....

Education: ... ......

Address:

Q.1

Do you invest in shares?

(a) Yes (b) No

Q.2

If you have to invest then in which sector you want to invest?

(a) Share market (b) Commodity Market (c) Portfolio Management Services (c) Insurance (d) Mutual Fund

Q.3

With which Depository Participants you have a DMAT account?

(a) Religare (b) Geojit (c) ICICI Direct (d) SHAREKHAN (e) Indiabulls (f) Aditya Birla Money (g) Others

Q.5

How frequently do you transact in share market?

(a) Occasionally (b) Monthly (c) Weekly (d) Daily

Q.6

Which type of customer you are?

(a) Trader (b) Investor (c) Speculator (d) Jobber

Q.7

Which of the following is your preferred mode of payment?

(a) Cheque (b) Credit Card (c) Internet Banking

Q.8

Whose T.V. channel which provides you better information about business and Capital Market?

(a) CBNC (b) ZEE Business (c) NDTV Profit (d) CNBC Aawaz

Q.9

Which mode of trading do you prefer?

(a) Online (b) Offline

Q.10 How do you come to know about BP Securities Pvt. Ltd.?

(a) Advertisement (b) Friends (c) Broker (d) SHAREKHAN Customers (e) Press Articles (f) Franchise

Q.11

Point out overall rating of your current organizational services?

(a) Very good (b) Good (c) Average (d) Below Average

Q.12 Institution?

Which type of problem you face in dealing relevant Broking

(a) Services (b) Tax & Brokerage (c) Time Consuming Factor (d) Organizational behavior

Q.13 How do you find the behavior of the staff of SHAREKHAN?

(a) Conservative (b) Bureaucratic (c) Cooperative (d) Friendly

Q.14 Are you satisfied with your current DP?

(a) Yes

(b) No

Q.15 Reasons for dissatisfaction

(a)Lack of information about the current movement of the market. (b)Hidden cost (c)Communication problem (d)Expensive (e)Others

Q.16 Do you know about alternate DP?

1) Yes 2) No

Q.17 Want to switch over from current DP to another one? 1) Yes 2) No 3) Consider Q.18 What factors would you look for, while selecting DP? Kindly rank 1 (for most important) to 6 to each factor in order of preference.

Factors Safety and Confidentiality

Rank

Government Participation Professional staff Services

Q.19 Did you face any problems in dealing through DP (SHAREKHAN) 1) 2) If yes specify name YES No

Q.21 Please give your suggestions to improve organization effectiveness?

Bibliography

Text Books and Journals

Investment Management Theory & Practice by R P Rustagi (Equity Shares : Fundamental & Technical Analysis), pg 137 - 163

Financial Management (Ninth Edition) by I M Pandey (Risk and Return : An overview of Capital Market Theory), pg 70 77

Research Methods (Second Edition) by William M. K. Trochim (Analysis), pg 259 - 276 N S E Fact book 2007 NCFM Securities Market (Basic) Module

(Webliography)

www.nseindia.com www.ibef.org www.sharekhan.com www.yahoofinance.com www.moneycentral.msn.com