M .M Dissertation

Comparitive Analysis Of five broking Firms in Dehardun Page 1
Contents
1.EXECUTIVE SUMMARY ............................................................................................................................... 2
2.INTRODUCTION OF THE RESEARCH WORK.................................................................................... 3
2.1Introduction of stock brokerage firms ................................................................................................. 3
3.Literature Review ....................................................................................................................................... 6
4.STATEMENT OF THE PROBLEM ......................................................................................................... 6
5.OBJECTIVE OF THE STUDY .......................................................................................................................... 7
6.SCOPE OF THE PROJECT ............................................................................................................................. 7
7.Research methodology .............................................................................................................................. 7
7.1RESEARCH DESIGN ............................................................................................................................... 8
7.2 SAMPLE DESIGN .................................................................................................................................. 8
7.3 Type of Research ................................................................................................................................. 8
7.2 COLLECTION TECHNIQUE .................................................................................................................. 10
8.Data Analysis & Interpretation ................................................................................................................ 14
9.Findings & Suggestion .............................................................................................................................. 26
10.Conclusion .............................................................................................................................................. 27
11.Biblography ............................................................................................................................................ 28


1.EXECUTIVE SUMMARY
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 providing what kind of services to their
customers.
Through this research I came to know about the strong points of five major broking firms on the
basis of which Comparative analysis is done. The comparison of different brokerage firms i.e.,
Indiabulls, Religare, Sharekhan, kotak securities and ICICI Direct is done with the help of a
questionnaire and by collecting secondary data.


2.INTRODUCTION OF THE RESEARCH WORK
The project is about comparison between major broking companies of the country i.e.
SHAREKHAN, RELIGARE, ICICI DIRECT, KOTAK SECURITIES,AND
INDIABULLS. It includes detailed comparison between the brokerage charged, annual
maintenance charges, account opening charges, and margin money.

2.1Introduction of stock brokerage firms

Sharekhan
Sharekhan Depository Services offers dematerialization services to individual and corporate
investors.
Sharekhan one of India's leading brokerage houses, is the retail arm of SSKI. S.S. Kantilal
Ishwarlal Securities Limited (SSKI) has been among Indias leading broking houses for more
than a century.
With over 240 share shops in 110 cities, and India's premier online trading portal
www.sharekhan.com, its customers enjoy multi-channel access to the stock markets.
KOTAK SECURITIES
Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman
Sachs (holding 25% - one of the world's leading investment banks and brokerage firms) is India's
leading stock broking house with a market share of around 8%. Kotak Securities Ltd. has been
the largest in IPO distribution.
Incorporated in 1994, Kotak Securities Limited offers stock broking through the branch and
Internet, Investments in IPO, Mutual funds and Portfolio management service. It also offers
portfolio management services to high net worth individuals and corporate customers. Kotak
securities also distributes a range of financial products, including company fixed deposits,
mutual funds, initial public offerings, secondary debt, equity, and small savings schemes.


INDIABULLS
India bulls Financial Services Ltd. is a public company and listed on the National Stock
Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange.
The company ranks at 82nd position in the list of most valuable companies in India has a market
capitalization of approx US $ 800 million. The consolidated net worth of the company is approx
US $ 400 million.
India bulls, along with its subsidiary companies, offer consumer loans, brokerage and depository
services, personal loans, home loans and other financial products and services to the retail
markets.
RELIGARE
Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd and is
involved in equity related services which includes online trading at BSE and NSE, Derivatives,
commodities, IPO, Mutual fund, Investment banking and institutional broking services. Religare
retail network has more than 900 locations in 300 cities and towns in India.
Religare provides the online gateway to their investors so investor can trade online in Equities,
Commodities, apply for IPOs, invest in Mutual Funds, and buy Insurance. 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.

ICICI DIRECT
ICICI direct is an online trading and investment platform on ICICI Securities, the largest stock
broker firm in India providing a wide range of investment options to the retail and institutional
customers. ICICI Securities is part of ICICI Group, India's top financial service provider offering
banking and other financial services.


ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers.
ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading
platform lunched in India to provide browser based equity, commodity and currency trading; all
under one login.
ICICI direct.com is the most visited investment portal in India and by NRI's living across
countries.


3.Literature Review
The Indian capital market has changed dramatically over the last few years, especially since
1990. Changes have also been taking place in government regulations and technology. The
expectations of the investors are also changing. The only inherent feature of the capital market,
which has not changed is the 'risk' involved in investing in corporate securities. Managing the
risk is emerging as an important function of both large scale and small-scale investors.

Preethi Singh3(1986) disclosed the basic rules for selecting the company to invest in. She
opined that understanding and measuring return md risk is fundamental to the investment
process. According to her, most investors are 'risk averse'. To have a higher return the investor
has to face greater risks .She concludes that risk is fundamental to the process of investment.
Every investor should have an understanding of the various pitfalls of investments

4.STATEMENT OF THE PROBLEM
This project was undertaken to compare the broking firms on the basis of some
parameters.
The main focus was to analyze the broking firms through the customer responses.


5.OBJECTIVE OF THE STUDY
To compare the prescribed brokerage rates, margin money and annual maintenance
charges and account opening charges collected by the companies.
To analyze the customer response towards these brokerage firms.

6.SCOPE OF THE PROJECT: The project entails a wide scope in terms of its objectives
only starting from understanding the customers mindset to finding the market standing of
various brands.
Limitations
Data dont represent entire population behavior
This research was done in Dehradun city only. Hence the conclusion is valid only for
Dehradun.
It was assumed that respondents have the knowledge of the choice that were given in the
questionnaire and they were compelled to choose from the given alternatives only.

7.Research methodology
The process of data collection has been conducted by survey. This method of data collection is
very useful in extensive enquiries. The data has been tabulated and analyzed and the results are
shown.


7.1RESEARCH DESIGN
The most desirable approach with regards to the selection of the research methodology depends
on the nature of particular work, time and resources available along with the desired level of
accuracy.
7.2 SAMPLE DESIGN
Sample design covers the method of selection, the sample structure and plans for analyzing
and interpreting the results. Sample designs can vary from simple to complex and depend
on the type of information required and the way the sample is selected. Sample design
affects the size of the sample and the way in which analysis is carried out. In simple terms
the more precision the market researcher requires, the more complex will be the design and
the larger the sample size. The sample design may make use of the characteristics of the
overall market population, but it does not have to be proportionally representative. It
may be necessary to draw a larger sample than would be expected from some parts of the
population; for example, to select more from a minority grouping to ensure that sufficient
data is obtained for analysis on such groups. Many sample designs are built around the
concept of random selection. This permits justifiable inference from the sample to the
population, at quantified levels of precision. Random selection also helps guard against
sample bias in a way that selecting by judgment or convenience cannot.
7.3 Type of Research
The Purpose of Research can be classified as:-
Descriptive Research
The purpose of research can be classified as:-
Quantitative
Qualitative
SAMPLING UNIT
For the particular research study I have used this Sampling Techniques:-


1. CONVIENENCE SAMPLING:- Easy to work with this, work is done
according to convenience of researcher.
SAMPLE AREA- DEHRADUN
SAMPLE SIZE- 75
COLLECTION OF DATA
PRIMARY SOURCE:
The data required for this stage was regarding the detail study of brokerage rates, and services of
various competitors. And to know the behavior and perception of the customers towards the five
broking firms The data have been collected in the form of questionnaires that was prepared.
Though the primary source was not enough for the study but it did give some accurate
conclusions.
The questionnaire is attached at the end as Annexure.
The above questions were really helpful in the conclusion part of the study. Some customers
were very cooperative but some didnt even bother to give a look. Overall, the study was a
success as far as primary source was concerned.
Sources of Primary Data
a. Structured questionnaire for the customer.

SECONDARY SOURCE:
The secondary data was collected with the help of various books, websites, bank journals,
broachers and employees of the bank. The data collected from the websites and books was good
enough to be included in the study analyzed and concluded but the data got from the employees
of the companies was most accurate and reliable. Various newspapers, magazines, websites,


bank journals, etc were checked out for information regarding the comparative analysis of
various players in stock market.
The secondary source didnt provide any personal views of the customers on the existing
activation charges, brokerage rate, services but were a great help in completing the report and
getting the details.

Sources of Secondary data
Journals
Web-sites
News papers

7.2 COLLECTION TECHNIQUE
There are many types of Research Instruments, some of the primary instruments are: -
Aggregate Data Analysis, Case Studies, Experimental Research, Interviewing, Surveys,
etc. For my research I have used SURVEYS as the research instrument.
For my project I have selected Questionnaires as the sub instrument under Surveys. A
Questionnaire is a research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents.
I have chosen questionnaires as the option because it is an easy and less time consuming
method. Along with this it gives the subject to answer the questions from the various
options available to them


Parameters used for comparision

Comaparison of Broking firms on the basis of their charges that they collect
from customers
RELIGARE:

Demat a/c opening charges
AMC (Annual Maintenance
Charges)
Margin money(according to
plans)
Brokerage
Trading a/c opening charges 500
Demat a/c annual maintenance charges 300
Brokerage
Equity delivery brokerage
Equity intraday brokerage
Equity future brokerage

0.25%
0.025%
0.05%

Margin Money 5000


Kotak Securities ltd.

India Bulls

Brokerage

0.49%
0.049%
0.049%

Margin Money 5000
Brokerage

0.40%
0.04%
0.04%

Margin Money Nil


Sharekhan

Brokerage

0.50%
0.10%
0.10%

Margin Money 5000


ICICI DIRECT

8.Data Analysis & Interpretation

I have done my research in Dehradun.The sapmle size was 75.The respondents of my
research were 70% male and 30% female.

Table showing the population of male and female in the sample size

Figure

Brokerage

0.55%
0.275%
0.5-0.03%

Margin Money 975
Gender Counted no. percentage
Male 54 72
female 21 28
Total 75 100


Questionnaires
1)Do you trade in stock market?

Table showing the number of peoples who trade in stock market and who do not trade.
Option Respondents Percentage
Yes 65 86.6666667
No 10 13.3333333
Total 75 100
Analysis:-out of 75 respondents around 87% people they do the trade and remaining 13% dont.

0
20
40
60
80
100
120
Male female Total
Counted no.
percentage


Interpretation:-From the above discussion we can interpret that the majority of the people do the
trade in the stock market.

Q2 .which Brokerage Firm do you prefer most for share investment?

Table showing the number of people who prefer different brokerage firms for their share
investment

options Respondents Percentage
ICICI Direct 10 13.3333333
Share Khan 22 29.3333333
India Bulls 16 21.3333333
Kotak Securities 9 12
Religare 14 18.6666667
Any other 4 5.33333333
Total 75 100

0
20
40
60
80
100
120
Yes No Total
Respondents
Percentage


Analysis:- out of 75 respondents 29% people prefer to invest in sharekhan 21 % people in India
Bulls 18% in Religare 13% in ICICI Direct 12% in Kotak Securities and 5% in any other
brokerage firm

Interpretation:-from the above data we can interpret that the majority of people prefer Share
Khan for share investment then other Brokerage Firms.

Q3. In your opinion which firms provides you the accurate market prediction data?

Table showing the customers opinion about market predictions of broking firms
options Respondents Percentage
Share Khan 19 25.33333333
India Bulls 15 20
Religare 21 28
Kotak Securities 12 16
Respondents
ICICI Direct
Share Khan
India Bulls
Kotak Securities
Religare
Any other
Total


ICICI Direct 8 10.66666667
Total 75 100

Analysis:-out of 75 people 28% of people agreed with Religare 25 % with
sharekhan 20% with India Bulls 16% with Kotak Securities and 10% with ICICI
Direct.

Interpretation:- Majority of people agreed with Religare.

Q3.which feature of your prefered brokerage firm satisfies you the most?

(A)ICICI Direct
Table 3
Table showing the feature of prefered brokerage firms satisfies the customers
Options Respondents
A/c openings charges 4
Brokerages 3
Annual Maintenance 1
25%
20%
28%
16%
11%
Chart Title
Share Khan India Bulls Religare Kotak Securities ICICI Direct


Charges
Margin Money 2
Total 10

Analysis:-out of 10 people 4 are satisfied with the a/c openings charges 3 with brokerages 1 with
AMC 2 with Margin money.

Interpretation:- from the above data we can interpret that the mojority of people satisfies with a/c
opeings charges feature.

(B)Share Khan
Table 4

Options Respondents
a/c opening charges 10
Brokerages 4
Annuak maintenance 5
40%
30%
10%
20%
Respondents
A/c openings charges Brokerages
Annual Maintenance Charges Margin Money


charges
Margin money 3
Total 22

Analysis:-out of 22 10 people are satisfies the a/c opening charges 4 with brokerages 5 with
annual maintenance charges 3 with margin money

Interpretation:-Majority of people are are satisfies with the feature of a/c opening charges.

(C) India Bulls

45%
18%
23%
14%
Chart Title
A/C Brok AMC MM
Options Respondents
Brokerages 4


Analysis:-out of 16,5 people are satisfy with the a/c opening charges, 4 with brokerages 4 with
annual maintenance charges 3 with margin money.

Interpretation:-Majority of people are satisfy with a/c opening charges.

(D) Religare

Table shows the features of preferred brokerage firms satisfies the customers
31%
25%
25%
19%
Chart Title
Annual Maintenance
Charges
4
Margin Money 3
Total 16


Options Respondents
Brokerages 5
Annual Maintenance
Charges
3
Margin Money 2
Total 14

Analysis:-out of 14 people 5 people are satisfy with the brokerage 4 with a/c opening charges 3
with annual maintenance charges 2 with margin money

Interpretation:-Majority of people are satisfied with brokerages and rest of the peoples are
with others.

(E) Kotak Securities
Table shows the feature of preferred brokers that satisfies the customers
29%
36%
21%
14%
Chart Title


Options Respondents
Brokerages 2
Annual Maintenance
Charges
3
Margin Money 1
Total 9

Analysis:-Out of 9 people 3 are satisfy with a/c opening charges 2 with brokerages 3 with
annual maintenance charges and 1 with margin money.

Interpretation:-Majority of people are satisfied with the a/c opening charges and annual
maintenance charges.

Q4 Please rank the company as their services

Table shows the rankings of the company by the customers
Options Share Khan India Bulls Religare ICICI Direct Kotak Securities
Rank 1 21 17 14 12 11
Rank 2 21 18 15 14 7
34%
22%
33%
11%
Chart Title


Rank 3 15 16 18 17 9
Rank 4 7 10 16 19 23
rank 5 11 14 12 13 25
Total 75 75 75 75 75

Analysis:-out of 75 ,21 people have given rank 1 and rank 2 to share khan,18 people have
given rank 3 to religare 23 people have given rank 4 to ICICI Direct and 25 people have given
rank 5 to kotak securities

Interpretation:-Majority of people have given rank 1 to share khan that shows the popularity of
Share Khan in relation to its services offered.

Q5 Are you willing to change your Broking House?

Table shows the number of people who are willing to change their broking house?
Option Respondents
Yes 43
No 22
total 65

Analysis:-out of 65 people 43 people wants to change their broking house and 22
do not want.


Interpretation:-Majority of people wants to change their broking house.

Q6:- which Broking house are you willing to switch over?

Table shows the number of people who wants to switch their brokerage firm
options Respondents
ShareKhan 18
India Bulls 11
ICICI Direct 10
Kotak Securities 6
Religare 20
Total 65
Analysis:-out of 65 people 20 people wants to switch to Religare 18 wants to switch Share
Khan 11 India Bulls 10 ICICI Direct and 6 kotak Securities

66%
34%
Chart Title
Yes No


Interpretation:- Majority of people wants to switch their brokerage firm to Religare.

9.Findings & Suggestion

o Majority of people do the trade in stock market in dehradun.
o Mostly peoples prefers Share Khan and Religare broking firm for investment
in shares.
o Religare is the first choice for customer who wants to switch their broking
firm.
o Religare charges less brokerage and other charges in compare with other
broking firms.
o ICICI Direct and Kotak Securities are less popular in peoples.
o Kotak securities and ICICI Direct have to make changes in their charges to
stay competitive.

ShareKhan
28%
India Bulls
17% ICICI
Direct
15%
Kotak Securities
9%
Religare
31%
Chart Title


10.Conclusion
From the research work the conclusion can be drawn as, that there are number of
players in the market with the similar offerings but to attain the competitive
advantage one must identify the customer needs and prepare strategies
accondingly. In this intense competitive market where every second a new
strategies get birth, the players have to take steps by judging every minute details.
In this customer oriented market scenario customer satisfaction is the only key to
stay competitive.


11.Biblography

Web sources
www.wikipedia.com
www.kotaksecurities.com
www.indiabulls.com
www.religare.com
www.icici.com

References

1. Dr. Vijay Upagade,Research Methodology, S Chand & Company pvt ltd. Second edition

2. Bansal H S and Voyer P A (2000), Word-of-mouth Processes within a Services
Purchase Decision Context, Journal of Services Research, No 3, pp 166-177.


ANNEXURE

Questionnarie
Sir/Mam,
I Mukesh Mishra student of Doon Business School doing a project on comparative
analysis of service pattern of five brokerage firms in dehradunI request you to help me
in completing the project,by filling the enclosed questionnaire.

Name:- _________________________
Age:- _____
Gender:- Male Female
Occupation _______________ Designation ______________
Q)1.Do you trade in stock market?
Yes No
Q)2.Which Brokerage Firm do you prefer most for share investment?
ICICI DIRECT ShareKhan India Bulls
Kotak Securities Religare Any other
Q3. In your opinion which firm provides you the accurate market prediction data?
ICICI DIRECT ShareKhan India Bulls
Kotak Securities Religare Any other

Q)4.Which feature of your preferred brokerage firm satisfies you the most?
(A) ICICI DIRECT
A/c opening charges Brokerages Annual Maintenance charges Margin money
(B)Share Khan
(C)India Bulls


(D)Religare
(E)Kotak Securities

Q)5.Please rank the company as their service offered?
Sharekhan_____ India Bulls_____ Religare_____ ICICI Direct_____
Kotak Securities_____
Q)6.Are you willing to change your broking house?
Yes No
Q)7.Which broking house are you willing to switch over?
Sharekhan India Bulls ICICI Direct Kotak Securities Religare

Date:-_____________ Signature_____________


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