ANALYSIS OF CONSUMER BEHAVIOR

TOWARDS SHARE TRADING AND

SALES PROMOTION OF INDIABULLS
SECURITIES LTD
EXECUTIVE SUMMARY
Investing in equities in a market like India is speculative and
involves risk that may be greater than other types of investment
strategies. Before investing an Investor should be careful enough
about him investment decision to avoid erosion of wealth. As seen
in the recent times the volatility of market is more detrimental to
the retail investors as it seems to be lucrative for speculative gains
of short duration of time. Hence an investor has to evaluate his
options carefully for a prudent investment, keeping long-term
horion in mind.
!he report has tried to bring out the parameters those are of
paramount importance to general public dealing in an equity trading
on day-to day and delivery base trading. !he working methodology
has been discussed i.e. the data collection methods, sampling
methods and the survey questionnaire methods. !hee
questionnaire prepared is designed so as to cover a wide range of
customer "touch points#
!he report given a view about the investors perception that what
thy think while making investments in shares.
A sample of $%% people was selected randomly and survey was
done as per the parameters of the questionnaire. !he results of
every parameter have been included in this report and shown
graphically &'ie (harts, bar graphs etc.) A complete structure of the
research design has been included.
Apart from above discussed points the brief history of Indiabulls
*ecurities +td, its business diversification and a brief introduction
about the concept of share trading.
OBJECTIVE
!o study investor,s behavior towards different attributes such as
risk, return, liquidity etc. of investment in -quities.
!o study the issues and challenges that investor,s face while
making investment in share market.
!o study the preferences and perceptions of investors regarding
various financial products from the stable of Indiabulls *ecurities
+td. so that the firm can benefit from the findings of the report in
launching any new investment product in future.
!o study the consumers perception in respect of investment in
shares !rading.
!o study about .isk /anagement with the help of equities.
HISTORY OF STOCK EXCHANGE
!he only stock e0changes operating in the $1
th
century were those
of Bombay set up in $234 and Ahemadabad set up in $215. !hese
were organied as voluntary non-profit making organiation of
brokers to regulate and protect their interests. Before the control on
securities trading became a central sub6ect under the constitution in
$14%, it was a state sub6ect and the Bombay securities contract
&(78!.7+) Act of $149 used to regulate trading in securities. :nder
this Act, the Bombay stock e0changes in $193 and Ahemadabad in
$1;3.
<uring the war boom, a number of stock e0changes were organied
in Bombay, Ahemadabad and other centers, but they were not
recognied. *oon after it became a central sub6ect, central
legislation was proposed and a committee headed by A.<. =orwala
went into the bill for securities regulation. 7n the basis of
committee,s recommendations and public discussions the securities
contracts &regulations) Act became law in $14>.
Definition of Stock Exc!n"e
"*tock e0change means anybody or individuals whether
incorporated or not, constituted for the purpose of assisting,
regulation or controlling the business of buying, selling or dealing in
securities.#
It is an association of member brokers for the purpose of self
regulation and protecting the internets of its members. It can
operate only if it is recognied by the =ovt. under the securities
contract &regulation) Act, $14> the recognition is granted under
section ; of Act by the (entral =ovt. ministry of finance.
B#e$!%&
Beside the above act, the securities contract &regulation) rules were
also made in $134 to regulate certain matter of trading on *tock
-0change. !hese are also byelaws of the e0changes, which are
concerned with following sub6ects.
7pening?(losing of the *tock -0change, timing of trading,
regulation of blank transfer, regulation of Badla or carryover
business, control of statement, and other activities of stock
e0change, fi0ation of margins, fi0ation market price or making
price, regulation of intraday &6obbing), regulation of broker trading,
brokerage charges, trading rules on e0changes, attribution and
settlement of disputes, settlement and clearing of the trading etc.
Re"'$!tion of &tock exc!n"e
!he securities contract &regulation) is the basis of the stock
e0change in India. 8o e0change can operate legally without the
=ovt. permission or recognition. *tock e0changes are given
monopoly in certain areas under section $1 of the above Act to
ensure that the control and regulation are facilitated. .ecognition
can be granted to a stock e0change provided certain condition are
satisfied and the necessary information is supplied to the
government. .ecognition can also be withdrawn, if necessary.
@here there are no stock e0changes, the government can license
some of the brokers to perform the function of stock e0change in its
absence.
SECURITIES AND EXCHANGE BOARD OF
INDIA (SEBI)
*-BI was setup as an autonomous regulatory authority by the
=overnment of India in $122 "to perform the interest of investors in
the securities and to promote the development of, and to regulate
the securities market and for matters connected therewith or
incidental thereto.# It is empowered by two Acts namely the *-BI
act, $119 and the securities contract &regulation) Act $14> to
perform the function of protecting investor,s right and regulating the
capital market.
Bo*+!# Stock Exc!n"e
!he stock e0change, /umbai, popularly known as "B*-# was
established in $234 as "!he 8ative share and stock broker
association#, as a voluntary non-profit making association. It has an
evolved over the year into its present status as the premiere stock
e0change in the country. It may be noted that the stock e0changes
the oldest one in the Asia, even older than the !okyo *tock
-0change, which was founded in $232.
!he -0change, while providing an effective and transparent market
for trading in securities, uphold the interest of the investors and
ensure redressed of their grievances, whether against the
companies or its own member brokers. It also strives to educate
and enlighten the investors by making available necessary
informative inputs and conducting investor education programmes.
A governing board comprising of 1 elected directors, 9 *-BI
nominees, 3 public representatives and an e0ecutive director is the
ape0 body, which decides the policies and regulates the affairs of
the e0changes.
!he e0ecutive director as the chief e0ecutive officer is responsible
for the day today administration of the e0change. !he average
daily turnover of the e0change during the year 9%%%-%$ &April-
/arch) was .s. ;125.$1 crores and average number of daily trades
4.>1 lakhs.
However the average daily turn over of the e0change during the
year 9%%$-%9 has declined to .s. $955.$% crores and number of
average daily trades during the period to 4.$3 lakhs.
!he average daily turn over of the e0change during the year 9%%9-
%; had declined and number of average daily trades during the
period is also decreased.
!he Ban on all deferral products like B+-** A8< A+B/ in the Indian
capital markets by *-BI with effects from Auly 9, 9%%$, abolition of
account period settlements, in all scripts traded on the e0changes
with effect from <ec ;$, 9%%$, etc., have adversely impacted the
liquidity and consequently there is a considerable decline in the
daily turn over at the e0change. !he average daily turn over of the
e0change present scenario is $$%;>; &laces) and number of
average daily trades $%43 &laces).
BSE In,ice&
In order to enable the market participants analysis etc., to track the
various ups and downs in the Indian stock market, the -0change
has introduced in $12> an equity stock inde0 called B*--*-8*-B
that subsequently became the barometer of the moments of the
share prices in the Indian *tock market. It is a "/arket
capitaliation weighted# inde0 of ;% components stocks
representing a sample of large, well-established and leading
companies. !he base year of *ense0 is $132-31. !he *ense0 is
widely reported in both domestic and international markets through
print as well as electronic media.
*ense0 is calculated using a market capitaliation weighted method.
As per this methodology, the level of the inde0 reflects the total
market value of all ;%-component stocks form different industries
related to particular base period. !he total market value of a
company is determined by multiplying the price of its stock by the
number of shares outstanding. *tatisticians call an inde0 of a set of
combined variables &such as price and number of shares) a
composite Inde0. An Inde0ed number is used to represent the
results of this calculation is order to make the value easier to work
with the track over a time. It is much easier to graph a chart based
on Inde0ed values than one based on actual values world over
ma6ority of the well-known Indices are constructed using "/arket
capitaliation weighted method#.
In practice, the daily calculation of *-8*-B is done dividing the
aggregate market value of the ;% companies in the Inde0 <ivisor.
!he keeps the Inde0 comparable over a period or time and if the
reference point for the entire Inde0 maintenance ad6ustments.
*-8*-B is widely used to describe the mood in the Indian *tock
/arkets. Base year average is changed as per the formula new
base year average C old base year averageD &new market value?old
market value).
N!tion!$ Stock Exc!n"e
!he 8*- was incorporated in 8ow $119 with an equity capital of
.s. 94 crores. !he international securities consultancy &I*-) of
Hong Eong has helped in setting up 8*-. I*- has prepared the
detailed business plans and installation of hardware and software
systems. !he promotions for 8*- were financial institutions,
insurance companies, banks an *-BI capital market ltd.,
Infrastructure leasing and financial services ltd. and stock holding
corporation ltd.
It has been set up to strengthen the move towards
professionalisation of the capital market as well as provide nation
wide securities trading facilities to investors.
8*- is not an e0change in the traditional sense where brokers own
and mange the e0change. A two tier administrative set up involving
a company board and a governing abroad of the e0change is
envisaged.
8*- is a national market for share '*: bonds, debentures and
government securities since infrastructure and trading facilities are
provided.
NSE-NIFTY
!he 8*- on April 99, $11> launched a new equity Inde0. !he 8*--
4%. !he new inde0, which replaces the e0isting 8*--$%% inde0, is
e0pected to serve as an appropriate Inde0 for the new segment of
futures and options."8ifty# means 8ational Inde0 for Fifty
*tocks.!he 8*--4% comprises 4% companies that represent 9%
board Industry groups with an aggregate market capitaliation of
around .s. $,3%,%%% crores. All companies included in the Inde0
have a market capitaliation in e0cess of .s. 4%% crores each and
should have traded for 24G of trading days at an impact cost of less
than $.4G.
!he base period for the close of prices on 8ov ;, $114, which makes
one year of completion of operation of 8*-,s capital market
segment. !he base value of the Inde0 has been set at $%%%.
NSE-MIDCA. INDEX
!he 8*- madcap Inde0 or the Aunior 8ifty comprises 4% stocks that
represents 9$ abroad Industry groups and will provide proper
representation of the madcap segment of the Indian capital /arket.
All stocks in the inde0 should have market capitaliation of greater
than .s. 9%% crores and should have traded 24G of the trading
days at an impact cost of less 9.4 G.
!he base period for the inde0 is 8ov 5, $11>, which signifies two
years for completion of operations of the capital market segment of
the operations. !he base value of the Inde0 has been set at $%%%.
Average daily turn over of the present scenario 9429$9 &+aces) and
number of averages daily trades 9$>% &+aces).
At /0e&ent1 te0e !0e 23 &tock exc!n"e& 0eco"ni4e, 'n,e0
te &ec'0itie& cont!ct (0e"'$!tion) Act1 56789
INTRODUCTION
Indiabulls is IndiaHs leading retail financial services company with
$;4 locations spread across 14 cities. @hile its sie and strong
balance sheet allow them to provide you with varied products and
services at very attractive prices, over 34% (lient .elationship
/anagers are dedicated to serving your unique needs.
Indiabulls is lead by a highly regarded management team that has
invested cores of rupees into a world class Infrastructure that
provides there clients with real-time service I 95?3 access to all
information and products. !heir flagship In,i!+'$$& .0ofe&&ion!$
Net%o0k
TM
offers real-time prices, detailed data and news,
intelligent analytics, and electronic trading capabilities, right at your
finger-tips. !his powerful technology is complemented by there
knowledgeable and customer focused .elationship /anagers.
:e !0e C0e!tin" ! :o0$, of S*!0t In;e&to0
Indiabulls offers a full range of financial services and products
ranging from -quities to Insurance to enhance your wealth and
hence, achieve your financial goals.
IndiabullsH (lient .elationship /anagers are available to you to help
with your financial planning and investment needs. !o provide the
highest possible quality of service, Indiabulls provides full access to
all our products and services through multi-channels
THE INDIABU<<S .HI<OSO.HY =
YOU COME FIRST
@e have created a unique organiation that is designed for you J
the Smart Investor . @e passionately believe in the *mart
Investor who wants to make his own educated investment choices
and demands world class access to a full range of services and
products ranging from -quities to Insurance, combined with the
highest level of integrity, service and professionalism.
Indiabulls is a full service investment firm offering clients access to
a tremendous range of financial services from $;4 locations across
14 cities. @e have a strong team of over 34% (lient .elationship
/anagers focussed on serving your unique needs. 7ur world class
infrastructure, built with tens of crores of investment, provides our
clients with real-time service, multi-channel I 95?3 access to all
information and products. As weHve e0panded and developed to
serve the needs of all kinds of investors, weHve been guided by one
underlying philosophyK You come first.
@e are proud to introduce to you In,i!+'$$& .0ofe&&ion!$
Net%o0k
TM
that offers real-time prices, equity analysis, detailed
data and news, intelligent analytics, and electronic trading
capabilities, right at your finger-tips. !his powerful technology is
complemented by our knowledgeable and customer focussed
.elationship /anagers who are available to help with your financial
planning and investment needs.
@e invite you to learn more about Indiabulls by calling $ >%% $$
$$;% &toll free) or visit our $;4 Indiabulls 7ffices 8ationwide or
e0plore the services we offer through the Indiabulls /arket !rader.
!/
HISTORY AND OTHER COR.ORATE MATTERS
OVERVIE:
In,i!+'$$& Financial *ervices +imited was incorporated on Aanuary
$%, 9%%% as /?s 7rbits Info!ech 'rivate +imited at 8ew <elhi under
the (ompanies Act, $14> with .egistration 8o. 44 J $%;$2;. !he
name of the (ompany was changed to /?s. In,i!+'$$& Financial
*ervices 'rivate +imited on /arch $>, 9%%$ due to change in the
main ob6ects of the (ompany from Infotech business to Investment
I Financial *ervices business. It became a 'ublic +imited (ompany
on February 93, 9%%5 and the name of (ompany was changed to
/?s. In,i!+'$$& Financial *ervices +imited. (ompany was promoted
by three engineers from II! <elhi, and has attracted more than
.s.3%% million as investments from venture capital, private equity
and institutional investors such as +8/ India Internet Lentures <t,.,
!ransatlantic (orporation <t,., Farallon (apital 'artners, +.'., . .
(apital 'artners +.'., and Infinity !echnology !rustee 'vt. <t,. and
has developed significant relationships with large commercial banks
such as (itibank, H<F( Bank, :nion Bank, I(I(I Bank, AB8 Ambro
Bank, *tandard (hartered Bank, +ord Erishna Bank and I+IF*.
(ompany and there subsidiaries have facilities from the above
mentioned banks and financial institutions aggregating to .s. $3>%
million9 (ompanies headquarters are co-located in /umbai and
<elhi, allowing it to access the two most important regions for
Indian financial markets, the @estern region including /umbai, rest
of /aharashtra and =u6aratM and the 8orthern region, including the
8ational (apital !erritory of <elhi, nearby cities, parts of Haryana,
:ttar 'radesh and 'un6abM and access the highly skilled and
educated workforce in these cities. !he /arketing and *ales efforts
are headquartered out of /umbaiM with a regional headquarter in
<elhiM and its back office, risk management, internal finances etc.
are headquartered out of <elhi, allowing our (ompany to scale
these processes efficiently for the nationwide network.
M!in O+>ect& Of Te Co*/!n#
Te *!in o+>ect& to +e /'0&'e, +# te Co*/!n# on it&
inco0/o0!tion !0e?
59 !o hold investments in various step-down subsidiaries for
investing, acquiring, holding, purchasing or procuring equity
shares, debentures, bonds, mortgages, obligations, &ec'0itie&
of any kind issued or guaranteed by our (ompany.
29 !o provide financial consultancy servicesM to provide investment
advisory services on the internet or otherwiseM provide financial
consultancy in the area of personal and corporate financeM
publish books and (< .7/s and any other information related
to the above.
@9 !o conduct the business of sale, purchases, distribution and
transfer of shares, debts, instruments and hybrid financial
instruments and to perform all related, incidental, ancillary and
allied services.
39 !o conduct depository participant servicesM to conduct de-
materialiation and re-materialiation of sharesM set up
depository participant centers at various regions in India and to
perform all related, incidental, ancillary and allied services.
79 !o receive funds, deposits and investments from the public,
=overnment agencies, financial institutions and (orporate
bodiesM grant advances and loansM conduct advisory services
related to banking activities, pro6ect financing, funding of
mergers and acquisition activitiesM fund management and
activities related to money market operations.
89 !o carry on the business of portfolio management services,
investment advisory servicesM custodial servicesM asset
management servicesM leasing and hire purchaseM mutual fund
services and to act as brokers of real estate and financial
instruments.
A9 !o carry on the business of financingM provide lease and hire
purchase servicesM to provide consultancy in the area of lease
and hire purchase financing.
B9 !o operate mutual fundsM receive funds from investorsM equity or
debt instrument research activity instrument in debt and?or
equity instruments.
C0e,it R!tin"
In,i!+'$$& Sec'0itie& +imited has been granted N'.$O, rating for
its unsecured short term borrowing program of .s. 9%% million. Lide
letter dated /ay 4, 9%%5 the rating agency has increased the
unsecured short term borrowing limit to .s. ;9% million maintaining
the N'.$O, rating. I*+ also en6oys NAO, rating for medium to long
term unsecured borrowing program of .s. 9%% million. !he .ating to
the company has been assigned by (redit Analysis .esearch
+imited. As for the present issue of equity shares of our (ompany,
credit rating is not required.
S!0eo$,e0& A"0ee*ent
*hareholders Agreement was entered into by and among our
(ompany &formerly 7rbis Infotech 'rivate +imited), Infinity
!echnology !rustee 'rivate +imited as the trustee of Infinity Lenture
India Fund, +8/ India Internet Lentures +imited, !ransatlantic
(orporation +imited &together the "L( Investors#) and the
'romoters dated 8ovember 9, 9%%%. !he L( Investors invested an
aggregate amount of .s. 9%>,%%%,%%% in our (ompany for which
they were issued 44,594 equity shares at an average price of .s.
;,3$>.3; per equity share. 'ursuant to a letter agreement &the
"+etter Agreement#) dated /ay 93, 9%%5 between the parties to the
*hareholders Agreement, each of the L( Investors have agreed not
to enforce rights that have accrued to them before the said +etter
Agreements and have agreed that the *hareholders Agreement,
together with all the rights and obligation on the parties will stand
terminated immediately upon the listing of the shares of our
(ompany and consequent to the listing, the rights of the
*hareholders Agreement, including the rights that have arisen prior
to such termination shall be terminated. A copy of the *hareholders
Agreement, and a copy of the +etter Agreement terminating the
*hareholders Agreement are available for inspection as material
documents at the corporate offices of our (ompany.
Ke# Co*/etiti;e St0en"t&
Di;e0&e B0!nc Net%o0k
*ince (ompany inception in FP 9%%% (ompany and its subsidiaries
have grown from a single location to a nationwide network spread
over $;4 offices in 14 cities. !hey have a pan India distribution
networks for the purpose of distribution of financial products and
services. *uch a diverse and integrated network provides a
centralied platform to there clients.
Bo'C'et of fin!nci!$ /0o,'ct& !n, &e0;ice&
(ompany and its subsidiaries offer various financial services and
products ranging from equity, F I 7 and wholesale debt, mutual
fund, insurance and I'7 distribution, equity research analysis,
depository services to cater to the specific needs of the retail and
institutional investors thus providing all these services in a single
platform.
A,;!nce, Tecno$o"# te!* t!t ,e$i;e0& *!0ket $e!,in"
/0o,'ct inno;!tion
!here ongoing investment in technology is a key element in
e0panding there product and service offerings, enhancing there
delivery systems, providing fast and consistent client service,
reducing processing costs, and facilitating there ability to handle
significant increases in client activity without a corresponding rise in
risk and staff. (ompany and its subsidiaries have an in-house
technology team of 93 people comprising of several engineers. !he
in-house technology team has been responsible for developing the
technology products for operating at a large scale with efficient back
office systems. !he application of technology allows (ompany and
its subsidiaries to build scaleable product and service offerings. !he
in-house technology team developed one of the first Internet
trading platforms in India, one of the first in-house real-time (!(+
link with 8*-. (ompany and its subsidiaries introduced integrated
accounts with automated gateways with client bank accounts so
that they can transfer funds to and from their bank account to their
brokerage account with the (ompany. !his has enhanced customer
ability to access their funds for market related activities. !he in-
house technology team has good e0pertise to create mission critical
applications and in the maintenance and upkeep of high transaction
processing of there web-site.
St0on" S!$e& !n, M!0ketin" Te!*& %it contin'o'&
0ein;e&t*ent !n, t0!inin"
(ompany,s relationship manager channel &through a team of $%4%
.elationship /anagers as on April ;%, 9%%5) offers a single point
contact to retail customers whereby their high net worth clients
have separate relationship managers catering to them. !hese
managers offer personalied services to the customers helping build
strong and continuing relationships with them. Also, our marketing
associate channel helps (ompany and its subsidiaries in client
acquisitions at minimal costs with client loyalty. !he marketing
associate,s channel also helps (ompany and its subsidiaries in
increasing their penetration in smaller town and cities.
St0on" c0o&& Se$$in" O//o0t'nitie&
@ith $;4 branches spread over 14 cities all over India and variety of
financial products and offerings coupled with online, relationship
manager I marketing associate channels, (ompany and its
subsidiaries have strong cross product selling opportunities thus
providing a multi-channel delivery systems to there diverse client
base of 3$,%%% clients as on Auly $%, 9%%4.
St0on" Te!* of Ex/e0ience, .0o*ote0&
Indiabulls has a strong team of promoters who are engineers from
Indian Institute of !echnology and have several years, e0perience in
financial services industry. !hey believe that their strong technical
e0perience will help them in achieving our key business strategies.
<e!,in" .0o,'ct inno;!tion !n, *!0ketin" &t0!te"ie&
/anagement is innovative and nimble and has historically
introduced many new and innovative products to the market place
that have played a significant role in their growth. (ompany,s
relationship manager model has introduced private banking
e0perience to the clients. !he relationship managers are trained and
incentives to work with their client base and enhance ability to cross
sell and leverage the large client base. Indiabulls have launched
marketing associate model, which replaces the traditional sub-
broker model with an authoried person that client can appoint
independently and provide them with the benefit of their trading,
clearing and servicing strengths. Its equity analysis product
provides clients with unbiased research. (ompany plans to
continuously innovate and introduce market leading products and
services to add to its competitive advantage.
:e$$ c!/it!$i4e, /$!#e01 %it &t0on" +!nkin" 0e$!tion&i/&
!n, c0e,it 0!tin"&
Indiabulls consolidated net worth is .s. $%9;.$1 million making us a
well capitalied companies. !he (ompany and I*+ have received
sanctioned facilities of .s. $3>% million from 1 leading commercial
banks and financial institutions. !he details of the banking
relationships as of Auly 95, 9%%5 are as followsK
A+i$it# to co*+ine .eo/$e D Tecno$o"# in 'niC'e %!#&
!hey provide multiple distribution channels by combining people
and technology. (lients can visit one of the 3% offices in 44 cities or
access via telephone, call centre or online channel. @eb enabled
tools such as technical analysis, information, news, interactive web
based programs and tools and back office solutions for clients and
marketing associatesM 'ower In,i!+'$$& an order entry, routing and
management technology through technology platform, for actively-
trading investors.
St0on" *!0ket /0e&ence !n, inc0e!&e, *!0ket &!0e $e!,& to
;i0t'o'& c#c$e of "0o%t !n, /0ofit!+i$it#
!hey,re growing client base and market share have increased their
market presence, brand recognition enhanced their profitability and
increased the available credit facilities from the banks further
strengthening its strong balance sheet. (ompany,s brand and
profitability allows them to recruit good and efficient employees,
compensate them attractively and provides the fle0ibility toes for
investments in the business and technology systems. !hese
attributes in turn have a positive effect on the growth of its client
base thereby increasing its market share, leading to higher profits
and credit facilities and thus forming a virtuous circle.
Ke# B'&ine&& St0!te"ie&
!heir focus on the client has allowed (ompany and its subsidiaries
to offer a range of services that have changed the investing
landscape and created a new model of financial services that melds
people and technology to provide an integrated human assisted
technology interface service for investors who range from self-
directed full-time active investor to those who prefer to deal with
through a marketing associate in smaller towns and cities. !heir key
strategies includeK
<efend and maintain their differentiation as the firm that delivers
ethical and useful services
Build and e0pand "investing insight# through product offerings
such as -quity Analysis which is ob6ective,
:ncomplicated and not driven by commission
=ive clients new levels of choice tailored to their desire for help,
tools for investing their assets, their willingness to pay for
additional services and the level of business they can do with the
company.
'rovide clients with tools, relationship managers and choices that
support their desired investment outcomes. Indiabulls has
developed a client specific approach as a core element of its
business strategy and are constantly focusing on acquiring new
clients and e0panding their customer base. !hey believe that the
strong secular growth of the Indian financial /arkets, due to
increased household penetration of financial assetsM increasing
liquidity and market capitaliation of Indian /arkets, led by the
listing of many public sector entitiesM and the increasing
affluence of Indian households and savers provides an impetus to
the growth perspective.
!hey believe that this diversification and growth strategy will
continue to produce results and allow (ompany and its subsidiaries
to grow business at a rapid pace irrespective of market conditions.
In addition, management believes that the growth of the Indian
financial markets, due to increased household penetration of
financial assetsM increasing liquidity and market capitaliation of
Indian markets, led by the listing of many public sector entitiesM and
the increasing affluence of Indian households and savers, favors our
long term growth outlook.
!he table below encapsulates the financial metrics on an annual
basis, and compares that with the /arket trading volume.
&8*- Pearly !rading Lolume is taken as representative of /arket
activity).
Te co0e /i$$!0& of o'0 +'&ine&& &t0!te"# !0e ,i&c'&&e,
+e$o%?
Inc0e!&e te n'*+e0 of C$ient Re$!tion&i/&
!hey are focused on increasing the number of client relationships
through a wide network of offices throughout India and having more
number of relationship managers to service these relationships.
!hey plan to grow their business by growing the number of client
relationships. <uring a downturn of the markets they believe that
increased number of client relationships will add stability to their
earnings.
Offe0 Di;e0&ifie, Fin!nci!$ .0o,'ct& D Se0;ice& = C!/t'0e
G0e!te0 S!0e of :!$$et
(ompany and its subsidiaries offer to their clients a wide range of
financial services and products allowing the clients to leverage their
relationship with Indiabulls and get products suiting their varied
needs. !his strategy allows them to gain "share of wallet# of the
clients, consumption of financial services. !hey offer to the client a
comprehensive product offering and are able to increase their
revenues per client by selling different products to the same client.
Indiabulls offer equity, debt I derivatives brokerage, I'7
distribution, mutual funds and insurance products. !heir strategy is
to increase the number of client relationships and then leverage
those client relationships into offering in a whole suite of financial
products.
M'$ti/$e C!nne$& = En!nce C'&to*e0 Ex/e0ience !n,
O//o0t'nitie& to inte0!ct %it '&
(ompany,s clients can access their products and services through
$;4 offices spread across 14 citiesM through operator assisted call
(entersM or through their website www.in,i!+'$$&.comM or through
their respective relationship managers or through marketing
Associates. !hese multiple channels provide fle0ibility to the clients
and allow them to utilie their e0isting business .elationship with
them through any channel from any part of India. (ompany,s
strategy is to provide the most convenient, efficient and value
added channel to the client at the lowest possible cost, and allow
the clients with choice and varied access points. Indiabulls believe
that their multiple channel strategy has been particularly effective in
the affluent segment where many sophisticated clients like to have
a close-by office they can access and yet have the fle0ibility of
Internet account management, transactions and electronic funds
transfer and settlement.
Re$!tion&i/ M!n!"e0 ,0i;en &!$e& *o,e$1 /0o;i,e i"
C'!$it# &e0;ice !n, ex/$oit c0o&&-&e$$ o//o0t'nitie&
(ompany,s clients benefit from the personal attention and advice of
the trained and motivated relationship managers. All its relationship
managers are qualified and educated professionals, who have been
e0tensively trained in-house to provide the products and services to
the clients. !hese relationship managers are encouraged to develop
long-term relationships with the clients and can access a variety of
resources within the (ompany, such as insurance specialists,
research services and others to add value to their clients. /ost of
the clients have dedicated relationship managers irrespective of the
channel they use.
<o% co&t !n, i"$# &c!$!+$e +'&ine&&
Indiabulls has utilied the technologies available and have
constantly invested in products and innovations to provide an
enhanced e0perience to its customers. !he benefits of such
infrastructure include integrated customer trading account with
depositary servicesM electronic gateway for instant funds transfer to
and from the bank to the brokerage accountM and comprehensive
client systems that track all activity in various segments. !hey
believe that technology and systems are one of the key competitive
edges in terms of lowering their operating costsM managing the
businessM reducing risk and providing an enhanced e0perience to
the clients with superior service standards.
B0oke0!"e Offe0in"
(ompany,s retail equity business primarily covers secondary market
equity broking. It caters to the needs of individual Indian and 8on-
resident Indian &8.I) investors. !hey offer broker assisted trade
e0ecution and automated online investing and trading facilities to
their customers. Automated online investing and trading includes
automated order placement and e0ecution of market and limit
equity ordersM and advanced trading platforms for active traders. All
investors have full access to real - time quotes, personalied
portfolio tracking, charting and quote applications, real-time market
commentary, real-time quotes and news.
On$ine A'to*!te, C!nne$
Automated 7nline Business contributes more than ;5.>G of its
overall revenues. !hey control more than 9%G market share in the
online business. (lients are able to obtain financial information and
e0ecute trades on an automated basis through their online channel
using product offerings like 'ower In,i!+'$$& and In,i!+'$$&
/arket !rader. !his channel is designed to provide added
convenience for clients and minimie its costs of responding to and
processing routine client transactions. 7nline channels include the
In,i!+'$$& =roup 'rofessional 8etwork that provides access via
their web-site www. in,i!+'$$& .com to information and trading
service on the Internet. Additionally, 'ower In,i!+'$$& online
trading system is designed for the high volume trader and provides
enhanced trade information and order e0ecution integrated
software-based trading platforms. @hile most client transactions are
completed through the online channel, they continue to stress the
importance of blending the power of the Internet with personal
service to create a full-service client interface. !hey offer an online
portal where the clients can e0ecute &ec'0itie& purchase and sales
transactions through the Internet.
!his covers the -quity, <ebt I <erivatives segment in the Indian
&ec'0itie& market. @ith an ob6ective of assisting our customers in
taking investment decisions, the portal also provides financial
information on various companies listed. For e0ecuting a transaction
clients can directly log on to our website without requiring any
assistance from offline intermediaries
Ti0, .!0t# Fin!nci!$ .0o,'ct& Offe0in"
!hey distribute third party products and services through our
comprehensive retail distribution network. !he products offered
include third party insurance, mutual funds and initial and
secondary public offerings. !hey have a pan India retail distribution
network, comprising $%4% relationship managers and $;4 branches
spread over 14 cities.
INTRODUCTION AND CONCE.T OF SHARE
TRADING
!rading in shares is old phenomena its regulation had been started
when securities contract act had been formed in $14>. !ransfer of
resources from those with idle resources to others who have a
productive need for them is most efficiently achieved through the
securities market. It provides a channel for reallocation of savings
to investments.
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) is a
regulatory governing body of security market. !he *-BI Act $119
was enacted to empower *-BI with statutory powers forK
&a) 'rotecting the interests of investors in securities.
&b) 'romoting the development of the securities market
&c) .egulating the securities market
Its regulatory 6urisdiction e0tends over corporate in the issuance of
capital and transfer of securities. It has powers to register and
regulate all the market all market intermediaries and also to
penalie them in case of violations of the provisions of the A(!,
rules and regulations made there under. *-BI has a full autonomy
and authority to regulate and develop an orderly securities market.
!he share market can be segmented in two parts one is 'rimary
/arket another is *econdary /arket.
.0i*!0# M!0ket
It provides opportunity to issuers of securities government as well
as corporate to raise resources to meet their requirements of
investments. In this market companies issue fresh security sin
e0change of funds through public issues or private placements. !he
market design for primary market is provided in the provision of
(ompanies Act, $14> which deals with issues, listing and allotment
of securities. !he investors have to apply the shares by filling the
application form issue by the company along with the application
money. According to <isclosure and Investor 'rotection guidelines
of *-BI, $119 company has to disclose all the necessary information
regarding pricing of issues, listing requirements, disclosure norms
lock-in-period for promoters contribution, contents of offer
documents pre and post issue obligations etc.
(ompany can issue shares at face value, at premium or at discount.
Another method of pricing which is now days common is issuing the
securities through online system of the stock e0change has to
comply with the section 44 to >2a of the companies Act, $14> and
*-BI guidelines 9%%%. !he company is required to enter in to an
agreement with the stock e0changes which have the requisite
system for online offer of securities. !he advantages for this new
system areK-
&a) !he investors part with money only after allotment.
&b) It eliminates refunds e0cept in case of direct
applications.
&c) It reduces the time taken for issue process
Secon,!0# M!0ket
*econdary market is the place for sale and purchase of e0isting
securities. It enables an investor to ad6ust his holdings of securities
in response to changes in his assessment about risk and return. It
enables him to sell securities for cash to meet his liquidity needs. It
essentially comprises of the stock e0changes which provide platform
for trading of securities and a host of intermediaries who assist in
trading of securities and clearing and settlement of trades. !he
securities are traded, cleared and settled as per prescribed
regulatory framework under the supervision of the e0changes and
oversight of *-BI.
T0!,in" Mec!ni&*
-arlier trading on stock e0changes in India used to take place
through open outcry without use of information technology for
immediate matching or recording of trades. !his was time
consuming and inefficient. !his imposed limits on trading volumes
and efficiency. In order to provide efficiency, liquidity and
transparency 8ational *tock -0change introduced a nation wide on
line fully automated screen based trading system where a member
can punch in to the computer quantities of securities and the prices
at which he likes to transact and the transaction is e0ecuted as soon
as it finds a matching sale or buy order from a counter party.
*creen based trading electronically matches orders on a price?time
priority and hence cuts down on time, cost and risk of error, as well
as on fraud resulting in improved operational efficiency. It enables
market participants, irrespective of their geographical locations to
trade with one another and it provides equal access to everybody.
8*- has main computer which is connected through Lery *mall
Aperture !erminal &L*A!) installed at its office. !he main computer
runs on a default tolerant *!.A!:* mainframe computer at the
e0change. Brokers have terminals installed at their premises which
are connected through L*A!s. An investor informs a broker to place
an order on his behalf.
ORGANISATION< CHART
CHAIRMAN D CEO
*ameer =ehlant
(-7
.a6eev .attan
'resident I (-7
*urabh /ital
(-7
=agan Banga
Head online sales
7ivyesh *hah
Head online sales
!.*. /uglani
(hief !ech
officer
*uresh Aain
L.'
'heeta 8agpal
Head- H.
Ashok *harma
Finance
(ontroller
ACCOUNTS AND FEATURES
!hrough various types of brokerage accounts, they offer purchase
and sale of &ec'0itie&, which includes -quity, <erivatives and
(ommodities listed on 8*-, B*- and 8(<-B. Additionally, they
provide their clients access to a variety of insurance products like
life, term and annuity products through third-party insurance
companies like Birla *unlife Insurance (ompany. In,i!+'$$& =roup
*ignature (lient is designed to serve self-directed individual
investors who want to manage their own portfolios. For these
clients, they offer this account, which is a stock trading account that
allows clients to combine investments and cash in one-account and
trade &ec'0itie&. (lients are also eligible to subscribe to In,i!+'$$&
-quity Analysis, a fee based research offering. 7ther features of
In,i!+'$$& =roup *ignature Account include priority handling of
their service calls at the (entralied (ustomer *ervice (entre and
through dedicated relationship managers. In,i!+'$$& =roup
*ignature account features include online integrated net transfers
via integrated payment gateways with banks such as H<F( Bank.
'ower In,i!+'$$& - For active traders, !hey offer 'ower In,i!+'$$&
accounts that include access to special features and services such
as advanced trading tool dedicated team of relationship managers.
Indiabulls offers a full range of financial services and products
ranging from -quities to Insurance to enhance your wealth and
hence achieve your financial goals.
In,i!+'$$& .0ofe&&ion!$ Net%o0k
TM
offers real-time prices,
detailed data and news, intelligent analytics, and electronic trading
capabilities, right at your finger-tips. !his powerful technology is
complemented by our knowledgeable and customer focused
.elationship /anagers.
IndiabullsH .elationship /anagers are available to you to help with
your financial planning and investment needs. !o provide the
highest possible quality of service, Indiabulls provides full access to
all products and services through multi-channels.
EC'itie& !n, De0i;!ti;e&
7ur .etail -quity Business caters to the needs of individual Indian
and 8on-.esident Indian &8.I) investors. Indiabulls offers broker
assisted trade e0ecution, automated online investing and access to
all I'7Hs.
!hrough various types of brokerage accounts, Indiabulls offers the
purchase and sale of securities which includes -quity, <erivatives
and (ommodities Instruments listed on 8ational *tock -0change of
India +td &8*-I+), !he *tock -0change, /umbai &B*-) and 8(<-B.
THE FACI<ITIES .ROVIDED BY INDIABU<<S
In,i!+'$$& Si"n!t'0e Acco'nt
A multitude of ways to access your account either through priority
access to .elationship /anager over phone or online access to your
Account I .esearch !ools.
In,i!+'$$& Si"n!t'0e Acco'nt Fe!t'0e&
'riority *ervice E -n6oy priority telephone access that gives you
direct access to your .elationship /anager9
'remium .esearch E Benefit from full access to Indiabulls -quity
Analysis
!/
, our ob6ective, fact-based approach to rating stocks.
7nline Accounting E *tay on the top of your investments with a
snapshot of your Account *tatements. =et access to 'ortfolio
statement and access to digital contract notes.
Benefit&
(ontrol Q *tay on top of your investments with convenient access
to your account online or by phone.
(onfidence Q *upport your investing decisions with premium in-
depth research - Indiabulls -quity Analysis.
!/
Lalue Q -n6oy competitive commissions and get the service and
support you need at a fair price.
.o%e0 In,i!+'$$&
Indiabulls is dedicated to empower Active !raders through personal
service and advanced trading technology.
Acti;e T0!,e0 - Get Mo0e At In,i!+'$$&
.egardless of how the market is performing or which way the
economic winds are blowing, you, as a trader, are researching,
charting, crafting a strategy, buying and selling. Pou are getting in,
getting out and moving on to the ne0t trade.
(hoose from a comprehensive offering of accounts, platforms and
products. (ustomie our technology and services to support the way
you work.
Fe!t'0e& of .o%e0 In,i!+'$$&
TM

+ive *treaming Ruotes
Fast 7rder -ntry
!ic by !ic +ive (harts
!echnical Analysis
+ive 8ews and Alerts
-0tensive .eports for .eal-time Accounting
Benefit&
Co*/0een&i;e Fin!nci!$ Se0;ice& Q As an Active trader, youHll
have the tools, resources and support you need to e0ecute your
trading strategy, plus your choice of a wide range of investment
products and services.
De,ic!te, S'//o0t !n, Se0;ice& Q -n6oy priority access to
.elationship /anagers who are dedicated to supporting your trading
and investing needs.
Non-Re&i,ent In,i!n (NRI) In;e&to0 Se0;ice&
@ith an e0tensive range of investment products, you will discover
an unwavering commitment to helping you invest in India.
F!ci$itie&
In,i!+'$$& NRI T0!,in" Acco'nt - 'rovides access to
comprehensive trading tools for independent 8.I investors
In,i!+'$$& De/o&ito0# Se0;ice& - Integrated services for
seamless delivery
HDFC B!nk Acco'nt - 8.-?8.7 Accounts with built in ta0
management solutions and facility to source all regulatory
approvals.
In,i!+'$$& EC'it# An!$#&i&
TM
- 'remium .esearch on 9%%
companies updated daily.
Benefit&
In,i!n In;e&t*ent& B0in"& Yo' Mo0e Coice&
Investing in India, one of the worldHs fastest emerging financial
markets, means a wider choice of investment opportunities and
industries. At Indiabulls, you can take full advantage of the
emerging Indian market.
See %!t in,i!+'$$& offe0
Indiabulls provide you with a *eamlessly integrated trading,
depository and bank account enabling you to trade from anywhere
in the world.
Investing in India, one of the worldHs fastest emerging financial
markets, means a wider choice of investment opportunities and
industries. At Indiabulls, you can take full advantage of the
emerging Indian market.
Indiabulls provide you with a *eamlessly integrated trading,
depository and bank account enabling you to trade from anywhere
in the world.
De/o&ito0# Se0;ice&
Indiabulls is a depository participant with the 8ational *ecurities
<epository +imited and (entral <epository *ervices &India) +imited
for trading and settlement of dematerialied shares. Indiabulls
performs clearing services for all securities transactions through its
accounts. !hey offer depository services to create a seamless
transaction platform Je0ecute trades through Indiabulls *ecurities
and settle these transactions through the Indiabulls <epository
*ervices. Indiabulls <epository *ervices is part of value added
services for their clients that create multiple interfaces with the
client and provide for a solution that takes care of all your needs.
I*+ is a depository participant with the 8*<+ and (<*+ for trading
and settlement of dematerialied shares. It performs clearing
services for all &ec'0itie& transactions through its accounts. (lients
of the brokerage business are able to use the depositary services to
e0ecute their trade through I*+ and settle these transactions
through our depositary services. Indiabulls depositary service is part
of the value-added offerings to create multiple interfaces with the
client.
INSURANCE OVERVIE:
@hen you hear the word Insurance, the words boring and mundane
probably enter your mind.
In&'0!nce .0o,'ct&
IIA'+ is a (orporate Agent of Birla *unlife Insurance (o., which is
India,s second largest private insurance company. It offers life
insurance and annuity products. !he insurance e0perts assist
relationship managers in evaluating the near term and long term
financial needs of clients and design programs that they believe
would best suit their needs and help them manage their risks.
Insurance e0perts also co-ordinate with underwriting partners to
complete the insurance transaction. IIA'+ has a network of 33
insurance e0perts spread across its branch network. IIA'+ has been
awarded the "Flying *tart# award by Birla *unlife Insurance (o. for
outstanding contribution towards growth and success of the
partnership.
@hen it comes to business, you are right up there. !aking all those
split second decisions, avoiding pitfalls and making sure your money
works hard for you. But donHt you think the business of life requires
6ust as much attention and probably even more. !hatHs we are
proud to bring to you an offer e0clusively for you. As a part of our
endeavor to provide you with world-class products and services,
Indiabulls gives you the opportunity to avail of the whole range of
Birla *unlife Insurance 'roducts through the Indiabulls network of
$%4% .elationship /anagers over $;4 locations nationwide. @hich
means you can take care of life, while taking care of business. As
always, we put your needs first.
.0o,'ct&? In,i;i,'!$ <ife
+ive +ong .etirement 'lan
Fle0i *ave 'lus -ndowment 'lan
Fle0i (ash Flow /oney Back 'lan
Fle0i +ife +ine 'lan
Fle0i *ecure +ife .etirement 'lan
'remium Back !erm plan
/y (hild
.iders
Birla *un +ife !erm 'lan
*ingle 'remium Bond
(lassic +ife
(ritical Illness 'lus .ider
(ritical Illness-@omen .ider
.0o,'ct& ? G0o'/ <ife
=roup !erm Insurance
=roup *uperannuation 'lan
=roup =ratuity 'lan
Forms
FAR K =roup 'rotection *olution 'lan
FAR K =roup *uperannuation 'lan
FAR K =roup =ratuity 'lan
Bima Eavach Po6ana
In,i!+'$$& EC'it# An!$#&i&
!hey seek to provide their clients with customied research reports
called In,i!+'$$& -quity Analysis. It provides clients with an
ob6ective stock rating system on more than 9%% stocks, assigning
each equity a single gradeK A, B, (, <, or -. 7n average, A-rated
stocks are e0pected to strongly outperform the overall market over
the ne0t $9 months, while --rated stocks are e0pected to strongly
underperforms the market. In,i!+'$$& -quity Analysis leverages
their strong technology strengths to a systematic ratings
methodology.
O+>ecti;e "'i,!nce to e$/ #o' +'# o0 &e$$
Building and maintaining your ideal portfolio demands ob6ective,
dependable information. Indiabulls -quity Analysis!/ helps satisfy
that need by rating stocks based on carefully selected, fact-based
measures. And because weHre not focused on investment banking,
we donHt have the same conflicts of interest as traditional brokerage
firms. !his ob6ectivity is only one important difference in our
ratings.
A &c!$e of A1 B1 C1 D !n, E
A to - ratings are applied to over 3F5 Indian headquartered stocks
using a wide variety of investment criteria from four broad
categories.
R!tin" i& Un,e0&t!n,!+$e !n, Action!+$e
7ver the ne0t $9 months, A-rated stocks have a return outlook of
strongly outperforming the market while --rated stocks have a
return outlook of strongly underperforming the market. Find out
more about using Indiabulls -quity Analysis!/
!he Indiabulls -quity Analysis!/ model attempts to gauge investor
e0pectations, since stock prices tend to move in the same direction
as changes in investor e0pectations.
*tocks with low and potentially improving investor
e0pectations tend to receive A or B ratings.
*tocks with high and potentially falling investor e0pectations
tend to receive < or - ratings.
S/eci!$ Con&i,e0!tion&
Indiabulls -quity Analysis!/ also do not reflect the possible impact
of late-breaking news since the ratings are updated daily. !hus, it is
important to conduct additional research prior to making a trading
decision IndiabullsH systematic approach is dependent on the
accuracy of financial data provided by third parties. Indiabulls
-quity Analysis!/ may not capture more sub6ective, qualitative
influences on return and risk, such as management changes and
pending lawsuits.
.!0!*ete0& '&e, +# In,i!+'$$& to "i;e "0!,e& to te
in,i;i,'!$ &tock
Indiabulls -quity Analysis
TM
H four underlying components
&Fundamentals, Laluation, /omentum and .isk) are provided to
give you further insight into why a stock has a particular Indiabulls
-quity .ating. !he component grades should not be used alone in
making investment decisions. Always consider your investment
goals, portfolio diversification and ta0 situation and check recent
news before making an investment decision on an individual stock.
F'n,!*ent!$&
!he Fundamentals grade underlying the Indiabulls -quity
Analysis!/ is based upon several earnings-quality measures derived
from recent financial statement data. *tocks with strong
fundamental attributes such as a track record of high net profit
margin and return on equity tend to have better Fundamentals
grades.
V!$'!tion
!he Laluation grade underlying the Indiabulls -quity Analysis!/ is
based upon several value-oriented investment criteria. (ompanies
that are commanding a higher valuation in the market currently as
compared to others having similar earnings and other parameters
shall get a lower rating than others. !he aim of this component is to
6udge the attractiveness of a particular stock. !ypically stocks with
lower '- ratio and other valuation related parameters would get
higher valuation grades.
Mo*ent'*
!he /omentum grade underlying the Indiabulls -quity Analysis!/
measures the potential of the stock to keep performing at a
stronger than market level in the near future. IndiaBulls uses the
opinions collected from a panel of analysts to get to a momentum
rating for a company.
Ri&k
!he .isk grade underlying the Indiabulls -quity Analysis!/ is based
upon several diverse measures of investment risk. +arger stocks
with good risk related attributes &such as low stock price volatility,
low debt-equity ratio, high stock liquidity etc.) tend to have better
risk grades.
M't'!$ F'n,&
!hey provide various mutual funds &equity, debt and balanced
mutual funds) through our retail distribution network. !hey offer
clients a wide variety of mutual funds from Asset /anagement
(ompanies like 'rudential I(I(I /utual Fund, H<F( /utual Fund
etc.
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Pou take today and you can pay it tomorrow with no penalties
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F!0!$$on /!#& R& BBc0 fo0 @@G &t!ke in In,i!+'$$& !0* S!he
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RESEARCH METHODO<OGY
!he methodology section is the blue print for researcher activity and
specifies bow the investigator intents to study the people or
describe social settings. In other words the methodology section
make e0plicit the study desire and constitutes the "how to do it#
phase.
!he pro6ect study has been conducted by collecting primary data
only using structured questionnaire. 8o secondary data is used.
I have put my best possible effort to do this research and collect the
necessary information to learn about this topic thoroughly.
OBJECTIVES OF THE RESEARCH
!o study investor,s behavior towards different attributes such as
risk, return liquidity etc. of investment in -quities.
!o study the issues and challenges that investors face while
making investment in share market.
!o study the preferences and perceptions of investors regarding
various financial products from the stable of Indiabulls *ecurities
+td. so that the firm can benefit from the findings of the report in
launching any new investment product in future.
DATA CO<<ECTION
!he data collected was a primary in nature no secondary data was
used. 'rimary data was collected using structured questionnaire.
!he questionnaire has been designed for the target group to get the
best amount of data possible keeping in view the importance and
authenticity of the information and convenience of the respondent.
!he selection of investor was predetermined in nature 'ersonal
contacts were established to conduct a face-to-face interview.
Interview was conducted under strict supervision to maintain the
standards of the data collected.
Re&e!0c De&i"n
Re&e!0c I,e!
Re&e!0c K'e&tion
Re&e!0c St!te*ent
Re&e!0c Meto,o$o"#
D!t! Co$$ection !n, S'0;e#in"
D!t! An!$#&i&
Fin,in"& !n, Reco**en,!tion&
Re&e!0c ,e&i"n
.esearch design is a specification of methods and procedures for
acquiring the information we need to solve the problems. .esearch
design was adopted for the purpose of collection and analysis of
data in a manner aimed at getting relevant information. It was
conceptual structure within which research was conducted,
collected, measured and analyed.
Re&e!0c I,e!
!o know the market scene of trading and Investment in equities
through Indiabulls securities +td.
Re&e!0c K'e&tion
@hat is the market trend regarding investmentU @hat difficulties
and challenges investors are facing while making investmentsU
Re&e!0c St!te*ent
"!o get an insight into the mind of investors regarding trading and
investment in -quities#
"!o get an insight into the mindset of investors regarding the
importance assigned to different attributes such as risk, return,
liquidity etc. of various investment channels such as equities. In the
report this tries to understand the investor,s behavior while trading.#
"!o study the preferences and perceptions of investors regarding
various financial products from the stable of Indiabulls *ecurities
+td. so that the firm can benefit from the findings of the report in
launching any new investment product in future.#
RESEARCH METHODO<OGY
<efining the populationsK !he population taken for the research
consists of investors of only <elhi region &both retail and
institutional)
<efining the *ampleK A random sample has been taken for the
purpose of e0tensive market survey. A structured questionnaire has
been prepared and the results are analyed for precise findings.
*ie I !ype of *ampleK A random sample of sie $%% is taken for
surveying.
/ethod to be usedK A frequency count has been done for different
parameters? question and the most important factors have
suggested to the company for betterment of sales operations.
<IMITATIONS OF THE STUDY
!o study share market is a very vast topic and the search is 6ust
limited to a small portion.
<ue to the reluctant nature of the respondents it was not an
easy task to collect relevant information from them.
*ometime it was difficult to make the respondents understand
the purpose of the survey.
Busy schedule of the respondents was also a ma6or hindrance to
establish a contact with them.
It may be possible the information provided by them is not true.
SURVEY KUESTIONNAIRE
8ame K
Address K
'hone no K
$. @here do you prefer to invest your moneyU
a) Bank <eposits
b) *hares
c) /utual Funds d) .eal
estate
e) Insurance 'lans
9. @hat are the factors, which attracts you for the investmentU
a) High Return b) Moderate Return
c) +ow .isk d) /oderate .isk
;. <o you prefer to invest in sharesU
a) Pes
b) 8o
5. If yes, out of following, which intermediating company would you
go ForU
a) Eotak *ecurities b) Indiabulls
*ecurities
c) I(I(I d)
Fortis *ecurities
d) 7thers, please specify
4. If Indiabulls, @hat are the factors, which attract you to deal with
IndiabullsU
>. If 7thers, @hat are the factors, which attract you, please specifyU
3. @hat attracts you to invest in *haresU
a) Brokerage b)
-0pertise Enowledge
c) -0posures?loan d) Brand
2. 7n what basis do you prefer to trade in sharesU
a) <aily b) /onthly
c) Pearly d) other, please
specify
1. <oes the companies profile matter for the investment decisionsU
a) Pes b)
8o
$%. <o you require the opinion of portfolio managers to manage
your investmentU
a) Pes b)
8o
$$. @hat is the most important service parameter that you look for
while trading.
a) Information b) *peed
c) Ruality d) 7ther
$9. Any recommendation ? *uggestion

ANA<YSIS OF THE .REFERRED INVESTMENT AREA
!he investment was broadly divided into five areas, mainly-Bank
deposits. *hares, /utual Fund ,.eal -state and insurance plans.
0
5
10
15
20
25
30
35
40
45
Bank
De!"#$"
S%a&e" M'$'a(
F'n)"
Rea(
E"$a$e"
In"'&an*e
(an
N!+ !, Re"!n)en$"
Following observations can be made on the basis of above
analysisK
Bank <eposits being the most preferred area, 5;G respondents
out of hundred invested in bank deposits.
!he second preferred area was *hares as 93G respondents were
investing in the share market.
!hen preferred area was the /utual Funds with $;G of
respondents
.eal estates were the least preferred area i.e. only 3G
ANA<YSIS OF THE FACTORS AFFECTING THE
INVESTMENT
!he factors are categoried in to four parameters to know the
purpose of investment made by the investor.
52
2-
4
15
H#.% &e$'&n"
M!)e&a$e Re$'&n
L!/ R#"k
M!)e&a$e R#"k
49G respondents go invests for higher returns.
91G respondents prefer /oderate .eturn for their
investments.
$4G prefer moderate risk.
7nly 5G for +ow risk.
ANA<YSIS FOR INTERMEDIATING COM.ANY
!hese factors are categoried into brokerage, Information provided
by them the e0posure limit or loan facility provided by them and
their Brand 8ame.
9$G respondents choose Eotak *ecurities +td.
;2G respondents choose Indiabulls *ecurities +td. for trading.
3G respondents choose I(I(I direct.
5G respondents choose Fortis.
;%G go for others.
ANA<YSIS OF THE FACTORS FOR BROKING HOUSE
!hese factors are categoried into brokerage, Information provided
by them the e0posure limit or loan facility provided by them and
their Brand 8ame.
12
44
20
11
B&!ke&a.e
E2e&$#"e 3n!/(e).e
E2!"'&e4L!an
B&an) na5e
55G respondents choose their broking house on basis of
information provided by them.
92G prefer by the e0posure limit and the loan facility provided to
them.
$9G by the brokerage charge by the broking house.
$>G by Brand 8ame.
ANA<YSIS OF THE INF<UENCE OF THE .AST
.ROFI<E OF A COM.ANY

Ye"
506
NO
426
42G respondents say yes they study profile of the company
before making investment.
59G respondents say no.
ANA<YSIS OF THE REKUIREMENT OF EX.ERTISE

Ye"
-36
NO
76
1;G respondents say yes, they required e0pertise
knowledge.
3G respondents say no.
MOST IM.ORTANT SERVICE .ARAMETER
Se&8#*e 9a&a5e$e&"
206
356
426
36
See)
:'a(#$;
In,!&5a$#!n
O$%e&"
!he most important service parameter that came up as a result
of survey is Information i.e. the investors feel that the
information contained in the service package is the key to more
profits.
*econd ma6or parameter is Ruality of service.
9%G investors feel that the quickness of service is above par
than any other aspect.
RECOMMENDATIONS
I8<:(!I78 '.7=.A/* must be held for the sales teams before
letting them go into the field. In these induction classes the
e0perienced sales staff employees should share their valuable
live e0periences and knowledge, which they have e0perienced
while in field.
@eekly magaines must be published and distributed to the
investors that can help them for making better investments.
*ales team must be fully equipped with latest technology such as
using +aptop that can be used for making presentation to the
customers especially to the corporate clients about their product
and services provided by them.
/ake your site user friendly so that more and more people know
about trading and do the same also.
Advertisement through (anopy, help to generate leads.
(ompany should advertise with a concern that has a brand name
in the market.
BIB<IOGRA.HY
www.indiabulls.com
www.nseindia.com
www.bseindia.com
www.moneycontrole.com
-conomics !imes
(... Eothari, /arketing .esearch
8(F/