A

Project Study Report

On

Training undertaken at

INDIA INFOLINE COMPANY LIMITED

Titled

“ROLE OF SHARE MARKET IN INDIAN ECONOMY”

Submitted in partial fulfillment for the

Award of degree of Master Of Business Administration

SUBMITTED BY:- SUBMITTED TO:-

VINIT SHARMA H.S.PANDEY

M.B.A. II(3rd SEM)

(2010-2011)

Subodh Institute Of Management And Career Studies

BR SHAH MBA BLOCK, Rambhag Circle, Jaipur-302004

Certificate
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. ____________________ Department for

guiding me right from the inception till the successful completion of the project. I sincerely
acknowledge him for extending their valuable guidance, support for literature, critical reviews
of project and the report and above all the moral support he had provided to me with all stages
of this project.

I would also like to thank the supporting staff for their help and cooperation throughout our
project.

Vinit Sharma
 DECLARATION

I hereby declare that the information presented here is correct to the best of my knowledge
and has been prepared on the basis of information gained, collected and processed during the
course of my summer internship with INDIA INFOLINE COMPANY LIMITED.

Also, the report presented has not been presented anywhere.

Vinit Sharma

PREFACE
 It is well evident that work experience is an indispensable part of every profession
course .In the same manner practical training in any organization is must for each and every
individual who is undergoing financial course without the practical exposure one cannot
consider himself as a qualified manager, during the training period the student learns through
his own experience, the real situation of corporate and to put theoretical knowledge into
practice .This experience is very valuable for the student & plays a leading and important role
in the career life of the student .Hence to fulfill this requirement, the I completed my training in
the INDIA INFOLINE.

When I entered in organization, I felt like stepping into altogether a new world. At first
everybody seems strange and unheard but as the time passes, one understanding the concept
& the working of the organization and their by develop professional relationship. Initially it is felt
as if classroom study was irrelevant and it is use less in my concern’s working but gradually it
is realized that all the basic fundamental concept studied are linked in one other ways to the
organization but how & what can be done with the fundamentals depends upon the intellectual
& applicability of the individual it is just the matter to modify the theory so to apply it is to given
practical solution sincerely believe that there is no better place to learn this practical training.

My topic of study as “Role of share market in indian economy”

Share market has significance in the present corporate world. My training in India Infoline
taught me about:-

1. What actually the Share market means?

2. How the trading is done?

3. What is the concept Demat?

4. What are the factors one should keep in mind while dealing with shares?

5. What does customer choice regarding broker service?

6. How share market effects the economy?

EXECUTIVE SUMMARY
India Infoline is one of the leading share broking companies, having its head office in Delhi; it
has its branches in almost all the parts of India. The company is not just a share broking house
it is a wealth management company, which manages the wealth of its clients. The company
has appointed a large number of franchisees across India and treats its franchisees as its
business partner. The company earns maximum of its revenue through brokerage.

The most interesting part in any internship, for a learner is the application of concepts and as
my project is on “ROLE OF SHARE MARKET IN INDIAN ECONOMY” I got know about the
industry in depth vis a vis the Indian economy.

This project report is about the history of Indian economy and share market where under the
heading of share market I have included, the history of share market, the major problems of
the Indian economy, reforms in Indian economy and their impact on the economy and has
discussed about the financial system of India, some aspects of the share market in post
liberalisation period and the multiple roles that share market play in Indian economy.

This project also give you the information about the significance of Share market and its
impact on GDP of the country and the multiple roles that share market play in an economy.

For the purpose a survey was conducted which included visiting different brokerage firms, as a
client ad their products and services were studied.

Further, a questionnaire is prepared so as to understand the needs and requirement of the

clients and investors. Sample size is of 200 investors who are keenly interested in share
market and deal regularly. The detail then gathered will be assembled and analyzed to make
further suggestions.

Table of contents

SR. NO. PARTICULARS Page No.

1. INTRODUCTION TO THE INDUSTRY
2. INTRODUCTION TO THE ORGANIZATION
3 RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY
3.2 DURATION OF THE STUDY
3.3 OBJECTIVE OF THE STUDY
3.4 TYPE OF RESEARCH
3.5 SAMPLE SIZE AND METHOD OF SELECTING
SAMPLE
3.6 SCOPE OF THE STUDY
3.7 LIMITATION OF THE STUDY
4 FACTS AND FINDINGS
5 DATA ANALYSIS AND INTERPRETATION
6 SWOT ANALYSIS
7 CONCLUSION
8 RECOMMENDATIONS AND SUGGESTIONS
9 APPENDIX
10 BIBLIOGRAPHY
INTRODUCTION TO THE INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest records of security dealings in India are meagre and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to
be transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to
about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump
began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at
Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a
place in a street (now appropriately called as Dalal Street) where they would conveniently
assemble and transact business. In 1887, they formally established in Bombay, the "Native
Share and Stock Brokers' Association" (which is alternatively known as “The Stock Exchange
"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated
in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Other leading cities in stock market operations

Ahmedabad gained importance next to Bombay with respect to cotton textile industry. After
1880, many mills originated from Ahmedabad and rapidly forged ahead. As new mills were
floated, the need for a Stock Exchange at Ahmedabad was realised and in 1894 the brokers
formed "The Ahmedabad Share and Stock Brokers' Association".

What the cotton textile industry was to Bombay and Ahmedabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After
the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was
followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904
and 1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange
Association".

In the beginning of the twentieth century, the industrial revolution was on the way in India with
the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company
Limited in 1907, an important stage in industrial advancement under Indian enterprise was
reached.

Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally
enjoyed phenomenal prosperity, due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning
in its midst, under the name and style of "The Madras Stock Exchange" with 100 members.
However, when boom faded, the number of members stood reduced from 100 to 3, by 1923,
and so it went out of existence.
In 1935, the stock market activity improved, especially in South India where there was a rapid
increase in the number of textile mills and many plantation companies were floated. In 1937, a
stock exchange was once again organized in Madras - Madras Stock Exchange Association
(Pvt) Limited. Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged
with the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges

The Second World War broke out in 1939. It gave a sharp boom which was followed by a
slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply
base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities, those
dealing in them found in the stock market as the only outlet for their activities. They were
anxious to join the trade and their number was swelled by numerous others. Many new
associations were constituted for the purpose and Stock Exchanges in all parts of the country
were floated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the
Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,
amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario
Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange
was closed during partition of the country and later migrated to Delhi and merged with Delhi
Stock Exchange.

Most of the other exchanges languished till 1957 when they applied to the Central Government
for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta,
Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well established exchanges, were
recognized under the Act.

Thus, during early sixties there were eight recognized stock exchanges in India The number
virtually remained unchanged, for nearly two decades. During eighties, however, many stock
exchanges were established at present, there are totally twenty one recognized stock
exchanges in India excluding the Over the Counter Exchange of India Limited (OTCEI) and the
National Stock Exchange of India Limited (NSEIL).
The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only grown
just in number of exchanges, but also in number of listed companies and in capital of listed
companies. The remarkable growth after 1985 can be clearly seen from the Table, and this
was due to the favouring government policies towards security market industry.

Growth Pattern of the Indian Stock Market

S.N. As on 31st 1961 1971 1975 1980 1985 1991 1995
December

1 No. of 7 8 8 9 14 20 22
Stock Exchanges

2 No. of Listed Cos. 1203 1599 1552 2265 4344 6229 8593

3 No. of Stock 2111 2838 3230 3697 6174 8967 11784

Issues of Listed Cos.

4 Capital of Listed 753 1812 2614 3973 9723 32041 59583

Cos. (Cr. Rs.)

5 Market value of 1292 2675 3273 6750 25302 110279 478121

Capital of Listed
Cos. (Cr. Rs.)

6 Capitalper Listed Cos. 63 113 168 175 224 514 693

(4/2) (Lakh Rs.)

7 MarketValue of Capital 107 167 211 298 582 1770 5564

per Listed Cos.(lakh)

8 Appreciated value of 170 148 126 170 260 344 803

Capital per
 Listed Cos. (Lak Rs.)

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges are limited to listed securities of public limited companies.
They are broadly divided into two categories, namely, specified securities (forward list) and
non-specified securities (cash list). Equity shares of dividend paying, growth-oriented
companies with a paid-up capital of at least Rs.50 million and a market capitalization of at least
Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified
group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery
transactions "for delivery and payment within the time or on the date stipulated when entering
into the contract which shall not be more than 14 days following the date of the contract”: and
(b) forward transactions "delivery and payment can be extended by further period of 14 days
each so that the overall period does not exceed 90 days from the date of the contract". The
latter is permitted only in the case of specified shares. The brokers who carry over the
outstanding pay carry over charges (can tango or backwardation) which are usually
determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities for
his clients on a commission basis and also can act as a trader or dealer as a principal, buy and
sell securities on his own account and risk.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to many
functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long
settlement periods and benami transactions, which affected the small investors to a great
extent. To provide improved services to investors, the country's first ring less, scrip less,
electronic stock exchange - OTCEI - was created in 1992 by country's premier financial
institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial
Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India,
General Insurance Corporation and its subsidiaries and CanBank Financial Services.

Trading at OTCEI is done over the centres spread across the country. Securities traded on the
OTCEI are classified into:
 • Listed Securities - The shares and debentures of the companies listed on the OTC can
be bought or sold at any OTC counter all over the country and they should not be listed
anywhere else

• Permitted Securities - Certain shares and debentures listed on other exchanges and
units of mutual funds are allowed to be traded

• Initiated debentures - Any equity holding at least one lakh debentures of particular scrip
can offer them for trading on the OTC.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock
market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange was
incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment
Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations,
selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions and
corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper, certificate of
deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of themselves
and their clients. Participants include trading members and large players like banks who take
direct settlement responsibility.
Trading at NSE takes place through a fully automated screen-based trading mechanism which
adopts the principle of an order-driven market. The prices at which the buyer and seller are
willing to transact will appear on the screen. When the prices match the transaction will be
completed and a confirmation slip will be printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

• NSE brings an integrated stock market trading network across the nation.

• Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the countrywide access to the securities.

• Delays in communication, late payments and the malpractice’s prevailing in the

traditional trading mechanism can be done away with greater operational efficiency and
informational transparency in the stock market operations, with the support of total
computerized network.

Unless stock markets provide professionalised service, small investors and foreign investors
will not be interested in capital market operations. And capital market being one of the major
source of long-term finance for industrial projects, India cannot afford to damage the capital
market path. In this regard NSE gains vital importance in.

DIFFERENCE BETWEEN OTC EXCHANGE AND OTHER STOCK

EXCHANGES

With the recognition of OTC exchange, the securities market in India has become two tiered
the first one being the main Stock Exchange like Bombay, Delhi, Madras and other one being
the OTC Exchange. The basic differences between them are as under-:

1.Usual stock exchanges are localized and operate in a particular area. But OTC Exchange is
not localized and its area of operation extends to the whole of India.

2. Usual stock exchanges have trading rings where the brokers come together and deal in
securities in conventional manner. But in OTC exchange there will be no trading and the deals
will be struck only through wide spread on-the-line computer network.
3. In usual stock exchanges, the eligibility criteria for listing is that the company must have
the minimum issued equity capital of Rs. 3.00 Crores. But for listing in OTC exchange, a
company can have minimum issued Equity capital of Rs. 30.00 Lacs out of the minimum public
offer should be Rs.20.00 Lacs in face value.

4. In Stock exchanges, there is no upper limit fixed on issued equity share capital, but in
OTC Exchange a company having an issued equity share capital of more than Rs.25.00crores
is not eligible for listing.

5. A company can directly enter the other stock exchanges and get its shares listed, but it is
not so in the case of OTC Exchange. For listing in OTC exchange, a Company will have to
appoint a member of the OTC exchange as ‘Sponsor’. The member appraises the project and
after being satisfied about the viability of the project and its investment worthiness accepts to
become its sponsor.

SEBI’S ROLE AS A REGULATOR

According to the preamble to the SEBI Act the objective of setting up SEBI was to
protect the interest of the investors. SEBI has thus three objectives cast upon it by the Act.

➢ Protect the investors in Securities Market

➢ To promote the development of Securities Market
➢ Regulate the Securities Market

Following powers have ban given to SEBI with the enactment of SEBI with enactment of SEBI
Act 1992:

➢ Power to call for periodical returns from recognized Stock Exchanges.

➢ Power to call any information or explanation from recognized stock exchanges or its
members.
 ➢ Power to direct inquiries to be made in relation to affairs of stock exchanges or opts
members.
➢ Power to grant approval to bye-laws of recognized exchanges.
➢ Power to make or amend bye-laws of recognized exchanges.
➢ Power to declare applicability of section 17 of the Securities Contract (Regulation) Act in
any State or area to grant licenses to dealers in securities.
➢ Power to compel listing of securities by public companies.
➢ Power to control and regulate stock exchanges.
➢ Power to grant registration to market intermediaries.
➢ Power to register and regulate working of collective investment schemes including
mutual fund.
➢ Power to promote and regulate self-regulatory bodies.
➢ Power to prohibit fraudulent and unfair trade practices relating to securities.
➢ Power to prohibit inside trading.
➢ Power to promote investor’s education and trading of intermediaries in capital.
➢ Power to regulate substantial acquisition of shares and takeover of companies
➢ Power to levy fees.
➢ Power to conduct research and other functions.

SEBI, as a regulatory and development agency has wide and varied powers SEBI’s efforts so
far includes measures for efficiency, reforms and transparency in primary and secondary
markets, regulation of mutual funds and market intermediaries. A lot of investor protection
guidelines have also been framed and implemented. SEBI’s aforesaid powers and functions
are not exhaustive in nature.

Key strengths of the Indian securities markets

The key strengths of the Indian capital market include a fully automated trading system on all
stock exchanges, a wide range of products, an integrated platform for trading in both cash and
derivatives, and a nationwide network of trading through over 4,000 corporate brokers. The
securities markets in India have made enormous progress in developing sophisticated
instruments and modern market mechanisms.
The real strength of the Indian securities market lies in the quality of regulation. The market
regulator, Securities and Exchange Board of India (SEBI) is an independent and effective
regulator. It has put in place sound regulations in respect of intermediaries, trading
mechanism, settlement cycles, risk management, derivative trading and takeover of
companies. There is a well designed disclosure based regulatory system. Information
technology is extensively used in the securities market. The NSE and BSE have most
advanced and scientific risk management systems. The growing number of market
participants, the growth in volume of securities transactions, the reduction in transaction costs,
the significant improvements in efficiency, transparency and safety, and the level of
compliance with international standards have earned for the Indian securities market a new
respect in the world.

PORTER’S 5 FORCES ANALYSIS

LOW
Bargain
Threat ofofnew
form
Competitive
rivalry
entrants
power among
substitute
suppliers
of
firms
buyers
MEDIUM HIGH HIGH

HIGH

Bargain power of suppliers

NSDL & CSDL are the regulatory bodies for Depository Participants like SSKI, SHCIL,
ICICIdirect.com, etc. Also these regulatory bodies have got an upper hand as the bargaining
power stock broking houses like SSKI, etc. would be less.

NSE & BSE are playgrounds where common an investor trade through stock broking houses,
for which they have to take permission from NSE/BSE.
NSE & BSE are under the purview of SEBI, that’s why stock broking houses like SSKI, have
low bargaining power. But here there is one advantage that NSE/BSE have i.e. they cannot go
for forward integration.

MCX & NCDEX are stock exchanges which trade in commodities and derivatives. Here again
stock broking houses have to follow rules and regulation of the same.

Web maintainers are companies which maintain web sites & technical aspects of the same.
Here stock broking houses like SSKI can have more bargaining power due to stiff competition
among web maintaining companies. Web maintainers are companies who make and maintain
software’s for stock broking houses. If say for example stock broking houses switches over to
other web maintainers then that company cannot understand the mechanisms of software’s.
So it is quite high switching cost.

Bargain power of buyers

There are various types of investors who trade through stock broking houses like SSKI, which
includes investors like small investors, medium net worth investors, business partners,
institutional investors and mutual fund companies.

Here the bargaining power of stock broking houses depends on how big the investor is. So
here we can say that bargaining power of stock broking houses is high in case of small
investors & HUF.

While the bargaining power is moderate in case of HNI (High New Worth Investors)/ MNI’s
(Medium Net Worth Investors) and business partners. But the in case of mutual fund
companies and institutional investors bargaining power is less.

There is competitive buzz in stock broking industry; competitors are offering low brokerage and
best services with added feature. So switching cost is pretty much less. So the buyer can
easily switch over to competitors product.

Competitive Rivalry

The company is facing the competition from local as well as national level players. The local
players provide facility for off-line trading while the national players like ICICIdirect.com and
Kotakstreet.com, HDFC Security provide online trading services
There are also other big names like Indiabulls, MotilalOswal, 5paisa and Marwadi encircles the
company form both the sides by providing online and off-line trading with competitive services.
Threat of Entrants

The potential entrants in like Invest mart, Jeojit and Cipher which are coming in near future to
Rajkot City. Nationalized banks are also thinking to enter in this field by tying up with broking
houses. E.g. Bank Of Baroda.

Threat of substitute
Here substitutes are such instruments which can be used instead of investing in shares.
The instruments like Bank FD, insurance, mutual funds are the substitutes.
If the use of this instruments increase this may be disadvantage for the stock broking houses.
The companies and banks which are having these instruments can plunge into this industry.

SHARE MARKET CONCEPT

What’s a Stock Index?

An index is a number used to represent the changes in a set of values between a base
time period and another time period.

What’s a Stock Index?

A Stock Index is a number that helps you measure the levels of the market. Most stock
indexes attempt to be proxies for the market they exist in.

Why do we need an index?

Students of modern portfolio theory will appreciate that the aim of every portfolio
manager is to beat the market. In order to benchmark the portfolio against the market we need
some efficiency proxy for the market. Indexes arose out of this need for a proxy.

What does the number mean?

The index value is arrived at by calculating the weighted average of the prices of a
basket of stocks of a particular portfolio. This portfolio is called the index, portfolio attempts a
high degree of correlation with the market. Indexes differ based on the method of assigning the
weight ages to the stocks in the portfolio.

But why the portfolio? Why not the entire market?

This is because for someone who wishes to replicate the return on the market it is
infinitely more expensive to buy the whole market and for small port folio size it is almost
impossible. The alternative is to choose a portfolio that has a high degree of correlation with
the market.

How are the Stocks in the portfolio weighted?

There are basically three types of weighing:

 Market capitalization weighted

 Price weighted
  Equal weighted
As may be discerned, the stocks in the index could be weighted based on there individual
prices, their market capitalization or equally.

What is the better weighing option?

The market capitalization weighted model is the most popular and widely considered to
be the best way of determining the index values. In India both the BSE-30 Sensex and the
S&P CNX Nifty are market, capitalization weighted indexes.

Who owes the index? Who computes it?

Typically exchanges around the world compute their own index and own it too. The
sensex and the Nifty are case in point.

There are notable exceptions like the S&P 500 Index in the U.S. (Owned by S&P which
is a credit rating company) and the strait times Index in Singapore (Owned by the newspaper
of the same name).

Who decides what stocks to include? How?

Most index providers have a index committee of some sort that decides on the
composition of the index based on standardization selection and elimination criteria. The
criterion for selection of course depends on the philosophy of the index and its objective.

Most indexes attempt to strike a balance between the following criteria.

 Better industry representation.

 Maximum coverage of market capitalization.
 Higher Liquidity or Lower Impact cost.

Industry Representation

Since the objective of any index is to be a proxy for the market it becomes imperative
that the board industry sectors are faithfully represented in the index too. Though this seems
like an easy task, in practice it is very difficult to achieve due to a number of issues, not least of
them being the basic method of industry classification.
Market Capitalization

Another objective that most index providers try to achieve it, to ensure coverage of
some minimum level of the capitalization of the entire market. As a result within every industry
the largest market capitalization stock tend to select themselves. However, it is quite a
balancing act to achieve the same minimum level for every industry.

Liquidity or Impact cost.

It is important from the point of usability for all the stocks that are part of the index to be
highly liquid the reasons are two-fold. An liquid stock has state prices and this tends to give a
flawed value to the index. Further for passive fund managers, the entry and exist cost at a
particular index level is high if the stocks are illiquid. This cost is also called the impact cost of
the index.

What is the Benchmark Index?

An index which acts as the benchmark in the market has an important role to play.
While it has to be responsive to the changes in the market place and allow for new industries
or give up on dead industries, at the same time it should also maintain a degree of continuity in
order to survive as a benchmark index.

What are the popular indexes in India?

* BSE-30 Sensex * S&P CNX Nifty

* BSE-100 Natex * S&P CNX Nifty Jr.

* BSE Dollex * S&P CNX Difty

* BSE-200 * S&P CNX Midcap

* BSE-500 * S&P CNX 500

What are the sectoral indexes?

 These indexes provide the benchmark for sector specific funds. Fund managers and
other investors who track particular sector of the economy like Technology, Pharmaceuticals,
Financial sector, Manufacturing or Infrastructure use these index to keep track of the sector
performance.

What are the uses of an Index?

Index based funds

These funds tend to replicate the index as it is in order to match the returns on the
market. This is also known as passive management. Their argument is that it is not possible to
beat the market over a sustained period of time through active management and hence it is
better to replicate the index. Examples in India are:-

 IDBI M F’s fund on Nifty.

 UTI’ fund on the Sensex

Exchange traded funds (ETFS)

These are similar to index funds that are traded on an exchange. These are pretty
popular world wide with non-resident investors who like to take an exposure to the entire
market. S&P and WEBS products are amongst most popular products.

What is a book-closure date?

Companies close their share registry books for a few days for the purpose of decimating
corporate benefits like dividend or bonus. No request for change of ownership is entertained
during this period. Physical shares cannot be sold on an exchange, bearing a date on the
transfer deed earlier than the book closure. In this case the best way out is to send the shares
for transfer before the book closure date to avoid any hassles.

What is record date?

The record date is a cut off date announced by the company on which the shareholders
registered in the Register of members maintained by the company and are entitled of receiving
the benefits announced by the company such as Dividend, Bonus etc.
What is no-delivery period?

When ever companies announce book closure or record dates, stock exchanges set up no-
delivery periods for the concerned securities. Though trading is permitted during the period but
no physical exchange of shares take place. This is a sort of extended settlement period for the
securities. Investors are advised to look for the No Delivery period of the stocks since if the
shares are sold during the no delivery period. Payment shall be received only after the end of
this period. Speculative activity in the stock normally increases during the no delivery period.

If any dividend, bonus or right declaration has been made by a company, investor purchasing
the share before record date becomes entitled to this dividend etc. also. He is called to have
purchased the shares cum-dividend/cum-bonus/cum-right.

As soon as these entitlements gets detached from the share it becomes ex-dividend/ex-
Bonus/ex-right. Obviously, price of shares decreases the moment it becomes ex-dividend.

By purchasing shares cum-dividend and selling them ex-dividend, tax free dividend income
can be earned and simultaneously a capital loss can be booked which can be claimed as set
off against any other capital gain. This is called dividend stripping.
 INTRODUCTION TO THE ORGANISATION

COMPANY HISTORY

India Infoline was incorporated on October 18, 1995 as Probity Research and Services
Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. It
commenced operations as an independent provider of information, analysis and research
covering Indian businesses, financial markets and economy, to institutional
Customers. It became a public limited company on April 28, 2000 and the Name of the
Company was changed to Probity Research and Services Limited. The name of the Company
was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline Limited
on March 23, 2001.
In 1999, India Infoline identified the potential of the Internet to cater to a Mass retail segment
and transformed there business model from providing information services to institutional
customers to retail customers. Hence launched their Internet portal, www.indiainfoline.com in
May 1999 and started providing news and market information, independent research,
interviews with business leaders and other specialized features.

In May 2000, the name of Company was changed to India Infoline.com Limited to reflect the
transformation of business. Over a period of time, India Infoline emerged as one of the leading
business and financial information services provider in India.

In the year 2000, India Infoline leveraged their position as a provider of financial information
and analysis by diversifying into transactional services, primarily for online trading in shares
and securities and online as well as offline distribution of personal financial products, like
mutual funds and RBI Bonds. These activities were carried on by our wholly owned
subsidiaries.

India Infoline broking services was launched under the brand name of 5paisa.com through
their subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking
portal, was launched for online trading in July 2000. It combined competitive brokerage rates
and research, supported by Internet technology Besides investment advice from an
experienced team of research analysts, they also offer real time stock quotes, market news
and price charts with multiple tools for technical analysis.

Acquisition of Agri Marketing Services Limited (Agri)—

In March 2000, India Infoline acquired 100% of the equity shares of Agri Marketing Services
Limited, from their owners in exchange for the issuance of 508,482 of their equity shares. Agri
was a direct selling agent of personal financial products including mutual funds, fixed deposits,
corporate bonds and post-office instruments. At the time of our acquisition, Agri operated 32
branches in South and West India serving more than 30,000 customers with a staff of,
approximately 180 employees. After the acquisition, they changed the company name to India
infoline.com Distribution Company Limited.
Milestones

1995
-Incorporated as an equity research and consulting firm with a client base that included
leading FIIs, banks, consulting firms and corporate.
1999
-Restructured the business model to embrace the internet; launched archives.
Indiainfoline.com mobilised capital from reputed private equity investors.
2000
-Commenced the distribution of personal financial products; launched online equity trading;
entered life insurance distribution as a corporate agent. Acknowledged by Forbes as ‘Best of
the Web’ and ‘must read for investors’.
2004
-Acquired commodities broking license; launched Portfolio Management Service.
2005
- Listed on the Indian stock markets
- India Infoline fixes a price band between Rs 70 and Rs 80 for its forthcoming public issue.
The company is coming out with public issue of 1.18 crore shares with a face value of Rs 10
through the book building route. The issue is slated to open on April 21 and close on April 27.
Enam Financial Consultants Private Ltd would be the sole book running lead manager to the
issue while In time Spectrum Registry Ltd is the registrar to the issue.
-India Infoline public issue gets 6.6 times oversubscription
-IIL appoints R Mohan as VP
-India Infoline Ltd has informed that the Company has entered into a advertising agreement
with Times Group where in the Company and other group companies would spend about
Rupees Thirty Crores over the next 5 years in print as well as non print media of The Times
Group.
-India Infoline to buy 75-pc stake in Money tree

2006
-India Infoline launches exclusive SMS Value Added Service
-India Infoline enters into strategic agreement with Sara swat Bank
-India Infoline to launch stock trading on cell phones
-India Infoline to roll out MCX, NCDEX, DGCX software
-Acquired membership of DGCX; launched investment banking services

2007
-Launched a proprietary trading platform; inducted an institutional equities team; formed a
Singapore subsidiary; raised over USD 300 mn in the group; launched consumer finance
business under the ‘Money line’ brand.

2008
-Launched wealth management services under the ‘IIFL Wealth’ brand; set up India Infoline
Private Equity fund; received the Insurance broking license from IRDA; received the venture
capital license; received in principle approval to sponsor a mutual fund; received ‘Best broker-
India’ award from Finance Asia; ‘Most Improved
Brokerage- India’ award from Asia money.
- India Infoline Ltd has informed that the Board of Directors of the company have vide circular
resolution passed on March 10, 2008 approved the appointment of Mr. A K Purwar, ex-
Chairman of the State Bank of India, as an independent director on the Board of the
Company.
- India Infoline Ltd has informed that pursuant to the resignation of Mr. Nimish Mehta,
Company Secretary and compliance Officer of the Company. Ms. Falguni Sanghvi has been
appointed as the Company Secretary with effect from October 07, 2008.
- The Company has splits its face value from Rs10/- to Rs2/-.

2009
-Received registration for a housing finance company from the National Housing Bank;
received ‘Fastest growing Equity Broking House

COMPANY STRUCTURE
 IIFL
Money
IIFL (Asia)
Media
Marketing
Distribution
Insurance
Pte
&INDIA
Investment
Housing
line Ltd INFOLINE LTD.
New Co.Ltd.
Research
Company
Services
Brokers Ltd.
Commodities
Credit For
Ltd.
Services
Ltd.
Equity
Services
Finance Broking,
.
Ltd. Investment Banking
EquityLtd
International
Ltd
(Corporate Insurance
Agency)
Broking
NBFC forportal&
Operations
research,
distribution
Media
financing

FINANCIAL PROFILE
Balance Sheet
(Rs in Cr.)

Mar ' Mar ' Mar ' Mar ' Mar '
09 08 07 06 05

SOURCES OF FUNDS

Owner's Fund
Equity Share Capital 56.68 57.10 50.17 45.10 31.62

Share Application Money 11.37 59.77 4.42 4.42 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves & Surplus 980.13 932.75 235.1 123.83 20.70

8

Loan Funds

Secured Loans 1.70 0.00 44.68 1.50 1.37

Unsecured Loans 0.10 130.57 36.27 80.89 0.20

Total 1,049.9 1,180.1 370.7 255.74 53.89

8 9 2

USES OF FUNDS

Fixed Assets

Gross Block 143.68 98.32 73.10 8.75 4.47

Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00

Less : Accumulated Depreciation 44.94 35.08 24.38 5.23 3.76

Net Block 98.73 63.24 48.71 3.52 0.71

Capital Work-in-progress 4.51 0.49 0.00 0.00 0.00

Investments 869.31 915.68 171.4 100.25 40.31

5

Net Current Assets

Current Assets, Loans & Advances 778.75 872.38 446.1 179.94 16.91
2

Less : Current Liabilities & Provisions 701.31 671.60 295.5 27.97 4.03
7

Total Net Current Assets 77.43 200.78 150.5 151.98 12.87

5

Miscellaneous expenses not written 0.00 0.00 0.00 0.00 0.00

Total 1,049.9 1,180.1 370.7 255.75 53.89

8 9 1

Note :

Book Value of Unquoted Investments 869.31 915.68 171.4 100.25 40.20

0

Market Value of Quoted Investments 0.00 0.00 0.00 0.00 0.16

Contingent liabilities 13.24 8.00 8.00 73.00 3.50

Number of Equity shares outstanding (in Lacs) 2,834.0 571.03 501.6 451.01 316.22
0 7

Vision

Our vision is to be the most respected company in the financial services space.

Key features

➢ Membership on the Bombay Stock Exchange Limited and the National Stock
Exchange
➢ Registered with the NSDL as well as CDSL as a depository participant, providing a
one-stop solution for clients trading in the equities market
➢ Broking services in cash and derivative segments, online as well as offline under the
brand of 5paisa.com
➢ Presence across 19 states through a 177 strong branch network, with 75,000 online
registered users
➢ Provision of free and world-class research to all clients.

CAPITAL STRUCTURE OF INDIA INFOLINE

Face Value/M
Industry
Business Group
Lot
:Finance:Not
– General
:
BSE Code
Applicable
200/1 :532636
NSERatio
LTP
P/E (Rs.)
Code :INDIAINFO
:17.81 :94.85(-
1.40%)[NSE]
Market Cap :2707,43Cr
ISIN No. :INE530601024
Share Holding Pattern as on: 31/03/2010 31/12/2009 30/09/200

Face Value 2.00 2.00 2.00

No. Of Shares % Holding No. Of Shares % Holding No. Of Shares %

Holding

PROMOTER’S HOLDING

Indian Promoters 95674407 33.54 9565553 33.75 95551532 33.72

Sub Total 95674407 33.54 9565553 33.75 95551532 33.72

NON PROMOTER’S HOLDING

Institutional investors

Mutual Funds and UTI 61949895 21.72 57690332 20.36 51844547 18.29

Banks Fin. Inst. And 329055 0.12 153000 0.05 182501 0.06
Insurance

FII’s 49772811 17.45 53516738 18.88 58490452 20.64

Sub Total 112051761 39.29 111360070 39.29 110517500 39.00

PRODUCT& SERVICES

Equity

India Infoline provided the prospect of researched investing to its clients, which was
hitherto restricted only to the institutions. Research for the retail investor did not exist
prior to India Infoline. India Infoline leveraged technology to bring the convenience of
trading to the investor’s location of preference (residence or office) through
computerized access. India Infoline made it possible for clients to view transaction costs
and ledger updates in real time.

Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives

Multi-channel delivery model:

The Company is among the few financial intermediaries in India to offer a complement
of online and offline broking. The Companies network of branches also allows
customers to place orders on phone or visit our branches for trading.

Integrated middle and back office:

The customer can trade on the BSE and NSE, in the cash as well as the derivatives
segment all through the available multiple options of Internet, phone or branch
presence.

Multiple-trading options :
The Company harnessed technology to offer services at among the lowest rates in the
business.

Membership:
The Company widened client reach in trading on the domestic and international
exchanges.

Technology:
The Company provides a prudent mix of proprietary and outsourced technologies,
which facilitate business growth without a corresponding increase in costs.

Content:
The Company has leveraged its research capability to provide regular updates and
investment picks across the short and long-term.
 Service:

Clients can access the customer service team through various media like toll-free lines,
emails and Internet- messenger chat for instant query resolution. The Companies
customer service executives proactively contact customers to inform them of key
changes and initiatives taken by the Company. Business World rated the Companies
customer service as Best in their survey of online trading sites carried out in December
2003.

Commodities

India Infoline extension into commodities trading reconciles its strategic intent to
emerge as a one stop solutions financial intermediary. Its experience in securities
broking has empowered it with requisite skills and technologies. Increased offering: The
Companies commodities business provides a contra-cyclical alternative to equities
broking. The Company was among the first to offer the facility of commodities trading in
India’s young commodities market (the MCX commenced operations only in 2003).
Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to
Rs 20.02 bn. The commodities market has several products with different and non-
correlated cycles. On the whole, the business is fairly insulated against cyclical
gyrations in the business.

India Infoline distinguished its business through the interplay of knowledge and
technology:

Complete solution:
The Company provides a complete - advice to execution solution facilitated by
information and advice on likely commodity trends in the Indian and international
environment.
 Technology:
The Company has extended the trading terminal to the investors home/workplace
reinforced with real-time commodity information and ledger position.

Rates:
The Company harnessed technology to offer services at among the lowest rates in the
business. Membership: The Company widened client reach in trading on the domestic
and international exchanges.

Insurance

An entry into this segment helped complete the client's product basket; concurrently, it
graduated the Company into a one stop retail financial solutions provider. To ensure
maximum reach to customers across India, we have employed a multi pronged
approach and reach out to customers via our Network, Direct and Affiliate channels.
Following the opening of the sector in 1999-2000, a number of private sector insurance
service providers commenced operations aggressively and helped grow the market.

The Company’s entry into the insurance sector de risked the Company from a
predominant dependence on broking and equity-linked revenues. The annuity based
income generated from insurance intermediation result in solid core revenues across
the tenure of the policy.

Over the last five years, India Infoline sharpened its competitive edge in this
business segment through the following initiatives:
Client base:

Grew its 40,000 strong client base through knowledge-led analysis, translating into an
attractive opportunity to cross-sell products and generate referral business.

Distribution network:
Invested in a distribution network of 177 branches across 19 states, which provide it
with an unmatched reach within its segment
 Hands-on training:
Invested aggressively in training its field force more than 100 hours a year in product
attributes across the insurance sector - highlighting various product details and
marketing skills apart from regular meets where best practices are shared.

Technology:
The Company provides a prudent mix of proprietary and outsourced technologies,
which facilitate business growth without a corresponding increase in costs.

Research and advice:

Provided clients with advice on diverse investment products based on the customer’s
existing and prospective financial profile.

Wealth Management

The key to achieving a successful Investment Portfolio is to have a carefully planned

financial strategy based on a thorough understanding of the client's investment needs
and risk appetite.The IIFL Private Wealth Management Team of financial experts will
recommend an appropriate financial strategy to effectively meet your investment
requirements.

Our Financial Advisor will analyze:

• Your cash-flow requirements

• Your risk appetite
• Desired investment horizon
• Long-term goals

Asset Management

India Infoline is a leading pan-India mutual fund distribution house associated with
leading asset management companies. It operates primarily in the retail segment
leveraging its existing distribution network to reach prospective clients. It has received
 the in-principle approval to set up a mutual fund.

The group recently commenced its offshore asset management business under the ‘IIFL
Capital’ brand. Also, IIFL Securities Pte Ltd received approval from the Monetary
Authority of Singapore to carry out global asset management operations. The Singapore
arm can now offer broking, asset management and investment banking services.

IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds in
India.

With offices in New York, Singapore and Dubai, IIFL Capital aims to offer India-focused
equity products, fund management and advisory services for offshore and domestic
wealth management customers.

Stock SMS Services

Daily market updates and stock ideas on your mobile through SMS (5 messages per
day).

➢ Real Time Trading Tips (Inclusive Intra-day, Delivery, Future & Option and BTST Tips)

➢ Investment Ideas.

➢ Market Sensitive News.

➢ Global Market Updates (US, Asian, European), Crude Oil price.

➢ Support & Resistance Level for Nifty (Pre-market)

➢ Current level of NIFTY & SENSEX.

➢ Latest Company Results.

News Letters

News letter include the Daily Market Strategy which is morning dose on the health of
the markets. Five intra-day ideas, unless the markets are really choppy coupled with a
brief on the global markets and any other cues, which could impact the market.
Occasionally an investment idea from the research team and a crisp round up of the
previous day's top stories. That's not all. The subscriber of Daily Market Strategy even
 gets research reports of India Infoline research team on a priority basis.

The India Infoline Weekly Newsletter is flashback for the week gone by. A weekly
outlook coupled with the best of the web stories from India Infoline and links to
important investment ideas, Leader Speak and features is delivered in your inbox every
Friday evening.

COMPETITORS

Top 10 broking firms

1. ICICI direct.com
2. India Infoline
3. Kotak Securities Ltd.
4. India Bulls
5. Share Khan
6. Motilal Oswal
7. Angel Broking
8. Reliance Money
9. HDFC Securities
10. SMC Global
ICICI DIRECT .COM
ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions
(including web-based services) through the largest non-banking distribution channel so as to
fulfil all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a
dominant position in its core segments of its operations - Corporate Finance including Equity
Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product
distribution.

With a full-service portfolio, a roster of blue-chip clients and performance second to none, we
have a formidable reputation within the industry. Today ICICI Securities is among the leading
Financial Institutions both on the institutional as well as retail side.
Headquarter, in Mumbai I-Sec operates out of several locations in India.

ICICI Securities Inc., the step-down wholly owned US subsidiary of the company is a member
of the Financial Regulatory Authority (FINRA). ICICI Securities Inc. activities include Dealing in
Securities and Corporate Advisory Services in the United States.

ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS) and
operates a branch office in Singapore. ICICI Securities limited has its presence in the following
networks Mumbai, New Delhi., Singapore, and Oman.
KOTAK SECUTRITIES

Kotak Securities Ltd., a 100 % subsidiary of Kotak Mahindra Bank, is one of the oldest and
largest stock brokers in the industry.Its offerings include stock broking services for stock
trading through the branch and Internet, Investments in IPO, Mutual funds and Portfolio
management services.

Kotak has been the first in providing many products and services which have now become
industry standards. Some of them are:

• Facility of Margin Finance to the customers for online stock trading

• Investing in IPOs and Mutual Funds on the phone
• SMS alerts before execution of depository transactions
• Mobile application to track portfolio of your investments in stock market /td>
• Auto Invest - A systematic investing plan in Equities and Mutual funds.
• Provision of margin against securities automatically against shares in your Demat
account

Kotak network spans over 400 cities with 1113 outlets.

INDIABULLS

Indiabulls is India’s leading retail financial services company with 77 location spread across
64 cities Its size and strong balance sheet allows providing varied products and services at
very attractive prices, Indiabulls over 750 Client Relationship Managers are dedicated to
serving your unique needs Indiabulls is lead by a highly regarded management team that has
invested Corers of rupees into a world class infrastructure that provides real-time services &
24/7 access to all information and products. The Indiabulls Professional network offers real-
time prices. Detailed data and news intelligent analytics and electronic trading capabilities
right at your finger-tips. This powerful technology is complemented by our knowledgeable and
customer focused Relationship managers.
Inidabulls offers a full range of financial services and products ranging from Equities,
Derivatives. Demat services and insurance to enhance wealth and to achieve the financial
goals.

SHAREKHAN
ANGEL BROKING

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has
emerged as one of the most respected Stock-Broking and Wealth Management Companies in
India. With its unique retail-focused stock trading business model, Angel is committed to
providing ‘Real Value for Money’ to all its clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX.
Angel is also registered as a Depository Participant with CDSL. Main business of Angel is
Equity Trading, Commodities, portfolio Management Services, Mutual Funds, Life Insurance,
Personal Loans, IPO, Depository Services, and Investment Advisory. At present Angel group
includes: Angel Broking ltd. , Angel Commodities Broking Ltd., Angel Securities ltd.

RELIANCE SECURITIES

Reliance Securities Limited is a Reliance Capital company and part of the Reliance Anil
Dhirubhai Ambani Group. “Reliance Money” is a brand owned by Reliance Capital Limited.
Reliance Securities with the permission of Reliance Capital Limited uses the “Reliance Money”
brand to market its various services.

Reliance Securities endeavors to change the way investors transact in equities markets and
avails services. It provides customers with access to Equity, Derivatives, Portfolio
Management Services, Investment Banking, Mutual Funds & IPOs. It also offers secured
online share trading platform and investment activities in secure, cost effective and convenient
manner. To enable wider participation, it also provides the convenience of trading offline
through variety of means, including Call & Trade, Branch dealing Desk and its network of
affiliates Reliance Money through its pan India presence with 6,233 outlets has more than 3.5
million customers.

Reliance Capital is one of India's leading and fastest growing private sector financial services
companies, and ranks among the top 3 private sector financial services and banking groups,
interims of net worth.

 INDUSTRY OVERVIEW 
INTRODUCTION
Stock exchanges to some extent play an important role as indicators, reflecting
the performance of the country’s economic state of health. Stock market is a
place where securities are bought and sold. It is exposed to a high degree of
volatility, prices fluctuate within minutes and are determined by the demand and
supply of stocks at a given time. Stock brokers are the ones who buys and sells
securities on behalf of individuals and institutions for some commission.
The Securities and Exchange Board of India (SEBI) is the authorized body, which
regulates the operations of stock exchanges, banks and other financial
institutions. The past performances in the capital markets especially the
securities scam by ‘Hasrshad Mehta’ has led to tightening of the operations by
SEBI. In addition the international trading and investment exposure has made it
imperative to better operational efficiency. With the view to improve, discipline
and bring greater transparency in this sector, constant efforts are being made
and to a certain extent improvements have been made.
1

 HISTORY 
HISTORY OF THE STOCK BROKING INDUSTRY
Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest records of security dealings in India are
meager and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton presses
took place in Bombay. Though the trading list was broader in 1839, there were
only half a dozen brokers recognized by banks and merchants during 1840 and
1850. The 1850's witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number of
brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United
States of Europe was stopped; thus, the 'Share Mania' in India begun. The
number of brokers increased to about 200 to 250. However, at the end of the
American Civil War, in 1865, a disastrous slump began (for example, Bank of
Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the
end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they
would conveniently assemble and transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as "The Stock Exchange"). In
1895, the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges
were increased and at currently it reached to the figure of 24 stock exchanges.
2

 DEVELOPMENT 
An important early event in the development of the stock market in India was the
formation of the Native Share and Stock Brokers’ Association at Bombay in 1875,
the precursor of the present-day Bombay Stock Exchange. This was followed by
the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908),
and Madras (1937). IN addition, a large number of ephemeral exchanges
emerged mainly in buoyant periods to recede into oblivion during depressing
times subsequently.
In order to check such aberrations and promote a more orderly development of
the stock market, the central government introduced a legislation called the
Securities Contracts (Regulation) Act, 1956. Under this legislation, it is
mandatory on the part of a stock exchanges to seek government recognition. As
of January 2002 there were 23 stock exchanges recognized by the central
Government. They are located at Ahemdabad, Bangalore, Baroda,
Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ), Cochin,
Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana,
Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock
Exchange), papularly called the Bombay Stock Exchange, Mumbai (OTC
Exchange of India), Mumbai (The Inter-connected Stock Exchange of India),
Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock
Exchange and The Bombay Stock Exchange , accounting for the bulk of the
business done on the Indian stock market.
While the recognized stock exchanges have been accorded a privileged position,
they are subject to governmental supervision and control. The rules of a
recognized stock exchanges relating to the managerial powers of the governing
body, admission, suspension, expulsion, and re-admission of its members,
appointment of authorized representatives and clerks, so on and so forth have to
be approved by the government. These rules can be amended, varied or
rescinded only with the prior approval of the government.
3
 B S E ( B O M B A Y S T O C K E X C H A N G E )
The Stock Exchange, Mumbai, popularly known as"BSE" was established in
1875 as "The Native Share and Stock Brokers Association". It is the oldest one in
Asia, even older than the Tokyo Stock Exchange, which was established in 1878.
It is a voluntary non-profit making Association of Persons (AOP) and is currently
engaged in the process of converting itself into demutualised and corporate
entity. It has evolved over the years into its present status as the premier Stock
Exchange in the country. It is the first Stock Exchange in the Country to have
obtained permanent recognition in 1956 from the Govt. of India under the
Securities Contracts (Regulation) Act, 1956.
The Exchange, while providing an efficient and transparent market for trading in
securities, debt and derivatives upholds the interests of the investors and
ensures redressal of their grievances whether against the companies or its own
member- brokers. It also strives to educate and enlighten the investors by
conducting investor education program and making available to them necessary
informative inputs.
A Governing Board having 20 directors is the apex body, which decides the
policies and regulates the affairs of the Exchange. The Governing Board consists
of 9 elected directors, who are from the broking community (one third of them
retire ever year by rotation), three SEBI nominees, six public representatives and
an Executive Director & Chief Executive Officer and a Chief Operating Officer.
4
 N S E ( N A T I O N A L S T O C K E X C H A N G E )
NSE was incorporated in 1992 and was given recognition as a stock exchange in
April 1993. It started operations in June 1994, with trading on the Wholesale Debt
Market Segment. Subsequently it launched the Capital Market Segment in
November 1994 as a trading platform for equities and the Futures and Options
Segment in June 2000 for various derivative instruments.
NSE has been able to take the stock market to the doorsteps of the investors.
The technology has been harnessed to deliver the services to the investors
across the country at the cheapest possible cost. It provides a nation-wide,
screen-based, automated trading system, with a high degree of transparency and
equal access to investors irrespective of geographical location. The high level of
information dissemination through on-line system has helped in integrating retail
investors on a nation-wide basis. The standards set by the exchange in terms of
market practices, Products , technology and service standards have become
industry benchmarks and are being replicated by other market participants.
Within a very short span of time, NSE has been able to achieve all the objectives
for which it was set up. It has been playing a leading role as a change agent in
transforming the Indian Capital Markets to its present form. The Indian Capital
Markets are a far cry from what they used to be a decade ago in terms of market
practices, infrastructure, technology, risk management, clearing and settlement
and investor service.
5
 N C D E X ( N A T I O N A L
C O M M O D I T I E S A N D
D E R I V A T I V E S E X C H A N G E )
NCDEX started working on 15th December, 2003. This exchange provides
facilities to
their trading and clearing member at different 130 centers for contract.
In commodity market the main participants are speculators, hedgers and
arbitrageurs.
Promoters of NCDEX are
 N a t i o n a l S t o c k E x c h a n g e ( N S E )
 I C I C I b a n k
 L i f e I n s u r a n c e C o r p o r a t i o n ( L I C )
 N a t i o n a l B a n k f o r A g r i c u l t u r a l a n d
R u r a l D e v e l o p m e n t ( N A B A R D )
 I F F I C O
 P u n j a b N a t i o n a l B a n k ( P N B )
 C R I S I L
WHY NCDEX?
 N C D E X i s n a t i o n a l i z e d s c r e e n
b a s e d s y s t e m w h i c h i s p r o v i d i n g
t r a n s p a r e n t ,
private and easy services.
 N C D E X i s o n e o f t h e t r a d i t i o n a l
m e d i a w h i c h g i v e s o n l i n e
i n f o r m a t i o n
 N C D E X i s o n e o f t h e I n d i a n
c o m m o d i t y e x c h a n g e , c o n s t r u c t e d o n
t h e b a s i s o f
the current national institutes the exchange has been established with the
coloration of leading institutes like NABARD, LIC, NSI etc….
 I n I n d i a N C D E X h a s m a x i m u m
s e t t l e m e n t g u a r a n t e e f u n d .
 N C D E X h a s a p p o i n t e d t w o e x p o r t s
f o r c h e c k i n g q u a l i t y a t t h e t i m e o f
d e l i v e r y
FACILITIES PROVIDED BY NCDEX
 N C D E X h a s d e v e l o p e d f a c i l i t y f o r
c h e c k i n g o f c o m m o d i t y a n d a l s o
p r o v i d e s a
wear house facility
 B y c o l l a b o r a t i n g w i t h i n d u s t r i a l
p a r t n e r s , i n d u s t r i a l c o m p a n i e s ,
n e w s a g e n c i e s ,
banks and developers of kiosk network NCDEX is able to provide current
rates and contracts rate.
6
 T o p r e p a r e g u i d e l i n e s r e l a t e d t o
s p e c i a l p r o d u c t s o f s e c u r i t i z a t i o n
N C D E X
works with bank.
 T o a v a i l f a r m e r s f r o m r i s k o f
f l u c t u a t i o n i n p r i c e s N C D E X
p r o v i d e s s p e c i a l
services for agricultural.
 N C D E X i s w o r k i n g w i t h t a x o f f i c e r
t o m a k e c l e a r d i f f e r e n t t y p e s o f
s a l e s a n d
service taxes.
 N C D E X i s p r o v i d i n g a t t r a c t i v e
p r o d u c t s l i k e “ w e a t h e r d e r i v a t i v e s ”
7
SMC

SMC Group, a leading financial services provider in India is a vertically integrated

investment solutions company, with a pan-India presence. Over the Years, SMC has
expanded its domestic as well as international operations. Existing network includes regional
offices at Mumbai, Kolkata, Chennai, Bangalore, Cochin, Ahmadabad, Jaipur and
Hyderabad plus a growing network of more than 2000 offices across over 425 cities/towns in
India. SMC has plans to grow its network to 5,500 offices across 700+ cities in the next 3
years. The company has expanded internationally, and has established office in Dubai. Its
products and Services include Institutional and retail brokerage of equity, commodity,
currency, derivatives, online trading , investment banking, depository services, clearing
services, IPOs and mutual funds distribution, Portfolio management, wealth advisory,
insurance broking, margin funding and research.

SMC has entered into a 50:50 joint venture with Sanlam Group, one of the largest listed
financial services group in South Africa for setting up wealth Management and Asset
Management business in India, Sanlam is operating in over 30 countries globally including
UK, USA, Switzerland, Luxembourg, Dublin, Australia and others.
 COMPETITORS 


The company is facing the

competition from local as well
as national level players. The
local players provide facility
for off-line trading while the
national players like
ICICIdirect.com and
Kotakstreet.com, HDFC
Security provide online trading
services.
 T h e r e
a r e a l s o
o t h e r
b i g
n a m e s
l i k e
I n d i a b u
l l s ,
M o t i l a l
O s w a l ,
5 p a i s a
a n d
Marwadi encircles the
company form both the sides
by providing online and
off-line trading with
competitive services.
 POTENTIAL
ENTRANTS 
 T h e
p o t e n t i a
l
e n t r a n t s
i n l i k e
I n v e s t m
a r t ,
J e o j i t
a n d
C i p h e r
w h i c h
a r e
c o m i n g
in near future to Rajkot City.
 N a t i o n
a l i z e d
b a n k s
a r e a l s o
t h i n k i n
g t o
e n t e r i n
t h i s
f i e l d b y
t y i n g
u p w i t h
broking houses. E.g. Bank Of
Baroda.
 SUBSTITUES 
 H e r e
s u b s t i t u
t e s a r e
s u c h
i n s t r u m
e n t s
w h i c h
c a n b e
u s e d
i n s t e a d
o f
i n v e s t i n
g
in shares.
 T h e
i n s t r u m
e n t s
l i k e
B a n k
F D ,
i n s u r a n
c e ,
m u t u a l
f u n d s
a r e t h e
s u b s t i t u
t e s .
 I f t h e
u s e o f
t h i s
i n s t r u m
e n t s
i n c r e a s e
t h i s
m a y b e
d i s a d v a
n t a g e
f o r t h e
s t o c k
broking houses.

The companies and banks
which are having these
instruments can plunge
into this industry.
20

 ENTRY
BARRIERS 
 H u g e
c a p i t a l :
- C a p i t a l
i s
n e c e s s a r y
n o t o n l y
f o r f i x e d
f a c i l i t i e
s b u t
a l s o f o r
customer’s credit and
absorbing start up losses. To
start a stock broking house,
one needs huge capital for
technology up gradation and
skilled manpower.
 Technology :-
T e c h n o l o
g y f o r
s t o c k
b r o k i n g
h o u s e s i s
l i f e
s a v i n g
d e v i c e .
Stock broking requires huge
capital to make their products
user friendly, which in turn
requires capital to employ
skilled manpower. Thus,
technology could be one of the
entry barriers.

Regulatory Constraints :-
Obtaining a license is a tedious
job for a stock
broking house. It should
comply with the regulation of
the governing bodies like
SEBI, NSDL, etc. For a stock
broking houses to plunge into
the stock broking industry, it
needs to have some kind of
financial background and
expertise. Thus, regulators
constraints could be an entry
barrier.
 E x p e r i e
n c e c u r v e
: - T h e
c o r e
c o m p e t e n
c y i n
t h i s
i n d u s t r y
i s ht e
s e r v i c e s
which are provided to the end-
users and the research based
activities which includes
“TIPS”, fundamental as well
as technical script analysis.
Also the most important thing
which helps already
established firms is-“TRUST”
which people would be having
on firms like SSKI , Motilal
Oswal, etc. this is very
difficult for new companies to
imitate.

Network :- The “Reach” to the
customer is the key factor in the
industry.
The network of the companies
like Motilal Oswal, Sharekhan,
and ICICI is very efficient and
spreaded all over India. It will
take time for a new entrant to
establish such a huge network
(e.g. Marwadi), which say
that,”Network can come up as
most difficult entry barrier to
overcome.”

Expected Retaliation :- Whenever
a new player comes in the
industry, the
old companies have an option
to reduce the prices of their
product. This kind of practice
is called expected Retaliation
which is also possible in this
industry in terms of less
brokerage rates and reduced
account opening charges. E.g.
before the entry of so many
mew companies, Sharekhan
was having two
21

types of accounts viz. speed

trade speed trade plus, which
 were costing 1000 & 1500
account opening charges
respectively. But due to
competition, they have come
up with only one account i.e.
speed trade plus with the
account charges of Rs.1000.

COMPETITIVE ANALYSIS

ICICI INDIA KOTAK SHAREKHAN MOTILAL INDIABULLS

DIRECT INFOLINE** SECURITIES OSWAL

A/C OPENING FEE 750 750* 750 550 550 500

SOFTWARE NO YES YES YES YES YES

FACILITY

BROKRAGE .075 .03 .06 .05 .05 .05

INTRADAY

BROKRAGE .75 .30 .59 .50 .45 .45

DELIVERY

AMC CHARGES 500 Per 25 Per 360 Per 450 Per 350 Per 400 Per
Annum Month Annum Annum Annum Annum
LIFE TIME FREE NO YES NO NO NO NO
DEMAT FACILITY
AGAINST RS.555

MARGIN NO YES YES NO NO NO

FUNDING

EXPOUSER NIL 10 Times 5 Times 4 Times 4 Times 5 Times

AGAINST
CASH/STOCK

NOTE
*Rs. 750 is refundable in 90 days against brokerage.
**Awarded as best broking firm in India as per Finance Asia and Asia Money .

RESEARCH METHODOLOGY

TITLE—

To determine role of share market in indian economy .

The study deals mainly with studying the buying pattern in the insurance industry with a
special focus on HDFC Standard Life Insurance. The various segments of the markets
dividend in terms of Insurance Needs, Age groups, Satisfaction levels etc., will also be studied.

DURATION OF THE PROJECT—

The project had been done for 45 days as per the University Schedule between 18th June,2010
and 1st August,2010.

OBJECTIVE –

Primary Objective

➢ To determine reasons behind opting for investment in share market.

➢ To provide the company with information of customer's preferences for broking house if
they have any and reasons for opting for that particular broking firm.
➢ To know the role of the share market in Indian economy.

Secondary Objective

➢ To find the potential Customer for India Infoline.

 ➢ To create awareness among retail investors regarding Share Market & Mutual Funds.
➢ To find out the current market scenario of Share Market
➢ To introduce the prospective investor to the various scheme & assist him/her according
to his/her respective requirements.
➢ To build as many as relationships with the various investors who are in need of such
schemes.
➢ To create specified segments in the market about Share Market.

TYPE OF RESEARCH

A. Exploratory Research :

a) Search of secondary data

b) Survey of respondents selected

B. Conclusive Research

C. Descriptive Research :

a) Survey Method

b) Telephone Interviewing

c) Questionnaire Method

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of the Questionnaire. The final Questionnaire was
arrived only after certain important changes were done. Thus my sampling came out to be
judgmental and convenient

Sampling Unit:
The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNCs, businessmen, professionals, govt. employees & private
employees etc.

Sample size:

The sample size was restricted to only 200, which comprised of mainly peoples from different
regions of Jaipur due to time constraints.

Sampling Area:

The area of the research was Jaipur, Rajasthan, INDIA.

SCOPE OF THE STUDY

The study deals with the studying of role of share market in indian economy. It will not only
help in knowing consumer’s perception about the share market but also help in knowing the
threat that an economy can have with rise and depression in share market. It will show how
the consumer changes his mind for investment in share market due convincing of brokers and
brokering firms. The study also show the trends in the share market which will not only the
single broking firm but to the whole industry.

SIGNIFICANCE OF THE STUDY

This is a limited study which takes into consideration the responses of 200 people. This data
can be extrapolated to take in the trends across the industry. The significance for the industry
lies in studying these trends that emerge from the study. It is a rapidly changing and evolving
sector. People are only beginning to wake up to its vast possibilities. A study like this can
attempt to guide the future of the industry based on current trends.

LIMITATIONS OF THE RESEARCH

1) The research is confined to a certain parts of Jaipur (Rajasthan) and does not
necessarily shows a pattern applicable to all part of the Country..
 2) In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.

3) Lack of interest.
4) Time proved to be a major constraint as far as collection and analysis of data was
concerned.
5) Some of the respondents were hesitant and unwilling to give response.

FACTS AND FINDINGS

Following are the facts and findings that are being perceived by me while doing project at India
Infoline:

1. The share market offering its best services and opportunities in every sphere,
2. The employees working in are satisfied with their jobs as well as treatment of the superior
organizational members and regular training & development are being imparted to them to
make alive to present circumstances.
3. Employees are loyal towards the organization resulting enriched and considerable working
experience.
4. Despite being simply graduated, by maintaining their healthier working experience many of
them have been promoted by their hard work and creative expertise.
5. The management control over the lower management and supervisory section is medium
and not high because of the fact employees are enough to handle their tasks and
responsibilities fairly and honestly.
6. The Daily reporting to the Superior by the corresponding subordinate employee so
maintained so as to judge the comparative performance of the particular day.
7. The Stock Exchange provides companies with the facility to raise capital for expansion
through selling shares to the investing public.
8. When people draw their savings and invest in shares, it leads to a more rational allocation
of resources.
9. As opposed to other businesses that require huge capital outlay, investing in shares is
open to both the large and small stock investors because a person buys the number of
shares they can afford
10. Governments at various levels may decide to borrow money in order to finance
infrastructure projects such as sewage and water treatment works or housing estates by
selling another category of securities known as bonds.
11. The movement of share prices and in general of the stock indexes can be an indicator of
the general trend in the economy.

ANALYSIS AND INERPRETATION

Data showing number of respondent and their experience of investing in the share market

EXPERIENCE NO. OF RESPONDENT PERCENTAGE

Less than 1 year 25 12.5%
Between 1-3 year 50 25%
Between 4-6 year 100 50%
More than 6 years 25 12.5%
200 100%

➢ Interpretation- So from the above data we can say that most of the respondent in
my study are those people who have a very good experience of investing in share
market for a long time.

Data showing whether the share market plays role in Indian economy or not?
 View No. of respondent percentage

Yes 175 87.5%

No 25 12.5%

➢ Interpretation- The data shows that most of the respondent feels that share market
plays a big role in Indian economy

Data showing view of the respondent whether ups and downs in share market affect the Indian
economy or not?

View No. of respondent percentage

Yes 150 75%

No 50 25%
 ➢ Interpretation- About 75% of our respondent has a view that ups and downs in
share market affect the economy and rest do not think so.

Data showing preferences of respondents for the trading

Preferences No. of respondent percentage

Intraday 75 37.5%

Delivery 125 62.5%

Both 50 25%

➢ Interpretation- 125 out of total respondent feels delivery trading as the best option
for trading in the stock market and 75 votes for intraday trading and about 50 of them
says that they don’t have difficulty in using any of them or both of them.

Data showing the reach of share market knowledge to the common man.

View No. of respondent percentage

 Satisfied 125 62.5%

Not-Satisfied 75 37.5%

➢ Interpretation- About 62% of the respondent feels that the knowledge of common
man about the share market is satisfactory and rest feels that the knowledge is not
satidfactory.

Data showing the different attributes that the client look forward in the brokerage firm

Attributes No. of respondent percentage

Brand name 50 25%

Low Brokerage 75 37.5%

Management team 50 25%

Track Record 25 12.5%
 ➢ Interpretation- About 75 respondent got attracted to that brokerage firm which have
low brokerage rate and 50-50 respondent get attracted due to good management team
and brand name. But 25 respondent gets attracted after seeing the success story of the
firm

Data showing whether the respondents are satisfied from the services of brokering firms.

View No. of respondent percentage

Satisfied 125 62.5%

Not-Satisfied 75 37.5%

➢ Interpretation- 62.5% of the respondents are satisfies from the services that are
being offered by the broking firms and rest of them says that they are unsatisfied and
firms have to do a lot to attract the customers.

Data showing the view of respondent about the share market

View No. of respondent percentage

Place of investment 50 25%

Place of getting high gain 75 37.5%

A good source of income 50 25%

 A good career 25 12.5%

➢ Interpretation- Most of the respondent feels that share market is the place of getting
high gain. About 50 respondent feels that it is a place of just an investment and 50 says
that it is a good source of income. About 25 respondent is in favour of choosing it as an
career option.

Data showing whether the respondents are satisfied from the investment tips of brokering
firms.

View No. of respondent percentage

Satisfied 150 75%

Not-Satisfied 50 25%

➢ Interpretation- 150 respondent are being satisfied from the investment tips of the
broking firm and rest are unsatisfied.
 View No. of respondent percentage

Security of funds 50 25%%

Good return 75 37.5%

Technological advancement 50 25%

Additional services 25 12.5%

Data showing the reasons of respondents for operating with the stated company.

Interpretation- When asked about why they choose the stated company, most of them vote for
earning good return and about equal respondent votes for security of funds and technological
advancement that the company provides. Rest of the respondent gives emphasis on the
additional services that the firm provides.

SWOT ANALYSIS
STRENGTH—
➢ “One Stop” shop

➢ Pan - India distribution network

➢ “India Infoline.com” and

➢ “5paisa.com” have developed into Brands

➢ Quality work force

➢ All India presence

➢ Well-known Brand name

 ➢ ISO 9002 Certification

➢ Got the best broking house award in year 2004

➢ Integrated technology platform

WEAKNESS—

➢ Lack of a banking arm to complete the bank-broker-depository chain.

➢ High attrition rate

➢ Lack of awareness among customers.

➢ Lack of Advertisements.

➢ Categorization of Customers.

➢ Technical up gradation.

OPPURTUNITY—

➢ Changing demographics with higher disposable income and increasingly complex

financial instruments will drive demand for investment advisory services

➢ Rapid penetration of Internet and computers means that technology enabled financial
services will gain market share

➢ Untapped Market

➢ Growing Economy

➢ Dissatisfaction from competitors

THREATS—

➢ Economic slowdown

➢ Volatile movement in indices and events like May 17, 2004 and January 21, 2008

➢ Stock markets falls will have a cascading effect on our mutual fund mobilization

➢ Increase/decrease in interest rates can affect our debt/ income fund mobilizations

➢ Future changes in personal taxation rules can impact insurance sales

 ➢ Increasing competition from large and particularly foreign players

➢ Volatile Market

CONCLUSION

After taking feedback from customers I knew that India Infoline is popular product in the market
and everyone knows the benefits of online share trading. They want to open Demat account
and take advantage of online and offline share trading.

This project has given us real practical experience of the market. During these three months
we have meet to different people. I have prepared the questionnaire that has helped us to
know the market trends and customer preference related to Demat a/c and commodity section.
I have assessed their queries and grievances. We have also learnt about how to deal with
customers and solve their queries and how to convince them by the presenting the products of
the company.
I think that performance can be improved by the adopting some strategy of the marketing like
and know the customer satisfaction related to our company products.

The share market has been assigned an important place in financing the Indian corporate
sector. Besides enabling mobilizing resources for investment, directly from the investors,
providing liquidity for the investors and monitoring and disciplining company management are
the principal functions of the share markets.

Stock market has multiple roles in the economy like for

➢ Raising capital for businesses

➢ Mobilizing savings for investment

➢ Facilitating company growth

➢ Corporate governance

➢ Creating investment opportunities for small investors

➢ Government capital-raising for development projects

➢ Barometer of the economy

RECOMMENDATIONS AND SUGGESTIONS

Since the goodwill of IIFL is not too appreciable, So in order to build healthy image the
company should focus on marketing area by the way of:

➢ Appointing more relationship managers who can will interact with the customers
effectively and help the company to bring in more business
➢ Appealing advertisements
➢ Bringing more efficiency in research department
➢ Number of Employees should be increased.
➢ Existing Employees must be given training.
➢ Emphasize on advertisements through newspapers and television.
 ➢ Focusing on new branch.

APPENDIX

QUESTIONNAIRE

Name: E-mail:

Contact no.:

Your Trading account is in which company?

1) Since when are you trading in the share market?

Less than 1 yr 1-3 yrs 4-6 yrs More than 6 yrs

2) What type of trading do you prefer?

Intraday Delivery Both

3) What is the brokerage charged?

.03-.30 Paisa .02-.20 Paisa .01-.10 Paisa more than 0.3Paisa

4) What interests you in Share Market?

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…………

5) How often do you gain from it?

……………………………………………………………………………………………………………
…

……………………………………………………………………………………………………………
…

6) What are the reasons for operating with the stated company?

…………………………………………………………………………………………….........................
.......................................................................................................................................................
.......................................................................................................................................................
7) Are you satisfied with the services?

Yes No

8) Are you Satisfied with the investment tips?

Yes No

9) What is the margin allowed and what are the services that you expect?

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……

10) Is there any difference in the services provided by local broker and a corporate
body? If yes then please specify?

……………………………………………………………………………………………………………
…

……………………………………………………………………………………………………………
…

11) Have you switched from one firm to another? If yes then reasons and which
company have you switched to?

……………………………………………………………………………………………………………
…

……………………………………………………………………………………………………………...
12) What are the different attributes that the client looks forward for a brokerage house?

……………………………………………………………………………………………………………
…

……………………………………………………………………………………………………………
…

13) What were the areas where the MOST could not meet the client’s expectation level?

Attributes Ranks

a) Brokerage fees
b) Services
c) Research & advices
d) Complaints handling
e) Products Basket

14) What is your view about the role of share market in Indian economy?

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…………

15) Do the ups and downs in share market effects the economy?

Yes No

16) Is common man knows about the share market?

Yes No
17) What should be done to increase the stability in share market?

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
………

Remarks:-

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…….

(Signature of Respondent )