A DISSERTATION

ON
COMPARATIVE ANALYSIS OF STOCK BROKERS
BY
SAGAR RAJENDRA BADHE
(BATCH 2014-16)
UNDER THE GUIDANCE OF
PROF. PUSHPRAJ WAGH
SUBMITTED TO
SAVITRIBAI PHULE UNIVRSITY OF PUNE
IN PARTIAL FULFILLMENT FOR THE DEGREE OF
MASTERS DEGREE IN BUSINESS ADMINISTRATION(MBA)
THROUGH
DNYANSAGAR INSTITUTE OF MANAGEMENT AND
RESEARCH, PUNE-411045

DECLARATION
To,
Director
Dnyansagar Institute of
Management & Research
Baner, Pune-411045

Respected sir,
I the undersigned declare that the project report entitled Comparative
Analysis of Stock Brokers at Karvy Stock Broking Ltd. written and

submitted under the guidance of Prof. Pushpraj Wagh is my original work.

The empirical finding in this project is based on the data collected by myself.
While preparing this project. I have not copied from any other report.
I understand that any such copying is liable to punishment in a way the
university authorities may deem it.

Date:

Place:

Yours Faithfully,

Sagar Rajendra Badhe.

Preface
The commencement of any business needs finance and the success of which
entirely depends on proper management of day to day finance and the management
of this short term capital or finance of the business is called Working Capital
Management.
Working capital is the money used to pay for everyday trading activities
carried our in the business, stationary needs, staff salaries and wages, rent, energy
bills, payments for supplies and so on.
I have tried to put my best effort to complete this task on the basis of skill
that I have achieved during last one year study in the institute.
I have tried to put my maximum effort to get the accurate statistical data
however I would appreciate if any mistakes are brought to me by the reader.

INDEX
PAGE
1. INTRODUCTION ...6
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Scope of the study
1.5 Limitation of the study
1.6 Significance of the study
2. REVIEW OF LITERATURE.....15
3. RESEARCH METHODOLOGY....17
3.1 Research design
3.2 Sources of data
3.3 Methods of data collection
3.4 Methods of analysis
4. ANALYSIS OF DATA......22
5. RESULTS...30
6. RECOMMENDATION AND CONCLUSION...33
7. APPENDIX34

EXECUTIVE SUMMARY
There is growing competition between brokerage firms in post reform India.
For investor it is always difficult to decide which brokerage firm to choose.
Research was carried out to find which brokerage house people prefer and to figure
out what people prefer while investing in stock market. This study suggest that
people are reluctant while investing in stock and commodity market due to lack of
knowledge Main purpose of investment is returns and liquidity, commodity market
is less preferred by investors due to lack of awareness. The major findings of this
study are that people are interested to invest in stock market but they lack
knowledge. Through this report we were also able to understand, what are our
Companys (Karvy) positive and strong points, on the basis of which we come to
know what can be the basis of pitching to a potential client. We also gave
suggestions to the company, what improvement can be done to our product.
My Internship consisted of the On Job Training as A Sales Manager. The
best learning experience was that I started from the very basics of getting to that
position and not from the position itself. This helped me get useful insight and
understanding of various financial products, the market details about them and the
benefits provided by them to the customers. Emphasis was given in analysis of the
investor behavior of the clients. Another interesting fact was that all these products
were suggested to clients not just based on their market performance and returns,
but on the clients financial condition as well as their risk taking capacity. Training
sessions were held to give me insights about the various products that KARVY
STOCK BROKING deals in like: Equities, Mutual Funds, Insurance and Bonds.
Presentations on the same after self study and analysis were a part of this
internship session. I provided financial advice and suggestions to the investors for
mutual funds which may prove prudent to them. For other products I studied the
clients investing behavior and assisted the wealth manager, who decided the
investment options and designed the portfolios.

INTRODUCTION
The stock market is witnessing heightened activities and is increasingly gaining
importance. In the current context of globalization and the subsequent integration
of the global markets this paper captures the trends, similarities and patterns in the
activities and movements of the Indian Stock Market in comparison to its
international counterparts. This study covers New York Stock Exchange (NYSE),
Hong Kong Stock exchange (HSE), Tokyo Stock exchange (TSE), Russian Stock
exchange (RSE), Korean Stock exchange (KSE) from various socio- politicoeconomic backgrounds. Both the Bombay Stock exchange (BSE) and the National
Stock Exchange of Indian Limited (NSE) have been used in the study as a part of
Indian Stock Market. The time period has been divided into various eras to test the
correlation between the various exchanges to prove that the Indian markets have
become more integrated with its global counterparts and its reaction are in tandem
with that are seen globally.
Keywords: Stock Market, Comparative Analysis, Statistical analysis,
Efficiency Test.
The Indian stock exchanges hold a place of prominence not only in Asia but
also at the global stage. The Bombay Stock Exchange (BSE) is one of the oldest
exchanges across the world, while the National Stock Exchange (NSE) is among
the best in terms of sophistication and advancement of technology. The Indian
stock market scene really picked up after the opening up of the economy in the
early nineties. The whole of nineties were used to experiment and fine tune an
efficient and effective system. The badla system was stopped to control
unnecessary volatility while the derivatives segment started as late as 2000. The
corporate governance rules were gradually put in place which initiated the process
of bringing the listed companies at a uniform level. On the global scale, the
economic environment started taking paradigm shift with the dot com bubble
burst, 9/11, and soaring oil prices. The slowdown in the US economy and interest
rate tightening made the equation more complex. However after 2000 riding on a
robust growth and a maturing economy and relaxed regulations, outside investorsinstitutional and others got more scope to operate. This opening up of the

system led to increased integration with heightened cross-border flow of capital,

with India emerging as an investment hot spot resulting in our stock exchanges
being impacted by global cues like never before.
The study pertains to comparative analysis of the Indian Stock Market with
respect to various international counterparts. Exchanges are now crossing national
boundaries to extend their service areas and this has led to cross-border integration.
Also, exchanges have begun to offer cross-border trading to facilitate overseas
investment options for investors. This not only increased the appeal of the
exchange for investors but also attracts more volume. Exchanges regularly solicit
companies outside their home territory and encourage them to list on their
exchange and global competition has put pressure on corporations to seek capital
outside their home country. The Indian stock market is the world third largest stock
market on the basis of investor base and has a collective pool of about 20 million
investors. There are over 9,000 companies listed on the stock exchanges of the
country. The Bombay Stock Exchange, established in 1875, is the oldest in Asia.
National Stock Exchange, a more recent establishment which came into existence
in 1992, is the largest and most advanced stock market in India is also the third
biggest stock exchange in Asia in terms of transactions. It is among the 5 biggest
stock exchanges in the world in terms of transactions volume.
There is growing competition between brokerage firms in post reform India.
For investor it is always difficult to decide which brokerage firm to choose.
Research was carried out to find which brokerage house people prefer and to figure
out what people prefer while investing in stock market. This study suggest that
people are reluctant while investing in stock and commodity market due to lack of
knowledge Main purpose of investment is returns and liquidity, commodity market
is less preferred by investors due to lack of awareness. The major findings of this
study are that people are interested to invest in stock market but they lack
knowledge. Through this report we were also able to understand, what are our
Companys (Karvy) positive and strong points, on the basis of which we come to
know what can be the basis of pitching to a potential client. We also gave
suggestions to the company, what improvement can be done to our product.
My Internship consisted of the On Job Training as A Sales Manager. The
best learning experience was that I started from the very basics of getting to that
position and not from the position itself. This helped me get useful insight and
understanding of various financial products, the market details about them and the
benefits provided by them to the customers. Emphasis was given in analysis of the

investor behavior of the clients. Another interesting fact was that all these products
were suggested to clients not just based on their market performance and returns,
but on the clients financial condition as well as their risk taking capacity. Training
sessions were held to give me insights about the various products that KARVY
STOCK BROKING deals in like:Equities, Mutual Funds, Insurance and Bonds.
Presentations on the same after self study and analysis were a part of this
internship session. I provided financial advice and suggestions to the investors for
mutual funds which may prove prudent to them. For other products I studied the
clients investing behavior and assisted the wealth manager, who decided the
investment options and designed the portfolios.
The following table gives the country and the
exchange with the name of its indices.
Country
Stock Exchange Name
India
National Stock Exchange
India
Bombay Stock Exchange
Hong Kong
Hong Kong Stock Exchange
USA
New York Stock Exchange
Korea
Korean Stock Exchange
Russian
Russian Stock Exchange

Indices name
S & P Nifty
Sensex
Hang Seng
NYSE
KRX 100
RTS Index

BACKGROUND
The flagship company, Karvy Consultants Limited was found with the vision
and enterprise of a group of practicing Chartered Accountants on a modest scale in
1981 in Hyderabad at initial stage it was very small in size. It was started with a
capital of Rs. 1,50,000, where it now has 250 branches. It initiated with just one
activity and later carved roads into fields of registry and share accounting as well.
From then there was no stopping at all. A decade of commitment, professional
integrity and vision helped Karvy achieve a leadership position in its field. It is
known to handle the largest number of issues ever in the history of the Indian stock
market in a particular year. Thereafter, Karvy made inroads into a host of capital
market services, corporate and retail which proved to be a sound business synergy.
Today Karvy has access to millions of Indian shareholders, besides companies,
banks, financial institutions and regulatory agencies. Over the past one and half
decades, Karvy has involved as a veritable link between industry, finance and
people. In January 1998, Karvy became the first Depository Participant in Andhra
Pradesh. An ISO 9002 company, Karvys commitment to quality and retail reach
has made it an integrated financial services company. A SEBI category 1 registrar,
so far Karvy has handled over 675 issues as Registrars to public issues, processed
over 52 million applications and is servicing over 16 million investors from
various locations spread over 205 cities.

Statement Of The Problem

Presently, the fluctuations in the Indian market are attributed heavily to cross
border capital flows in the form of FDI, FII and to reaction of Indian market to
global market cues. In this context, understanding the relationship and influence of
various exchanges on each other is very important. This study that compares global
exchanges which are from different geo-politico- socio-economic areas. With the
cross border movements of capital like never before in the form of FDI and FII,
coupled with the easing of restrictions bringing various stock exchanges at par in
terms of system and regulations, it can be assumed reasonably that a particular
stock exchange will have some impact on other exchanges.

Objective of the Study

The main objective of this study is to capture the trends, similarities and
patterns in the activities and movements of the Indian Stock Market in comparison
to its international counterparts. The aim is to help the investors (current and
potential) understand the impact of important happenings on the Indian Stock
exchange. This is especially relevant in the current scenario when the financial
markets across the globe are getting integrated into one big market and the impact
of one exchange on the other exchanges. In other words, the intention is to test the
hypothesis, whether various stock exchanges globally have any impact on each
other or they are correlated in any way with regard to their movements and, if so,
to what extent.
Arising out of the main hypothesis is the question - given the above context:
What impact would the result have on the understanding that international
diversification of investment is desirable and profitable with regard to both risk
and return?

Scope of the study

This study focuses on fresh certified organic fruit and vegetables (both
temperate and tropical). For some countries where other organic products (e.g.
processed and frozen vegetables) are of significant importance, short sections on
these products are included.
Market analysis has been carried out in the following developed markets:
Austria, Belgium, Denmark, France, Germany, Italy, Japan, the Netherlands,
Sweden, Switzerland, the United Kingdom and the United States of America. Case
studies on the (potential) organic export sector in developing countries include:
Argentina, Cameroon, Chile, the Dominican Republic, Madagascar, Papua New
Guinea and Zambia.
The economies of many developing countries are dependent on the export of
a relatively small number of (mostly agricultural) commodities. Several of these
commodities (e.g. bananas and sugar) are likely to face further market
liberalization pressure in the near future. As a result, diversification of agricultural
production is more than ever of utmost importance. Diversification towards highvalue crops can help to reduce the vulnerability of many agricultural producers in
those countries, especially for resource poor and small scale farmers.
Despite ongoing conversion towards more sustainable farming methods in
developed countries and government support to further boost organic production,
consumption of organic foods is expected to continue to outgrow domestic
production in developed countries, leaving room for significant organic imports, at
least in the short- to medium-term and probably beyond. Moreover, tropical and
off-season products will continue to provide an attractive potential for which many
developing countries have comparative advantages.
Customs and regulatory authorities have not made a distinction between
organic and conventional food products, resulting in a lack of reliable information
on organic horticultural market development and internationally traded volumes.
Decision-makers in the public and private sector in developing countries therefore
lack the necessary information on which decisions should be taken concerning
conversion towards organic production. The development of demand for organic
products, the type of products and anticipated prices are key issues when deciding
on conversion.

This publication aims at contributing to filling that information gap. It

provides detailed information on organic horticultural market development and
global trade in fresh organic fruit and vegetables. The study gives quantitative and
qualitative information on the demand in the main developed markets, organic
production and import figures. Moreover, it provides case studies of seven
developing countries which have established an organic export sector or have the
potential to do so. These case studies may provide useful insights on how to
establish a successful organic export sector, and also discuss possible difficulties
that need to be tackled.

LIMITATION

The sample extent for research is only Pune City.

Size of the research may not be substantial.
There was lack of time on the part of respondents.
The survey was carried through questionnaire and the questions were based

on perception.
There may be biasness in information by market
participant.

REVIEW OF LITERATURE
Bombay Stock Exchange
Eligibility Criteria for IPOs/FPOs: Companies have been classified as large cap
companies and small cap companies. Company with a minimum issue size of Rs.
10 crores and market capitalization small cap company is a company other than a
large cap company.
Parameters
Min post issue paid up capital
Min issue size
Min market capitalization
Min public shareholders
Min turnover

Small Cap Companies

3 crores
3 crores
5 crores

Large Cap Companies

3 crores
10 crores
25 crores
1000
3 crores in the preceding 3
yrs

National Stock Exchange

Eligibility Criteria for New companies (IPOs)
Paid Up capital: Not less than 10 Crores
Market Capitalization: Not less than 25 Crores
At least three years track record:
The company has not been referred to the Board for Industrial and Financial
Reconstruction (BIFR).
The net worth of the company has not been wiped out by the accumulated losses
resulting in a negative networth.
The company has not received any winding up petition accepted by a court.
Promoters mean one or more persons with a minimum 3 years experience of
each of them in the same line of business and shall be holding at least 20% of the
post issue equity share capital individually or severally
No disciplinary action by other stock exchanges and regulatory authorities in past
three years.

Hong Kong Stock Exchange

Basic Listing Requirements for Equities
Profit attributable to shareholders: At least HK$50 million in the last three
financial years
Market Capitalisation: At least HK$200 million at the time of listing
Revenue: At least HK$500 million for the most recent audited financial year
Cashflow: Positive cashflow from operating activities of at least HK$100 million
in aggregate for the three preceding financial years
Spread of Shareholders:
100 shareholders for issuers with 24 months of active business pursuits.
300 shareholders for issuers with 12 months of active business pursuits.
Public float:
At least 25% of the issuer's total issued share capital must at all times be held by
the public.
Korea Stock Exchange
Quantitative Requirement
No of Shares: At least 1million shares as of application date.
Net Worth: At least KRW 10 billion as of application date.
Sales Amount: At least KRW 30 billion for the latest fiscal year and the average for
the latest three fiscal years should be at least KRW 20 billion.
Financial Requirement
Profit: Must show operating profits, ordinary profits and net profits.
Profits for the latest fiscal year should be at least KRW 2.5 billion and the sum for
the latest three fiscal years should be KRW 5 billion.
Reserve Ratio: At least 50% (25% for large corporations) according to the balance
sheet of the latest fiscal year.
Reserve ratio = [(Net worth - Paid-in Capital) / Paid-in Capital] * 100
No of years since establishment: Have been operating without interruption for at
least 3 years since establishment.

RESEARCH METHODOLOGY
RESEARCH DESIGN
Organic products are currently not classified separately under the Standard
International Trade Classification (SITC) and the Harmonized Commodity
Description and Coding System (HS). Both systems group organic products
together with conventional products. It is therefore not possible to analyze
international trade in organic products using the data provided under these systems.
For this study the following approach was adopted. First, relevant literature,
publications and studies were reviewed in order to get in-depth information on
organic trade in general and organic horticultural trade in particular. Also country
specific information on the organic horticultural sector was reviewed. Second, key
players of the organic sector in the studied countries were surveyed through a
combination of questionnaires, telephone interviews and face-to-face discussions.
Key players include market operators, importers and retailers, among many others.
The willingness to respond to the questionnaire and telephone interviews and to
provide quantitative information on traded volumes and values, for example,
differed significantly between the contacted persons. Finally, the information
obtained from market operators was analyzed and processed, and checked against
information obtained from literature and other sources.
The study is made on the basis of descriptive and applied research. To give
an insight into the concept banned process of stock broking. In this project we
study the practical aspect of stock brokers.
We study assessment of commodity market, stock exchanges and what are
the methods used in collecting data or other competitors. We will also see the
impact of intra-day or delivery based charges. This will help us to understand the
role of broker.

Source of data Collection

While deciding about method of data collecting to be used for the study the
research should keep type of data.
1. Primary Data
2. Secondary Data
PRIMARY DATA
We used in our research Primary as well as Secondary data. Primary data
means collected fresh, and first time data.
The information is collected through the primary sources like:
Talking with employees.
Getting information by observations.
Discussion with the head of the department.
SECONDARY DATA
Secondary data on the other hand are those which jave already been
collected by someone else and which have been passed through statistical process.
The data is collected though the secondary sources like:
Business newspaper and magazine.
Internet
Annual report
Other documents and records
Library etc.

Method of data collection

On the basis of theoretical study Research has many type. All these are distributed
on the nature of research. Some of these are like

Descriptive and Analytical Research

Qualitative and Quantitative Research
Conceptual and empirical Research
Applied and Fundamental Research
One time Research
Our research on the based on Descriptive, Qualitative and Quantative.

Descriptive Research
Descriptive research include Survey and Fact finding enquires of different
kinds. The major purpose of descriptive research is description of the state of affair
as it exist at present. Researcher has no control over the variable in this research.
Qualitative Research
In our research we need comparison between different stock broker. So this
based on the all qualitative research. In short, qualitative research is specially
important in the behavioral science where the aim is to discover the underline
motive of human behavior. Through this research we analyses various factors
which motive to people to behave in particular manner or which make people like
or dislike in particular
thing.
Quantitative research
Quantitative research based on the measurement of quantity and amount. It
can be applicable to phenomena that can be express in quantity. So we use it in our
research for collecting of numerical data.

Sample Design
Sample design is a definite plan for obtaining a sample from a given
population. It refer to the technique or procedure the researcher would adopt in
selecting item for sample.
Generally sample design are two types Probability Sample Design
Non Probability Sample Design
We used the probability research design.
Sampling Unit
Sampling unit may be geographical such as state, district, village etc. The
researcher will have to decide one or more of such as units that has to select for his
study.
Size of Sample
This refer to the number of item that to be selected from the universe to
constitute a sample.
In our research sample size is 100
But we also study of Five Stock Brokers Companies related to the security and
commodity market like India.

METHOD OF ANALYSIS
Survey Method
Survey refers to the method of securing information concerning phenomena
under study from all or selected number of respondent of the concern area. In a
survey the investors examines those phenomena which exist in universe
independent on his action. We used the scheduling method.
Scheduling
In this method enumerators along with schedule, go to the respondent,
And ask them questions as per questionnaire in order the questions are listed and
record the responses to make analyses.

ANALYSIS OF
DATA
1. Do you know about the investment options?
Knowledge
Yes
No
Total

%age
80%
20%
100

20%
Yes

80%

No

Inference
Only 80% people know the exact meaning of investment and remaining 20%
people take his /her residential property as investment. According to law purpose
this is not an investment because of it is not create any profit for the owner.

2. Most preferable investment scenario ?

Investment Scenario
%
Bank
24%
Derivative
&
Securities 28%
Market
Insurance
4%
Real state
20%
Bonds
20%
Others
4%
Total
100

4%
20%

24%

Bank
Derivative & Securities
Market
Insurance

20%
4%

28%

Real state
Bonds
Others

Inference:
Today scenario is changed so the most area are covered by derivative and
securities market. It is 28% of the total population.

3. What is the basic purpose of your investment?

Investment purpose

Percentage (%)

Liquidity
Return
Capital Appreciation
Tax Benefit
Risk Covering
Others
Total

30%
25%
10%
20%
5%
10%
100

Chart Title

5%

Liquidity

10%
30%

Return
Capital Appreciation

20%

Tax Benefit
Risk Covering
10%

25%

Others

Inference:
75% peoples invest their money to Liquidity, Return and Tax benefit. And
remaining 25% people are interested in capital appreciation, risk covering and
other purpose.

4. Most important things you take into your mind while make investment?
Factor
Risk
Return
Both
Total

Percentage (%)
8%
17%
75%
100

8%
17%
Risk

75%

Return
Both

Inference:
In this case most of people like 75% are consider the both factor risk and
return but only 25% people are consider risk and return.

5. Awareness related securities market?

Knowledge
Complete
Partial
Nil
Total

Percentage (%)
8%
75%
17%
100

17%

8%

Complete
Partial
Nil

75%

Inference:

On that basis, 17% people dont know about the securities market and 75%
people having partial knowledge about securities, market so in this case there is
require more promotion activity to investment awareness.

6. Do you have any D-mat & Trading account?

Account
Yes
No
Total

Percentage(%)
40%
60%
100

40%
60%

Yes
No

Inference:
Only 40% people having the D-mat and Trading account. Other people dont
know either security market or why share move and down.
7. In which company do have D-mat and Trading account?
Company
ICICI Direct
HDFC Security
Karvy
Share Khan
Indiabulls
India infoline
Other
Total

11%
10%
15%

Percentage
26%
12%
19%
15%
10%
11%
7%
100

7%

26%

ICICI Direct
HDFC Security

12%
19%

Karvy
Share Khan
Indiabulls
India infoline
Other

Inference:

Only ICICI having the 24% of D-mat and trading account because of their
better service and karvy another stockbroker who is in second position just because
of their product and services.

8. Specify the reason of satisfaction with the current broking house?

Satisfaction
Operating expenses
Services
Brokerage
Total

Percentage (%)
18%
25%
57%
100

18%

Operating expenses
Services

57%

25%

Brokerage

Inference:
Regarding satisfaction 57% people conceder brokerage only 25% people
looking for batter services.

RESULTS AND DISCUSSION

After the whole study, we find out the following results.
Results on the basis of charges
There are the two types of the transaction: 1. Intra- Day Based
2. Delivery Based

Chart Title
0.6
0.5
0.4
0.3
0.2
0.1
0

Karvy

ICICI Direct

HDFC Security
Intra day

All the figures are in paisa/100repees.

Share Khan
Delivery

Indiabulls

India infoline

Inference:
According to the survey ICICI Direct maximum charge 0.06paisa and 0.60
paisa brokerage as compare to another in Intra-day and delivery time and is
second one which HDFC charge maximum while Karvy minimum charge 0.03/
0.30pasia in both Intra-day/delivery on the maximum investment.
Result On The Basis Of Account Opening Charge
HDFC Security Ltd:
Account opening charge followed from April 2005 Rs.749. If the customer has
existing relation with HDFC.
Share Khan Ltd:
There is no account opening charge but require margin money Rs.5000 for trading
purpose.
ICICI Direct:
An one time charge of Rs. 750 at the time of account opening will be charged. You
may later upgrade your invest account to an ICICI direct.com share trading account
when you desire to trade in equity.
India infoline:
There is a nominal charge of Rs. 500 only toward stamp duty, legal and processing
fee for account opening. This include the registration and account opening charge.
Bank and Depository Participant (DP) account opening charges, if applicable, are
payable separately.
Karvy Stocky Broking Ltd:
Account opening charge of Rs.350 at one time and Rs.225 charge for annual
maintenance charge(AMC)
Indiabulls:
Account opening charge Rs.900.
There in no any annual maintenance
charge(AMC) and no any margin money are require.

Inference:

India bulls maximum charge Rs.900 for account opening whereas Karvy
minimum charge for Rs.350 for account opening with Rs.225 AMC but there is no
AMC in India bulls. In Share Khan Ltd. No account opening charge but it require
Rs.5000 margin money.

Result On The Basis Of Facilities

Facilities

ICICI
Direct

HDFC
Securities

Karvy

Share
Khan

Indiabull
s

India
Infoline

Share Trading

Yes

Yes

Yes

Yes

Yes

Yes

Commodity
Trading

Yes

Yes

Yes

Yes

Yes

Yes

D-Mat
Opening
Rights

Yes

No

Yes

Yes

Yes

Yes

Inference:
In this case we find all stock Brokers Provide all types of facility at the
different charge.

CONCLUSION
Thus this study validates the popular belief that the markets in general and Indian
market in particular is more integrated with other global exchanges from 2002-03
onwards. This can very well be seen since the South Asian crisis of the mid- late
nineties barely affected us particularly because we were insulated due to
government policies and was just making the transition. However, in the later time
periods, the influence of other stock markets increased on our BSE or NSE, but at a
very low almost insignificant level. At the time of 9/11 incident, NYSE had started
to exert its influence on us but at lower levels and hence the economic downturn
did not impact for long. The increased trend of Indian companies going for ADR
and GDR issues has also contributed as a channel for information transfer between
the exchanges where the particular company is listed. This has not only facilitated
the integration process but also increased the sensitivity of the home countrys
stock exchange to the movements of various other exchanges especially where the
home company is listed. As for the existence of any signals or patterns among the
stock exchanges, it can safely be said that the markets do react to global cues and
any happening in the global scenario be it macro economic or country specific
(foreign trade channel) affect the various markets.
In short, the Indian exchanges are ready to make the transition should the
government decides to further relax the regulations and open up. The financial
sector as a whole, with the stock markets as its indicator, has indeed come a long
way and are ready for the next level with regards to efficient trading and variety in
the instruments traded.

APPENDIX
Questionnaire
1) Do you know about Investment options available?
a) Yes

b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds
c) Real estate
e) Commodity

b) Banks
d) Share market
f) Others

3) What is the basic purpose of your investment?

a) Liquidity
c) Capital appreciation
e) Tax benefits

b) Returns
d) Risk covering

4) What are the most important things you take into account, while
making any investment?
a) Risk

b) Returns

c) Both

5) Do you have any knowledge of share markets?

a) Partial

b) Complete

c) Nil

6) Do you have any D-mat & Trading account?

a) Yes

b) No

7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd
c) Indiainfoline
e) Indiabulls
g) Others

b) Karvy
d) ICICI direct
f) HDFC securities

8) Are you satisfied with you present broking company?

a) Yes

b) No

9) What is the reason? Please specify.

a) Services _______________________________________
b) Brokerage _____________________________________
c) Operating expenses ______________________________
d) Others ________________________________________
10) What is your trading exchange preference?
a) NSE
b) BSE
c) MCX
d) NCDEX
12) Do you know about Karvy Stock Broking Ltd?
a) Yes

b) No
Respondent Details

Name: _____________________________
___________________

Date of birth:

Contact Number: _____________________ E-mail Address: ______________

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