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A

Project Report
On
A Study of Stock Market with Special
Reference
Of Selected Brokers in Ahmednagar
City.
Submitted To
University of Pune
In the Subject of Research Methodology
Bachelor of Business Administration.
Submitted By
Under the Guidance of
Prof. Vashishtha Shah
B.P.H.E. Socitys
Ahmednagar College, Ahmednagar
Academic Year
2008-2009

ACKNOWLEDGEMENT

Words are not sufficient to describe the


contribution made by the people for the project.
At the very first I like to thank Hon.
Principal R.J.BARNBAS without whom the
project would not be possible & also thank to our
vice principal Prof. S.J.KAWADE for his kind
support.
I express my thanks to internal project
guide for Dr. D.B.MORE his valuable guidance
throughout the project. And I also thank our
project incharge Miss Vashishtha Shah & all
faculty members of the department for their
valuable suggestions.
At last I would like to show my gratitude to
that entire person who knowingly & unknowingly
extended their helping hand.
At last but not the list I would like to
thanks my parents for their valuable wishes and
blessing.

INDEX
Sr.No
1.
2.
3.
4.

5.
6.
7.
8.
9.

CONTENTS
Introduction to Topic
Introduction to Broker
Company profile
Research Methodology
I. Objective of study
II. Scope of study
III. Hypothesis
IV. Data Collection
V. Limitations of study
Data Analysis
Findings & Conclusions
Suggestions
Bibliography
Questionnaire

PAGE
No.

INTRODUCTION TO TOPIC

STOCK MARKET
A Stock Exchange, share market is a corporation or
mutual organization which provides facilities for stock
brokers & traders to trade company stock & other securities
stock exchange also provide facilities for the issue &
redemption of securities as well as other financial instrument
and capital events including the payment of income &
dividends. The securities trade on a stock exchange include.
1) Shares issued by companies
2) Unit trusts
3) Other pooled investment product
4) Bonds
To be able to trade a security on a certain stock
exchange, it has to be listed there. Usually there is central
location at least for record keeping, but trade is less & less
linked to such a physical place, as modern market are
electronic network, which gives them advantages of speed &
cost f transaction.
Trade on an exchange is by members only. The initial
offering of stocks & bonds to investors is by definition done
in the primary market & subsequent trading is done in the
secondary market.
A stock exchange is often the most important
component of stock market supply & demand in stock

market is driven by various factors which, as in all free


market affects the price of stocks.
Share BrokerA broker is member of recognized stock exchange,
who is permitted to do trade on the floor of the exchange. He
is enrolled as a member with the concerned exchange & is
registered with SEBI.
Sub-Broker
A sub-broker is person who is registered with SEBI as
such & is affiliated to a member recognized stock exchange.
Registration of Broker and Sub-Broker
A Brokers registration no. beginning with the letters
INS
Charging of Brokerage
The maximum brokerage that can be charge by a
broker is decided by stock exchange as per the exchange
resolution. The SEBI 1992 stipulates that Sub-brokers
cannot charge from his client a commission which is more
than 1.5% of the value mentioned in the respective purchase
or sale note.

Brokerage
Brokerage is commission charged on transaction of
purchasing or selling of shares by Broker.

Pay-in-day
Pay-in-day is the day when the brokers shall make
payment or securities to the exchange.
Pay-out-day
Pay-out-day is the day when the exchange makes
payment or securities to the brokers.
Since settlement cycle has been reduced from T+3
rolling settlement to T+2 from 01st April 2003, the exchange
have to ensure that the pay out of fund and securities to
client is done by the broker within 24 hrs. of the payout. The
exchange will have to issue press release immediately after
payout.

Introduction To Brokers

There are some selected brokers in Ahmednagar city likeA. Joindre capital service Ltd.
B.

SNC global security Ltd.

C. IL and FS Investment Ltd.


They are giving attractive Brokerage slaps for
client. They are attracting small investors by conducting
seminars.
They charging low rate of brokerage to client. But
not only they charging low rate of brokerage but they also
give good market tips & guidance to client.
So that client gets personal touch & because of
this they ready to invest in stock market & because of this
there is tremendous development in stock market.

COMPANY PROFILE
1) Joindre capital service Ltd.

1) Company profile
A pioneer in the field in retail Broking was
incorporated in 1995 by group of professionals with vast &
rice experience in Indian capital market.
Joindre is one of the conceptual pioneers of
retail cult in Indian capital market. It has taken initiative in
spreading the online trading terminals to the length &breadth
of country through the network of its Branches / SEBI
registered sub- brokers & there by catering to the needs of a
large number of retail investors.
2) Group companies
a) Joindre capital service Ltd. Joindre groups first venture, Joindre capital
service Ltd. was incorporated in 1995. This company has
strong IPO & mutual funds division for the benefit of the
clients. Being client focused the company offers internet
trading platform.
Joindre capital is member of National stock
Exchange of India Ltd., Bombay Stock Exchange Ltd. &
many regional exchanges in India. Joindre capital is also
Depository participant member of central Depository
services Ltd.
b) Joindre commodities Ltd.
This company provides huge potential, much
greater than the securities & cash market in commodities.
There is an opportunity to trade in multiple commodities from
a single point, on real time basis.

A Joindre commodity Ltd. is member of multi


commodity exchange of India Ltd. & National commodity &
Derivatives exchange Ltd.
c) Joindre DMCC
Joindre DMCC is the first venture from
Joindre group outside India. Jiondre sees Dubai as a hub for
international trade between east and the west and is
encouraged by the facilities, infrastructure & benefits offered
by UAE government.
Joindre shares the vision of DMCC (Dubai
metals & commodities Exchange) & DGCX (Dubai gold &
commodities Exchange). With its foresightedness DGCX has
introduced Rupee Futures, the first of its kind in Foreign
Exchange Trade.
Joindre DMCC is member of Dubai Gold &
commodities Exchange, Dubai.
3) Our Directors
a) Whole time directorsI. Anil Mutha (C.A.)
II. Dinesh Khandelwal (C.A.)
III. Parad Bathia (C.A.)
IV. Ranjit Baradia (C.A.)
V. Subhash Agarwal (C.A.)
VI. Sunil Jain (C.A.)
b) Directors of the company
i.
ii.
iii.
iv.

Mahendrakumar Jain
Pradeep Jain
Shankar Khandelwal
Veepin Thokal

Operations & future prospects


To provide every client a personalized
service by offering simplified & transparent procedures,
most competitive rates, prompt execution of trades, that
makes them feel special.
To provide every associate & business
partner a platform for professional growth to reach their
highest potential. To provide every employee the best
place to work, a dynamic & challenging work environment.
To provide every stock holder finest wealth
accumulation by continually improving our profitability.

IL ANDFS Ltd.

IL& FS Investment Ltd. is one of the Indians


leading financial service organizations providing individual &
corporate with customized financial management solution.
IL & FS Invest Mart Ltd. is an initiative in the
filed of financial service by Infrastructure Leasing & financial
service on of Indians leading Infrastructure development
&finance companies, known for its innovative & pioneering
initiatives in the area of infrastructure, corporate finance &
investment banking.

The management team of IL and FS Ltd.I. Mr. James Lessile White Forced MD& CEO.
II. Mr. Sachin Joshi Executive Director Finance &
Operation.
III. Mr. Sandip Presswala - Executive Director Retail
Business.
IV. Mr. Kersi Tavadia- Chief Technology Officer.

A) OBJECTIVE OF THE STUDY


1)

To Study selected Brokers of stock Market in

Ahmednagar city.
2)

To Study different Brokerage Rate charged by


different Brokers.

3)

To Study different Facilities provided by the


different Brokers.

4)

To Study the Role of broker in Stock Market.

B) SCOPE OF STUDY
1) In this project all researched information are
about only Ahmednagar city only.

2) There are three representative brokers of


Ahmednagar included in this study.

C) HYPOTHESIS OF THE STUDY

1)

Brokers are charging reasonable


Brokerage to Investor.

2) Brokers are giving adequate service to


Investors.

D) DATA COLLECTION
Data will be collected from two sources,

A) Primary data collection


B) Secondary data collection
A) Primary data collection The Primary data are those which are
collected a fresh & for the first time. Primary data is also
called basic data or original data.
Primary data was collected by questionnaire
method, Also interview was taken of various brokers in the
different companies, data was also be collected by visiting
the different department and the offices. The researcher has
collected information from brokers by filling up questionnaire
and taken interview.
B) Secondary data collection The secondary data means data that are
already available in various report, diaries, letters, books,
periodicals etc.
Secondary data was collected from the
various published statement, reports and documents by the
companies.
The research has collected the Secondary
data from brokers by booklet, application form, rules and
regulation of SEBI and rules of stoke market.

E) LIMITATIONS OF THE STUDY

1) Due to insufficient time sufficient information data was


not collected.
2) Primary data collection is time consuming & costly.
3) Share brokers were not ready to give confidential
information.
4) Share brokers dont have sufficient time to give
necessary information due to their busy schedule.

DATA ANALYSIS & INTERPRETATION


The data used for research project in analyzed by
collecting information from brokers. The research has
prepared the questionnaire and asked certain question to

brokers firms. They have given answer of questionnaire. The


questionnaire is analyzed by researcher.
The project is case study of all brokers forms
therefore the first hand opinion of brokers are most useful for
drawing certain conclusions.
The questions are related to brokerage charged
by different brokers. The researcher made comparative
study of statement & graphs are preparing for analysis all the
data and it helps to interpret to data.
Establishment of firm
Joindre capital service Ltd. Is a company
incorporated under the Company Act, 1956 in the year 1995
with object of shares and stock broking activities.
IL and FS Investment Ltd. Is a company
incorporated under the Company Act, 1956 in the year 1997
with object of shares and stock broking activities.
SNC global security Ltd. Is a company
incorporated under the Company Act, 1956 in the year 1990
with object of shares and stock broking activities.

Different Rate Of Delivery Brokerage charged by


Different Brokers
DELIVERY BROKAGE
FIRMS

CHARGES

Joindre capital services Ltd.

0.60 paisa

IL and FS Investment Ltd.

0.40 paisa

SNC global security Ltd.

0.50 paisa

INTERPRETATION
From the study of above table and graph
researcher study different Rate of Delivery Brokerage
charged by Different Brokers.

The Joindre capital services Ltd. Charged delivery


brokerage 0.60 paisa.
The IL and FS Investment Ltd. Charged delivery
brokerage 0.40 paisa.
The SNC global security Ltd. Charged delivery
brokerage 0.50 paisa.
a. The IL and FS Investment Ltd. Charged the lowest
delivery brokerage as compared to other firms i.e.
0.40 paisa.
b. The SNC global security Ltd. Charged normal
delivery brokerage i.e. 0.50 paisa.
c. The highest rate of delivery brokerage Charged by
Joindre capital services Ltd. i.e. 0.60 paisa.

Different Rate of Interaday Brokerage charged by


Different Brokers
INTERADAY BROKAGE

FIRMS

CHARGES

Joindre capital services Ltd.

0.10%

IL and FS Investment Ltd.

0.15 %

SNC global security Ltd.

0.05%

INTERPRETATION
From the study of above table and graph
researcher study different Rate of intearaday brokerage
charged by different brokers.

The Joindre capital services Ltd. Charged intearaday


brokerage 0.10%.
The IL and FS Investment Ltd. Charged intearaday
brokerage 0.15%.
The SNC global security Ltd. Charged interaday
brokerage 0.05%.
a. The IL and FS Investment Ltd. charged the highest
rate interaday brokerage as compared to other
firms i.e. 0.15%.
b. The SNC global security Ltd. charged lowest
interaday brokerage i.e. 0.05%.
c. The Joindre capital services Ltd. charged normal
interaday brokerage i.e. 0.10%.
Pay-in-day & Pay-out-day
Pay-in-day & Pay-out-day is same in case of all
the firms i.e. 3rd day from purchase / sales of shares or as
per the settlement.
Documents are required to in client registration provide
by client those as follows
Those documents are same in case of all firms.

In case of individual client registration, clients have to


provide following information.
Name of client, address, education qualification,
occupation.
Bank passbook Xerox
PAN card no. (Both sides) which also serve as unique
client cord.
For proof of identity to submitted either as passport
no. / Driving license / Ration card / identity card / voter
ID (Both sides).
If client registered with any broker than the name of
broker & concerned stock exchange & client cord no.
In case of Non-individual client following information
has to provide Name & address of the company / firm.
Certificate of commencement of business.
Certificate of incorporation.
Copy of Memorandum & Articles of association &
partnership deed.
Copy of the Balance sheet for the last 2 financial years.
List of share holder & Directors & whole time directors
& Secretary.
Particulars of Bank A/C.
Annual income in last 3 years & market value of
portfolio.
Copy of PAN card.
If client registered with any broker than the name of
broker & concerned stock exchange & client cord no.
Placing of order with Broker or Sub- Broker-

This is some in case of all the time firm client can go to the
broker or sub-broker office or place on order by telephone.
The way client know whether his / her order is placed
The stock exchange assigns a unique order code no. to
each transaction, which is intimated by broker to his client &
once the order is executed, this order code no. is printed on
the contract note. In this way client know whether his / her
order is placed.
Payment to Broker in case of purchase of share.
Client must make payment to Broker within 48 hours or T+2
in case of purchase of share i.e. pay-in-day.
Receives the amount in case of sale of shares.
The client receives the amount in case of sale of shares
after 2day of pay-out-day.

Maximum brokerage that a broker / sub- broker can


charge The Maximum brokerage that can charge by broker is
decided by the stock exchange as per the exchange
regulation.
The main broker can charge Maximum brokerage is
2.5% mentioned in the respective purchase or sale
note.
The sub-broker can charge Maximum brokerage is
1.5% mentioned in the respective purchase or sale
note.
Customer directly trade online or through the brokers.
There are two types of methods
1. Through the broker
In this method the customers do all the
transaction through the brokers.
2. Online
In case of online trade the customers do all the
transaction directly without any brokers.
In case of all the firms if client is able to place order directly,
otherwise client place order through the brokers.

Finding & Conclusion

A) FINDINGS
1. Among the different brokers from Joindre capital services
Ltd. is charging highest brokerage as compared to other
brokers.
2. IL and FS Investment Ltd. charging low brokerage as
compared to other brokerage form.
3. SNC global security Ltd. charging lowest interaday
brokerage as compared to other brokerage form.
4. IL and FS Investment Ltd. charging highest interaday
brokerage.
5. For placing order & getting delivery is same procedure of
all brokers.
6. The pay-out-day is same of all brokers from.

SUGGESTIONS

1. The Joindre capital services Ltd. firm should charge the


low rate of delivery brokerage.
2. The IL and FS Investment Ltd. firm should charge the
low rate of interaday brokerage.
3. Other firm should charge the similar rate of brokerage.
4. The broker should give the priority to provide good
services to investors.
5. The broker should arrange new market strategies to
attract the client.
6. The broker should provide home delivery service for
whole transaction.

BIBLIOGRAPHY
Booklet of Stock Market
Dalal Street Magazine
Website : www.google.com

QUESTIONNAIRE
1) Name/ Occupation?
2) Name of firm?
3) When your firm was established?
4) What is your Delivery Brokerage?
5) What is your Interaday Brokerage?
6) What is your pay-in-day & pay-out-day?
7) What document are required to provide in client
Registration from by client?
8) How do client place order with broker?
9) How do client know whether his/her order is place?
10) In case of purchase of Shares, when does the client
Make payment to brokers?
11) In case of Sale of Shares when the client receives the
amount?
12) What is maximum brokerage that a broker can
charge?