A study of consumer behaviour towards equities and

derivatives market in udaipur city - Document Transcript

1. Projectsformba.blogspot.com A Project Study Report On

Training Undertaken at INDIABULLS SECURITIES LTD.
UDAIPUR “A STUDY OF CONSUMER BEHAVIOUR
TOWARDS EQUITIES AND DERIVATIVES MARKET IN
UDAIPUR CITY” Submitted in partial fulfillment for the
Award of degree of Master of Business Administration
Submitted By: - MBA-II SEM 2008-
2010Projectsformba.blogspot.com
2. Projectsformba.blogspot.com Submitted To:-
Projectsformba.blogspot.com
3. Content given in this format.Cover PageCertificate from
the
Company/OrganizationPreface/PreludeAcknowledgementExe
cutive SummaryContents:1. Introduction to the Industry2.
Introduction to the Organization3. Research Methodology 3.1
Title of the Study 3.2 Duration of the Project 3.3 Objective of
Study 3.4 Type of Research 3.5 Sample Size and method of
selecting sample 3.6 Scope of Study 3.7 Limitation of Study4.
Fact & Finding5. Analysis and Interpretation6. SWOT7.
Conclusion8. Recommendation and Suggestions9.
Appendix10. Bibliography
4. PREFACEThe main motive behind the summer training
of the MBA program is to providethe practical aspect of the
organizations working environment. The study is theoutcome
of my project that has been produced as partial fulfillment of
theMasters of Business Administration from Advent Institute
of ManagementStudies, Udaipur.This training has helped to
 visualize and realize about the congruency betweenthe
theoretical learning in the college and the actual practices of
management.This overall project has given me an insight into
the actual corporate world apartfrom the theoretical
environment. It has allowed me to face the world full of
upsand downs and to get a glance of the future corporate
world in which we aregoing to enter.My summer training
project at IndiaBulls Securities Ltd. Is a completeexperience
in itself and it has become an inspirable part of my knowledge
ofmanagement being learned in MBA programme.
5. AcknowledgementI express my sincere thanks to my
project guide …………….(Director) AdventInstitute Of
Management, Udaipur for guiding me right from the inception
tillthe successful completion of the project. I sincerely
acknowledge him forextending their valuable guidance,
support for literature, critical reviews ofproject and the report
and above all the moral support he had provided to mewith all
stages of this project.I would also like to thank the supporting
staff ………………………………………………………….
……………….. Advent Institute Of Management,Udaipur for
their help and cooperation throughout our project.
6. EXECUTIVE SUMMARYTITLE"A STUDY OF
CONSUMER BEHAVIOUR TOWARDS EQUITIES AND
DERIVATIVESMARKET IN UDAIPUR CITY”1. BACK
GROUND OF THE STUDYThis study is conducted for
Indiabulls Securities Ltd. at Udaipur, by ………….
…………… first year of Master in Business Administration
(MBA) student asrequirement for partial fulfillment for
MBA.Indiabulls is lead by a highly regarded management
team that has invested ThousandLac of Rupee into a World
class Infrastructure that provides their clients with real-
timeservice & The objectives of the study include… A) To
 study customers trading behavior B) To know what major
factors effects or influence customer’s trading behavior. C) To
know the satisfaction level of customers towards
INDIABULLS services.around Clock i.e.24 Hrs. access to
all information and products.2. Objectives
7. 3. Research MethodologyThe methodology includes
collection of data with the help of structured questionnaire;the
data has been collected by interviewing around 100 clients.4.
Data collection & InterpretationIt includes cross tabulation of
questionnaire by classification of responses andfrequency
distribution and appropriate graphical representation question
withcomments.5. Observations & FindingsObservation is
related those issues only, which are not included and explored
throughthe questionnaire, it may not require a data
support.Findings are strictly based on the collected data,
attempting to answer the objectives.6. Limitation of the
studyThe study can be biased to the extent of personal
perception, historical nature of datacollection and of the time
limit.7. SuggestionBased on findings, suggestions were given
in order to improve the communicationstrategy and widen
company’s market.
8. CHAPTER -1Introduction to the Industry
9. INTRODUCTION TO INDIABULLS LTD.Indiabulls is
India’s leading Financial Services and Real Estate Company
having over640 branches all over India. Indiabulls serves the
financial needs of more than 4,50,000customers with its wide
range of financial services and products from
securities,derivatives trading, depositary services, research &
advisory services, consumersecured & unsecured credit, loan
against shares and mortgage & housing finance. Witharound
4000 Relationship Managers, Indiabulls helps its clients to
satisfy theircustomized financial goals. Indiabulls through its
 group companies has entered IndianReal Estate business in
2005. It is currently evaluating several large-scale
projectsworth several hundred million dollars.Indiabulls
Financial Services Ltd is listed on the National Stock
Exchange, BombayStock Exchange and Luxembourg Stock
Exchange. The market capitalization ofIndiabulls is around
USD 2,350 million (25th April 2007). Consolidated net worth
of thegroup is around USD 510 million (31st March 2007).
Indiabulls and its group companieshave attracted USD 500
million of equity capital in Foreign Direct Investment (FDI)
sinceMarch 2000. Some of the large shareholders of
Indiabulls are the largest financialinstitutions of the world
such as Fidelity Funds, Goldman Sachs, Merrill Lynch,
MorganStanley and Farallon Capital.Business of the company
has grown in leaps and bounds since its inception. Revenueof
the company grew at a CAGR of 159% from FY03 to FY07.
During the same period,profits of the company grew at a
CAGR of 184%.Indiabulls became the first company to bring
FDI in Indian Real Estate through a JV withFarallon Capital
Management LLC, a respected US based investment firm.
Indiabullshas demonstrated deep understanding and
commitment to Indian Real Estate marketby winning
competitive bids for landmark properties in Mumbai and
Delhi.
10. Group Companies of Indiabulls INDIABULLS LTD.
INDIABULLS INDIABULLS SECURITIES LTD. REAL
ESTATE INDIABULLS CONSUMER FINANCE
LTD.INDIABULLS SECURITIES LTD.Indiabulls Securities,
the retail equity broking arm of the Indiabulls group,
hasexperienced strong growth over the last two financial
years. Currently, it has a clientbase of 75000 (29000 as at
March 31, 2004) and enjoys a market share 3 of about 4per
cent. Its widespread network, (79 offices in 60 cities) a strong
 technology base, andthe facility of loan against shares
provided to clients (through Indiabulls FinancialServices) for
purchasing equity shares has enabled it to gain market share.
Its clientdiversity reduces its dependence on any single client.
11. These strengths are, however, partially offset by the fact
that it operates in a high-volume, price-sensitive business
segment. Retail brokerage rates are significantly lowerthan
institutional brokerage rates primarily because of an
institutional broker’s expertiselevel and on account of its
offering of value-added services.However, CRISIL believes
that the leadership position of Indiabulls in the retail
equitybrokerage segment places it in a better position to
weather the inherent risk in thesegment.Indiabulls securities
ltd. is the retail broking house that caters to the needs of
individualinvestors. While the investment world abounds with
‘jack of all trades’, the co. chose tobuild the business by
focusing on what it knows best – market driven
investmentavenues like equities and derivatives. The co.
facilitate the investment process for itsclients and also provide
value added services like research, stock ideas, online
trading,demat, etc. to make the investment experience
rewarding.CORE SERVICES 1. Equity and derivatives
trading on NSE 2. Depository services 3. Online trading 4.
IPO services 5. Portfolio management services 6. Technical
analysis 7. Research reports
12. INDIABULLS CONSUMER FINANCE
LTD.Indiabulls, a retail focused organization fulfills the credit
need of a large percentage ofpopulation in India. The key
aspect of Indiabulls business model is to provide anextremely
unique customer experience. The blend of power of the
Internet withpersonalized services allows Indiabulls to expand
its geographical coverage andcapture a greater share in the
 highly competitive retail market. It offer consumer
loans,home loans, personal loans, securities brokerage, and
other financial products andservices to retail customers from
across 640 Indiabulls offices in 127 leading cities ofthe
country.Indiabulls Fast LoansThe company offers the shortest
route to a loan with minimum paperwork andprocedures. With
Indiabulls Fast Loans, one can avail easy loans for a minimum
ofRs.10, 000 to a maximum amount of Rs.1, 00,000.1.
Features of Personal Loan • Flexible loan tenure of up to 4
years (i.e. 1 month to 48 months). • Loans available from a
minimum of Rs.10, 000 up to a maximum of Rs.100, 000. •
Easy monthly repayment through equated monthly
installments (EMI). • Easy documentation and quick
disbursal.2. Commercial Vehicle LoansIndiabulls started
Commercial Vehicle Finance under the flagship of Indiabulls
CreditServices Ltd. in April 2006 to provide refinance to its
commercial vehicle clients. It havesound fundamentals,
competent management and expertise in financing
thetransporters. The companys reach gives it a unique market
position enabling it to excelin customer satisfaction, quick
service and growth-led profitability.
13. The Commercial Vehicle Finance provided by helps the
small and medium operators toacquire vehicles with minimum
hassle and documentation. Co.’s strength lies in thequick
completion of transactions, long association with transporters
and the intimateknowledge of the market and its nuances.3.
Mortgage LoansIndiabulls has commenced lending of
Mortgage Loans to prospective customers underthe flagship
of Indiabulls Housing Finance Ltd. Here it enable home-
seekers to accessfinance to buy their homes. The co. also
provide plot loans, Loan against Residential,Commercial and
Rental Property, thereby enabling the borrower to leverage
theproperty owned to fund any legitimate needs be it Business
 Expansion, ChildsEducation, Childs Marriage or for Holiday
Abroad.4. Indiabulls Home Loans Indiabulls Housing Finance
Company helps to realize a long cherished dream ofowning
home through hassle free and customer friendly home loans.
A person can availof the Home Loans purchasing a ready built
house/flat, residential plot and even for re-financing existing
loans of other banks or housing finance
companies.INDIABULLS REAL ESTATEThe Indiabulls
group has recently made an investment in real estate. Though
thearticulated purpose of the investment is to acquire fixed
assets for office space,nevertheless it is an equity exposure in
real estate and is thus exposed to the inherentrisks in real
estate to the extent of the equity capital that would be invested
by thegroup.
14. Growth StoryIndiabulls has emerged as one of the
leading and fastest growing financial company inless than two
year, since its initial public offering in September 2004. It has
a marketcapitalization of around 2,350 million (25th April
2007) and consolidated net worth of thegroup is around USD
510 million. • Indiabulls Financial Services Ltd. established
India’s one of the2000-01 first trading platforms with the
development of an in house team. • Indiabulls expands its
service offerings to include Equity, F&O,2001-03 and
Wholesale Debt, Mutual fund, IPO distribution and Equity
Research. • Indiabulls ventured into Insurance distribution and
commodities2003-04 trading. • Company focused on brand
building and franchise model. • Indiabulls came out with its
initial public offer (IPO) in Sep.2004. • Indiabulls started its
consumer finance business.2004-05 • Indiabulls entered the
Indian Real Estate market and became the first company to
bring FDI in Indian Real Estate. • Indiabulls is a market leader
in securities brokerage industry, With around 31% share in
online trading, • Farallon Capital and its affiliates, the world’s
 largest hedge fund2005-06 committed Rs. 2000 million for
Indiabulls subsidiaries Viz. Indiabulls Credit Services Ltd.
and Indiabulls Housing Finance Ltd. • Steel Tycoon Mr. LN
Mittal promoted LNM India Internet venture Ltd. Acquired
8.2% stake in Indiabulls Credit Services Ltd.
15. • Indiabulls entered in a 50/50 joint venture with DLF,
Kenneth Builders & Developers (KBD). KBD has acquired
35.8 acres of land from Delhi Development Authority through
a competitive bidding process for Rs 450 crore to develop
residential apartments. • Indiabulls ventured into commodity
brokerage business. 2006-07 • Indiabulls has received an “in
principle approval” from Government of India for
development of multi product SEZ in the state of
Maharashtra. • Indiabulls Financial Service Ltd. Board
resolves to Amalgamate Indiabulls Credit Services Ltd. and
demerge Indiabulls Securities Ltd.Board Of
DirectorsManagement TeamBoard of DirectorsName
DesignationMr. Rajiv Rattan Whole Time DirectorMr.
Aishwarya Katoch DirectorMr. Saurabh K Mittal DirectorMr.
Gagan Banga DirectorMr. Shamsher Singh DirectorMr. Karan
Singh DirectorMr. Sameer Gehlaut Chairman & Wholetime
DirectorMr. Prem Prakash Mirdha Independent Director
16. CHAPTER -2Introduction to the
OrganizationCOMPANY / ORGANIZATION PROFILE
17. Indiabulls is India’s leading Financial Services and Real
Estate Company having over640 branches all over India.
Indiabulls serves the financial needs of more than
4,50,000customers with its wide range of financial services
and products from securities,derivatives trading, depositary
services research & housing finance. With around
4000Relationship Managers, Indiabulls helps its clients to
satisfy their customized financialgoals.Indiabulls Financial
 Services Limited was established in the year2000 by
threepromoters all of whom are engineers from Indian
Institute of Technology, New Delhi,and has attracted over Rs.
700 million of investments from venture capital firms,
privateequity funds and institutional investors. The investors
include the proprietary fund of Mr.L.N. Mittal-LNM India
Internet Venture Limited, Transatlantic Corporation Ltd.,
FarallonCapital Partners LP and Infinity Technologies Trustee
Private Limited.Indiabulls headquarter are co-located in
Mumbai and Delhi, allowing us to access thetwo most
important regions for Indian financial Markets, the Western
region includingMumbai, rest of Maharashtra Gujarat and the
Northern region, including the NationalCapital Territory of
Delhi, nearby cities, parts of Haryana, Uttar Pradesh and
Punjab;and access the highly skilled and educated workforce
in Delhi; and back office, riskmanagement and internal
finance are headquartered out of one central location in
NewDelhi, allowing us to scale these process efficiently for
the nationwide network. All theback office work, transaction
processing work and issuance of cheques takes placefrom the
New Delhi office enabling us to have better control and
efficiency in the supportfunctions.Promoters and Their
Background
18. The company was established by three engineers from
IIT Delhi, and has attractedsignificant amount of investment
from venture, private equity and institutional investors.The
details are as follows:-Sameer Gehlaut, Chairman, CEO &
Whole Time DirectorSameer, aged 30 years graduated with a
Mechanical Engineering degree from theIndian Institute of
technology, Delhi. He has gained extensive experience in
theFinancial Services sector and developed in-depth
knowledge and strong understandingof all aspects of the
Securities Industry and Financial Services Business. Under
 hisLeadership, Indiabulls group has grown from one office,
310 clients, and 8 employees inFY 2000 to 32,359 clients, 70
office and 606 employees as on April 30, 2004.Rajiv Rattan,
President CFO & Whole Time Director:Rajiv, aged 30 years,
an NTSE Scholar, graduated with and Electrical
EngineeringDegree from the Indian Institute of Technology,
Delhi. He gained extensive experiencein international best
practices, process management and risk management, which
hebrought to Indiabulls Group as one of the founders of the
company.Saurabh Mittal, Director:Saurabh, aged 30 years,
graduated with and Electrical Engineering Degree from
theIndian Institute of Technology, Delhi. He worked a
citigroup Asset Management as aninvestment analyst, and is
currently a senior portfolio manager at Farallon Capital.
Hehas developed and understanding of International financial
markets and extensiveexperience in the securities industry
Saurabh is responsible for strategic decision-making and is the
director of the company.
19. BUSINESSOVERVIEW Indiabulls Financial Services
LimitedIndiabulls Securities Indiabulls Commodities
Indiabulls Insurance Limited Advisors Pvt. Limited Pvt.
Limited 1. Equity & Debt Stock Insurance Product Broking
Commodities Trading Distribution 2. Depository Services 3.
Derivative Broking Services 4. Equity Research Services 5.
Mutual Fund Distribution 6. IPO Distribution Competitors: •
Karvy Computer share Private Ltd. • G S Raheja Finance •
ICICI Securities Limited • India Infoline Ltd. • Indbank
Merchant Banking Services Ltd. • Share Khan Securities •
Zuari Investments Kotak Mahindra SHCL • Others……….
Equity Broking Account
20. Ration CardAddress Proof - Photocopy of any one of
Driving License / Passport/Ration Card/VoterCard/ Telephone
 Bill / Electricity Bill/ Bank Statement.A Partnership firm
desirous to open an account would require the following as
well -A certified true copy of the partnership deedCopy of last
Income Tax Returns filed.Corporate desirous of opening an
account would require the following additionaldocuments
-Certified true copy of a resolution passed by the Board of
Directors naming theauthorized officials to sign the Member
constituent agreements.Regardless of how the market is
performing or which way the economic winds areblowing,
you, as a trader, are researching, charting, crafting a strategy,
buying andselling. You are getting in, getting out and moving
on to the next trade.Choose from a comprehensive offering of
accounts, platforms and products. Customizeour technology
and services to support the way you work.Features of Power
India bulls : Driving License  Voter ID  PAN Card 
Passport A passport size photograph.Proof of Demat
Account. If you intend to get a Depository account opened
withIndiabulls as well, please see the relevant requirements
for that.Proof of Bank Account - A cancelled cheque would
be sufficient.Photocopy of Income Tax Permanent Account
Number (PAN) Card - If you do not havea PAN, then you
would be required to give a declaration to that effect.Identity
Proof - Photocopy of any of the following :-
21. • Live Streaming Quotes • Fast Order Entry • Tic by Tic
Live Charts • Technical Analysis • Live News and Alerts •
Extensive Reports for Real-time Accounting Introduction
About Demat MarketWhat is Demat accountThe depository
converts your physical holding of securities (backed by paper
certificatesas evidence of ownership) to electronic balances
held in a Demat account with aDepository Participant (DP). A
Demat account holder (also called a beneficiary owner)can
have securities balances either by converting his existing
physical certificates or bybuying in Demat form.Benefits of
 Demats :-• Electronic settlement of trades• No stamp duty on
transfer of securities• Elimination of risks associated with
physical certificates such as bad delivery, fake Securities•
Reduction in paperwork involved in transfer of securities•
Reduction in transaction cost• Nomination facility Change in
address recorded with DP gets registered electronically With
all companies in which investor holds securities eliminating
the need to Correspond with each of them separately•
Transmission of securities is done by DP eliminating
correspondence with
22. Companies• Investments in Equity, Debt instruments,
Mutual Funds, Kisan Vikas Patras, National Saving
Certificates and other Government Securities can be held in a
single account• Automatic credit of shares, arising out of
split / consolidation / merger, bonus, IPO allotments etc., into
demat account.What is a stock market?The stock market is a
central market place for raising funds by Governments
andvarious corporations to expand their businesses and
shareholding base. This is usuallydone by issuing shares in a
company which can then be bought and sold.What is a stock
exchange?The fundamental role of a stock exchange is to
provide a fair and internationallycompetitive market place for
the trading of financial securities for the benefit of
allparticipants (Listed Companies, Institutions and small
investors).All countries who have a local stock exchange aim
to provide a market place whereby: • Companies and
Governments can raise funds, and • Investors can invest
surplus funds in anticipation of receiving dividends and
capital gain from their share investments.What is a share
market?The share market comprises of two markets:The first
is a primary market whereby companies or Governments issue
new shares inorder to raise capital to expand their operations
(for whatever reason) and take on awider range of
 shareholders. This is done by issuing an investment statement
and/or aprospectus through an organizing or underwriting
broker.The second is the secondary market, which is the
central market place provided by thestock exchange, where
investors trade existing securities/shares.What is a share and
what is their use?
23. • A share is a basic unit of ownership in a company.
When you buy a share, you become a part-owner of a
company. Ownership of that company is divided into millions
of parts. These parts are called shares and each person who
buys a share is a shareholder. • The directors of the company
are employed to manage the business, but the company is
wholly owned by its shareholders. • When a company is
founded, it often progresses and develops and often to expand,
it requires financial help. The company can opt to borrow
funds from the bank and pay interest like a loan or they can
opt to raise funds by becoming a listed company on the share
market. There are many Rules and Regulations that a
company must abide by and comply with, if they wish to list
and issue securities on the New Zealand Stock Exchange.
These Rules are administered and enforced by an independent
Market Surveillance Panel Once a Company has become a
Listed Company on the NZX, it can raise funds by offering
shares in return for cash. A share of ownership is what the
investor gets in exchange for their financial support.
PRODUCT PORTFOLIO / PRODUCT BUCKETIndiabulls
Securities Ltd works in three market :- 1. Equity 2.
Derivatives 3. CommoditiesEquityEquity is a term whose
meaning depends very much on the context. In general, you
canthink of equity as ownership in any asset after all debts
associated with that asset arepaid off. For example, a car or
house with no outstanding debt is considered the
ownersequity since he or she can readily sell the items for
 cash. Stocks are equity becausethey represent ownership of a
company, whereas bonds are classified as debt becausethey
represent an obligation to pay and not ownership of assets.To
support its investment, a firm must find means to finance
them. Equity and debtrepresent two broad sources of finance
for a business firm.Derivatives
24. Derivatives as a term conjures up visions of complex
numeric calculations, speculativedealings and comes across as
an instrument which is the prerogative of a few ‘smartfinance
professionals’. In reality it is not so. In fact, a derivative
transaction helps coverrisk, which would arise on the trading
of securities on which the derivative is based anda small
investor, can benefit immensely.A derivative security can be
defined as a security whose value depends on the values
ofother underlying variables. Very often, the variables
underlying the derivative securitiesare the prices of traded
securities.Let us take an example of a simple derivative
contract:Ram buys a futures contract.He will make a profit of
Rs 1000 if the price of Infosys rises by Rs 1000.If the price is
unchanged Ram will receive nothing.If the stock price of
Infosys falls by Rs 800 he will lose Rs 800.As we can see, the
above contract depends upon the price of the Infosys scrip,
which isthe underlying security. Similarly, futures trading has
already started in Sensex futuresand Nifty futures. The
underlying security in this case is the BSE Sensex and NSE
Nifty.Derivatives and futures are basically of 3
types:Forwards and FuturesOptionsSwaps( i ) Forward
contractA forward contract is the simplest mode of a
derivative transaction. It is an agreement tobuy or sell an asset
(of a specified quantity) at a certain future time for a certain
price.No cash is exchanged when the contract is entered
into.What is an Index?
25. To understand the use and functioning of the index
derivatives markets, it is necessaryto understand the
underlying index. A stock index represents the change in
value of aset of stocks, which constitute the index. A market
index is very important for the marketplayers as it acts as a
barometer for market behavior and as an underlying in
derivativeinstruments such as index futures.The Sensex and
NiftyIn India the most popular indices have been the BSE
Sensex and S&P CNX Nifty. TheBSE Sensex has 30 stocks
comprising the index which are selected based on
marketcapitalization, industry representation, trading
frequency etc. It represents 30 large well-established and
financially sound companies. The Sensex represents a broad
spectrumof companies in a variety of industries. It represents
14 major industry groups. Thenthere is a BSE national index
and BSE 200. However, trading in index futures has
onlycommenced on the BSE Sensex.While the BSE Sensex
was the first stock market index in the country, Nifty
waslaunched by the National Stock Exchange in April 1996
taking the base of November 3,1995. The Nifty index consists
of shares of 50 companies with each having a
marketcapitalization of more than Rs 500 crore.Futures and
stock indicesFor understanding of stock index futures a
thorough knowledge of the composition ofindexes is essential.
Choosing the right index is important in choosing the right
contractfor speculation or hedging. Since for speculation, the
volatility of the index is importantwhereas for hedging the
choice of index depends upon the relationship between
thestocks being hedged and the characteristics of the
index.Choosing and understanding the right index is important
as the movement of stockindex futures is quite similar to that
of the underlying stock index. Volatility of the futuresindexes
is generally greater than spot stock indexes.Every time an
 investor takes a long or short position on a stock, he also has
an hiddenexposure to the Nifty or Sensex. As most often stock
values fall in tune with the entiremarket sentiment and rise
when the market as a whole is rising.
26. Retail investors will find the index derivatives useful due
to the high correlation of theindex with their portfolio/stock
and low cost associated with using index futures
forhedging.Understanding index futuresA futures contract is
an agreement between two parties to buy or sell an asset at
acertain time in the future at a certain price. Index futures are
all futures contracts wherethe underlying is the stock index
(Nifty or Sensex) and helps a trader to take a view onthe
market as a whole.Index futures permits speculation and if a
trader anticipates a major rally in the markethe can simply buy
a futures contract and hope for a price rise on the futures
contractwhen the rally occurs. We shall learn in subsequent
lessons how one can leverage onesposition by taking position
in the futures market.In India we have index futures contracts
based on S&P CNX Nifty and the BSE Sensexand near 3
months duration contracts are available at all times. Each
contract expireson the last Thursday of the expiry month and
simultaneously a new contract isintroduced for trading after
expiry of a contract.( ii ) OptionsStock markets by their very
nature are fickle. While fortunes can be made in a jiffy
moreoften than not the scenario is the reverse. Investing in
stocks has two sides to it –a)Unlimited profit potential from
any upside (remember Infosys, HFCL etc) or b) adownside
which could make you a pauper.Derivative products are
structured precisely for this reason -- to curtail the risk
exposureof an investor. Index futures and stock options are
instruments that enable you to hedgeyour portfolio or open
positions in the market. Option contracts allow you to run
yourprofits while restricting your downside risk.Apart from
 risk containment, options can be used for speculation and
investors cancreate a wide range of potential profit
scenarios.What are options?
27. Some people remain puzzled by options. The truth is that
most people have been usingoptions for some time, because
options are built into everything from mortgages
toinsurance.An option is a contract, which gives the buyer the
right, but not the obligation to buy orsell shares of the
underlying security at a specific price on or before a specific
date.‘Option’, as the word suggests, is a choice given to the
investor to either honour thecontract; or if he chooses not to
walk away from the contract.To begin, there are two kinds of
options:Call Options and Put Options.A Call Option is an
option to buy a stock at a specific price on or before a certain
date.In this way, Call options are like security deposits. If, for
example, you wanted to rent acertain property, and left a
security deposit for it, the money would be used to insurethat
you could, in fact, rent that property at the price agreed upon
when you returned. Ifyou never returned, you would give up
your security deposit, but you would have noother liability.
Call options usually increase in value as the value of the
underlyinginstrument rises.When you buy a Call option, the
price you pay for it, called the option premium, securesyour
right to buy that certain stock at a specified price called the
strike price. If youdecide not to use the option to buy the
stock, and you are not obligated to, your onlycost is the option
premium.A Put Options are options to sell a stock at a specific
price on or before a certain date.In this way, Put options are
like insurance policiesIf you buy a new car, and then buy auto
insurance on the car, you pay a premium andare, hence,
protected if the asset is damaged in an accident. If this
happens, you canuse your policy to regain theinsured value of
the car. In this way, the put option gains in value as the value
 of theunderlying instrument decreases. If all goes well and the
insurance is not needed, theinsurance company keeps your
premium in return for taking on the risk.With a Put Option,
you can "insure" a stock by fixing a selling price. If
somethinghappens which causes the stock price to fall, and
thus, "damages" your asset, you canexercise your option and
sell it at its "insured" price level. If the price of your stock
goesup, and there is no "damage," then you do not need to use
the insurance, and, once
28. again, your only cost is the premium. This is the primary
function of listed options, toallow investors ways to manage
risk.Technically, an option is a contract between two parties.
The buyer receives a privilegefor which he pays a premium.
The seller accepts an obligation for which he receives
afee.There are two types of options: • Call Options • Put
OptionsCall optionsCall options give the taker the right, but
not the obligation, to buy the underlying sharesat a
predetermined price, on or before a predetermined date.Put
OptionsA Put Option gives the holder of the right to sell a
specific number of shares of anagreed security at a fixed price
for a period of time.eg: Sam purchases 1 INFTEC (Infosys
Technologies) AUG 3500 Put --Premium 200This contract
allows Sam to sell 100 shares INFTEC at Rs 3500 per share at
any timebetween the current date and the end of August. To
have this privilege, Sam pays apremium of Rs 20,000 (Rs 200
a share for 100 shares).The buyer of a put has purchased a
right to sell. The owner of a put option has the rightto
sell.Commodities
29. A commodity is something that is relatively easily
traded, that can be physicallydelivered, and that can be stored
for a reasonable period of time. It is a characteristic
ofcommodities that prices are determined on the basis of an
 active market, rather than bythe supplier (or other seller) on a
"cost-plus" basis. Examples of commodities includenot only
minerals and agricultural products such as iron ore, crude oil,
ethanol, sugar,coffee, aluminium, rice, wheat, gold, diamonds,
or silver, but also so-called"commoditized" products such as
personal computers.Linguistically, the word commodity came
into use in English in the 15th century, beingderived from the
French word "commodité", meaning todays (2000)
"convenience" interm of quality of services. The Latin root
meaning is commodities, referring variously tothe appropriate
measure of something; a fitting state, time or condition; a
good quality;efficaciousness or propriety; and advantage, or
benefit. The German equivalent is dieWare, i.e. wares or
goods offered for sale. The French equivalent is "product de
base"like energy, goods, or industrial raw material
TARGETS/TASKSI am doing my Executive Training with
INDIABULLS SEDCURITIES LIMITED inUdaipur Branch.
INDIABULLS SEDCURITIES LIMITED provides an online
tradingaccount in which three type of facilities are provided to
customers.These are: • Demat account. • Trading account. •
Margin FundingMy task in the company is to meet with the
customers and convince them to open theiraccount with the
company. Daily my company guide tells us the areas where
we have totarget for achieving the target .For this period of
four months training our company has provided us not
specific targetfor each month.
30. Targets mentioned above are the minimum targets which
we are expected to achieve.Only after achieving these targets,
our path to get Pre Placement Offer and FinalPlacement
Offer.Through focused guidance of my company guide and by
my ability to work hard, I amconfident that I will be able to
achieve my targets on time and that would be help me outto
give edge of my carrier.Out of four months training period, I
 have completed my one month of training and thesecond
month is about to complete. In this month, I have learned
many things. Thefollowing table depicts the target I have done
to achieve in this period of one month andwhat I actually
achieved.
31. CHAPTER -3 Research MethodologyTitle of the Study
"A Study on significance and relevance of internal &
interactive
32. marketing for financial marketing with special reference
to INDIA BULLs"Duration of the ProjectThe project is
Submitted in partial fulfillment for the Award of degree of
Master ofBusiness Administration & To find strength To
know more about the Company / Organization The duration
of the project is ………………………Objective of studyThe
main objectives of the study are as follows :- & To know
significance and relevance of internalweakness of the
Company / Organization & To know what major factors
effects or influence internalinteractive marketing &
interactive marketing for financial marketing RESEARCH
METHODOLOGY“A Research is careful investigation or
inquiry, especially through search for new factsin any branch
of knowledge. It is a systemized effort to gain more
knowledge.”
33. Research methodology is a way to systematically solve
the research problem. It maybe understood as a science of
studying how research is done scientifically. We studythe
various steps that are generally adopted by a researcher in
studying his researchproblem along with the logic behind
them. It is necessary for the researcher to know notonly the
research methods or techniques but also the methodology.
Researcher alwaysneeds to understand the assumptions
underline various technique and they need toknow the criteria
 by which they can decide that certain technique and
procedures will beapplicable to certain problems and other
will not.The predefined objective can be achieved by
following ways: o Studying the buying behavior of customer.
o Comparing sales of different players.TYPE OF
RESEARCH:Personal interview approach was adopted for the
project. In this type of research, theresearcher has to contact
the person directly to know the available information
andanalyze the data was available in interviewer’s statements.
This was one of the mainsources for the project.The other
approach was PERSONNEL RESEARCH. It is based on the
personalknowledge. It is applicable to phenomenon that can
be expressed in terms of words.RESEARCH PROCESS:
34. Research Process consists of a series of action or steps
necessary to effectively carryout the research and the desired
sequencing of these steps. The various steps, whichprovided
guidelines to the research process pertaining to the project, are
as follows: 1) Formulating the research problem Formulation
of research problem involves understanding the problem
thoroughly and rephrasing the same into meaningful terms
from an analytical point of view. 2) Extensive literature
survey It is necessary for the researcher to conduct an
extensive survey connected with the problem. For the purpose
manual, company records, journals, published data can be
used. 3) Development of working hypotheses Working
hypotheses is a tentative assumption made in order to draw
out and rest its logical or empirical consequences. 4)
Preparing the research design The researcher will be required
to prepare a research i.e. he will have to state the conceptual
structure within which research would be conducted. The
function of research design is to provide the collection of
relevant evidence with minimum expenditure of efforts, time
and money. 5) Determining the sample design The researcher
 must decide a way of selecting a sample or what is popularly
known as sample design. The types of sample design are: o
Simple Sampling
35. o Random Sampling o Systematic Random Sampling o
Stratified Sampling o Quota Sampling o Cluster and Area
Sampling o Multistage Sampling o Sequential Sampling o
CensusFor this project, Random Sampling was used among
the above-mentioned types.Since the time period was limited
to 2 months, the sampling size was limited to 75. 6)
Collection of data While deciding the methods of data
collection to be used for study the researcher should keep in
mind two types of data viz. Primary Data The Primary Data
are those, which are collected a fresh and for the first time and
thus happen to be original in character. Secondary Data
Secondary data means data that are already available i.e. they
refer to the data which have already been collected and
segregated by someone else. The researcher has to determine
the various sources of obtaining secondary data. Secondary
data may be published or unpublished in nature.
36. Published data are available in: Publications of central,
state and local newspapers • Publication of foreign
government or of international bodies • Technical or trade
journals • Books, magazines and newspaper and Internet •
Public record and statistics, historical documents and sources
of public information. Data Collection Data used for the
project was the secondary and primary data. Methods of Data
Collection • Personal Interview • Questionnaire & •
Telephonic Interview. 7) Analysis of data Analyses of data
can of two types: • Quantitative analysis • Qualitative
analysisThus analysis of data require a number of closely
related operations such asestablishment of categories, the
application of these categories into raw data
 throughtabulation, chart and then draw inferences. Analysis
work is generally based on thecomputation of various
percentage, co-efficient etc. by applying various
statisticalformulae.
37. Preparation of ReportsAfter analysis, the next step is in
the preparation of the report. The report has beenprepared
according to the report writing principles.The Objective,
clarity in presentation of ideas and the uses of charts have
beenmaintained throughout the report.Once the data has been
collected, the researcher has to process, analyze and
interpretthe same. It was emphasized that the researcher
should exercise good care to ensurethat reliable data are not
properly processed and analyzed. Sufficient attention is
oftennot given to these aspects, with the result that the quality
of the report suffers.Editing – The first task in data is editing.
It is the process by which data are preparedfor subsequent
coding. As it is very subjective process, editing is the process
ofexamining errors and omission in the collected data and
making necessary in the samethis is desirable when there is
more inconsistency in the responses.Coding – Coding is the
procedure of classifying the answers to a question
inmeaningful categories the symbol used to indicate the
categories are called codes.Coding is necessary to carry out
the subsequent operation of tabulation and
analyzingdata.Coding involves two steps:Tabulation:
Tabulation comprises of sorting of data into different
categories andcounting the number of cases that belongs to
each categories.One is unvaried tabulation. This includes the
numbers of responses to one question orto count. It’s very
simplest way to tabulate where two or more variables are
involved intabulation. It is called vicariate or multivariate
tabulation. In marketing research project,generally both type
of tabulation is used.
38. INDIAN Capital Market-Indian Stock Markets are one of
the oldest in Asia. Its history dates back to nearly 200years
ago. The earliest records of security dealings in India are
meager and obscure.The East India Company was the
dominant institution in those days and business in itsloan
securities used to be transacted towards the close of the
eighteenth century.By 1830s business on corporate stocks and
shares in Bank and Cotton presses tookplace in Bombay.
Though the trading list was broader in 1839, there were only
half adozen brokers recognized by banks and merchants
during 1840 and 1850.The 1850s witnessed a rapid
development of commercial enterprise and brokeragebusiness
attracted many men into the field and by 1860 the number of
brokersincreased into 60.In 1860-61 the American Civil War
broke out and cotton supply from United States ofEurope was
stopped; thus, the Share Mania in India begun. The number of
brokersincreased 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
Rs2850 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 wouldconveniently assemble and
transact business. In 1887, they formally established
inBombay, the "Native Share and Stock Brokers Association"
(which is alternativelyknown as " The Stock Exchange "). In
1895, the Stock Exchange acquired a premise inthe same
street and it was inaugurated in 1899. Thus, the Stock
Exchange at Bombaywas consolidated.GROWTHThe
working of stock exchanges in India started in 1875. BSE is
the oldest stock marketin India. The history of Indian stock
trading starts with 318 persons taking membershipin Native
Share and Stock Brokers Association, which we now know by
 the nameBombay Stock Exchange or BSE in short. In 1965,
BSE got permanent recognition fromthe Government of India.
National Stock Exchange comes second to BSE in terms
ofpopularity. BSE and NSE represent themselves as
synonyms of Indian stock market.The history of Indian stock
market is almost the same as the history of BSE.
39. The 30 stock sensitive index or Sensex was first
compiled in 1986. The Sensex iscompiled based on the
performance of the stocks of 30 financially sound
benchmarkcompanies. In 1990 the BSE crossed the 1000
mark for the first time. It crossed 2000,3000 and 4000 figures
in 1992. The reason for such huge surge in the stock market
wasthe liberal financial policies announced by the then
financial minister Dr. Man MohanSingh. The up-beat mood of
the market was suddenly lost with Harshad Mehtascam. It
came to public knowledge that Mr. Mehta, also known as the
big-bull of Indianstock market diverted huge funds from
banks through fraudulent means. He played with270 million
shares of about 90 companies. Millions of small-scale
investors becamevictims to the fraud as the Sensex fell flat
shedding 570 points.To prevent such frauds, the Government
formed The Securities and Exchange Board ofIndia, through
an Act in 1992. SEBI is the statutory body that controls and
regulates thefunctioning of stock exchanges, brokers, sub-
brokers, portfolio managers investmentadvisors etc. SEBI
oblige several rigid measures to protect the interest of
investors.Now with the inception of online trading and daily
settlements the chances for a fraud isnil, says top officials of
SEBI. • Sensex crossed the 5000 mark in 1999 and the 6000
mark in 2000. • The 7000 mark was crossed in June and the
8000 mark on September 8 in 2005. • Sensex crossed the
10000 mark in 2006. • Many foreign institutional investors
(FII) are investing in Indian stock markets on a very large
 scale. • The liberal economic policies pursued by successive
Governments attracted foreign institutional.
40. Future of Indian stock marketsThe stock market is
booming in spite of the low agriculture output. The Monsoon
is goodin an overall sense but still the question remains about
who will take the credit for it. Theanswer is the karma of the
people. I would like to appreciate the Indian politicians andthe
industrialists who are pawns of destiny for doing many things
positive andproductive. India as a country is running a very
good period and the very position of theplanets in transit are
giving wonderful result. • Only less than 1 per cent of the
population own stocks and less than 1,000 individuals control
the market, the majority being the FIIS, the promoters of the
company. The credit should go to the media for making stock
markets the headlines. First of all, Indian bourses in the future
will be one of the best investments in the world.There will be
a time when it can even reach 3000 points in the Nifty. India
will begin oneof the best data of sun which will work in its
favor. So before 2009 Indian boursesshould go from high to
high from time to time. • Now this bull run will continue. •
There can be some correction in the BSE Sensex at the 7500
points level. • The market will hover between the 6000-7000
till mid-August. • There will be huge fluctuations. • Better for
many investors and new entrants for the market to cool down
a bit and let it come well below 7000. • In any case, if you are
long-term players, then step in and buy now and forget for
another 10 years. You will make a killing in the Indian
markets. • Most of the tech companies and the main index will
do well but slightly on the lower side of expectations.
41. National Stock Exchange (NSE)With the liberalization of
the Indian economy, it was found inevitable to lift the
Indianstock market trading system on par with the
 international standards. On the basis of therecommendations
of high powered Pherwani Committee, the National Stock
Exchangewas incorporated in 1992 by Industrial Development
Bank of India, Industrial Credit andInvestment Corporation of
India, Industrial Finance Corporation of India, all
InsuranceCorporations, 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 - institutionsand corporate bodies
enter into high value transactions in financial instruments such
asgovernment 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 ofthemselves and their clients.
Participants include trading members and large playerslike
banks who take direct settlement responsibility.Trading at
NSE takes place through a fully automated screen-based
trading mechanismwhich adopts the principle of an order-
driven market. Trading members can stay at theiroffices and
execute the trading, since they are linked through a
communication network.The prices at which the buyer and
seller are willing to transact will appear on thescreen. When
the prices match the transaction will be completed and a
confirmation slipwill be printed at the office of the trading
member.
42. NSE has several advantages over the traditional trading
exchanges. They are asfollows: • 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
professionalized service, small investors and foreigninvestors
will not be interested in capital market operations. And capital
market beingone of the major sources of long-term finance for
industrial projects, India cannot affordto damage the capital
market path. In this regard NSE gains vital importance in
theIndian capital market system. Bombay Stock Exchange
(BSE)
43. Bombay Stock Exchange Limited is the oldest stock
exchange in Asia with a richheritage. Popularly known as
"BSE", it was established as "The Native Share &
StockBrokers Association" in 1875. It is the first stock
exchange in the country to obtainpermanent recognition in
1956 from the Government of India under the
SecuritiesContracts (Regulation) Act, 1956.The Exchanges
pivotal and pre-eminent role in thedevelopment of the Indian
capital market is widely recognized and its index, SENSEX,is
tracked worldwide. Earlier an Association of Persons (AOP),
the Exchange is now ademutualised and corporatized entity
incorporated under the provisions of theCompanies Act, 1956,
pursuant to the BSE(Corporatization and
Demutualization)Scheme, 2005 notified by the Securities and
Exchange Board of India (SEBI).With demutualization, the
trading rights and ownership rights have been de-
linkedeffectively addressing concerns regarding perceived and
real conflicts of interest. TheExchange is professionally
managed under the overall direction of the Board ofDirectors.
The Board comprises eminentprofessionals, representatives of
Trading Members and the Managing Director of theExchange.
 The Board is inclusive and is designed to benefit from the
participation ofmarket intermediaries.In terms of organization
structure, the Board formulates larger policy issues
andexercises over-all control. The committees constituted by
the Board are broad-based.The day-to-day operations of the
Exchange are managed by the Managing Director anda
management team of professionals.The Exchange has a
nation-wide reach with a presence in 417 cities and towns of
India.The systems and processes of the Exchange are
designed to safeguard market integrityand enhance
transparency in operations. During the year 2004-2005, the
tradingvolumes on the Exchange showed robust growth.The
Exchange provides an efficient and transparent market for
trading in equity, debtinstruments and derivatives. The BSEs
On Line Trading System (BOLT) is a proprietarysystem of
the Exchange and is BS 7799-2-2002 certified. The
surveillance and clearing& settlement functions of the
Exchange are ISO 9001:2000 certified.Demat account, short
term for dematerialized account is a type of banking
accountwhich dematerialize the paper-based physical
shares.The idea of dematerialized account is to avoid the need
to hold physical shares--theshares are virtually being bought
and sold through the banking account.
44. Report card of Indiabulls Financial Ltd.
45. PE ratio25.9628/03/07EPS TTM (Rs)15.81Mar, 06Sales
(Rs crore)610.29Mar, 06Face Value (Rs)2Net profit margin
(%)41.32Mar, 06Last dividend (%)10031/01/07
46. Relevance of Internal & Interactive MarketInternal
marketing (IM) is an ongoing process that occurs strictly
within a companyor organization whereby the functional
process aligns, motivates and empowersemployees at all
management levels to consistently deliver a satisfying
 customerexperience.Key concepts of internal marketing
include: o IM functioning as a continual internal up skilling
process. o Alignment of the organization’s purpose with
employee behavior. o Employees internalizing the core values
of the organization. o Motivation, reframing and
empowerment of employee attitude. o Inside-out management
approach. o Retaining a positive customer experience
throughout the business objectivesInternal marketing is an
important implementation tool. It aids communication
andhelps us to overcome any resistance to change. It informs,
ands involves all staff in newinitiatives and strategies. It is
simple to construct, especially if you are familiar
withtraditional principles of marketing.If not, it would be
valuable to spend some time considering marketing plans.
Internalmarketing obeys the same rules as, and has a similar
structure to, external marketing.The main differences are that
your customers are staff and colleagues from your
ownorganization.In previous lessons, you will have seen that
the process of marketing follows a familiarpattern for which
we use the acronym AOSTC - Analysis, Objectives,
Strategies,Tactics, and Control. In the diagram above, Jobber
(1995) uses a similar approach as astructure for the
implementation of internal marketing. The process is
straightforward. • Set objectives for internal marketing e.g. to
persuade 100 staff to join a new Performance Related Pay
(PRP) scheme. • Your strategy is internal marketing. • Tactics
would include an internal application of the marketing mix,
and could include staff forums, presentations, an intranet,
away days, videos, personal visits by company directors or
newsletters.
47. • Evaluation would consider the take up of PRP against
your objectives, attendees at away days, visits to an intranet
page, and so on..Lets have a look a closer look at the
 practicalities of internal marketing Internal marketingIn
previous lessons, you will have seen that the process of
marketing follows a familiarpattern for which we use the
acronym AOSTC - Analysis, Objectives, Strategies,Tactics,
and Control. In the diagram above, Jobber (1995) uses a
similar approach as astructure for the implementation of
internal markefrom your own organization. • Set objectives
for internal marketing e.g. to persuade 100 staff to join a new
Performance Related Pay (PRP) scheme. • Your strategy is
internal marketing. • Tactics would include an internal
application of the marketing mix, and could include staff
forums, presentations, an intranet, away days, videos, personal
visits by company directors or newsletters.Implications of
marketing • Who are our existing / potential customers? •
What are their current / future needs? • How can we satisfy
these needs? • Can we offer a product/ service that the
customer would value? • Can we communicate with our
customers? • Can we deliver a competitive product of service?
• Why should customers buy from us?The marketing concept
• choosing and targeting appropriate customers • positioning
your offering • interacting with those customers • controlling
the marketing effort • continuity of performance
48. Successful marketing requires: • Profitable • Offensive
(rather than defensive) • Integrated • Strategic (is future
orientated) • Effective (gets results) Hugh Davidson
1972Marketing management process • Analysis/Audit - where
are we now? • Objectives - where do we want to be? •
Strategies - which way is best? • Tactics - how do we get
there? • (Implementation - Getting there!) • Control - Ensuring
arrivalWhy is marketing planning necessary? • Systematic
futuristic thinking by management • better co-ordination of a
company’s efforts • development of performance standards
for control • sharpening of objectives and policies • better
 prepare for sudden developmentsWhy is marketing planning
necessary? • Systematic futuristic thinking by management •
better co-ordination of company efforts • development of
better performance standards for control • sharpening of
objectives and policies • better prepare for sudden new
developments • managers have a vivid sense of
participationCriticisms of marketing planning • Formal plans
can be quickly overtaken by events • Elements of the plan my
be kept secret for no reason • gulf between senior managers
and implementing managers
49. • the plan needs a sub-scheme of actionsObjectives of the
marketing plan • Acts as a roadmap • assist in management
control and monitoring the implementation of strategy •
informs new participants in the plan of their role and function
• to obtain resources for implementation • to stimulate
thinking and make better use of resources • Assignment of
responsibilities, tasks and timing • Awareness of problems,
opportunities and threats • Essential marketing information
may have been missing • if implementation is not carefully
controlled by managers, the plan is worthless!The contents
and structure of the marketing plan • The executive summary
• table of contents • situational analysis and target market •
marketing objectives • marketing strategies • marketing tactics
• schedules and budgets • financial data and controlScope of
studyThe scope of the study are as follows :-Limitation of
study
50. However, I was able to achieve my targets assigned to
me in this period of one month,but there are some roadblocks
that hinders me in achieving my targets or to excel meabove
my targets. These are as follows: - 1. Competitors :- In
security market there are lot many player which are being
emerged as a competitors and they are giving the tough
 competition to the Indiabulls Securities Ltd. The competitors’
products are very attractive to create new customer and grab
the existing customer. 2. Lack of Knowledge:- Lack of
knowledge is hamper on our target because by this people are
not aware about the share market and they are having same
mind set and they do not want to change their mind. 3.
Conventional Ideas:- People are having conventional idea and
they do not want to be changed their account because they
believe in maintaining the relationship whether they are on
risk cause of they are having their account in local brokers so
it is also hassle to complete the target. 4. Misconception:- In
the mind of the people they are having misconception because
they think that the share market is like gamble so the word to
mouth publicity is going in negative way. 5. Time Constraint:-
Time limit is one of the most hassle in the way of achieving
the target because time can not be in hand and some times
customers give the time when we are on other work so it is the
lost of customer. 6. Unknown Location:- We are not familiar
with the Udaipur city so sometimes we cannot reach out the
customer and that is why customer are switching their idea to
open demat account from Indiabulls to another. 7.
Conveyance Problem:- We are out sider in Udaipur so we are
not having proper conveyance so we cannot reach out to last
or inside of the city.
51. 8. Irregularity of Market:- It is also one of the most
hassle by that investors fear to invest although they are having
good knowledge so we cannot help them out to break their
thinking. DATA COLLECTION & ANALYSIS 1.
INVESTMENT CRITERIA OF CUSTOMERS FIELDS
EQUITIES DERIVATIVES OTHERS NO. 40 52
8RESPONDENTS
52. INTERPRETATION: From the above graph we can
analyze the priority level of the customers ininvesting
different markets. 52% customers gave priority to do
investment in derivativesmarker, 40% liked to invest in
equities, but a very low % showed their interest to investin
others like: funding etc. 2. TYPE OF TRADING Response
Intraday Cash Margin No. of 33 49 18 respondents
53. INTERPRETATION:The above graph shows the
comparison between different types of trading. The mass %of
customers shows their interest to trade in cash as it is 49%.
The 33% of customersliked to trade in intra day but very less
% was seen to do trading on margin. 3. AGE FACTOER
INFLUENCING INVESTMENT IN EQUITIES AND
DERIVATIVESAGE GROUP 18-25 25-40 40-55 ABOVE 55
NO.OF 10 55 25 10RESPODENTS
54. INTERPRETATION:INTERPRETATION:The above
analysis shows that 55% of people invest between the age
group of 25-40,which indicates that the age is big factor
which influence the customer’s tradingbehavior. 4. PURPOSE
OF TRADINGResponse Investmen Earning Financial
Professio Others t support n No. of 38 17 27 9 9Responden ts
55. Rests 9% do trade for professionalism. 5. FREQUENCY
OF TRADING Response Daily Alternative day Twice a week
Weekly Monthly No. of 20 25 13 15 27Respondents 17%
want financial support.  27% people like to trade for the
purpose of investment  38% of people do trade for the
purpose of earning. INTERPRETATION:From the above
graph it is seen that ‘purpose’ of trading is an another major
factorwhich influence the customer’s trading behavior.We can
see that
56. But major %( i.e. 27) shows their interest to trade
monthly. 6. SATISFACTION LEVEL OF CUSTOMERS
Response Yes No No. of Respondents 67 33 15% weekly, 
13% twice a week,  20% daily,  25% people like to trade
alternative day, INTERPRETATION:
57. INTERPRETATION:This diagram shows the
satisfaction level of customers about the services provided
bythe Indiabulls,67% people were satisfied with the services
provided by the Indiabulls & 52% of customers prefer to
invest in derivatives, 40% in equitiesa very least %of
customers i.e. 33% were unsatisfied. FACT AND
FINDINGSFindings: & 49% of customers like to trade in
cash, 33% in intra dayrest in others. & 38% of people do
trade for the purpose of earning, 27% people like to trade for
the purpose of investment, 17% want financial support and
9% do trade for professionalism. The above analysis shows
that 55% of people invest between the age group of 25-40.
rest in margin
58. There is also no proper database for the employee about
the customers so it derives conflict between the employees
about their prospective customers.SWOT
AnalysisSTRENGTH After giving the good departments in
one office there is always a conflict between both the
departments. (Because the work of both departments is same
in Online and Offline.)  Services (Tipping/ Funding/ A/c
information) for Customer is more important as compared to
make them Customer.  In some areas like: small customers,
Relatives of the brokers etc. the demand of the service
provided by Indiabulls is very low.  There are problems in
availability of services regarding to the tips, which is given to
the customers.  In Udaipur most prospects trust brand, which
are i.e. local broker for trading of Equities and Derivatives. 
 Almost 67% of customers are satisfied with the services
provided to them by India bulls securities
limited.Observations:  & OPPORTUNITY • Inflation •
Employment • Disposable income • Business cycles • Energy
availability and cost • Others?
59. WEAKNESS & THREATS • Demographics •
Distribution of income • Social mobility • Lifestyle changes •
Consumerism • Levels of education • Others?Conclusion
After studying all the aspects of the "A Study on significance
and relevance ofinternal & interactive marketing for financial
marketing with special reference toINDIA BULLs" including
the theoretical aspects we can conclude that internal
&Interactive is applicable to the Indian stock market but to an
extend. It can benefit tostock market.
60. As far as financial marketing is very necessary for Indian
stock market is concerned,which is constantly monitored and
upgraded to pre-empt market failures. It can betermed as good
but it is not enough to reduce the risk of broking house.
Broking housesitself have to take actions for reducing the risk
bears by itself and its customers.As far as Indiabulls securities
ltd. is concerned, its internal & interactive marketing
forfinancial marketing system is good. The company has
instituted a specialized internal &interactive marketing for
financial marketing management team and its systems
aremanaged centrally to ensure that it can, at all times,
measure and manage the financialmarketing on online and
offline transactions on a real-time basis. Marketing dept. of
theco. is doing well to increase the trading and settlement
process.As we all are very well aware that stock market is so
much volatile and unpredictablethat nobody can trace the
behavior of the market. In this situation risk
managementsystem provides effective tools to reduce the risk
 of investors and broking houses.RECOMMENDATION &
Exiting customers should be provided better
responseSUGGESTION & Company should focus on the
age group of 25-40. Interest rate on funds provided to
investors should be reduced.  Awareness should be created
among the prospective clients.  Advertisements should be
given in the magazines related to Business, Management
service, Electronics media, and business world or by installing
stalls in different-different areas etc. services so that by
there good Word Of Mouth Company will get more
customers.
61. D-MAT ACCOUNT--- QUESTIONNAIRE
62. Question1. Pleaseshare somebasicinformationon dmat
a/cinvesting.Question2. Howshould Idecide in d-mat
a/cinvestmentis right forme?Question3. Howshould Istudy d-
mata/c before Imake myselection?
63. Question4. In whichmannershould Imanage myd-mat
a/c?Question5. Whenshould I buyto minimizemy costsand sell
tomaximizethe profits?Question6. What arethe
risksinvolvedsharemarketinvesting?
64. Question7. How do Igo aboutinvestingsharemarket?
Question8. What arethe costs ofopening d-mat a/c?
65. Question9. How isincome fromsharetradingtaxed?
Question10. Whichcategory ofshare isbest forinvestment?
Question11. What isthegrievanceredressalfacilityavailable
forsharetradinginvests.
66. QUESTIONAIRE Demographic DataContact Person:
________________________________________Address:___
__________________________________________Designati
on:
 ________________________________City:______________
______Phone No.:_________________
Fax:_______________ E-
mail:__________________Website:
______________________1. Existing broker: i ISL g ICICI
Other (Local Broker)2. In which you prefer to do investment?
n Equities i Derivatives a Other3. What type of trading you
prefer to do? a Intraday d Delivery Based e F&O
67. Yes e No Can’t Say4. What age group is best for the
investment according to you? a 18-25 a 25-40 a 40-55 a
Above 555. What is your purpose of trading? Investment
Financial Support Earning n Profession s Other6. What is the
frequency of your trading? Daily Alternative Day Twice a
Week Weekly y Monthly7. Are you satisfied with the service
provided by the Indiabulls? r Yes r No8. Are you planning to
attach with Indiabulls? e
68. Options, Futures and othe Investment management:
V.K. Bhalla BibliographyBooks referred
www.equityresearch.com www.bseindia.com 
www.nseindia.com  www.indiabulls.com  Research
Methodology: C.R. Kothari.Websites Referred  Financial
Management : Prasana Chandra  Financial management:
M.Y. Khan, Jain r Derivatives : John C. Hull