PROJECT REPORT

AT

SHAREKHAN LIMITED, DELHI

A Project Report submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)

TO

MADURAI KAMRAJ UNIVERSITY, MADURAI

BY

MUKESH KUMAR AGRAWAL

Reg No. A8754390

Under the guidance of

Ms. DEEPTI GAUR

B-64, Okhla Industrial Area, Phase I, New Delhi

DEC- 2009

Certificate
This is to certify that the Project Report at

SHAREKHAN LIMITED, NEW DELHI

Submitted in the partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)

TO

MADURAI KAMRAJ UNIVERSITY, MADURAI

Is a record of bonafide training carried out by RAKESH Under my supervision and guidance and that not part of this report has been submitted for the award of any other degree/diploma/ Fellowship or similar title or prizes. FACULTY GUIDE

Signature: Name: Ms. Deepti Gaur

Qualification: M.COM Center

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Signature & Seal of the Learning

STUDENTS DECLARATION
I hereby declare that the Project Report conducted at

SHAREKHAN LIMITED, NEW DELHI

Under the guidance of

Ms. DEEPTI GAUR

Submitted in partial fulfillment of the requirement for the Degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)

TO

MADURAI KAMRAJ UNIVERSITY, MADURAI

Is my original work and the same has not been submitted for the awards of any other Degree/diploma/fellowship or other similar titles or prizes

Place: Date:
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RAKESH Reg No. A8754390

CONTENTS CHAPTER 1.1 1.2 1 INTRODUCTION

General introduction Industry profile a. Origin and development of the industry b. Growth and present status of the industry c. Future of the industry 2 PROFILE OF THE ORGANISATION

CHAPTER 2.1 2.2 2.3 2.4 2.5 2.6 2.7

Origin of the organization Growth and development of the organization Present status of the organization Functional department of the organization Organization structure and organization chart Product and service profile of the organization Competitors Market profile of the organization 3 DISCUSSION ON TRAINING

CHAPTER

3.1 Students work profile (Role and responsibility) 3.2 Description of live experience CHAPTOR 4.1 4.2 4.3 4.4 4.5 4 STUDY OF SELECTED RESEARCH PROBLEM

Statement of research problem Statement of research objective Research design and methodology Analysis of data Summary of finding 5 SUMMARY AND CONCLUSIONS

CHAPTOR 5.1 5.2

summery of learning experience conclusions and recommendation

APPENDIX Annexure like copy of questionnaire, interview schedule, leaflets, brochures, photograph to be enclosed
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Bibliography LIST OF GRAPHS & CHARTS

Sl. No. Sl.1 No. 1 2 2 3 3 4 4 5 5 6 6

Graph No.

Graph Title

Page No. 56 Page No. 56 57 57 5858 59 59 60 6061 61

01 Graph No. Market Share of Sharekhan Graph Title 01 02 02 03 03 04 04 05 05 06 06 Market Share of Sharekhan Brokerage Comparison Brokerage Comparison Growth rate of company Growth rate of company Growth rate comparison Growth rate comparison No. of customers No. of customers Client Acquisition Client Acquisition LIST OF TABLES

ACKNOWLEDGEMENT
I sincerely express my gratitude and sense of veneration to Mr. Amit Sharma Team Manager (Sales). Sharekhan Limited for his active assistance and support throughout the project work. I would also like to give my heartiest thanks for his inspiration, motivation, and guidance.

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I am also thankful to the staff member of the Sharekhan department for providing me necessary information and co-operation during the project. I would also like to pay my special thanks to Mr. Sanjeev (Faculty Guide) and Mr. Amit Sharma (Project Consultant). Last but not least. I would like to owe special thanks to my parents, elder brother and friends, whose affection and the best wishes make my way easy for completion of this project.

RAKESH

INTRODUCTION
INTRODUCTION TO THE TOPIC

The topic is to study the consumer preference towards investment in the stock market. DEMAT A/C is a pool of various scripts and securities, where as online

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trading A/C is a tool of purchasing and selling of share or scripts online. These scripts are then transferred to Depository account after three days. This topic includes the practical experience of selling company product that is followed by studying the consumer preference or interest towards the share market. This is a market, which is uncertain sometime it gives the opportunity of the huge profit and vice versa. It depends up on the investment customer made. This is better option to have better return on the investment then investing in banks, mutual fund or bonds etc. but the risk is high in this case. This product offers the customer two type of investment option INTRADAY and DELEVERY both of them has there own benefits and limitation but a better way to have more return on investment. Intraday means investing in share market for a day i.e. purchasing and selling of the share in one day. Delivery is purchasing share and the selling it next day. The charges that company charges in terms of brokerage are different in the both of the cases.

OBJECTIVE OF STUDIES
Main Objective The main objective of selling DEMAT account cum online trading account.

Specific Objective Creating Customers

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Marketing of the product Creating the relationship with the customer to have there sources Motivating customers for trading

Job Responsibilities I have been handling the following responsibility in the Sharekhan Limited My job profile is to call on the given data i.e. leads My job profile is to coordinate the team and also help them to sale the product and also help them in the field.

My job profile is to understand the customer need and advising them to make a portfolio as per there investment.

My Job profile is to convince customer for investment in the commodities and Mutual Fund.

COMPANY PROFILE

ABOUT THE COMPANY

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SHAREKHAN RETAIL BROKING Among the top three (3) branded retail services providers (Rs 856 crs average daily volume. NO. 2 player in online business Large network of branded broking outlets in the country servicing around 5, 45, 000 Clients.

MANAGEMENT TEAM

Tarun P. Shah

Mr. Jaideep Arora DIRECTOR Sharekhan Limited

Shankar Vailaya

The company has an eighty years experience in broking business it was earlier known as the SSKI group. The owner of the company is Mr. Dinesh Murikya

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Share khan is one of the leading retail brokerage firms in the country. It is the retail brokering arm of the Mumbai based SSKI group, which is over eight decade of experience in the stock broking business. Share khan offer its customer a wide range of equity related service including trade execution on NSE, BSE, Derivatives, Depository services, online trading, investment advice etc.

The firm online trading and investment site www.sharekhan.com was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country known for its jargon free, Investor friendly language and high quality research.

The site has a registered base of over 6 Lacs of customers. the number of the trading member currently stands at over 6 Lacs While online trading currently account for just 1 per cent of the daily trading in stock in India, share khan alone accounts for 22 per cent of the volumes traded online.

The content rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best of the breed technologies and the superior market information .the objective has been to let customer make informed decision and to and simplify the process of investing into the stock.
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On April 17, 2002 Sharekhan launched the Speed trade, a net based executable application that emulates the brokers terminals along with host of other information relevant to the day traders. This was the first time that a net based trading station of this caliber was offered to the traders. In the last six month speed trade has become a de facto standard for the day trading community on the net.

Sharekhan ground network includes over 250 countries in 123 cities in India, of which 20 are the fully owned branches.

Sharekhan has always believed in investing in the technology to build its business.

The company has used some of the best known means in the IT sector, like Sun Microsystems, Oracle, Microsoft, Cambridge technology, Nexgenix, VeriSign Financial Technologies India Ltd, Spider Software Pvt Ltd. built its trading engine and its contents. The Morokhia family holds the majority of the stock in the company, HSBC, Intel and Carlyle are the other investor.

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With a legacy of more than 80 years in the stock market, the SSKI groups ventured into institutional broking and the corporate finance 18 years ago. Presently SSKI is one of the leading players in the institutional brokering and the financial activity. SSKI holds a sizeable portion of the market in each of the segment.

SSKI institutional brokering arm account for the 7% of the market for foreign institutional portfolio investment and 5% of all domestic institutional portfolio investment in the country. It has the 60 institutional clients spread over all over India, Far East, UK and US.

Foreign institutional investor generates approx 65% of the organizational revenue with a daily turnover of over $2 million.

The corporate Finance has a list of very prestigious client and has many firsts of its credit in the term of size of the deal sector tapped etc The group has placed over US$ 2 billion in private equity deals. Some of the client include BPL cellular holding, Gujarat Pipavav, Essar, Hutchison, Planetasia and Soppers stop.

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Sharekhan business
1. Brokering business. 2. White feathering house production.

Vision
To be the best retail broking brand in the retail business of the stock market.

Mission
To educate and empower the individual investor to make better investment decisions through quality advices and superior services.

Stock exchange Mumbai

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Share khan is the retail broking arm of SSKI, an organization with more then eight decade of trust and credibility in the stock market.

Amongst pioneers of investment research in the Indian market. In 1984 venture into institutional broking and the corporate finance. Leading domestic player in the Indian institutional business. Over US$5 billion of private equity deal.

SSKI group companies SSKI investor services ltd (Sharekhan) S.S. Kantilal Isharlal securities SSKI corporate finance. Idream productions

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SSKI - Corporate Structure

80 years of taming Bulls & Bears

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REASON TO CHOOSE SHAREKHAN LIMITED Experience

SSKI has more than eight decade of trust and credibility in the Indian stock market. In Asia money market poll held recently, SSKI won the India best broking house for 2004 award. Ever since it launch Sharekhan as its retail broking division in February in 2000.it has been providing institutional level research and broking service to individual level investor.

Technology
With our online trading account you can by and sell share in the intent from any PC with an internet connection. You will get assess to our powerful online trading tool that will help you take complete control over your investment in share.

Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOL AND EXECUTION service for investors. These service are accessible throw our center across the country. (Over 588 location in148 cities) over the internet (throw the website www.sharekhan.com) as well as over the voice tool.

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Knowledge
In a business where the right information at the right time translates into the direct profit, you get access to a wide range of information on our content rich portal, Sharekhan. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions.

Convenience

You can call our dial and trade number to get investment advice and execute your transaction. We have a dedicated call center to provide this service via a toll free number 1800-22-7500 form anywhere in India.

Customer Service

Our customer service team assists you for any help that you need relating to the transaction, billing d-mat and other queries. Our customer service can be contracted via a toll-free number email or live chat on www.sharekhan.com.

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Investment Advice
Sharekhan has dedicated research team of more than 30 people for fundamental and the technical research. Our analysis constantly tracks the pulse of the market and provides the timely investment advice to you in the form of daily research email. Online chat, printed report and sms on your mobile phone.

Benefits

Free depository a/c Secure order by voice tool dial and trade Automated portfolio to keep track of the value of your actual purchase Personalized price and account alerts delivered instantly to your cell phone number and e-mail address

Special personal inbox for order and the trade conformation On-line customer service via web chat Any time ordering

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LITERATURE REVIEW GENERAL INTRODUCTION DP (DEPOSITORY PARTICIPENTS) As an investor you can open a securities accounts with a DP.DP are attached to the depositories very much the same way as commercial banks are attached the RBI. All interaction include account opening, dematerialization, pledge etc are done through DP Reason to choose DP You can select your DP to open a demat account just you like to select a bank for opening a saving account .some of the important factor to selecting DP can be

Convenience: proximity to the office /residence, business hours. Comforts: reputation of DP, past association, range of service etc. find out if the DP is in a position to give the specific service you may need.

Cost: the service charge levied by the DP and the service standard.

Dematerialization
The dematerialization system is an alternative to the physical existence of the securities. In the system securities are converted into the electronic form and
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deposited in a depository account in the investor name. In order to dematerialize certificates an investor will have to open an account with a DP and then request for the dematerialization of the certificate by filling up a dematerialization request form (DRF) which is available with the DP and submitted the same along with the physical certificate the investor has to insure that before the certificate are handed over the DP for demat they are defaced by making surrender for the dematerialization on the face of securities.

Procedure for selling dematerialized securities

The procedure for selling dematerialize securities in stock exchange is similar to the procedure for selling physical securities instead of delivering physical securities to the broker, you instruct your DP to debit your account with the number of securities sold by you and credit your broking clearing account. This delivery instruction has to be given to your DP using delivery instruction booklet received from the DP at the time of opening an procedure for selling securities are given below: Investor selling securities in any of the stock exchange linked to NSDL through a broker. Investor gives instruction to the DP to debit his account and credit the brokers account. account The

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Before the pay in day, investor brokers give instruction to his DP for delivery to clearing corporation.

The broker received payment from the stock exchange (clearing corporation)

The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode.

NSDL
Although India has a vibrant capital market which is more then a century old .the paper based settlement of trade cause the substantial problem like bad delivery and delayed transfer of title till recently. The enactment of depository act in august 1996paved the way for establishment of the NSDL the first depository in India .this depository promoted by institution of nation structure responsible for economic development of the country has since establishment of the national infrastructure of international standard that handle a most of the trading and settlement in dematerialization from in Indian capital market. Using the innovative and the flexible technology, NSDL works to support the investor and brokers in the capital market of the country. NSDL aims at insuring the safety and the soundness of Indian market place by developing settlement solution that increase efficiency, minimize the risk and reduce cost. At NSDL we play a quiet but central role in developing need of the financial service industry.
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In the depository system securities are held in the depository account which is more or less similar to the holding funds in the bank account. Transfer of ownership of securities is done through simple account transfer .this method done away with all the risk and hassles normally associated with paperwork consequently, the cost of transacting in a depository environment is considerably lower as compared to the transacting in certificate.

TYPES OF THE PRODUCT

CLASSIC ACCOUNT
This account allow the client to trade through our website www.sharekhan.com and is suitable for the retail investor who is risk averse and hence and prefers to invest in stocks and who do not trade very frequently. Features classic screen serves hot.

Online trading account for investing In Equities and Derivatives www.sharekhan.com

Integration of the On-line trading, Saving bank and Demat Account Instant cash transfer facility against purchase and the sale of share

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Competitive transaction charge Instant order and the trade conformation by E-mail Streaming quotes (cash and derivatives) Personalized market watch Single screen interface for cash and derivatives and more Provision to enter price trigger and view the same online in the market watch

Live terminal(NSE online and BSE offline)

SPEEDTRADE

SPEED TRADE is an internet based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transect frequently during day session to capitalize on intraday price movement.

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 Features

Instant order execution and confirmation Single screen trading terminal (NSE) Real time streaming quotes, tic-by-tic charts Market summery (cost traded scrip, highest value etc) Hot keys similar to the brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines

Customer can view 425 scripts at a time

Customer can view graphical Presentation

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PROCESS OF ACCOUNT OPPENING

LEAD MANAGEMENT SYSTEM (LSM) / REFERENCES

CONTACT

TELEPHONE AND PRESONAL VISIT

APPOINTMENT

DEMONSTRATION

AGREE

DISAGREE (CLOSE)

DOCUMANTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDING THE ACCOUNT OPENING KIT TO THE CUSTOMER FOR TRADING

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CHARGE STRUCTURE
STRUCTURE FOR PREPAID - ACCOUNT INDIVIDUAL

Account opening

Advance brokerage for One year

FREE One Time

2000/-(classic)

Intra day-0.035%* Delivery-o.40%*

FREE One Time

6000/-(speed trade)

Intra day-0.025%* Delivery-0.25%*

FREE One Time

18000/-(speed trade)

Intra day-0.02%* Delivery-0.20%*

FREE One Time

30000/-(speed trade)

Intra day-0.015%* Delivery-0.15%*

FREE One Time

60000/-(speed trade)

Intra day-0.010%* Delivery-0.10%*

*conditions apply * ** *** Refundable incase the brokerage is more than RS 500/=p.m. Conditions Apply Taxes as per govt.

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STRUCTURE FOR POST PAID - ACCOUNT INDIVIDUAL

CHARGE

CLASSIC ACCOUNT Rs. 750/- with 5000 Margin Money

SPEED TRADE ACCOUNT Rs. 375/- with 5000 Margin Money

Account opening

Monthly commitment

Rs- NIL

Rs 500

Brokerage

Intra day - 0.10% Delivery - 0.50%

Intra day - 0.10%* Delivery - 0.50%*

* **

Refundable in case the brokerage is more than Rs 500/-pm Taxes as per govt.

We offer an on line trading account along with Demat a/c for the benefit to the employee of your company.

Depository charges
Account opening charges Rs NIL RS NIL first year RS 300/- p.a. from second calendar year onward

Account maintenance charges

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PRODUCT DETAILS
Online Trading

a)

CLASSIC ACCOUNT: A/C Opening charges Rs. 750 /-

DEMAT ACCOUNT frees for first year and Rs.300 /- from second year onwards (annual maintenance charges). Trading through website live terminal. No brokerage commitment required. NSE and BSE Online both cash and F&O

b) SPEED TRADE : A/C Opening fee Rs. 375/-both cash and F&O

Monthly recurring Fee: Rs. 500/-per month, which is very nominal if you consider the benefit of the product. This access charge will be debited to all the new customers signed up after September 15, 2004.and after end of the month if the client has contributed more than RS 500/-as brokerage the access charge of Rs 500/-will be credited back to the client account. Please note-this credit of Rs 500/-will be given to the customer who have contributed more than RS 500/-brokerage during the month.

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Minimum brokerage Intra Day per Share

5 paisa each leg (buy or sell) for intra day traders (For e.g. on a Rs 20 Scrip, brokerage @ 0.10%=2 paisa, but there is a minimum chargeable amount of 5 paisa)

Minimum Delivery Handing Charge:

10 paisa for Delivery Trades (buys and sells for e.g. On a Rs 10 scrip

brokerage @ 0.50%= 5 paisa, but there is minimum chargeable amount of 10 paisa) Rs 16/-per Scrip (The brokerage scrip will be charge for the selling of share resulting in delivery on actual.) (For e.g. if a customer sell100 share of SAIL total delivery value 2200 brokerage @ 0.5%=RS 11 but the main chargeable amount per scrip per day=RS 16, so additional RS 5 will be charge as minimum delivery handling charge)

EXPOSURE: 4 TO 6.7 TIMES (ON MARGINE MONEY)

Online IPO available We have tie up with Eleven Bank for the online fund transfer i.e. HDFC, ICICI, IDBI, CITI, Union Bank of India, Oriental Bank of Commerce, INDUSIND, UTI Bank, Bank of India and Yes Bank for the online money transfer.

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FOLLOWING DOCUMENT ARE REQUIRED TO OPEN AN ACCOUNT WITH THE SHAREKHAN LTD. FOR ID PROOF Pan card (Mandatory) Driving license Voter ID MAPIN UIN card RESIDENCE PROOF Passport (valid) Voter ID, Driving license(valid) Telephone Bill or Electricity Bill (latest) Insurance Policy (latest) Leave License / Purchase Agreement

** **

2 Photograph (Passport size & Front Face) 1 Cheque of Rs 750/- for Classic Account and 375/- for the Speed Trade

in favors of the (Sharekhan Limited)

SHAREKHAN SERVICES
Dial-N-Trade Along with enabling access for your trade online, the classic and speed trade account also gives you our dial-n-trade services. With this services, all you have to do is dial our dedicated phone line 1-800-22-7500 IPO ONLINE Can apply all the forthcoming IPO online hasselfree.

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Research Tips Company Provide 4-6 E-mail to there customers per day

Online Trade in Share Sharekhan customers can online trade through there computers, through internet during the market timings.

Online Fund Transfer We have tie up with Eleven Banks for online fund transferring i.e. HDFC, IDBI, CITI, UBI, OBC, INDSLANDAND and UTI BANK, Yes bank, Bank of India for Online Money Transfer. Research based investment advice Investment and trading services Trading and seminars Technology based investment tools Integrated demat facility CUSTOMER CAN TRADE IN
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Equities Derivatives

Commodities

CUSTOMER SERVICES TRANGLE

Supportive Management

Caring & Competent Employee

Efficient Product & System

SUPPORTIVE MANAGEMENT

Understand the need of an employee and helps them with continuous improvement through input and training.

Creates a healthy environment for career growth. Rewards high performance and initiative.

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Backs decisions made by employees. Provide coaching and feedback.

EFFICIENT PRODUCT AND SYSTEM

Efficient product and services. Well designed processes to serve the customer needs. System that are the back bone of the processes and ensure information flow and data collection.

CARING AND THE COMPITENT EMPLOYEES

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Having the knowledge of the product Have competition knowledge

Rapport building, listening and closing technique Communication skill Objective handling skill

Sharekhan Services

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SHAREKHAN, one of the India leading brokerage house, is the retail arm of

SSKI, with over 510 share shops in 170 cities, and Indias premier online trading portal www.sharekhan.com, our customer enjoys multi channel access to the stock markets.

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Citigroup Keen to buy 85% in Sharekhan for Rs 650 Cr

Archana Venkat Chennai, June 27 Citigroup Venture Capital has expressed interest in buying 85 percent stakes in retail brokerage firm Sharekhan Ltd. For about Rs 650 crore.

Details of the deal, such as whether existing shareholders will offload their stake partly or completely, are being worked out, according to Mr. Jaideep Arora, Director, Sharekhan

The post deal valuation would be about Rs 825 crore, he told Business Line.

Currently, the Morakhia Family owns about 44 per cent stake in the company while 42 per cent is held by private firms HSBC Private Equity, Intel Capital and General Atlantic.

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We are working out how much stake of these Parties will have to offload. We are also evaluating options of other private equity firms buying stake in the company, he said

This exercise is expected to be completed in next few months.

The Company plans to use the capital raised through private equity to fund its Rs. 200 crore expansion, which includes expanding its online platform across India and launching international Operation in Dubai by November.

In Chennai to inaugurate Sharekhans exclusive outlet that will distribute ICICI Prudential Life Insurance products, Mr. Arora said that the company may go public with an IPO next year, after spending the capital raised through private equity partners.

The company has entered into a tie-up with ICICI Prudential to distribute its products through all Sharekhan offices, besides setting up some excusive outlets.
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This tie-up may also explore possibilities for launching exclusive products for Sharekhan customers, Mr. Arora said.

Sharekhan has introduced Share Mobile a mobile application using GPRS technology that tracks share prices, provides updates and also facilitates trading.

Currently being beta tested by a few thousand users, the application is available for free but without the trading option.

Once the SEBI issues guidelines on mobile trading, the option would be available to users, Mr. Arora said. Pricing for the operator independent application has not been decided yet, Sharekhan has over 679 branches in 234 cities and about four lakhs trading members.

With largest number of life insurance policies in force in the world, insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent.

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Annually and presently is of the order of Rs. 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non life insurance continues to be below international standards and this part of the population is also subject to weak security and pension system s with hardly and old age income security. This it self is an indicator that growth potential for the insurance sector is immense.

A well developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would requires investments of the order of one trillion US dollar. The Insurance sector, to some extent can enable investments in infrastructure development to sustain economic growth of the society.

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Insurance is a federal subject in India. There are two legislations that govern the sector, The Insurance Act, 1938 and the IRDA Act, 1999. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the development in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

CLOSURE OF ACCOUNT
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1. CLOSURE ON CLIENTS REQUEST A DP can close a depository account on receipt of an application in the prescribed format. The application should be made by the account holder or by all the joint-holders. An account can be closed only when there as no balance in the account in case there is balance in the account sought to be closed, the following steps are necessary:
a. Re-Materialization of all securities standing to the credit of he account at

the time of making the application for closure. b. Transferring the balance to the credit of another account opened by the same account holder(s) either with the same participant or with a different participant. Before closing the account the DP should ensure that all pending transactions have been settled. The request for closure should be processed only after ensuring that there is unbalance lying in the account.

2. CONSOLIDATION OF ACCOUNT Some clients could have opened multiple accounts to dematerialize their shares held in multiple combination and sequence of names. However, they may not need so many accounts after they have dematerialized their shares and may want to bring all their share holdings into one or fewer accounts. This can be achieved by using normal market transfer instruction.

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3. CLOSURE BY DP The DP may also initiate closure of a clients account if the client has defaulted in performing its obligations laid out in the client-participant agreement. The participant should give sufficient notice to the client before initiating closure of his account. The notice should clearly state the reason for closure of account. The process of closing account in such a case is the same that of client-initiated closure.

CLOSURE / SHIFTING OF CLEARING ACCOUNT A clearing member may transfer its clearing account from one DP to another DP. For this, simultaneously applications have to be made for closure of account to the earlier DP and for opening of new clearing member account to the new DP. On receipt of the application, the new DP forwards the application to the depository for approval and allotment of a new CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens.

New clearing account and intimates the depository about the new client-ID. On receipt of intimation from the new participant, the depository advises the old

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DP to close the account. The old DP then closes the account and intimates the clearing member. All payout of securities, subsequent to closure of old clearing account, take place in the new account.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem s along with logic behind him. Why a research study has been undertaken, how a research problem defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study.

RESEARCH DESIGN

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A research design is the arrangement of conditions or collection and analysis of in a manner and aims to combine relevance to the research purpose with economy in procedure. In fact the research design is the conceptual structure within which research I conducted. Research design is needed because it facilitates the smooth sailing of the various research operations thereby making as efficient as possible yielding maximum information with minimal expenditure of effort, time and money.

I have adopted descriptive and conclusive research design. Descriptive research is those studies, which are concerned with describing the characteristics of a particular individual or a group. Since the aim is to obtain the accurate information about the customer in terms of his interest towards investment in stock sector. I have used the techniques of questioning customer in order to know their consumer behavior, their interests, their needs and etc. It is very important for the sales executive to study the mind of the consumer so that the personal visit would not be a waste of time, money and efforts.

DATA SOURCES The research can gather primary data, secondary data or both. Secondary data are data that were collected for another purpose and already exist
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somewhere. Primary data are data specially gathered for a specific purpose or for a specific research project. When the needed data do not exit or are outdated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research project involves some primary data collection.

PRIMARY DATA

I have collected primary data through personal references. LMS i.e. Leads Management System of the company. Customer references.

SECONDARY DATA: The main source of information for the project was: Weakly Magazine Telephone Directory Used Leads of the company Leads of the company; i.e. telephone list for tele calling

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CONTACT METHOD: The marketing researchers have four choices to contact the respondents: Mail Telephone Personal Online

I choose the above techniques to reach to the customer in a most convenient method.

LIMITATIONS: Lack of awareness of Sharekhan and stock market:

Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs

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Some people are comfortable with traditional system:

As people are doing trading from there respective brokers, they are quite comfortable to trade via physical form of paper, they want to trade off line, i.e. through telephone or etc.

Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno savvy. Also Internet penetration is poor in India.

Some respondent are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.

Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5 digit phone numbers to wrong phone numbers, some people have registered to know about their personal quarries. They are the unsatisfied clients of the company.

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Misleading concepts:

Some people think that as all the shares are in electronic form and they dont have any physical proof. Sometimes this leads to a great misconception of the entire process.

MARKETING STRATEGY?

A strategy that focuses on developing a unique long run competitive position in the market by assessing consumer needs and the firms potential for gaining a competitive advantage.

A business approach to marketing its products / services expresses in broad terms, which forms the basis for developing a marketing plan.

Marketing starts with market research, in which needs and attitudes and competitors products are assessed, and continues through into advertising,
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promotion, distribution, and where applicable customer servicing and repair, packaging and sales and distribution.

The broad marketing thinking that will enable an organization to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives.

MARKETING STRATEGIES OF THE COMPANY Tele-Calling: The company uses the tele calling / phone calling to reach the customer, which are interested. This is the most important techniques to save time and giving demo of the companies products through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc. LMS: It is leads management system which means leads are generated by the customer who wants to purchase the products of the company. Company provides facility to the customer on online to fill the registration form through which the companies executive can provide more information to the customer. Yellow Pages:

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Yellow pages are used to gather data for making calls so that customer who did not find time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.

Canopys: This is the most important techniques used by Sharekhan Securities to market its product in different areas of the city, company put their canopies and customers who are willing to know about the product come forward and provide best of their knowledge. Besides this company executives ask customers to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at he crowdies places like near main market, cinemas, hotels, ATM or etc where people come in good numbers.

Direct Marketing: Sharekhan executives reaches to the doors of the customer by fixing appointments with the interested customers, they describe the details of the product. Executive give demonstration of the product so that customer can understand better.

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Advertising: Advertising is the most important tool of increasing awareness of the product and this is the most widely used techniques by the company to tell about the new features and new launch by giving briefing of the product. Sharekhan use banners, distribution of pamphlets and advertising in newspapers.

References: Sharekhan strategy is to satisfy the customers in terms of their need by providing them timely services and knowledge about the trade in equities, mutual fund, by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who gives investment advice and also make transaction on their behalf on demand. By satisfying customer executive ask their references that not only increases the awareness but also increase the goodwill of the company. Competitiveness: The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. Sharekhan make it easy for the customers to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customers.

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Internet: Company provides detailed information about the products on internet so that customer can know about the products easily and completely.

UNIQUE OBJECTIVE OF THE COMPANY 200000+ retail customers being service though centralized call centre / web solution 60 branches servicing affluent / aggressive trades through highly skilled financial advisers.

250 independent investment managers / franchisees servicing 50000 highly valued clients.

Strong advisory role through Fundamentals & technical research New initiatives - Portfolio Management Service & Commodities trading. Dealing in mutual funds.

COMPETITOR ANALYSIS 5PAISE.COM Company Background:

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Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-broking was started under the brand name of 5paisa.com. Apart from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance. Limited ground network present in 20 cities.

Charges for Demat: Demat 1st yr: Rs. 250/Pricing for HNI Clients

KOTAK STREET Company Background: Kotakstreet is the retail arm of Kotak Securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs.

Charges for Demat: Rs. 22.5 p.m.

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INDIABULLS Company Background: India Bulls is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors

Charges for Demat: Rs. 200 if POA is signed, No AMC for this DP POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool account to client DP account.

ICICI Direct Company Background:

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ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Charges for Demat: NIL first years 500 per annum

HDFC SECURITIES Company Background: The HDFC Bank, HDFC and Chase Capital Partners and their associates promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the largest team of Tele brokers

DEMAT ACCOUNT WITH HDFC: It is conversion of Physical shares into electronic form. Dematerialization charges Rs. 3 per share certificates Rs. 35 per request

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Folio charges are Rs. 150 per annum Buying and selling transaction through brokers charges are 0.05% of transaction value

Off market transaction charges 0.04% of transaction value

Charges for Demat: First Year: NIL Yearly Charges: Rs. 450/- per year

SWOT ALAYSIS

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A SWOT analysis focuses on the internal and external environment, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

STRENGTHS

Services As a product Sharekhan I a extremely innovative product with very les cost. Services like online trading facility, institutional and domestic broking, customized research report with almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving

preference. Through efficient trading processes Investor can place their order directly on the Internet, do all the information seeking and basically own the investing process.

Distribution Network

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Sharekhan with almost 250 branches spread across 123 cities beefed up by comprehensive online research, advice and transaction services. In near future expect to make 20000+ retail customers being serviced through centralized call centre / web solution. 60 branches / semi branches servicing affluent / aggressive traders highly skilled financial advisors, 250 independent investment managers / franchisees servicing 50000 highly valued clients, strong advisory role through

Fundamentals & technical research and new initiative are being made in Portfolio Management Services & Commodities trading.

Marketing Sharekhan is a product of SSKI, a veteran equities solution company with over decades of experience in the Indian stock markets. Sharekhan does not claim expertise in too many things. Sharekhans expertise lies in stocks should not be confused with trading in stocks or a portfolio-based strategies is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets.

Products Companys Product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loopholes of al the

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products offered by the competitors like low cost, user-friendly online trading services etc.

WEAKNESS Customer Satisfaction As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking house catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers, who can understand the trading needs of individual customers, and advises accordingly. However, a broking house like Sharekhan, which caters to the mass segment, is in n position to provides relationship managers for individual customers.

Branding Through the company has a efficient products bur large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balance with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders.

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Competition from banks Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with an unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This Make trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving accounts.

OPPORTUNITIES The external environment analysis may certain new opportunities for profit and growth.

Ever Increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investor and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transaction. Sharekhan is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Sharekhan has been a mega player and is known for
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being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time.

Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research departments and small capital. The traditional business model is highly dependent on a large network of sub brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers.

Unfulfilled needs of the customers

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With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problems of lack of information or some were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this satisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by Sharekhan itself was born out of the consumers need for a more transparent, easy to understand and convenient option of investing in stocks.

Education Level The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which are being shown by increasing volumes, transportations and indices.

THREATS New Competitors

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A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like Sharekhan and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like ICICI, Kotak, HDFC, 5-Paise etc. are posing a lot of threats to the company.

Technology based business Online trading is totally based on the technology, which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the middle tier of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the GO / No go advice to the trade. So technology is a kind of threat because until it is working properly it is good bur internet is not that safe. Though a lot cyber laws are being made but not yet executed.

OBSERVATIONS AND ANALYSIS

DATA ANALYSIS 1. Market share of Sharekhan Securities TABLE NO. 01
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Company ICICI Sharekhan India bulls 5 Paisa Others

Market Share 28% 24% 22% 20% 6%

Graphical Representation: GRAPH - 01

The above data describes the market share of the Sharekhan competitors in which Sharekhan has the second highest market share among all its competitors heaving customer base of more then or approximate 8.0 lack.

COMPETITORS BROKERAGE COMPARISION TABLE NO. 02

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INTRADAY ICICI HDFC INDIA BULLS SHAREKHAN 5 PAISA 0.50% 0.40% 0.10% 0.10% 0.05%

DILIVERY 0.75% 0.75% 0.50% 0.50% 0.40%

Graphical Representation: GRAPH NO. 02

The above is the detail of the companies brokerage in which Sharekhan has competitive brokerage over other in which there reduction of the brokerage depending upon the deal between client and the customers.

TABLE NO. 03

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GROWTH RATE OF COMPANY IN %

Year Customer (In Lakhs)

2004 3.6

2005 4

2006 4.5

2007 5.2

2008 4.8

GRAPH NO. 03 Graphical Representation:

The above data shows the growth rate of the company from 2004 to 2006, which shows the increase in the growth trend.

TABLE NO. 04

Company

Growth (in Per)

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HDFC 5 Paisa INDIA BULLS SHAREKHAN ICICI

4% 2% 4% 5% 6%

GRAPH NO. 04 Graphical Representation:

TABLE NO. 05 Company INDIA BULLS

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No. of customers (In lack) 7.4

ICICI HDFC 5 PAISA SHAREKHAN

9.5 3 5.4 8

GRAPH NO. 05 Graphical Representation:

The above graph shows the market share of the customers we are at position no two having customers base of around 8.0 lakh customers, ICICI having the maximum and HDFC has the minimum customers.

TABLE NO. 06 CLIENT ACQUISITIONS

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Client Acquisition Total Data Calls Made Responses Appointment Fixed Appointment Confirmed Appointment Converted

(Approx.) 1900 1300 700 160 55 32

GRAPH NO. 06 Graphical Representation:

The above graph shows the number of customer (approx.). That has reached through the marketing tools and technique. Approximately out of 1900 clients finally 32 were converted.

EXECUTIVE SUMMARY

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Conceptually the mechanism of stock market is very simple. People who are exposed to the same risk come together and agree that if anyone of the person suffers a loss the other will share the loss and make good to the person who lost.

The Initial part of the project focuses on the sales of types of the products of the company, and also focuses on the acquisition of the customer. The job profile is to create customer, making good relationship with them to have references and motivating to trade for the company benefit and their profit.

It also enlightens the readers about the Sharekhan strategies to acquire the customer base. Further the project tells us about the profile of the company (SHAREKHAN). It provides knowledge to the readers about the companys history, mission, and customer base and about the company in detail an management of the company. Also it gives special emphasis on the selling of products and management of the company. Also it gives special emphasis on the selling of products.

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The next chapter is devoted to study the comparative analysis of the competitors and the SWOT analysis, which tells about the Sharekhan edge over its competitors. This project leads us towards the job descriptions and difficulties faced by me.

The next part of the project throws light upon my finding and analysis about the company and the suggestions for the company for better performance.

During this project I have been given the responsibilities of creating customer bringing HNI customer, handling team, generating leads.

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FINDING AND RECOMMENDATION

FINDINGS According to the study of the project report and company experience of Four month the analysis are the following findings.

According to graph one ICICI has the maximum market share and Sharekhan is at position no.2 Sharekhan has a competitive product feature and services that makes it possible to reach at this position.

According to graph two SHAREKHAN has brokerage less then ICICI and HDFC but same as INDIABULLS but more then other competitors. Brokerage is the main concern for the customer thus company provides some negotiation flexibility in brokerage charges in terms of brokerage we are better then the ICICI and HDFC company charges less form the customer for the same purpose and providing better service.

According to graph 3 which shows the competitors growth in terms of the customer acquisition form 2004 to 2008 Sharekhan has growth rate of 5% and ICICI has a maximum growth rate of 6%

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According to graph no 4 which shows the total no of customer Sharekhan has the second largest customer base with 8 lakhs among its competitors.

According to the graph 5 it shows the practical work done by me. In this I have made approximate 1900-2100 calls in Four month to the customer and tried to communicate my product. Out of all these calls I found 1300 numbers correct and rest are not in use. Near about 700 customers shows interest towards at least listing to the product out of 700 only 160 customer fixed the appointment for further process of the account opening with share khan , then out of 160 customers only 55 appointments are confirmed and visited by me. Out of this total 32 are finally converted and are customer of the company.

Due to high competition the companies provides same product with different features and service. With this regard share khan is at no one for service brokerage and follow up.

RECOMMENDATIONS After heaving an experience of two months in sales of demat account I would like to suggest the following things.

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Company has an advantage of reach tips for which Sharekhan known for the customer who are new they need relation ship manger who will tell them about investment so it should be provided to all the customer on demand this will lead to customer on demand this will lead to customer satisfaction and will hip to have more reference from satisfied customer.

The company also have the advantage of broke rage charge it need some revision so that the customer who are locking for the less brokerage can open there account in are company taking into consideration the different proposal it can be reduced for a HNI client.

The company has shown the growth trend and it has reached at no 2 it can move to no one because it has an advantage of its service. As Sharekhan is already tie-up with 8 banks for online fund transfer that reduce the paper work for customers and ease in trading.

The company can increase the customer base if the account opening charges it reduced from 375 to 200, which will give boost the competition. The company should revise the advertising strategy to increase its brand awareness. I suggest marketing making on television so that maximum market can be targeted.

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CONCLUSION

After studying the project I would like to conclude that:

Company should focus on customer satisfaction at every levels of the account opening procedure.

Brokerage can be reduced with the attractive proposals for HNI. Relationship manager should be given on the customer demand. Company should use the tool of advertising for marketing the brand and the product.

Reduction in brokerage would attract the customer of India bulls, 5 paisa and other competitions heaving less brokerage then us. It would increase the market share or client acquisition.

The account opening time should be reduce to maximum 5 days because customer losses the opportunity of investments.

The company shows the positive trend in growth but it can be increased more if it focuses on building the brand equity.

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APPENDIX
BIBLIOGRAPHY Valueline (Sharekhan monthly research Magazine) Capital Market (5 Paisa.COM), New Delhi The Finapoils (Your Personal Finance Advisor from Karvy) Training Kit Provided by the Sharekhan. INTERNET

www.reliancemoney.com www.nseindia.com www.bseindia.com www.indiabulls.com www.kotaksecurities.com www.sharekhan.com www.motilaloswal.com www.icicidirect.com www.traderji.com www.religaresecurities.com

www.demataccount.com

QUESTIONNAIRE
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DATE: NAME OCCUPATION AGE CONTACT NO. : : : :

Q1. In which of these Financial Instruments do you invest into? (i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others

Q2. Which type of trading you prefer? (i) Online (ii) Offline (iii) Not Applicable

Q3. If you prefer online Trading then the reasons for it? (i) Privacy (iii) Convenience (ii) User friendly & Time Saving (IV) All The Above

Q4. What factors motivates you to invest in securities? (i) New IPO's (iii) More returns in less time (ii) Entry of FII's (iv) Others

Q5. Does online trading system motivate you to deal in securities?

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(i) Yes (ii) No

Q6. Have you heard about Sharekhan? (i) Yes (ii) No

Q7. Which Brokerage Firm do you prefer for Online Trading? (i) ICICI Direct (iv) Kotak Securities (ii) Sharekhan (v) 5paisa (iii) India bulls (vi) Any other__________

Q8. What differentiates your Share Trading Company from others? (i)Brokerage (iv)Magazine (ii) Research Report (v) Exposure (iii) Dial up trade facility (vi) Account opening charges

Q9. How often do you trade? (i) Daily (ii) Weekly (iii) Monthly (iv) Yearly

Q10. In which category does your income fall? (Per month in Rs) i) 0-15000 ii) 15000 35000 iii) 35000 60000 iv) Above 60000

Q11. What percentage of your earnings do you invest in share trading? (i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50%

Q12. According to your preference rank the attributes of a share trading company. (1=Most Important, 5= Not Important at all)
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1. Customer Service 2. Proper Guidance 3. Regular Updates 4. Trustworthiness 5. Brokerage Charges

: : : : :

Q13. Rank these share trading companies according to the quality of service they provide. (1=Excellent, 5= Very poor) 1. 4. 2. 5. 3.
a. Sharekhan b. ICICI Direct c. India Bulls d. Kotak Securities e. Others (Specify)

Q14. What additional features do you wish to have in Online Share Trading?

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