Dr.

BABA SAHEB AMBEDKAR MARATHWADA UNIVERSITY, AURANGABAD

A PROJECT REPORT ON

KOTAK SECURITIES
AT 2 floor, Ethibiz towers (kandi towers), opp J & K BANK, jalna road, Aurangabad.
nd

Submitted by

ASIM FAROOUI
Guided by

Prof.SHAREQ AHMED KHAN SIR SIR SAYYED COLLEGE OF ARTS, COMMERCE & SCIENCE AURANGABAD. 2011-2012

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A Report on

KOTAK SECURITIES.LTD
Submitted in the partial fulfillment of Bachelor of Business Administration (B.B.A VI th SEM) for the Academic Year 2011-12 In the faculty of management science, BY ASIM FAROOQUI

UNDER THE GUIDENCE OF ASST.PROF SHAREQ AHMED KHAN SIR

SIR SAYYED COLLEGE OF Arts, COMMERCE AND SCIENCE

AURANGABAD (M.S)

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Sir Sayyed College of Arts, Commerce & Science, Aurangabad

CERTIFICATE
This is to certify that ASIM FAROOQUI has successfully completed the project report on KOTAK SECURITIES , at kotak securities .ltd.2nd floor,Ethibiz towers(kandi towers), opp J & K BANK, jalna road, Aurangabad for the academic year 2010-2011.

Principal
Dr. SK.kabeer Ahmed
Sir sayyed college of Arts, commerce & science,

Aurangabad

Asst.prof.Shareq Ahmed khan Dept.of Management science Sir sayyed college of Arts, Commmerce & science, Aurangabad.(M.S)

Guide

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nd

floor,Ethibiz towers(kandi towers), opp J & K BANK, jalna road, Aurangabad.

KOTAK SECURITIES.LTD

CERTIFICATE
It is to certify that Mr. ASIM FAROOQUI has completed his Project in our organizationKOTAK SECURITIES.LTD in Aurangabad for academic year 201112 during his project we found him sincere and hardworking we wish him all the best for his feature

Chief Executive officer Kotak securities ltd.

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Acknowledgement
I am highly grateful to Mr.Dnyaneshwar bhagwan surung,for giving me the opportunity to do my project in this esteemed organization I extend my gratitude to employees of kotak securities ltd. For helping me to complete the project with their invaluable guidance, time & expertise through out my training period Lastly, I convey my sincere thanks to Principal Dr. Sk. Kabeer Ahmed Sir and my guide Prof. Shareq Ahmed khan sir for helping me for the completion of this project.

Asim farooqui
(BBA Final Year).

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INDEX

Sr.No. Content 1 Executive Summary 2 Introduction 2.1 Basic Theoretical Concepts and Contexts of the Topic 2.2 Literature Review 2.3 Need for the study 2.4 Statement of the Problem 2.5 Objectives of the Project 2.6 Scope of the Study 3 Industry Analysis 1. Company profile 2. Competitors Profile 16 23 11 13 15 15 15 15

Page No. 9 11

16

4 5

Objectives of Project Research Methodology 1. Research Approach 2. Research Design 3. Sampling Methodology 4. Data Collection Tool Analysis & Interpretation of Data Findings Recommendations Annexure Bibliography

40 41 41 41 42 42 43 54 55 56 57

6 7 8 9 10

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LIST OF TABLES

Table No. Table No. 1.1 Table No. 1.2 Table No. 1.3 Table No. 2.1 Table No. 2.2 Table No. 2.3 Table No. 2.4

Title of the Table Delivery Trade Broking Charges Intraday Broking Charges Variable Brokerage Structure Market Share of Firms USP of each firm Priority of each firm Responses regarding pattern of investors investment

Page No.

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LIST OF FIGURES

Figure No. Figure No. 1.1

Title of the Figure Comparison on the basis of Intraday Broking Charges Comparison on the basis of Delivery Brokerage Charges Comparison of DP Charges

Page No.

Figure No. 1.2

Figure No. 1.3

Figure No. 1.4 Figure No. 1.5

Market Share of Firms Comparison of Responses about flexible brokerage

Figure No. 1.6

Revenue as Priority

Figure No 1.7

Growth as a Priority

Figure no 1.8

Representation of responses regarding investment pattern

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1. Executive Summary
Equity markets have led the way to financial and economic development of almost all the countries of the world. In the wake of liberalization the developing countries have also been exposed to the vibrancy of the most volatile markets. For over a century, Indias equity markets have increasingly played a significant role in mobilizing funds to meet public and private entities financing requirements. The advent of exchange-traded derivative instruments in 2000, such as options and futures, has enabled investors to better hedge their positions and reduce risks. In total, Indias debt and equity markets were equivalent to 130% of GDP at the end of 2005. This is an imperative stride, coming from just 75% in 1995, suggesting issuers growing confidence in market based financing. However, the size of the countrys capital markets relative to the United States, Malaysias and South Koreas remains low, implying a strong catch-up process for India. Under these circumstances, a proper understanding of what the Capital market is and how it functions in imperative for every economy. In the Indian context, the markets have received huge adulation after the boom in 1998-99. but still the investors in India are wary and reluctant to extend their savings into equity investments. Saving in India has always been in the form of land and gold. To change this conservative and traditional outlook of the Indian investor poses quite a challenge to the capital market development. Technical analysts which act as an intermediary between the stock markets and the investors in analyzing and decision making processes for investments into equity markets. They play a valuable role in the capital market development. Over the years, they have been successful in tapping the untapped market segments and have helped to increase the faith of investors in the capital markets. The title of this project is Comparative Study of the products being offered by Kotak Securities and other firms. The approach of this project was to identify the product types being offered by the major broking firms in the market with special reference to Kotak Securities.

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Introduction

In most industrialized countries, a substantial part of financial wealth is not directly managed by savers, but through a financial intermediary, which implies the existence of an agency contract between the investor ( the principal ) and a broker or portfolio manager ( the agent ). Therefore delegated brokerage management is arguably one of the most important agency relationships intervening in the economy, with a possible impact on financial market and economic developments at a macro level. In most of the metros, people like to put their money in stock options instead of dumping it in the bank-lockers. Now this trend pick pace in small but fast developing cities also. A brokerage makes sure the hassle free investments in stocks. 2.1 Basic Theoretical Concepts and Contexts of the Topic Asset Management firms allow investors to estimate both the expected risks and returns, as measured statistically. There are mainly two types of portfolio management strategies. 1 2 Passive Portfolio strategy. Active Portfolio Strategy.

1.Passive Portfolio Strategy: A strategy that involves minimal expectation input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities. 2.Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.

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Several terms used in online share trading: 1) Demat Account: This is the account where dematerialization takes place. Dematerialization is the process by which physical securities of an investor are converted to an equivalent number of securities in electronic form and credited into the investors account with the DP. 2) Depository: It is a bank or company which holds funds or securities deposited by others, and where exchanges of these securities take place. A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. National Securities Depository Limited (NSDL) and Central Depository of Securities Limited (CDSL) are the two Depositories in India. 3) Depository Participants (DP): According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialization of his holdings and transferring securities.

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2.2 Literature Review Background of Stock Exchange in India The emergence of Stock Market can be traced back to 1830. In Bombay, Business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of Cotton presses. In Calcutta, Englishman reported the quotations of 4 %, 5%, and 6% loans of East India Company as well as the shares of the Bank of Bengal in 1836.This list was further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like Union Bank and Agra bank.It also the quoted the prices of business ventures like the Bengal Bonded Warehouse the docking company and the Storm Tug Company. Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the numbers of brokers increased considerably. By 1860, the number of brokers were about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in these troubled times between 1868 and 1875 that brokers organized an informal association and finally as recited in the indenture constituting the Articles of Association of the Exchange. On or about 8th day of July 1857, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use the members of such association. As a meeting held in the broker hall in the 5 th day of February 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees.Accordingly the Articles of Association of the exchange and the stock exchange was formally established in Bombay on 3rd December 1887. The association is now known as The Stock Exchange. The entrance fee for new member was Re 1 and there were 318 members on the list, when the exchange was constituted. The number of members increased to 333 in 1896, 362 in 1916 and 478 in 1920 and the entrance fee was raised to Re 5 9n 1877, Re 1000

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in 1896, Rs 2500 in 1916 and Rs 48000 in 1820. At present there are about 23 recognized stock exchanges with about 6000 stock brokers. Organization of Stock exchange varies.14 Stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 as non profit voluntary organizations. Of the total of 23 only nine stock exchanges have permanent recognition. Others have to seek recognition on annual basis.These exchanges do not work of its own, rather these are, run by some persons and with help of some persons and institution. They are also known as functionaries of Stock exchange. 1. Stock Brokers. 2. Sub Broker. 3. Market makers. 4. Portfolio Consultants etc.

1. Stock Brokers: Stock Brokers are the members of Stock Exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registration. It is obligatory to abide by the rules, regulations and the buy-law. Stock brokers are commission brokers, floor broker etc. Details of Registered Brokers: Total registered brokers as on 31/03/08: 9000 Total Sub brokers as on 31/03/08 : 24000 2. Sub-Broker: A sub broker acts as a agent of Stock broker. He is not a member of a Stock exchange. He assists the investors in buying, selling or dealing in securities through Stock broker. The broker and sub broker should enter into an agreement in which obligations of both should be specified. Sub Broker must be registered with SEBI for dealing n securities. For getting registered with SEBI he should fulfill certain rules and regulations. 3. Market Makers: Market Makers is a designated specialist in specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is
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exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs 3 crore but not more than 5 crore and having a commercial operation for less than 2 years should appoint a market marker at the time of issue of securities. 4. Portfolio Consultants: A combination of securities such as Stocks, bonds and money market instruments is collectively called a Portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients.

2.3 Need for the study: The need for the study is to make a comparative analysis of products being offered by Kotak Securities and other major players in the region. 2.4 Statement of the Problem: The topic being less researched has necessitated the research work. There is fierce competition amongst the top broking firms and the research work aims to analyze the offerings of these broking firms and also the competitive analysis of these firms. 2.5 Objectives of the Project: The primary purpose of this research is to know the Products (account) types being offered by the major broking firms in the region with special reference to Kotak Securities. 2.6 Scope of the Study: The research work undertaken offers answers to a lot of questions about the working of major broking firms in the region and this research study can help the firm to study the working of its competitors.

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3. Industry Analysis
INTRODUCTION OF THE COMPANY THE KOTAK MAHINDRA GROUP: Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of over Rs. 6,523 crore and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 6.2 million customer accounts. Kotak Group Products & Services: Bank Life Insurance Mutual Fund Car Finance Securities Institutional Equities Investment Banking Kotak Mahindra International Kotak Private Equity Kotak Realty Fund

KOTAK SECURITIES
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Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of over Rs. 6,523 crore and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 6.2 million customer accounts. Accolades For Kotak: Finance Asia Award (2009)-Best Brokerage Firm In India Best Brokerage Firm in India by Asiamoney in 2008, 2007 & 2006 Best Performing Equity Broker in India CNBC Financial Advisor Awards 2008 Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007 Euromoney Award (2007 & 2006) - Best Provider of Portfolio Management: Equities.

Why Kotak Securities:

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Kotak Securities sees investing from your perspective, and make recommendations based on your needs. One of our important goals is to simplify investing for you; along with this we also provide long term values to our customers. KS have a million reasons for you to choose us. Listed below are a few. Stability: KS is a 100% subsidiary of Kotak Mahindra Bank and one of the oldest and largest broking firms in the Industry. KS have been the first and only NBFC to receive the license to be converted into a bank. Innovators in the Industry: KS have been the first in providing many products and services which have now become industry standards. First to provide Margin Financing to the customers. First to enable investing in IPOs and Mutual Funds on the phone Providing SMS alerts before execution of depository transactions Launching of Mobile application to track portfolio Auto Invest - A systematic investing plan in Equities and Mutual fund Provision of margin against securities automatically against shares in your Demat account Reliability: Our accolades are a testimony to our services and high standards. We have been awarded as Best Brokerage Firm in India for 2009 by Finance Asia Best Performing Equity Broker in India CNBC Financial Advisor Awards 2008 Avaya Customer Responsiveness Awards (2007) in Financial Services Sector Best Brokerage Firm in India" by Asiamoney in 2007 The Leading Equity House in India' in Thomson Extel Surveys Awards for the year 2007 Euromoney Award (2006 & 2007) - Best Provider of Portfolio Management : Equities

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Value: Whether you are a customer with a small or large wallet size, you can expect us to bring value to you in every form Quality Research Quick trade execution Low brokerages Accounts that suit your investment profile Risk Profiler Superior Customer Service

Service: We believe in high standards of service and that's precisely what we offer. It's an honour to be awarded the most customer responsive company award in the Financial Institution sector by AVAYA Global Connect Award both in 2006 and 2007. Robust Technology: We have developed our own proprietary trading platform which is robust and among the best in the industry. We have more than 150 technology professionals constantly working on upgrading and speeding up all our systems. Centralized Risk Management System: Unlike many other players we have a centralized risk management system. This allows us to offer the same levels of service to customers across all locations. Exceptional Research: Unlike most other competitors we have our own in house research team. Our in house research team is among the best in the industry and they have years of experience in the financial markets. They scan through the plethora of stocks and find the scripts that have a high potential of providing you good returns. Our investors get research Technical, Fundamental, Derivatives, Macro-economic and mutual fund research. Large Presence: Kotak Securities is present in 331 cities with 843 offices all over the country. Our employee strength extends beyond 2750.

Kotak Securities Offers The Following Types of Accounts:

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1) Auto Invest: It is an Online Trading Account based on Systematic Investment Planning, in Gold ETFs (Exchange Traded Funds), Equities and Mutual Funds. Assistance in investments, coupled with Systematic Investing, truly makes this product a very good option for investors. Auto Invest provides a combination of Gold ETFs, Stocks and Mutual Funds recommended by our Advisors, depending on an investor's risk appetite and investment view. Auto Invest is unique from a general SIP in a way that it assesses the risk profile and investment objectives of the investor, an important practice that Mutual Funds fail to carry. We offer 4 distinct Investment Portfolios based on your risk taking ability. Benefits Of Auto Invest: SIP Styled Investments Diversified investment with Compounding effect Option to Invest In Gold ETFs Option to purchase Gold Bars/Coins at the time of redemption of Gold ETFs Wide Array of Portfolio Selections The Investor holds his stocks in a Demat Account unlike Mutual Funds Investment amount starts as low as Rs. 5000.

2) Kotak Freedom Mutual Fund (Investments made unbelievably simple) Kotak Freedom is unbelievably simple from both an operational and service perspective. A look at the benefits will show you how: Order placement is simple now You can buy mutual fund units via a single phone call or an e-mail or a FAX or by logging into your account online. Benefits: Minimum investment - The minimum investment required for this product is Rs. 5,00,000. Wide coverage of funds - Buy Mutual Fund units of 21 Asset Management Companies. This is amongst the widest coverage of funds in the industry. Reporting - Apart from online reporting, you would be sent monthly MIS to help track your invested funds

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Multi-banking compatibility - Online Account compatibility of using five different designated Banks: KMBL, HDFC, UTI, ICICI and Citibank. Payments can also be made via cheques

One point contact at Kotak Freedom - The Relationship Manager - so you don't have to talk to someone new every time Service Centers - Mid-office provision for all other facilities like placing orders, account performance, updating etc. The Advisor Quarterly: A comprehensive research report on all the mutual Funds are released quarterly. The report is prepared after interviews with Fund managers, analyzing the portfolio of stocks of the respective mutual funds, sector mapping etc. Apart from just mutual funds, other avenues of investment are also provided.

3) Kotak Privilege Circle Account It is an internet based trading account. Executing your trades Independently with the Kotak Privileged Account gets you the lowest charges in the industry as well as privileged services that only a few enjoy. Benefits: A dedicated Privilege Circle customer service desk offers you assistance in opening accounts, handling day-to-day problems, and more. Place orders phone through Call & Trade. Access to Easy IPO and 14 top-performing mutual funds through Easy Mutual Funds. Independent market expertise and support through a dedicated relationship manager. 6 times exposure on the margin. Access to K.E.A.T Premium - an exclusive premium analysis tool with 52 Indicators for Technical Analysis, Derivative Chains, Multiple Watch lists, and more.

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BROKERAGE CHARGES: Delivery < 1lakh 1 - 5 lakh 5 - 10 lakh 10 - 20 lakh 20 - 60 lakh 60 lakh - 2 crore > 2 crore Brokerage 0.59% 0.55% 0.45% 0.36% 0.27% 0.23% 0.18% Privilege a/c Account Type Gateway a/c

Table No 1.1 Delivery Trade Broking Charges Intra day

< 25 lakhs 25 lakhs - 2 crores 2 crores - 5 crores > 5 crores

Brokerage
0.06% both sides 0.05% both sides 0.04% both sides 0.03% both sides

Account Type
Gateway A/C

Privilege a/c

Table No 1.2 Intraday Broking Charges 4) Kotak Super Saver Max Account Presenting "Kotak Super Saver" an internet based investment account with attractive Flat Brokerage rate and a Low Margin. Here you get a brokerage rate as low as 0.45 % on delivery and only 0.05% on square up which is irrespective of the size of order placed. You just need to pay Rs. 1103 as advance fee once for the period of six months. The advance fee is completely reversible on generating the brokerage above Rs. 1103 during the specified period.

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Advantages of Kotak Super Saver Max Account Reversible advance fees of Rs.1103 against brokerage above Rs. 1103 in specified period. Lower Brokerage Rates. Buy and sell stocks on phone using Call & Trade. Research advice via Kotak Securities SMS alerts, so you don't miss out any important buying and selling opportunities Other Major Players in the Region: 1) ICICI Direct: About ICICI Direct: ICICI Securities Ltd is one of the largest equity house in the country providing end-toend solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution. With a full-service portfolio, a roster of blue-chip clients and performance second to none, we have a formidable reputation within the industry. Today ICICI Securities is among the leading Financial Institutions both on the institutional as well as retail side. Headquartered in Mumbai, I-Sec operates out of several locations in India. ICICI Securities Inc., the step down wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can engage in permitted activities in the U.S. securities markets. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to US investors. ICICI Securities Inc. is also registered with the Financial Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS).

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Products and Services ICICIdirect allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. 1. Trading in shares: ICICIdirect.com offers you various options while trading in shares. Cash Trading : This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Margin Trading : You can also do an intra-settlement trading upto 3 to 4 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. 2. Trade in Derivatives Futures Options

3. Investing in Mutual funds: 4. IPO's and Bonds Online: You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork. CHARGES: Variable Brokerage Structure (Cash and BTST) Total Eligible Turnover Above Rs. 5 Crores Rs.2 Crores to 5 Crores Rs. 25 Lakhs to Rs. 50 Lakhs Rs. 10 Lakhs to Rs. 25 Lakhs Less Than 10 Lakhs Brokerage on Delivery 0.25% 0.30% 0.55% 0.70% 0.75% Effective Brokerage on Intraday Square off 0.125% 0.15% 0.275% 0.35% 0.375%

Table 1.3 Variable Brokerage Structure

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Advantages of ICICI Direct 1 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interference required. This is truly online trading environment. 2 Unlike most of the online trading companies in India which require transferring money to the broker's pool or towards deposits, at ICICIDirect you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICIDirect receive it. 3 Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. 4 Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect 1 2 3 Getting access to ICICIDirect.com website during market session can be frustrating. ICICIDirect brokerage is high and not negotiable. Not all stocks are available under Margin Plus.

2) Reliance Money About Reliance Money: Reliance Money, a Reliance Capital company and part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider. It is a onestop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers. RelianceMoney.com is the web based investment portal (with Online Stock Trading) from Reliance Money. This website enables its customer to invest & manage most of the services provided by Reliance Money including Equity (Stock) Trading,

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Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Forex exchange, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds. Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth. Reliance Money offers lowest brokerage rates in today's online stock trading industry in India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now delivery. For more detail about Reliance Moneys brokerage and fees visit the below section of this webpage. Reliance Money provides 3 different trading platforms for equity trading: 1 2 3 Insta Trade Fast Trade Easy Trade

Features of Super Trade: Super Trade is a power-packed solution for all your trading needs. It has been meticulously designed to provide you with a superior trading experience- fast, reliable and feature-rich. Fully Customizable Display: Manage your display screen the way you want with multiple market watches and multiple charts. Dynamic Charts with Indicators: Get Dynamic Charting facility with host of technical indicators that provides you with real time assistance on technical analysis. Real time position updates: All your positions are updated automatically and instantly with real time profit/loss updates. Advantages of Reliance Money 1 2 3 Extra security features with 'Security Token'', which is the most secure and tested technology in computer world. Simple, easy and fast online stock trading. Almost all investment options are available under one account including Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance.
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4 5 6

Branches are available in all major cities and the number is growing. Reliance Money Technical Analysis (A paid service) Reliance Money offers a simplified, automated, sophisticated technical analysis to Indian retail broking consumers with the help of Recognia's Technical Analysis tools. Recognia, a Canada based company, has proprietary pattern recognition technology capable of recognizing patterns in the price charts of any publicly traded financial instrument including stocks, bonds, funds, commodities, currencies and indexes.

The technical services are available for introductory free 7-day trail period to Reliance Money users. Post the trail period, this service is available to users at a nominal subscription of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than Re 1 a day

3) Angel Broking Ltd. About Angel Broking: Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL. It offers the following products and services Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance Personal Loans IPO Depository Services Investment Advisory

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Angel Broking provides the following softwares to enable the customers in doing online trading. Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based. 1 Angel investor: It is a browser based trading platform. The rates are updated on clicking the refresh button. This facility ensures it is not blocked by firewall. Thus it is useful for investor who needs to access information from places where firewall blocks such data. 2 Angel Trade: It is a browser based trading platform. The rates are updated automatically. This platform is useful for investors & traders to access market from different terminals. 3 Angel Diet: It is an application based trading platform where rates are updated automatically. All segments are available on a single screen. This is ideal platform for the daily traders. 4 Angel Anywhere: It is an application based trading platform where rates are updated automatically. This is ideal for investors & traders who are inclined towards trading based on charts & technical tools. Brokerage and fees: 1 Account opening fees: Stock trading account - Rs 575/Demat account - Rs 200/Commodity trading - Rs 625/2 Brokerage: For trade up to the range of Rs 1 - 3 Crore: Cash Based: 0.50% Day trading: 0.05% Derivatives: 0.05% For trade of more than Rs 3 Crore, brokerage is about 0.03%. Features: Application-based platform for day traders Trading based on historical charts and technical tools Streaming quotes for real time rate updates Online fund transfer facility

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Integrated Back office: Access account information

4) SMC Global About SMC: SMC Group, a leading financial services provider in India is a vertically integrated investment solutions company, with a pan-India presence. Over the Years, SMC has expanded its domestic as well as international operations. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Bangalore, Cochin, Ahmedabad, Jaipur and Hyderabad plus a growing network of more than 1500 offices across over 375 cities/towns in India. SMC has plans to grow its network to 2,500 offices across 700+ cities in the next 3 years. The company has expanded internationally, and has established office in Dubai. Its products and Services include Institutional and retail brokerage of equity, commodity, currency, derivatives, online trading , investment banking, depository services, clearing services, IPOs and mutual funds distribution, Portfolio management, wealth advisory, insurance broking, margin funding and research. SMC has a highly efficient workforce of over 5,500 employees & one of the largest retail network in India currently serving the financial needs of more than 5,50,000 satisfied investors. SMC has entered into a 50:50 joint venture with Sanlam Group, one of the largest listed financial services group in South Africa for setting up wealth Management and Asset Management business in India, Sanlam is operating in over 30 countries globally including UK, USA, Switzerland, Luxembourg, Dublin, Australia and others. Account opening charges are Rs 750/- with ODIN diet and Rs 240 without ODIN diet. No account maintenance charges for first year, then Rs 240 pa 5) Sharekhan About Sharekhan: Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, Sharekhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund

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schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Type of Account Classic Account Trading Terminal 1. ShareKhan Classic account :Allows investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cell phone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail Single screen interface for cash and derivatives

2. ShareKhan Speed Trade account This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of Speed Trade account. Single screen interface for cash and derivatives Real-time streaming quotes with Instant order Execution & Confirmation
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Hot keys similar to a traditional broker terminal. Alerts and reminders Back-up facility to place trades on Direct Phone lines.

Brokerage: Some stock trading companies charge direct percentage while others charge a fixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could say Sharekhan charges 50 paisa per Rs 100. Advantages of Sharekhan: 1. Online trading is very user friendly and one doesn't need any software to access. 2. They provide good range of services like daily SMS alerts, mail alerts, stock recommendations etc. 3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks. Disadvantages of Sharekhan: 1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in brokerage). 2. Lots of hidden rules and charges. 3. They do not provide facility to book limit order trades during after-hours. 4. Classic account holders cannot trade commodities. 5. Cannot purchase mutual funds online.

6) Motilal Oswal About Motilal Oswal : Motilal Oswal Securities Ltd. (MOSt) is one of the leading broking houses in India. Founded in 1987, MOSt has in 200 cities through 400 outlets. MOSt provide advicebased broking (equities and derivatives), portfolio management services (PMS), e-

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Broking, depository services, commodities trading, IPO and mutual fund investment advisory services. Type of Account MOSt E-Broking MOSt E-Broking is complete online stock trading solution for Indian stock market. Following are the features of MOSt E-Broking account: Easy single screen trader with instant trade confirmation similar to exchange based trading terminals. Access to various online reports like margin report, Demat A/c details, trades executed, turnover report, net position report with mark to market profit/loss and realized profit. Online transfer funds through HDFC Bank.

Disadvantages: Very high broking charges Software is very poor.

7) Religare About Religare: Religare Enterprises Limited is a Ranbaxy Laboratories Limited promoted financial product and service provider company. Religare provides its service in three different segments including Retail, Wealth management and the Institutional spectrum. Company offers wide range of services including equities, commodities, insurance broking, wealth advisory, portfolio management services, personal finance services, Investment banking and institutional broking services. Religare retail network has more than 900 locations in 300 cities and towns in India. Religare provides the online gateway to their investors so investor can trade online in Equities, Commodities, apply for IPOs, invest in Mutual Funds, and buy Insurance. Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd and involve in equity related services include online trading at BSE and NSE, Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional broking service.

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People who wonder where Religare word came from, it's a Latin word meaning 'to bind together'. Types of Account: Religare offers its wide range of financial services though a sophisticated and customized trading platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavours of R-ACE accounts available to the investors. 1) R-ACE (Basic) R-ACE (Religare Advanced Client Engine) the basic online trading account provided by Religare. Investor can trade and access their account information online and over the phone as well. This account comes with a browser based online trading platform and no additional software installation needed. a) R-ACE Lite (Advanced):R-ACE Lite is the advanced trading platform for the investor of Religare. This trading account provides the entire feature of R-ACE (Basic) account. In addition it also provides real-time streaming stock quotes and alerts. This trading platform is also browser based and no software installation is needed. b) R-ACE Pro (Professional) :As the name indicates this account is for high volume traders. Along with the features from above 2 accounts, this account also comes with Trading Terminal software which needs to install on your computer. This terminal directly connects the investor to stock market and having all industry standard Treading terminal features including technical charting (intra-day and EOD), multiple watch list, advanced hot-key functions for faster trading, derivative chains, futures & options calculator etc. As in basic and advance account, trading is available online through internet and offline though phone.

Brokerage and Account opening fees: Below are detail about fees and activation charges for each account:

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1) R-ACE Account activation charges Rs.299/-. Minimum margin of Rs.5000/- required. 2) R-ACE Lite Account activation charges Rs.499/-. Minimum margin of Rs.5000/- required. 3) R-ACE Pro Account activation charges Rs.999/-. Minimum margin of Rs.10,000/- required. Brokerage at Religare On the basis of volume and frequency of trading, Religare provide different options for brokerages. On the broader way they divided into three categories: Classic Account : Intraday brokerage varies from 0.03% to 0.05%. Delivery brokerage varies from 0.30% to 0.50%. Derivatives brokerage varies from 0.3% to 0.5%. Classic Plus: Fees:Rs600 ValidityPeriod6Months Intraday brokerage varies from 0.03% to 0.05%. Delivery brokerage varies from 0.30% to 0.50%. Freedom Account: In this payment plan, investor has to pay a fix amount in advance for Monthly (Rs 500), Quarterly (Rs.1400), Half-yearly (Rs 2500) or Annual Subscription (Rs 4000). This one time payment enable account holder to trade for Rs. 3,00,000 intraday & derivative trading and Rs. 40,000 of delivery based trading for zero brokerage.

Trump Account :

Trump account has four payment options, Trump Plus, Trump Super, Trump Star and Trump Super Star plan.

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1) Trump Plus has annual subscription fees of Rs 2,500, Brokerage on Delivery Trades is 0.25% and Brokerage on Intraday Trades & F&O Trades is 0.025%. 2) Trump Super has annual subscription fees of Rs. 15,000, Brokerage on Delivery Trades is 0.15% and Brokerage on Intraday Trades & F&O Trades is 0.015%. 3) Trump Star has annual subscription fees of Rs. 50,000, Brokerage on Delivery Trades is 0.10%, Brokerage on Intraday Trades is 0.01% and Brokerage on Future Trades is 0.008%. 4) Trump Super Star has annual subscription fees of Rs. 1,00,000, Brokerage on Delivery Trades is 0.10% and Brokerage on Intraday Trades & F&O Trades is 0.005%. Advantages of Religare: 1. Religare gives interest on unutilized cash when investor is waiting to make next trade or online investment. 2. They provide intraday reports and historical charting. 3. Variety of fee structure to fulfill need of different type of investors. Disadvantage: Customer service is not up to the mark. 8) India Bulls About India Bulls: Indiabulls is India's leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. Type of account: Indiabulls Equity Trading Account : It is a standard Online trading account from India bulls and along with online trading it also provides priority telephone access that gives you direct access to your Relationship Manager and full access to 'Indiabulls Equity Analysis'. Application Trading Terminal(Need Installation) Power India Bulls: Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed. This trading
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terminal

is

built

in

JAVA.

Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting. Brokerage and fees : Account opening fees : Rs 1200/- (One time non-refundable) as below: 250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/- Software changes Advantages : Brokerage is less compare to other online trading companies. Provide trading terminal 'powerbulls', a java based software. It's very fast in terms of speed and execution. Disadvantage: Brokerage offered is higher compared to other firms. 9) India Infoline About India Infoline Group: The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers.

India Infoline Group subsidiaries: India Infoline Media and Research Services Limited India Infoline Commodities Limited India Infoline Marketing & Services India Infoline Investment Services Limited

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IIFL (Asia) Pvt Limited

10) Karvy Stock Broking Limited About Karvy Group: The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy. KARVY Stock Broking Limited, one of the cornerstones of the KARVY edifice, flows freely towards attaining diverse goals of the customer through varied services. It creates a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. KARVY Stock Broking Limited is a member of: National Stock Exchange (NSE). Bombay Stock Exchange (BSE). Hyderabad Stock Exchange (HSE).

11) IL&FS

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About IL&FS Group: The IL&FS (Infrastructure Leasing and Financial services)Group has developed the requisite capabilities to take infrastructure projects from concept to commissioning. The organisation has developed a pool of institutionalized resources and functional expertise in various areas. These areas include project management, project engineering, finance, risk management and environmental-social management, all of which are strategic to the infrastructure development activity.

1)Infrastructure Services Project Development Cluster Development Environment and Social Education Technology Logistics and Fleet Management Facility Management

2)Financial Services Project Finance Investment Banking Private Equity Trust & Fiduciary

Private Equity: The IL&FS Group offers robust equity fund management services, with investments across Infrastructure, Manufacturing, Technology, Life Sciences and Consumer Services. IL&FS Investment Managers Limited (IIML) is the private equity investment arm of IL&FS. IIML manages a host of private equity/ venture capital funds structured
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across business verticals funding varied stages of business cycles. IIML believes in working actively with entrepreneurs and management teams towards a common goal viz. building sustainable business and delivering market superior returns for its investors. IL&FS Investment Managers Limited (IIML), a subsidiary of Infrastructure Leasing & Financial Services Limited (IL&FS), is one of the oldest and largest private equity fund managers in India, with over $ 2.5 bn under management. Established in 1989, IIML has been an early and in many instances, the first investor across various sectors such as Telecom, City Gas Distribution, Shipyards, Retail, and Media. Funds managed by IIML now span General Purpose Private Equity, Real Estate and Infrastructure. Investors to IIML managed Funds include most of the major Indian Banks & Institutions, and marquee Global Institutional Investors including major U.S. Pension Funds, Endowments and Foundations.IIML is listed on the National Stock Exchange and The Bombay Stock Exchange.

4. Objectives of The Project

Objective of Research:

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Each research has its own specific purpose. The primary purpose of this research is to know the Products (account) types being offered by the major broking firms in the region with special reference to Kotak Securities. The Secondary Objectives: To know about the effectiveness and efficiency of the products of Kotak Securities. To study about the competitive position of Kotak Securities in the market. To identify the USP of each major broking firm.

5. Research Methodology
Type of Research:

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On the basis of theoretical study a research has many types. All of these are based on the nature of research. This research is based on Descriptive, Qualitative and Quantitative research. Descriptive Research: It includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it is at present. Researcher has no control over the variables of this type of research. Qualitative Research: In this research comparison has to be done between different broking firms so this is based on qualitative data. In short qualitative research is specially important to identify or analyse factors which motivate people to behave in a particular manner. Quantitative Research: It is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. So we can use it in our research for collection of all the numerical data. Sample Design: "A Sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting item for the sample." Generally Sample design are of two types: 1. Probability Research Design 2. Non- Probability Research Design The probability research design is used in this research work.

Sampling Units:

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Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. In my research study Pune is a sampling unit. Size Of Sample: "This refers to the number of items to be selected from the universe to constitute a sample" In this research sample size is twelve. Sources Of Data Collection: The methods of data collection include viz. two sources Primary and secondary sources of data collection. In this research primary as well as secondary sources of data are used. Primary data means collected as fresh or the first time data, and secondary means which are already available like Annual Magazines, reports, Company Websites etc.

6. Analysis & Interpretation of Data

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1) Results on the basis of broking charges.

There are two types of transactions that are done in the market which are as follows: 1. Intra Day 2. Delivery a) Comparison on the basis of Intra-day broking charges. All the figures are in paisa per 100 rupees.

Fig 1.1 Comparison on the basis of Intraday Broking Charges Comments: On the basis of intra day based charges Kotak Securities and SMC charges .025 paisa which is the lowest compared to other firms. Angel Broking, Motilal Oswal and Sharekhan charge 10 paisa which is the highest.

b) Comparison on the basis of delivery trade broking charges.

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All the figures are in paisa per 100 rupees.

Fig 1.2 Comparison on the basis of Delivery Brokerage Charges Comments: According to the survey ICICI Direct charges the maximum brokerage on delivery based trading which is 0.75 paisa, whereas Kotak Securities charges brokerage as low as 0.20 paisa on the basis of investments. Delivery based transactions are done by maximum investors and hence low brokerage is important to attract clients. Flexible brokerage is offered by Kotak Securities and also other firms to attract clients.

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2) Results on the basis of Account Opening and DP Charges are as follows.

a) Account Opening Analysis: Kotak Securities A/c opening Nil in Super Saver Maxx Adv Brokerage 1103 i.e refundable. DP Charges 360 Rs pa ICICI Direct Normal Trading + Demat 750 Rs DP Charges are Rs 500 pa Reliance A/ c opening charges 750 DP 250 Rs pa Angel Broking A/c opening 740 Rs AMC 300 Rs pa Motilal Oswal A/c opening charge for EXE version is 1500 Rs and web version is 500 Rs. DP Charges are Rs 500 pa. ( first year free ) Religare offers number of schemes with limited validity period. Basic A/c at 299 Lie at 499 and Pro at 999. Religare offers lifetime free DP Services. Indiabulls A/c opening charge is 900 Rs Software charge one time is 750 Rs DP Charges 250 Rs pa ( first year free) Il&FS A/c opening charge is 750 Rs DP charges 600 ( first year free) SMC A/c opening charge is 750 with ODIN Diet and without it Rs 240 Rs DP charges 240 pa ( first year free ) India Infoline A/c opening charges 555/- DP charges 250 Rs pa ( first year nil ) Margin 5000/ Sharekhan A/c opening fees 1000 for speed trade A/c with trading terminal For the Classic A/c Rs 750 with no trading terminal. Margin Rs 5000/-. DP Charges are Rs 300 pa Karvy Stock Broking Ltd A/c opening requires 650 Rs ( inclusive of DP Rs 450 Rs) next year onwards DP charges Rs 450.

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Comments: Kotak Securities provides nil a/c opening offer but one has to pay 1103 India Bulls charges the highest for a normal a/c i.e 900 Rs and they Sharekhan charges 750 Rs for opening an a/c. but without a trading SMC Global charges 240 Rs for a/c opening but without a software Overall a number of positives for Kotak Securities as they do not

Rs as advance brokerage which is refundable when met with conditions. also charge for the software. terminal. terminal. charge for opening a/c plus the advance brokerage is reversible and software is provided free of cost and margin is zero. b) DP Charges Analysis: Kotak Securities DP Charges 360 Rs pa right from first year. ICICI Direct DP Charges are Rs 500 pa right from first year. Reliance Money DP 250 Rs pa right from first year. Angel Broking Ltd AMC 300 Rs pa right from first year. Motilal Oswal DP Charges are Rs 500 pa. ( first year free ) Religare They offer lifetime free DP Services. Indiabulls DP Charges 250 Rs pa ( first year free) Il&FS DP charges 600 Rs pa ( first year free) SMC Global DP charges 240 pa ( first year free ) India Infoline DP charges 250 Rs pa ( first year nil ) Sharekhan DP Charges are Rs 300 pa right from first year. Karvy Stock Broking Ltd DP charges Rs 450 pa right from first year.

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Fig 1.3 Comparison of DP Charges Comments: Religare offers lifetime free DP services to its clients and this has worked in its favor. IL&FS, Motilal Oswal, India Infoline, India bulls and SMC do not charge their customers for DP in the first year. IL&FS charges the highest maintenance charges i.e Rs 600. ICICI Direct charges 600 Rs equal to Motilal Oswal which is quite high compared to Kotak Securities and SMC which charges Rs 240pa. Kotak Securities charges Rs 360 as DP charges right from first year.

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3) Results on the basis of Share in the securities market.

Share of the company 1 % to 5 % 5% to 10% 10 % to 12.5% 12.5% to 15% Company Name Nil Rel Money, ICICI, Religare, IL&FS Kotak, India Infoline,Angel, Motilal Oswal Sharekhan, SMC Global, Karvy, India Bulls Table 2.1 Market Share of Firms

Fig 1.4 Market Share of Firms Blue color indicates share of Reliance, ICICI, Religare and IL&FS. Red indicates share of Kotak, India Infoline, Angel and Motilal Oswal. Yellow indicates share of Sharekhan,SMC,Karvy and Indiabulls. Comments: Kotak Securities share in the market stands around 10 % in the market and it considers India Bulls as its fierce competitor. Sharekhan, SMC Global, Karvy and Indiabulls claim that they have achieved a share market of more that 12.5 %.

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4) Comparison on the basis of flexible broking rates offered by the companies.

Amongst the 12 firms 10 provide flexible broking structure to suit the profile of their client while the other two does not do the same. The ten companies which provide flexible broking rates are ICICI Direct, Sharekhan, Motilal Oswal, religare, Angel Broking, India Bulls, India Infoline, SMC, Karvy and Kotak Securities. The two companies which do not offer flexible broking rates are Reliance Money and Il&FS.

Fig 1.5 Responses about flexible brokerage Comments: Flexible broking structure should be provided by the companies in order to keep the clients for a long time or else the clients will search for alternatives. It basically strengthens the relations between the firm and the client and goes a long way in maintaining the relationship.

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5) Comparison on the basis of USP of each firm: Name of the Company Reliance Money ICICI Direct Sharekhan Motilal Oswal Religare Angel Broking India Bulls India Infoline IL &FS SMC Global Kotak Securities Karvy Stock Broking Ltd. USP Low broking rates, online security User friendly online a/c, online security Trading software, client profit orientation A research driven company. Service to clients Personalized service to clients with full transparency Service to clients, software for trading Research reports, DP charges Research, ethical business policy Service to clients, relationship Low rates, research reports, softwares to trade. Registrar to IPOs , NFOs etc.

Table 2.2 USP of each firm Comments: Motilal Oswal, India Infoline, Il&FS and Kotak Securities claim that they are good at research reports and that helps them to attract clients. Reliance Money offers the lowest brokerage rates and this has helped it to grow their market share. Karvy Stock Broking Ltd has a great reputation for being the registrar for IPOs and NFOs. Indiabulls, SMC Global, Angel Broking and Religare believe that efficient service to their clients is their strength.

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5) Comparison on the basis of priority of each firm.

Parameters/Scale Customer Satisfaction Revenue 1 (low) Nil Nil 2 (medium) 3 ( high) All the firms

Nil

Rel Money, Motilal, ICICI,Angel, India Infoline Rel Money, Motilal, Religare

Sharekhan, Religare, IL&FS,SMC,IndiaBulls, Karvy,Kotak Sharekhan, IL&FS,SMC, ICICI,Angel, India Infoline,IndiaBulls,Karvy,Kota k

Growth

Nil

Table 2.3 Priority of each firm Reponses of companies to revenue as priority:

Fig 1.6 Revenue as Priority

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Responses of companies to Growth as a priority:

Fig 1.7 Growth as a Priority Comments: Customer Satisfaction: All the firms unanimously agree that customer satisfaction is always on top in their priority list. Revenue: Five out of the total firms keep revenue at a lower position in their priority list whereas the other firms keep revenue at the top level. Growth: In terms of Market Share or Growth Reliance Money, Motilal Oswal and Religare gives it a less priority and instead they want to keep customer satisfaction as their top priority.

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6) Comparison of responses regarding investment pattern of investors.

Variables affecting investment pattern 1) Functioning of companies 2)Government Policies 3) Political Stability 4) All of the above Company Name Rel Money, Religare, IL&FS, Karvy, Kotak Securities, India Infoline SMC Nil ICICI, Sharekhan, Motilal Oswal, Angel Broking, India Bulls

Table 2.4 Responses regarding investment pattern of investors

Fig 1.8 Representation of responses regarding investment pattern Comments: From the responses of the companies we can infer that the functioning of companies is considered more critical by maximum number of firms which can influence the investment pattern of investors. Few companies believe that all the given options play a decisive role in influencing the investment pattern of investors.

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7) Findings
On the basis of the survey of the major broking firms and secondary data I arrive at the following findings. 1)Kotak securities developed a new product called Kotak Super Saver Maxx to tackle the slowdown in the market which offers nil a/c opening fees and one has to just pay the advance brokerage of 1103 Rs which is refundable if one gets a brokerage of equal amount in the next six months of trading. 2) Kotak Securities has introduced a new software called KeatPro which is very efficient and user friendly. 3) The charges of Kotak Securities are competitive and cost effective and in sync with other cost effective firms like Reliance Money. 4) A major issue with Kotak Securities when compared to other firms, is that it is not well spread in a big city like Pune. There is only a main branch and which is the only point of contact to all its clients. 5) Kotak Securities do not have people at the executive level who are responsible for getting business. Instead Kotak Securities has RMs ( Relationship Managers) who are responsible for getting and maintaining accounts which increases their work manifolds. 6) Kotak Securities does not have a satisfactory presence in smaller cities like

Aurangabad, Nagpur etc. and rural areas. This has resulted in loss of retail accounts to other firms. 7) Kotak Securities does not concentrate on Retail business even though it has a huge potential to earn revenue from it.

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8) Recommendations
Based on the survey of other major broking firms and the secondary data collected I recommend the following points to Kotak Securities. 1) Kotak Securities needs to increase its sales force as they do not have people at the executive level. There are RMs (Relationship Managers) who are responsible for getting and maintaining accounts. 2) Kotak Securities needs to spread it branches in a big city like Pune as it has a lot of potential for growth. 3) Kotak Securities should concentrate on Retail business also as it has a huge potential to earn it revenue. 4) Kotak Securities should establish its branches in small cities and rural areas as it has been ignored for a long time and which is an emerging market. 5) Kotak Securities needs to increase its sales force manifolds as other firms have strong network of branches and sales force. Kotak Securities should have a sales force of about 200 in Pune city.

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9) Annexure Questionnaire
Project Title:

Comparative Study of the products being offered by Kotak Securities and other major firms
Name Of the Firm: Contact Person:..
Q1) Which amongst the following products and services your firm offers? a) IPOs d) Equities f) Mutual Funds b) Commodities e) Structured Products g) Derivatives c) Govt Bonds

Q2) what is the market share of your company? a) 1% to 5% c) 10 to 12.5% b) 5%to 10% d) 12.5% to 15 %

Q3) What are the different products or account types that your firm offers? Ans. ____________________________________________________________ Q4) Which product has helped you to attract more clients? Ans. ____________________________________________________________ Q5) Do you have the policy of flexible broking rates for high valued clients? a) Yes b) No

Q6) What is the USP of your firm that sets you apart from others? Ans.

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Q7) What amongst the following influences the investment pattern in investors? a. b. c. d. Functioning of companies Government policies and regulations. Political Stability All of the above

Q8) What were the innovative strategies and policies to tackle the slowdown in the market? Ans. Q9) And were the strategies effective? a) Yes b) No c) Cant Say

Q 10 ) How would you rate the following in your priority list? Parameters/ Scale 1 Lowest Customer Satisfaction Revenue Market Share / Growth 2 Moderate 3 Highest

Q11) Which company or companies in your opinion are your closest competitors? Ans. a) IL&FS e)Karvy i) Motilal Oswal b) Religare c) Rel Money d) SMC h) Sharekhan l) ICICI

f) Kotak Securities g)India Infoline j) Angel Broking k) India Bulls

Thank You

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Bibliography
Research methodology by C R Kothari, 2nd edition. Marketing Research by G.C. Beri ( Tata McGraw Hill )

Webliography:

www.nseindia.com www.bseindia.com www.kotaksecurities.com www.reliancemoney.com www.sharekhan.com www.indiabulls.com www.karvy.com www.motilaloswal.com

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