equity trading in india suhaib khan

8/4/2019 Equity Trading in India Suhaib Khan

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EQUITY TRADING IN INDIA & THE FUTURE OF

ONLINE TRADING & DEMAT ACCOUNTS

SUMMER TRAINING PROJECT REPORT

SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT

FOR THE AWARD OF

DIPLOMA

Submitted by:-

SAJEEV KUMAR

BIFM

(2009-2012)



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ACKNOWLEDGEMENT

I was actively involved with SHAREKHAN LTD. in Noida sector18 branch for a period of 2

months, and I can across a lot of people who put in their time and effort towards acclimatizing

me to the working of their organization.

I first of all would like to extend my profound sense of gratitude toMr. NARESH GUPTA

(territory manager) sharekhan ltd. For providing me the opportunity to work as a summer trainee

in the esteemed organization.

I am indebted to my project supervisor Mr. SACHIN KUMAR (assistant manager) sharekhan

ltd. who took keen interest in my study and helped me a lot conduct this study through his

erudition and eminent guidance whenever I was needed his calm demeanor and willingness to

teach is, has not only been a great help in successfully completing my project but also a doorway

to immeasurable learning and great experience.

I would like to thank to all management of share khan ltd. for giving me an opportunity to

be part of the esteem organization and enhance my knowledge by granting permission to do my

summer training project under their guidance.

Thanking all the people with whom I have interacted during the course of my training.

I shall be failing my duty if I do not express my sincere thanks to all the teachers and

colleague of department for their affection encouragement cooperation and guidance.



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Candidate¶s declaration

I hereby declare that the work presented by me under this project is an authentic record of my

own work carried during the period of 1st may to 30 June under the supervision of

Mr.SACHIN KUMAR (assistant manager)

SHAREKHAN, NOIDA.



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TABLE OF CONTENTS

Sl.no Content Page no.

1. Preface

2. Executive Summary

3. Company Profile

4. Work Structure

5. Achievements

6. Hierarchical Structure

7. SWOT Analysis

8. Types of Accounts

9. Brokerage Charges

10. Demat and Trading Account

11. Suggestions

12. Limitations

13. Conclusion

14. Bibliography



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PREFACE

The stock market in India has been a kind of mysterious place for many people who think that

the persons investing their money in the market are sort of gambling on their money. There is

usual misconception in the minds of the common man that because of the volatility of the

market, their hard earned money is not safe in the stock market.

However, this fear can be checked by proper research on a share someone is interested to invest

on. The market doesn¶t behave in an arbitrate manner but certain trends are repeated over the

time again and again. It is quite responsive towards the economic activities taking place in India

as well as around the whole world.

The broad objective of the project is to understand the behavioral pattern of Equity trading in

India & The future of online Trading&Demat Account in India.



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EXECUTIVE SUMMARY

In few years Equities has emerged as a tool for ensuring one¶s financial well being. Equities have

not only contributed to the India growth story but have also helped families tap into the success

of Indian Industry. As information and awareness is rising more and more people are enjoying

the benefits of investing in equities.

The main reason the number of retail equities investors remains small is that nine in ten people

with incomes in India do not know that equities exist. But once people are aware of equities

investment opportunities, the number who decide to invest in equities increases to as many as

one in five people. The trick for converting a person with no knowledge of equities to a new

Equities customer is to understand which of the potential investors are more likely to buy

equities and to use the right arguments in the sales process that customers will accept as

important and relevant to their decision.

This Project gave me a great learning experience and at the same time it gave me enough scope

to implement my analytical ability. The analysis and advice presented in this Project Report is

based on market research on the saving and investment practices of the investors and

preferences of the investors for investment in Equities. This Report will help to know about the

investors¶ Preferences in Equities means Are they prefer any particular Asset Management

Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they

prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan).

This Project as a whole can be divided into two parts.

The project gives an insight about the Company Profile of sharekhan ltd. broker company,

organization structure and product of the company and Equities and its various aspects,

Objectives of the study, Research Methodology. One can have a brief knowledge about Equities

and its basics through the Project.



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Company profile

INTRODUCTION

Sharekhan is one of the top retail brokerage houses in India with a strong online trading

platform. The company provides equity based products (research, equities, derivatives,

depository, margin funding, etc.). It has one of the largest networks in the country with 1288

share shops in 325 cities and India¶s premier online trading portal www.sharekhan.com. With

their research expertise, customer commitment and superior technology, they provide investors

with end-to-end solutions in investments. They provide trade execution services through multiple

channels - an Internet platform, telephone and retail outlets.

It is the retail broking arm of the Mumbai-based SSKI [SHANTILAL SHEWANTILAL

KANTILAL ISWARNATH LIMITED] Group. .Sharekhan is online stock trading company of

SSKI Group, provider of India-based investment banking and corporate finance service.

Sharekhan is one of the largest stock broking houses in the country.

ShriShantilalShewantilalaKantilalIshwarlal Securities Limited (SSKI) has been among India¶s

leading broking houses for more than a century.

It has a client base of 1.5 Corers. Launched on 8th February, 2000 as an online

trading portal, Sharekhan offers its clients trade execution facilities for cash as well as

derivatives, on BSE and NSE, depository services, equities, initial public offerings (IPOs), and

commodities trading facilities on MCX and NCDEX. Besides high quality investment advice

from an experienced research team Sharekhan provides market related news, stock quotes

fundamental and statistical information across equity, equities, IPOs and much more. Sharekhan

is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan¶s

expertise lies in stocks and that's what he talks about with authority. To sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth of content that will

help you stalk the right shares.



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SHAREKHAN LIMITED¶S MANAGEMENT TEAM

WORK STRUCTURE OF SHAREKHAN

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

used some of the best-known names in the IT industry, like SunMicro systems, Oracle,

Microsoft, Cambridge Technologies, Nexgenix, Vignette,Verisign Financial Technologies India

Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Citi Venture holds a

majority stake in the

company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based executable

application that emulates the broker terminals along with host of other information relevant to

the Day Traders. This was for the first time that a net-based trading station of this caliber was

offered to the traders. In the last six month¶s Speed Trade has become a de facto standard for the

Day Trading community over the net.

Sharekhan¶s ground network includes over 1288+ Share shops in 325+ cities in India. The firm¶s

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 3 Lacs customers.

The number of trading members currently stands at over 8 Lacs. While online trading currently

accounts for just over 5 per cent of the daily trading in stocks in India, Sharekhan alone accounts

for 27 per cent of the volumes traded online.



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The Corporate Finance section has a list of very prestigious clients and has many first to its

credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in

private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,

Hutchison, Planet asia, and Shopper¶s Stop.

Finally, Sharekhan shifted hands and Citi venture get holds on it.



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ACHIEVEMENTS OF SHAREKHAN

A rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc by

µBusiness Today¶, January 2004 edition.

Awarded µTop Domestic Brokerage House¶ four times by Euro money and Asia money.

Pioneers of online trading in India amongst the top 3 online trading websites from India.

Most preferred financial destination amongst online broking customers.

Winners of ³Best Financial Website´ award.

India¶s most preferred brokers within 5 years. ³Awaaz customers Award 2005´.

Future Plans

2,00,000 plus retail customers being serviced through centralized call centers/ web

solutions.

Branches / Semi branches servicing affluent / aggressive traders through high skill

financial advisor.

250 independent investment managers/ franchisee servicing 50,000 highly valued clients.

Vision:

To be the best retail brokering brand in the retail business of stock marketing.

Mission:

To educated and empower the individual investor to make better investment better decision

through the quality advise and superior services.



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Sharekhan is infact:

1. Among the top three branded retail service provider.

2. No.1 player in the on line trading business.

3. Largest network of branded broking outlet in the country service more then 700000 client.



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HIERARCHY IN SHAREKHAN

CEO

Vicepresident

Assistant vicepresidentmanager

Country head

regional salesmanager(Branch

manager)

Area sales manager

Territory manger

Assistant sales manager/HNI SalesAsst.Manager/Relationship

Manager/Equity advisor.

Senior sales executives

Sales executives/dealer

Super trainees

Trainees



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There are 13 main hierarchical levels in Sharekhan:

1) Trainees

2) Super trainees

3) Sales executives/dealer

4) Senior sales executives

5) Assistant sales manager/HNI Sales Asst.Manager/Relationship Manager/Equity advisor.

6) Territory manger

7) Area sales manager

8) regional sales manager(Branch manager)

9) Country head

10) Assistant vice president manager

11) Vice president

12) Directors

13) CEO



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SWOT ANALYSIS

STRENGTHS

y It is a pioneer in online trading with a turnover of Rs.400crores and more than

800 peoples working in the organization.

y SSKI the parent company of Share Khan has more than eight decades of trust and

credibility in the Indian stock market. In the Asian Money Broker¶s poll SSKI won

the ³India¶s best broking house for 2004´ award.

y Share Khan provides multi-channel access to all its customers through a strong online

presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center

based Dial-n-Trade facility.

y Share Khan has dedicated research teams for fundamental and technical research. Which

constantly track the pulse of the market and provide timely investment advice free of

cost to its clients which has a strike rate of 70-80%.

y Employees are highly empowered. And strong communication network.

y Management philosophy and commitment to maximize shareholders return and upgraded

product design and development facilities to develop new products and aid

diversification.

y Ongoing activities to support up gradation of operational performance and rise in

productivity and Team of talented and committed professionals available to

improve company¶s performance weakness.

y Good co-operation between employees.



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WEAKNESS

y Localized presence due to insufficient investments for country wide

expansion.

y Lack of awareness among customers because of non-aggressive promotional

strategies (print media, newspapers, etc).

y High brokerage charges but now they have overcome this by a new prepaid scheme in

which brokerage is reduced to half.

OPPORTUNITIES

y With the booming capital market it can successfully launch new services and raise

its client¶s base.

y It can easily tap the retail investors with small saving through o promotional channels like

print media, electronic media, etc.

y As interest on fixed deposits with post office and banks are all time low, more and more

small investors are entering into stock market.

y Abolition of long term capital gain tax on shares and reduction in short term

capital gain is making stock market as hot destination for investment among small

investors.

y Increasing usage of internet through broadband connectivity may boost a whole new

breed of investors for trading in securities.

y Growth rate of equities industry is 40 to 50% during last year and it

expected that this rate will be maintained in future also.

y Marketing at rural and semi-urban areas.

THREATS

y Aggressive promotional strategies by close competitors may hamper Share Khan¶s

acceptance by new clients.

y Lack of sufficient branch-offices for speedy delivery of services.



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y Other players are providing margin funds to investors on easy terms where as there is

no such facility in share khan.

y More and more players are venturing into this domain which can further reduce the

earnings of Share Khan.

y Increasing number of Competitors.

y Constant pressure to be cost competitive to meet customer¶s expectations.

y Relentless pressure to maintain profitability due to rising input/raw

material prices.



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SHAREKHAN LIMITED

TYPES OF ACCOUNT SOFTWARE

Sharekhan offers four types of trading account for its clients:

Classic account software.

New Fast trade account software



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Trade Tiger Account software

CLASSIC ACCOUNT:

This is a User Friendly Product which allows the client to trade through website

www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to

invest in stocks or who does not trade too frequently. This account allow investors 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.

This account comes with the following features:

y Online trading account for investing in Equity and Derivatives via

www.sharekhan.com

y Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

y Integration of On-line trading, Saving Bank and Demat Account.

y Instant cash transfer facility against purchase & sale of shares.

y Competitive transaction charges.

y Instant order and trade confirmation by E-mail.



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y Streaming Quotes (Cash & Derivatives).

y Personalized market watch.

y Single screen interface for Cash and derivatives and more.

y Provision to enter price trigger and view the same online in market watch.

Fast trade account:

This online trading platform is an applet based application that provide lives streaming quotes

from BSE and NSE .get live market prices and market statistics like the best bid prices ,quantity

,best offer price and quantity etc. for chosen stocks customize the screen with your own choice

of securities.


Streaming quotes.

Personalized market watch.

Single screen interface for cash, derivatives and more.

Provision to enter price trigger and view the same online in market watch

New fast trade will support all browser in the market.

New fast trade is independent of existing website and can work even if content website is

down.

New fast trade is platform independent will support by all operating system.

Silent feature

y Faster Download of Flash plug-in ( Most people have it by default)

y No requirement of Microsoft / Sun JVM

y Excellent UI

y Compression and Security

y Working on all browser Applet works only with I.E ( Applet doesn¶t work on I.E. 7 and

above)

y Dynamic Feed & Order Placement on the Browser



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y Market / Exchange News

TRADE TIGER ACCOUNT:

This is an internet-based software application, application, which enables one to buy and sell in

an instant. It is ideal for active traders and jobbers who transact frequently during day¶s session

to capitalize on intra-day price movement.


y A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX,

Equities, IPOs

y Multiple Market Watch available on a Single Screen

y Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with

various Studies

y Graph Studies include Average, Band-Bollinger, Know Sure Thing, MACD etc

y Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines

y User can save his own defined screen as well as graph template, that is, saving the layout

for future use.

y User-defined alert settings on an input Stock Price trigger

y Tools available to gauge market such as Tick Query, Ticker, Market Summary, Action

Watch, Option

y Premium Calculator, Span Calculator

y Shortcut key for FAST access to order placements & reports

y Online fund transfer activated with 12 Banks,

DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also

gives Dial-n-trade services. With this service, one can dial Share khan¶s dedicated phone lines 1-

800-22-7500, 3970-7500. Beside this, Relationship Managers are always available on Office

Phone and Mobile to resolve customer queries.



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All you have to do is dial any one of our two dedicated numbers (1-800-22-7050 or 30307600),

enter your TPIN number (which is provided at the time of opening your account) and on

authentication you'll be directed to a telebroker who will buy and sell shares for you

Features of Dial-n-Trade:

y TWO dedicated numbers for placing your orders with your cellphone or landline. Toll

free number: 1-800-22-7050. For people with difficulty in accessing the toll-free number,

we also have a Reliance number (Your Local STD Code) 30307600 which is charged at

as a local call.

y Simple and Secure Interactive Voice Response based system for authentication

y No waiting time. Enter your TPIN to be transferred to our telebrokers

y You also get the trusted, professional advice of our telebrokers

y After hours order placement facility between 8.30 am and 9.00 am

y Reliable service, wherever you are

ShareMobile

Sharekhan had introduced ShareMobile, mobile based software where one can watch Stock

Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile.



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Sharekhan¶s brokerage charges

NORMAL PLAN

MARGIN MONEY (Rs.) INTRA DAY CHARGES

(%)

DELIVERY CHARGES (%)

5,000 0.05 0.25

10,000 0.05 0.25

20,000 ± 25,000 0.05 0.25

50,000 ± 1,00,000 0.04 0.20

5,00,000 0.03 0.15

NOTE:

y In margin money of Rs. 5,000 , there is no account opening charge.

y Charges of intraday & delivery are negotiable , depending upon the amount of margin

money.

y Trade tiger software is free on the margin money above Rs.2,00,000.

PREPAID PLAN

PRE PAID AMOUNT (Rs.) INTRA DAY CHARGES

(%)

DELIVERY CHARGES (%)

750 0.050 0.50

2,000 0.035 0.40

6,000 0.025 0.25

18,000 0.020 0.20



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NOTE:

y In 750 plan, Rs.750 is expired after six months.

y In other plan, amount is expired after twelve months.

y Trade tiger software is free in 6,000 and above plan.

y Charges of intraday & delivery are negotiable as per the investment amount.

TIED UP WITH THE BANKS:

y HDFC BANK

y CITI BANK

y UNION BANK OF INDIA

y ORIENTAL BANK OF COMMERCE

y AXIS BANK

y IDBI

y INDUSLAND BANK

y BANK OF INDIA

y ICICI BANK

y YES BANK

y DEUTSCHE BANK

y FEDERAL BANK

Sharekhan provides 4 in 1 account

Demat and trading account. Equities

Portfolio Management System

Commodities

Out of these we have to mostly sell demat accounts and Equities.



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Demat and trading account

DEMAT ACCOUNT:

INTRODUCTION

The term Demat, in India, refers to a dematerialized account. For individual Indian citizens to

trade in listed stocks or debentures the Securities Exchange Board of India (SEBI) requires the

investor to maintain a Demat account. In a demat account shares and securities are held in

electronic form instead of taking actual possession of certificates. A Demat Account is opened

by the investor while registering with an investment broker (or sub broker). The Demat account

number which is quoted for all transactions to enable electronic settlements of trades to take

place.

Access to the demat account requires an internet password and a transaction password as well as

initiating and confirming transfers or purchases of securities. Purchases and sales of securities on

the Demat account are automatically made once transactions are executed and completed.

Sharekhan is a depository participant. This means that we can keep the shares in dematerialized

form in Sharekhan. But for this one has to the demat account in Sharekhan. Dematerialization isthe process by which a client can get physical certificates converted into electronic balances

maintained in his account with the DP.

Demat account allows you to buy, sell and transact shares without the endless paperwork

and delays. It is also safe, secure and convenient.

In India, a demat account, the abbreviation for dematerialized account, is a type of banking

account which dematerializes paper-based physical stock shares. The dematerialized account is

used to avoid holding physical shares: the shares are bought and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India (SEBI)

mandates a demat account for share trading above 500 shares. As of April 2006, it became

mandatory that any person holding a demat account should possess a Permanent Account



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Number (PAN), and the deadline for submission of PAN details to the depository lapsed on

January 2007.

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form. Although

the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of

up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a

demat account is a must for trading and investing.

Why demat?

The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier,

enables quick ownership of securities on settlement resulting in increased liquidity,

avoids confusion in the ownership title of securities, and provides easy receipt of

public issue allotments.

It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of

certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting

and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp

duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds,

and obtain quick receipt of such benefits as stock splits and bonuses.

DEMAT Benefits

A safe and convenient way to hold securities.

Immediate transfer of securities.

No stamp duty on transfer of securities (0.5 % on physical shares).

Elimination of risks associated with physical certificates such as bad delivery,

fake securities, delays, theft etc.

Reduction in paper work.

Reduction in transaction cost.

No odd lot problem, even one share can be sold.



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Meaning of Trading Account

1. An account similar to a traditional bank account, holding cash and securities, and is

administered by an investment dealer.

2. An account held at a financial institution and administered by an investment dealer that the

account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.

TYPES OF TRADING

At the end of this section, you will be familiar with terms like Cash market, Margin trading,

Futures & Options and Commodity trading.

Cash Segment

Cash market trading is meant for the people who wish to buy shares with an intention of taking

delivery of shares. They need to allocate full amount towards the purchase of the shares at the

time of placing order. That means the trading account must have sufficient funds to take care of

the total cost of the purchase of the shares, brokerage and other charges. The shares get deliveredto the investor's DP account after the settlement process. The investor may the sell the shares on

the next trading day, provided the shares are not trade to trade segment (T2T). In such cases, the

shares can be sold only after the receipt of the same.

Margin Trading

In margin trading, the broker allows the investor to buy shares worth up to 4 times the available

balance in his trading account. But, not all the shares can be traded in the margin segment. The

investor has to square off the trades within the same day. That means, if an investor buys 500

shares of xyz company at a total cost of Rs.50,00000, he has to sell it before the stipulated time

on the same day. If the market moves against the investor's position then he has to take delivery

of the shares. If the shares have to be taken for delivery, brokerage will be charged more and the



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investor should settle the balance amount as per the agreement with the broker. If investor has

done a short sell, he has to buy the shares.

Short sell can not be carried forward to the next day. If it is not squared off, then he will be

forced to pay penalty charges. Margin trading is also referred as Day trading or Intra day trading

by some people. Stop loss trigger may be used to minimize the loss if the market moves contrary

to the expectation of the investor. Assuming that after buying the share prices goes down, the

investor can minimize the loss by putting the stop loss trigger price and a limit price. When the

stock price hits the stop loss trigger price, the system starts selling the shares, it is sold till the

limit price of the sell order. In general the limit price is set 5% lower than the stop loss price for

selling.

Futures and Options

Future represents a contract between a buyer and seller on a specific quantity of financial

instrument like currency, stock market index or stocks, or even a commodity, at a specified price

with a defined delivery or settlement period. Futures are traded in ³lots´ of underlying assets like

stocks. Buying a contract is known as long position and selling a contract is called as short position. Future contracts have two types of settlements, one is a physical delivery and the other

one is settling in cash. Physical delivery part may be exercised in a commodity future contract.

Last Thursday of the month is the due date for delivery or settlement of all F&O contracts.

However there is no need to wait till the last day of the settlement of the future contract. The

contract can be squared off even before the expiry date.

In F&O segment, both the buyer and seller face equal risks. So, we can say that the risk factor is

symmetrical. The operators or investors of Future & Options segment can be classified as

Hedgers - who have positions in long and short in F&O segments, so that any market fluctuation

will not affect them. Speculators - Risk savvy people, who speculate and take their positions in

F&O and the leave the rest to the market. The speculators get in to highest degree of exposure to

risks. Same time speculators make big profits, if the market condition is in favor to them. Third



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category is known as Arbitrageurs operate in various markets simultaneously to protect their

interests, they may take a short position in F&O and long position in cash segment.

Futures & Options trading is also known as derivative trading. The major difference between

equity trading and derivative trading is, in case of futures, the short positions can be carried

forward until the expiry of the contract, where as in cash segment, the short positions have to be

squared off on the same day, failing which the investor has to pay the penalty charges. F & O

segment is actively traded by the Foreign Institutional Investors and the turnover is 4 times

higher than cash segment.



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SUGGESTIONS

1. MORE BRANCHES ±

Need to open more branches to be a topper in market Because itallows distribution network

2. LESS TIME ±

They should try to make some arrangements to reduce account opening time by verifying

documents at branch it selves.

3. LINK-BANK A/Cs ±

Linked as many accounts as client wants to its online account.

4. NEW BANKS IN THE KITTY ±

Need to tie up with major banks like SBI, Allahabad Bank, Bank of Baroda etc.

5.CUSTOMER SATISFACTION ±

The company should focus on the customer satisfaction not on just taking money from their

pocket.

7.CONTROLLED BRANCHES ±

The company would have to make some arrangements to control the branches and make

standardized procedures for all of them for their better control and performance

appraisal.

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

Improvement in the opening of De-mat & contract notice procedure is required.

There should be a limited number of clients under the relationship manger. So that he can

handle new as well as old customer properly.

Some promotional activities are required for the awareness of the customer.

People at young age should be encouraged to invest in stock market.

Seminars should be held for providing information to prospective and present

CUSTOME.



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LIMITATIONS

� Lack of awareness of capital market:

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

shares primarily in IPO¶s.

� 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.

� 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 respondents 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 number to wrong phone number

� Misleading concepts:

Some people think that as all the shares are in electronic form and they don¶t have any

physical proof. Sometimes this leads to a great misconception of the entire process.

� The time constraint was one of the major problems.

� The study is limited to the different schemes available under the Demat account selected.

� The lack of information sources for the analysis part.

� Geographical locations.

� Extreme variability in MARKET.



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CONCLUSION

On the basis of the study it is found that Sharekhan Ltd is better services provider than the

other stockbrokers because of their timely research and personalized advice on what

stocks to buy and sell. Sharekhan Ltd. provide the facility of Trade tiger as well as relationship

manager facility for encouragement and protect the interest of the investors. It also provides theinformation through the internet and mobile alerts that what IPO¶s are coming in the market and

it also provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity market and while it¶s going

to be biggest market in India.

The company should also organize seminars and similar activities to enhance the knowledge of

prospective and existing customers, so that they feel more comfortable while investing

in the stock market.



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BIBLIOGRAPHY

Websites:

1. www.Google.com

2. www.bseindia.com

3. www.nseindia.com 4. www.moneycontrol.com

5. www.sharekhan.com

6. www.icicidirect.com

7. www.5paisa.com

8. www.Indiabulls.com

9. www.hdfcsecurities.com

10. WWW.KARVY.COM

NEWSPAPERS:

1. ECONOMIC TIMES

2. TIMES OF INDIA

3. FINANCIAL EXPRESS

equity trading in india suhaib khan

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