Presentation Presentation on on

comparative comparative analysis of stock analysis of stock

brokersbrokersSubmitted By:

Poonam Nanda -1174275 (MBA 3A)Submitted To : Mr. Sonu Dua

INTRODUCTIONINTRODUCTIONIn most industrialized countries, a substantial part of financial wealth is not managed directly by savers, but through a financial intermediary, which implies the existence of an agency contract between the investor (principal) and a broker or portfolio manager(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 like Chandigarh, Gurgaon, Jaipur etc. As the per-capita-income of the city is on the higher side, so it is quite obvious that they want to invest their money in profitable ventures. On the other hand, a number of brokerage houses make sure the hassle free investment in stocks. Asset management firms allow investors to estimate both the expected risks and returns, as measured statistically.

INTRODUCTION OF THE COMPANYINTRODUCTION OF THE COMPANY

THE KOTAK MAHINDRA GROUP

Kotak Mahindra is one of India's leading banking and financial services organizations, offering a wide range of financial services 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 diverse financial needs of individuals.

The group has a net worth of over Rs. 100.6 billion 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 servicing around 8 million customer accounts.

INTRODUCTION TO KOTAK SECURITIES LtdINTRODUCTION TO KOTAK SECURITIES Ltd

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network of more than 1400 branches, franchisees representative offices, and satellite offices across 448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore.

They process more than 4,00,000 trades a day which is much higher than some of the renowned international brokers.The company is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE). Currently, Kotak Securities is one of the largest broking houses in India with substantial geographical reach to Asia Pacific, Europe, Middle East and America.

> They have been the pioneers in providing many products and services.Some of them include:

Mobile stock trading application to keep track of the investments. Facility of Margin Finance to the customers for online stock

trading. Investing in IPO’s and Mutual Funds on the phone. SMS alerts before execution of depository transactions.

AWARDSAWARDS

Best Broker in India by Finance Asia for 2009 & 2010. Best Brokerage Firm in India by Asia money in 2009, 2008, 2007

& 2006 UTI MF - CNBC TV18 Financial Advisor Awards - Best

Performing Equity Broker (National) for the year 2009 Best Performing Equity Broker in India - CNBC TV 18 – Optimix

Financial Advisory Awards, 2008 Avaya Customer Responsiveness Awards (2007) in Financial

Services Sector The Leading Equity House in India in Thomson Extel Surveys

Awards for the year 2007 Euro money Award (2006 and 2007) - Best Provider of Portfolio

Management: Equities Avaya Customer Responsiveness Awards (2006) in Financial

Institution Sector.

ONLINE ACCOUNT TYPESONLINE ACCOUNT TYPES

Twin Advantage / Green Channel: 2 DP’s, Limit against shares Free Way: Flat Rs 999 Cover Charge p.m 0.03% per transaction High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55 Cash Expressway: Spot payment, additional 0.5% charges. For Kotak Fast Lane / Keat Lite / Keat PRO X are trading interfaces Keat Desktop with advanced tools comes at a charge of Rs 500 p.m

PRICING OF KOTAK Account Opening: Rs 500 Demat: Rs 22.5 p.m Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 1000 Brokerage Slab wise: Higher the volume, lower the brokerage. Even older

customers (on 0.25% & 0.40%) have been moved to the slab wise structure wef 1/4/2011.

SLAB STRUCTURE OF KOTAKSLAB STRUCTURE OF KOTAK

< 1 lakhs 0.65%

1 lakhs - 5 lakhs 0.60% < 10 lakhs 0.10% 10lakhs - 25 lakhs 0.08% 25lakhs – 2 Cr 0.06% 2 Cr - 5 Cr 0.05% > 5 Cr 0.04%

SALIENT FEATURESSALIENT FEATURES  

  KOTAK is charging low rate of Brokerage among the entire

brokerage house.  Providing both types of trading to its customers ONLINE a well as

OFFLINE.  One of the largest broking houses in India. It is the first broking house with the Concept of ONLINE

TRADING.  Maximum Satisfactory for its clients and for Employees too.  No work pressure for employees. Having high security site with a PROTOCOL http.    

WHY JOIN KOTAK????WHY JOIN KOTAK????

  BRAND The Kotak Brand Identity serves not only to differentiate us from

other brands but also communicates our attitude, character and values. Brand Identity is an important strategic asset. Our brand helps us communicate coherently and clearly with our customers, employees, business associates and all other stakeholders – a critical

requisite in an increasingly cluttered business world.

LEADERSHIP EDGE Kotak Securities is one of the best stock broking houses in the

country. We have been the pioneers in introducing the sub-broker model in the Stock Broking business.

STRONG FINANCIAL GROUP

Established in 1985, the Kotak Mahindra Group is one of India’s most reputed financial conglomerates. The group has a net worth of over Rs. 7,100 crore. The Group services around 6.5 million customer accounts

ETHICS

We believe that ethics of a company help to deliver value to all the stake holders and lead to success. Kotak Securities adheres to strict ethical practices and compliance that comprise of commitments towards customers, associates, stakes holders and employees.

NETWORK Kotak Securities has India presence with its network of Branches,

Sub-brokers and Primary market sub brokers. Presence of Kotak Securities with over 20,000 primary market sub brokers, 1420 outlets in 447 cities makes it one of the broking houses with the largest network.

OBJECTIVEOBJECTIVE

Each research study has its own specific purpose. It is like to

discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has two objectives:-

To study about the competitive position of KOTAK SECURITIES Ltd in Competitive Market.

To study about the reason of satisfaction with broking house. To study about awareness of security market and investment

options. To study the factors while investing.

COMPARATIVE ANALYSIS OF COMPARATIVE ANALYSIS OF STOCK BROKERSSTOCK BROKERS

OTHER MAJOR PLAYERS IN THE REGIONKARVY ICICI DIRECTHDFC SECURITIES INDIABULLS

KARVY is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

PRODUCT AND SERVICES OF KARVY GROUP1. Karvy comrades.2. Karvy consultant ltd.3. Karvy merchant banking.4. Karvy global services ltd.

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT1. Investing in Mutual funds2. Personal Finance3. Customer Service Features4. IPO’s5. Margin Trading6. Margin PLUS Trading7. Call Trade8. Trading on NSE/BSE9. Trade in derivatives

HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC SECURITY Online trading for Resident & Non Resident Indians. Cash-n-Carry on both NSE and BSE. Day trading on both NSE and BSE. Trade on Futures & Options on the NSE. Online IPO's. Telephone-based Broking (Equity & Derivatives

Indiabulls Securities (ISL) is one of India's leading capital markets companies providing securities broking and advisory services. Indiabulls. Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. India bulls Securities is a pioneer of on-line securities trading in India. India bulls Securities in-house trading platform is one of the fastest and most efficient trading platforms in the country.

PRODUCT OFFERED BY INDIA BULLS Equity & Debt Stock Broking Insurance Commodity trading Depository Services Derivatives Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution

METHODOLOGYMETHODOLOGY

My On the Job training is Corporate Pitching. •In the first phase we were trained and they taught us different

things about market.•After that they shared their experience about the real life

problem faced by the customers.•They provided leads and after that we made calls regarding

their interest & purpose of trading, preferred company for trading, problems faced by the customers, their satisfaction level, reasons for not trading, requirement of any RM, change the form of contract notes etc.

•The customers were guided to fill the forms regarding authority letter etc..

•The details of the calls were recorded.•Maintaining record of clients and contacting them at regular

basis.

TARGET ASSIGNED

Do at least 30-40 calls a day, whenever required.Do Mapping of the Dealers of the branch.

TYPES OF RESEARCH Qualitative Research

SAMPLE DESIGN Probability research design.

SAMPLING UNITS Jalandhar as a sampling unit

SIZE OF SAMPLE Research sample size is 100

SOURES OF DATA COLLECTION Primary & Secondary Data. In our research primary data, as well as secondary data. Primary, I collected a fresh, and the first time data and secondary is which I got from already available data like annual report, magazines etc.Survey Method: - Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents of the concerned area. In a survey the investigator examines those phenomena which exist in the universe independent of his action. We used the Scheduling Method. Scheduling: - In this method the enumerators along with schedules, contacts respondents, (here contact on telephone) put to them the questions from the Performa in the order the questions are listed and recorded the replies in the space meant for the same in the Performa.

KNOWLEDGE

%AGE

Yes 80%

No 20%

TOTAL 100

Q1. Awareness about the investment options available.

INTERPRETATIONOnly 80% people know the exact meaning of investment. Because of remaining 20% take his/her residential property as an investment. According to law purpose this is not an investment because it does not create any profit for the owner.

INVESTMENT

SCENARIO

%AGE

Banks 24%

Derivatives &

securities market

28%

Insurance 4%

Bonds 20%

Real estate 20%

Others 4%

TOTAL 100

Q2. Most preferable investment scenario.

INTERPRETATIONToday scenario is changed, so the most area is covered by the derivative and securities market. It is 28% of the total population.

INVESTMENT

PURPOSE

PERCENTAGE

Liquidity 30%

Returns 25%

Capital

appreciation

10%

Tax benefits 20%

Risk covering 5%

Others 10%

TOTAL 100

Q3. The basic purpose of the investment.

INTERPRETATION75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and others.

FACTOR %AGE

Risk 8%

Returns 17%

Both 75%

TOTAL 100

Q4. Most important factors taken in mind while making investments.

INTERPRETATION75% people are considered the both factors risk as well as returns but, only 25% considered the risk or returns factor.

KNOWLEDGE PERCENTAGE

Complete 8%

Partial 75%

Nil 17%

TOTAL 100

Q5. Awareness related to security markets.

INTERPRETATIONOn that basis, we conclude that 17% people know nothing about the securities investments and 75% people have partial knowledge about it, so, some promotional activities are required for increasing the awareness about security market.

ACCOUNTS PERCENTAGE

Yes 60%

No 40%

TOTAL 100%

Q6. Do you have any de-mat & trading account?

INTERPRETATIONOnly 60% respondents have de-mat and trading account and remaining 40% says no because they don’t know why shares move up and down.

COMPANY PERCENTAGE

Kotak securities 68%

HDFC securities 7%

Indiabulls 3%

Karvy 15%

Others 7%

TOTAL 100

INTERPRETATIONIn KOTAK Ltd 68% respondents have de-mat & trading account because of better services.

Q7. In which company you have d-mat and trading account?

SATISFACTION

PERCENTAGE

Operating expenses

18%

Services 25%

Brokerage 57%

TOTAL 100

Q8. Specify the reason of satisfaction with the current broking house.

INTERPRETATION57% respondents are satisfied with the Brokerage charges,25% with the Services & 18% with the Operating Expenses of the Broking house.

•Coming to satisfaction 57% say Kotak Ltd is better than others stock brokers due to less Brokerage charges. •Main purposes of investments are returns & liquidity.•Investors take risk as well as returns into their mind while making the investment.•People want to invest their money in the security market but they don’t have proper knowledge.•People pay more emphasis on brokerage than service provided by brokerage houses.

FINDINGS

MUCH TIME – They take too much time to open a Demat account as against promised. LIMITED BRANCHES – It is having limited number of branches in India and that’s why it creates problem in opening the accounts.

MONEY- MONEY- MONEY – Only focus is to open the Demat account and take the money from the customer.

UNCONTROLLED BRANCHES – No control on the branches.

GOOD RESEARCH REPORTS – But also provide good research reports after their technical and fundamental analysis only from online account.

OTHER FINDINGS (During Training)

•Improvement in the opening of De-mat & contract notice procedure is required.•There should be a limited number of clients under the relationship manger (Mapping). 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 customers.•KOTAK should focus on customer satisfaction and the product availability and treat their customer as GOD. The best way of competing with the competitor is to make your customer satisfied, which results in the loyalty of your customers for your company.•KOTAK should continuously do a RESEARCH AND DEVELOPMENT PROGRAMME, which will result in the information about the customers. For that they should appoint R&D depts. This will continuously do this work•Commitment should be equalized for every person.•Provide the facility of free demonstrations for all.

SUGGESTIONS

•As only JALANDHAR dealt in survey so it does not represent the view of the total Indian market.•Size of the research may not be substantial.•The survey was carried through questionnaire and the questions were based on perception.•Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.•Many contact details were wrong or not answered.•The respondents were reluctant to give information due to their busy schedule & did not give importance to the phone call.•Complete data was not available due to company privacy and secrecy.

LIMITATIONS

LIMITATIONS (OTJ-ON THE JOB)

•Mostly people comfortable with traditional brokers: - As people are doing trading from there respective brokers, they are quite comfortable to trade via phone.•Lack of Techno Savy people and poor internet penetration: -Since most of the people are quite experienced and also they are not techno savy. 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.

•TIME PRESSURE – As the time was only 6 weeks, there was a pressure to prepare the report with accurate data and present it to the Assistant Manager.•EXPENSES NOT PROVIDED – Expenses which were incurred to get the information were not provided by the company.•FINDING ACCURATE DATA – There was a pressure to present only accurate data not fake which took lots of time in proving that the data was accurate.•PEOPLE NOT READY TO GIVE INFORMATION – People who were approached were reluctant to provide the information due to their busy schedule.•MARKET TIME – This was the biggest problem as we could contact our Assistant Manager only after the share market closed and they completed their work and settlements that is after 4 P.M.

LIMITATIONS (OFTJ-Off The Job) 

On the basis of the study it is found that KOTAK SECURITIES Pvt. Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Kotak Ltd. provides the facility of Trade as well as relationship manager facility for encouragement and protect the interest of the investors. It also provides the information 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.“From the above study, it can be concluded that although KOTAK has earned some reputation but it will take some time to get established and standardized its branches.”

CONCLUSION

•MORE BRANCHES – Need to open more branches to be a topper in market because it has a low distribution network. •LESS TIME – They should try to make some arrangements to reduce account opening time by verifying documents at branch itself.•LINK-BANK A/Cs – Linked as many accounts as client wants to its online account. •NEW BANKS IN THE KITTY – Need to tie up with major banks like SBI, Allahabad Bank, Bank of Baroda etc. •CUSTOMER SATISFACTION – The company should focus on the customer satisfaction not on just taking money from their pocket.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

RECOMMENDATIONS 

BIBLIOGRAPHY Books – Sharma, D.D., Marketing Research, New Delhi, Sultan Chand & Sons

Educational Publishers, 2005. BERIG C. MARKETING RESEARCH NEW DELHI, TATA Mc GRAW-HILL

PUBLISHING COMPANY LIMITED. Kothari, C.R., Research Methodology, Second Edition, New Delhi, New Age

International (p) Ltd Publishers, 2006. Other Sources – Economic Times. Business Standard. Training Kit Provided by the KOTAK. Websites: www.moneycontrol.com www.google.com www.kotak.com www.karvy.com www.icicidirect.com www.hdfcsecurities.com www.indiabulls.com