to study the shares and equity market.doc

8/18/2019 TO STUDY THE SHARES AND EQUITY MARKET.doc

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1

D I SSERTAT I ON

ON

“TO STUDY THE SHARES AND EQUITY MARKET”

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE

MASTERS IN BUSINESS ADMINISTRATION (M.B.A)

SUBMITTED

BY

ASHWINI S GONEWAR

(BATCH 20!"#)

ARIHANT INSTITUTE OF BUSINESS MANAGEMENT$

PUNE " 2


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2

ACKNOWLEDGEMENT

“Success can never be attained withoutproper guidance.”

I wish to express my sincere gratitude & appreciation to

several individuals without whom this piece of work would

not have been materialized.

Above all I wish to thank & praise !"# the most

gracious & merciful $ord for the moral & spiritualencouragement & guidance I got during the study period.

%y special thanks to the "irector "r. .. 'hekapurefor giving me opportunity to learn in the esteemed

institute in %(A )*I+A+,- and. A special thanks goes to

my pro/ect guide 0rof. 0unni who has given all his help

to complete drafting and writing the dissertation on

3uman esources.

(esides my guide# I would like to thank %rs. 'ayli +eve#

)*inance -xecutive# for giving their valuable time. %any

thanks to 4Sharekhan Pvt. Ltd- Pune5 for providing me with an

opportunity to display my talent as well as to learn and

display my knowledge.

I also thank all the staff members of “Sharekhan Pvt. Ltd- " And all my

friends and family members who have helped me making this

issertation a su!!ess.

A'36I+I !+-6A


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E%ECUTIVE SUMMARY

nline #rading is the a!t of pla!ing buy$sell orders for finan!ial se!urities

and$or !urren!ies with the use of a brokerage%s internet-based proprietary trading

platforms. #he use of online trades has in!reased the number of dis!ount brokerages

be!ause internet trading allows many brokers to further !ut !osts and part of the

savings !an be passed on to !ustomers in the form of lower !ommissions. Another

benefit of online trading is the improvement in the speed of whi!h transa!tions !an

be e&e!uted and settled' be!ause there is no need for paper-based do!uments to be

!opied' filed and entered into an ele!troni! format.

#his Pro(e!t Studies the Investment behaviour of the !lients of Sharekhan providing

online trading platform. It is important for an investor o know all the options

available in the market to invest his money so that he !an make ma&imum out of it.

#raditional Investment options su!h as )i&ed eposit' *e!urring eposit are getting

less fo!us today be!ause of higher Inflation and other e!onomi! problems. #herefore

this pro(e!t will help in understanding the investment behaviour of various

!ategories of investors in the field of e+uity trading through a broking firm.


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INTRODUCTION

PRO&ECT TITLE'

“A S#, ) I/0S#10# 203A/I,* ) 4LI0#S ) S3A*053A

#6A*S S3A*0S 7 08,I# 1A*50#9

OB&ECTIVES OF THE STUDY

#o understand the investment behaviour of the !lients of share khan towards

shares 7 e+uity markets.

#o study the fa!tors to be !onsidered before buying shares through a broking

firm

#o identify the present level of satisfa!tion of the investors with share khan

SCOPE OF THE STUDY

:lobali;ation of the finan!ial market has led to a manifold in!rease in

investment. ew markets have been opened< new instruments have been

developed< and new servi!es have been laun!hed. 2esides' a number of

opportunities and !hallenges have also been thrown open. nline share trading is

new to 0+uity market in India. 1ainly two e&!hanges are involved in online

trading in India 2S0 7 S0.


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COMPANY PROFILE

Share khan is an e+uities fo!used organi;ation tra!ing its lineage to

SS5I' a veteran e+uities solutions !ompany with over = de!ades of

e&perien!e in the Indian sto!k markets.

If you e&perien!e our language' presentation style' !ontent or for

that matter' the online trading fa!ility' you%ll find a !ommon thread<

one that helps you make informed de!isions and simplifies

investing in sto!ks. #he !ommon thread of empowerment is what

Sharekhan is all about>

Sharekhan is also about fo!us. Sharekhan does not !laim e&pertise in too many things.

Sharekhan%s e&pertise lies in sto!ks and that%s what he talks about with authority. So

when he says that investing in sto!ks should not be !onfused with trading in sto!ks or a

portfolio-based strategy is better than betting on a single horse' it is something that is

spoken with years of fo!used learning and e&perien!e in the sto!k markets. And these

beliefs are refle!ted in everything Sharekhan does for you>


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#o sum up' Sharekhan brings to you a user- friendly online trading fa!ility' !oupled with

a wealth of !ontent that will help you stalk the right shares.

#hose of you who feel !omfortable dealing with a human being and would rather visit a

bri!k-and-mortar outlet than talk to a P4' you%d be glad to know that Sharekhan offers

you the fa!ility to visit ?or talk to@ any of our share shops a!ross the !ountry. In fa!t

Sharekhan runs India%s largest !hain of share shops with over hundred outlets in more

than = !ities> 6hat%s a share shopB 3ow do you lo!ate a share shop in your !ityB

#o find the answers of these +uestions' you must visit Sharekhan. In other words

Sharekhan is a !ompany that provides you an outstanding trading fa!ility with a wide

variety of produ!ts and a!ts as an investment !onsultant to manage your portfolio and

se!ure a high rate of return on your investments in the se!urities market.

2asi!ally' the !ompany is a market leader in providing brokering servi!es and has a top

turnover in trading and the high turnover makes it the no.C in the market. #he main

differen!e is the servi!es that they provide to the investors who really need it. #he

servi!es are dis!ussed in more detail in the marketing a!tivities. #he !lients are managed

with a friendly !orporate !ulture to give him more benefited investment ideas and

motivate him whenever he needs. #he !ompany is providing as many tips to the !lients

?pre-market' online and post-market@ for more and more trading ideas and the manager

helps ea!h !lient to !on!entrate on a few s!ripts so that he !an manage the profit$loss.

In short' Sharekhan is !urrently having a good position in the market with the highest no

of transa!tions and also the highest turnover ?buying 7 selling@ in India and a leader in

providing better servi!es to the investors. Sharekhan' IndiaDs leading sto!k broker is the

retail arm of SS5I' and offers you depository servi!es and trade e&e!ution fa!ilities for


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e+uities' derivatives and !ommodities ba!ked with investment advi!e tempered by

de!ades of broking e&perien!e. A resear!h and analysis team is !onstantly working to

tra!k performan!e and trends. #hatDs why Sharekhan has the trading produ!ts' whi!h are

having one of the highest su!!ess rates in the industry. Sharekhan is having EF share

shops in CC !ities< the largest !hain of retail share shops in India is of Sharekhan.

2*A A10

#he !ompany as a whole in its offline business has named itself as SS5I

Se!urities Private Limited G Sevaklal Sevantilal 5antilal Ishwarlal Se!urities Private

Limited. #he !ompany has preferred to name themselves under a blanket family name.

2ut in its online division started sin!e CHH' the !ompany preferred to name

itself as “S3A*053A9. #he 2rand name “S3A*053A9 itself suggests the

business in whi!h the !ompany is dealing so that the !ustomer !ould easily identify the

produ!t or servi!e !ategory.


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1ISSIJ

#o edu!ate and empower the individual investor to make better investment de!isions

through +uality advi!e and superior servi!e.

/ISIJ

#o be the best retail brokering 2rand in the retail business of sto!k market.

A43I0/010#S ) S3A*053AJ

A wired !ompany along with *elian!e' 3ll' Infosys' et!. by K2usiness #odayD' anuary

EF edition.

It was awarded K#op omesti! 2rokerage 3ouseD four times by 0uro and Asia money.

It was 6inner of “2est )inan!ial 6ebsite9 award.

IndiaDs most preferred brokers within M years. “424 Awaa; !ustomers Award

EM9.


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Sharekhan ltd. Provide different Produ!t as follows

C. 0+uity and erivative #rading on 2S0 and S0.

E. epository Servi!es.

N. nline #rading.

F. IP Servi!es.

M. 4ommodities #rading on 14O and S0O.

. Portfolio 1anagement Servi!es.


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S0*/I40S P*/I0 2 S3A*053A

nline Servi!esffline Servi!es

epository Servi!es

0+uity and erivatives #rading

)undamental *esear!h

#e!hni!al *esear!h

Portfolio 1anagement

4ommodities #rading

ial-n-trade

Share shops

C. nline Servi!esJ

1utual )unds

4ommodity )utures

P1S

#e!hni!al P1S

emat Servi!es

Share shops

E. ffline Servi!esJ

#rading with the help of ealer

#rading without !redit

2y !alling to the Share shops

4redit fa!ility ?nly in elivery-based@


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#QE fa!ility

Spe!ial website for ffline 4lientsJ www.mySharekhan.!om

Physi!al !ontra!t notes

#ypes of A!!ount

4lassi! A$!

Speed-trade4lassi! A$!J

)eatures of 4lassi! A$!J

• nline trading a!!ount for investing in 0+uities and erivatives

via Sharekhan.!om.

Integration ofJ nline trading Q 2ank Q emat a!!ount.

Instant !ash transfer fa!ility against pur!hase 7 sale of shares.

1ake IP bookings.

ou get Instant order and trade !onfirmations by e-mail

Streaming 8uotes.

Personali;ed 1arket S!an with your own !ustomi;ed sto!k ti!ker.

Single s!reen interfa!e for !ash and derivatives


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Speed-tradeJ

)eatures of Speed-tradeJ

Instant order 0&e!ution 7 4onfirmation

Single s!reen trading terminal

*eal-time streaming +uotes' ti!-by-ti! !harts

1arket summary ?most traded s!rip' highest value and lots of other

relevant statisti!s@

3ot keys similar to a brokers terminal

Alerts and reminders

2a!k-up fa!ility to pla!e trades on ire!t Phone lines

Single s!reen interfa!e for !ash and derivatives

ial-n-tradeJ

)eatures of ial-n-tradeJ


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#wo dedi!ated numbers for pla!ing your orders with your !ell phone or

landline. #oll free numberJ C-=-EE-M. )or people with diffi!ulty in

a!!essing the toll-free number' we also have a *elian!e number

NN whi!h is !harged at *s. C.M per minute for S# !alls.

Automati! funds transfer with phone banking ?for 4itibank and 3)4

bank !ustomers@.

Simple and Se!ure Intera!tive /oi!e *esponse based system for

authenti!ation.

o waiting time. 0nter your #PI to be transferred to our tele brokers.

ou also get the trusted' professional advi!e of our telepro!ess.

After hours order pla!ement fa!ility between =. am and H.N am

?timings to be e&tended soon.


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THEROTICAL BACKGROUND

08,I# S3A*0S

Shares represent ownership rights of their holders. Shareholders are owners of

the !ompany. Shares !an of two typesJ

0+uity Shares

Preferen!e Shares

0+uity Shares are also known as ordinary shares.

o not have fi&ed rate of dividend.

#here is no legal obligation to pay dividends to e+uity shareholders.

S#45 1A*50#S I IIA

Sto!k e&!hanges are the perfe!t type of market for se!urities whether of government

and semi-govt bodies or other publi! bodies as also for shares and debentures issued

by the (oint-sto!k !ompanies. In the sto!k market' pur!hases and sales of shares are

Affe!ted in !onditions of free !ompetition. :overnment se!urities are traded outside the

#rading ring in the form of over the !ounter sales or pur!hase. #he bargains that are


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Stru!k in the trading ring by the members of the sto!k e&!hanges are at the fairest

Pri!es determined by the basi! laws of supply and demand.

efinition of a sto!k e&!hangeJ

“Sto!k e&!hange means any body or individuals whether in!orporated or not'

4onstituted for the purpose of assisting' regulating or !ontrolling the business of buying'

Selling or dealing in se!urities.9 #he se!urities in!ludeJ

Shares of publi! !ompany.:overnment se!urities.

2onds

3istory of Sto!k 0&!hangesJ

#he only sto!k e&!hanges operating in the CHth !entury were those of 1umbai

setupin C=M and Ahmadabad set up in C=HF. #hese were organi;ed as voluntary

nonprofit- making asso!iations of brokers to regulate and prote!t their interests. 2efore

the !ontrol on se!urities under the !onstitution in CHM' it was a state sub(e!t and the

2ombay se!urities !ontra!ts ?!ontrol@ a!t of CHEM used to regulate trading in se!urities.

,nder this a!t' the 1umbai sto!k e&!hange was re!ogni;ed in CHE and Ahmadabad in

CHN. uring the war boom' a number of sto!k e&!hanges were organi;ed. Soon after it

be!ame a !entral sub(e!t' !entral legislation was proposed and a !ommittee headed by

A..:orwala went into the bill for se!urities regulation. n the basis of the !ommitteeDs

re!ommendations and publi! dis!ussion' the se!urities !ontra!t ?regulation@ a!t be!ame

law in CHM.


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)un!tions of Sto!k 0&!hangesJ

Sto!k e&!hanges provide li+uidity to the listed !ompanies. 2y giving +uotations

tothe listed !ompanies' they help trading and raise funds from the market. ver the

hundred and twenty years during whi!h the sto!k e&!hanges have e&isted in this!ountry

and through their medium' the !entral and state government have raised!rores of rupees

by floating publi! loans. 1uni!ipal !orporations' trust and lo!albodies have obtained

from the publi! their finan!ial re+uirements' and industry' tradeand !ommer!e- the

ba!kbone of the !ountryDs e!onomy-have se!ured !apital of!rores or rupees through the

issue of sto!ks' shares and debentures for finan!ingtheir day-to-day a!tivities' organi;ing

new ventures and !ompleting pro(e!ts ofe&pansion' diversifi!ation and moderni;ation.

2y obtaining the listing and tradingfa!ilities' publi! investment is in!reased and

!ompanies were able to raise morefunds. #he +uoted !ompanies with wide publi!

interest have en(oyed some benefitsand assets valuation has be!ome easier for ta& and

other purposes.

LI0 #*AI: I,S#* G IIA

6ith an online trading a!!ount' you !an buy and sell shares in an instant>

Anytime you like and from anywhere you like. ou !an !hoose the online trading

a!!ount that suits your trading habits and preferen!e.


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In online trading the orders are sent to the e&!hanges' the !onfirmation is immediately

!onveyed through 0-mail and the pro!eeds or shares are !redited ?or debited@ to the bank

and demat a!!ounts. :lobally' trade every se!onds trade that goes through in the sto!k

market is an online trade. 6e in India have a long way to go but we sure are !at!hing up

a good speed.

4ompanies offer a fast online share dealing servi!e using real time +uotes' free

up to the minute advi!e' information and tips. #rades may be both in S0 7 2S0. Some

online !ompanies offer investment in mutual funds and IPDs online.

#he Indian problemJ

Some other stru!tural aspe!ts need to be kept in mind while analy;ing the e-

broking s!enario in India. #he breadth of parti!ipation in the sto!k market in India is

signifi!antly lower as !ompared to western markets with only CE.C million e+uity

owning households and three million depository a!!ounts. 2rokerage rates in India are

signifi!antly lower than ,S rates' with Indian brokers !harging !ommissions of .MR to

C.EMR per trade. )or any player' the pri!ing strategy for e-broking for the retail segment

is as followsJ )or the !ash segment' the brokerage !harged varies from .FR to .=MR

based on the volume of trade done per +uarter while for the margin segment< the

brokerage !harged varies from .MR to .CMR based on the volume of trade done per

+uarter. #he above !harges are in!lusive of depository !harges and all the other statutory

!harges.


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/A*I,S S#45 0O43A:0S I IIA

2ombay Sto!k 0&!hange of India ?2S0@

ational Sto!k 0&!hange of India ?S0@

• Indian 4ommodity 0&!hange ?I40O@

• ,nited Sto!k 0&!hange of India ?,S0@

• 1ulti 4ommodity 0&!hange ?14O@

• ver the 4ounter 0&!hange of India ?#40I@

• Inter-!onne!ted Sto!k 0&!hange of India ?IS0@

• 1adras Sto!k 0&!hange ?1S0@

• 4oimbatore Sto!k 0&!hange ?4SO@

• Ahmedabad Sto!k 0&!hange ?AS0@

• 2hubaneshwar Sto!k 0&!hange ?2hS0@

• 4o!hin Sto!k 0&!hange ?4S0@

• 3yderabad Sto!k 0&!hange ?3S0@

• 4al!utta Sto!k 0&!hange ?4S0@

• elhi Sto!k 0&!hange ?S0@

• 2angalore Sto!k 0&!hange ?2gS0@

• 1adhya Pradesh Sto!k 0&!hange' Indore

https://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttps://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttps://en.wikipedia.org/wiki/OTC_Exchange_of_Indiahttps://en.wikipedia.org/wiki/OTC_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Inter-connected_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Madras_Stock_Exchangehttps://en.wikipedia.org/wiki/Coimbatore_Stock_Exchangehttps://en.wikipedia.org/wiki/Coimbatore_Stock_Exchangehttps://en.wikipedia.org/wiki/Ahmedabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchangehttps://en.wikipedia.org/wiki/Cochin_Stock_Exchangehttps://en.wikipedia.org/wiki/Cochin_Stock_Exchangehttps://en.wikipedia.org/wiki/Hyderabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Hyderabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Calcutta_Stock_Exchange_Association_Limitedhttps://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Associationhttps://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Associationhttps://en.wikipedia.org/wiki/Bangalore_Stock_Exchangehttps://en.wikipedia.org/wiki/Madhya_Pradesh_Stock_Exchangehttps://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttps://en.wikipedia.org/wiki/OTC_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Inter-connected_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Madras_Stock_Exchangehttps://en.wikipedia.org/wiki/Coimbatore_Stock_Exchangehttps://en.wikipedia.org/wiki/Ahmedabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchangehttps://en.wikipedia.org/wiki/Cochin_Stock_Exchangehttps://en.wikipedia.org/wiki/Hyderabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Calcutta_Stock_Exchange_Association_Limitedhttps://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Associationhttps://en.wikipedia.org/wiki/Bangalore_Stock_Exchangehttps://en.wikipedia.org/wiki/Madhya_Pradesh_Stock_Exchangehttps://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/National_Stock_Exchange_of_India


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• aipur Sto!k 0&!hange ?S0@

• 1agadh Sto!k 0&!hange' Patna

• ,P Sto!k 0&!hange ?,PS0@

• /adodara Sto!k 0&!hange'/adodara ?/S0@

• :uwahati Sto!k 0&!hange Ltd

• Ludhiana Sto!k 0&!hange Asso!iation Ltd

• 5anara Sto!k 0&!hange Ltd

• 1angalore Sto!k 0&!hange Ltd

• Pune Sto!k 0&!hange Ltd

• Saurashtra 5ut!h Sto!k 0&!hange Ltd

• 1eerut Sto!k 0&!hange Ltd

• Intre& #rade 0&!hange Ltd

• ,nited Sto!k 0&!hange of India

• 1ahurat trading

41P0#I#*S ) S3A*053A L#J

#here are !urrently !lose to online brokerages in India with I4I4I dire!t' 3)0

se!urities' 5otak Street' India 2ulls and Mpaisa'1otilal oswal being some ma(or

!ompetitors of Sharekhan . 3owever' due to limited volumes' no online brokerage is

https://en.wikipedia.org/wiki/Jaipur_Stock_Exchangehttps://en.wikipedia.org/wiki/Magadh_Stock_Exchangehttps://en.wikipedia.org/wiki/UP_Stock_Exchangehttps://en.wikipedia.org/wiki/Vadodara_Stock_Exchangehttps://en.wikipedia.org/w/index.php?title=Guwahati_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Ludhiana_Stock_Exchange_Association_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Kanara_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Mangalore_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Pune_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Saurashtra_Kutch_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Meerut_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/wiki/Intrex_Trade_Exchange_Ltdhttps://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Mahurat_tradinghttps://en.wikipedia.org/wiki/Jaipur_Stock_Exchangehttps://en.wikipedia.org/wiki/Magadh_Stock_Exchangehttps://en.wikipedia.org/wiki/UP_Stock_Exchangehttps://en.wikipedia.org/wiki/Vadodara_Stock_Exchangehttps://en.wikipedia.org/w/index.php?title=Guwahati_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Ludhiana_Stock_Exchange_Association_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Kanara_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Mangalore_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Pune_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Saurashtra_Kutch_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Meerut_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/wiki/Intrex_Trade_Exchange_Ltdhttps://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Mahurat_trading


20/40

!urrently making money and a shakeout is imminent in the near future. #he going to be

e&pe!ted to get tougher with the advent !apital a!!ount< !onvertibility' players su!h as

# 6ater house have already entered the Indian market' while others su!h as S!hwab

are e&pe!ted shortly. n an average' *s. F !rores per day ?*s. CN !rores per month@

is likely to be the threshold breakeven for online brokerages.

#he ational Sto!k 0&!hange of India Limited has genesis in the report of the

3ighPowered Study :roup on 0stablishment of ew Sto!k 0&!hanges'

whi!hre!ommended promotion of a ational Sto!k 0&!hange by finan!ial institutions

?)IDs@to provide a!!ess to investors from all a!ross the !ountry on an e+ual footing.

2asedon the re!ommendations' S0 was promoted by leading )inan!ial Institutions at

thebehest of the :overnment of India and was in!orporated in ovember CHHE as ata&-

paying !ompany unlike other sto!k e&!hanges in the !ountry. n its re!ognitionas a

sto!k e&!hange under the Se!urities 4ontra!ts ?*egulation@ A!t' CHM in AprilCHHN' S0

!ommen!ed operations in the 6holesale ebt 1arket ?61@ segment

In une CHHF. #he 4apital 1arket ?0+uities@ segment !ommen!ed operations

inovember CHHF and operations in erivatives segment !ommen!ed in une E


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S0%s mission is setting the agenda for !hange in the se!urities markets in India. #he

S0 was set-up with the main ob(e!tives ofJ

0stablishing a nation-wide trading fa!ility for e+uities and debt instruments.

0nsuring e+ual a!!ess to investors all over the !ountry through an

appropriate!ommuni!ation network.

Providing a fair' effi!ient and transparent se!urities market to investors

usingele!troni! trading systems.

0nabling shorter settlement !y!les and book entry settlements systems'

and1eeting the !urrent international standards of se!urities markets.

#he standards set by S0 in terms of market pra!ti!es and te!hnology' have

be!ome industry ben!hmarks and are being emulated by other market parti!ipants.S0

is more than a mere market fa!ilitator. It%s that for!e whi!h is guiding theindustry

towards new hori;ons and greater opportunities.


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2S0 ?2ombay sto!k e&!hange@

2ombay sto!k e&!hanges limited is the oldest sto!k e&!hange in Asia with a ri!h

heritage. Popularly known as “#he native share and shareholders asso!iation9 in C=M. It

is the first sto!k e&!hange in the !ountry to obtain permanent re!ognition in CHM from

the government of India under se!urities !ontra!ts ?regulation@ a!t' CHM. #he e&!hanges

pivotal and pre-eminent role in the development of the Indian !apital market is widely

re!ogni;ed and its inde&' S0S0O' is tra!ked worldwide. 0arlier an Asso!iation of

persons ?AP@' the e&!hanges is now a de-mutuali;ed and !orporative entity

in!orporated under the provisions of the !ompanies a!t' CHM' pursuant to the 2S0

?4orporation and emutuali;ation@ s!heme' EM.

otified by the Se!urities and 0&!hange 2oard of India

6ith demutuali;ation' the trading rights and ownership rights have been de-linked

effe!tively addressing !on!erns regarding per!eived and real !onfli!ts of interest. #he

e&!hange is professionally managed under the overall dire!tion of the board of dire!tors.


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#he board !omprises eminent professionals' representatives of trading members and the

1anaging dire!tors of the e&!hange. #he board is in!lusive and is designed to before

from the parti!ipation of market intermediaries.

In terms of organi;ation stru!ture' the board formulates larger poli!y issues and

e&er!ises overall !ontrol. #he !ommittees !onstituted by the board are broad based. #he

day to day operations of the e&!hange are managed by the managing dire!tor and a

management team of professionals.

#he e&!hange has a nationwide rea!h with a presen!e in FC !ities and towns of India.

#he systems and pro!esses of the e&!hange are designed to safeguard market integrity

and enhan!e transparen!y in operations. uring the year EF-M' the trading volumes

on the e&!hange showed robust growth.

#he e&!hange provides an effi!ient and transparent market for trading in e+uity'

debt instruments and derivatives. #he 2S0Ds nline #rading System ?2L#@ is a

proprietary system of the !learing and settlement fun!tions of the e&!hange are IS

HCJE !ertified.


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S02I ?Se!urities and 0&!hange 2oard of India@

In CHH=' the S02I was established by the :overnment of India through an

e&e!utive resolution' and was subse+uently upgraded as a fully autonomous body ?a

statutory board@ in the year CHHE with the passing of the S02I a!t on Nth an CHHE. In

pla!e of :overnment !ontrol statutory and autonomous regulatory boards with defined

responsibilities' to !over both development and regulation of the market' and

independent powers have been set up. Parado&i!ally this is a positive out!ome of the

se!urities s!am of CHH-HC.

#he basi! ob(e!tives of the board were identified asJ

#o promote the interests of investors in se!urities.

#o promote the development of se!urities market.

#o regulate the se!urities market and

)or matters !onne!ted there with or in!idental there to.

Sin!e its in!eption S02I has been working targeting the se!urities and is

attending to the fulfillment of its ob(e!tives with !ommendable ;eal and de&terity. #he

improvements in the se!urities markets like !apitali;ations re+uirements' margining'

establishments of !learing !orporation et!. redu!ed the risk of !redit and also redu!ed

the market.

S02I has introdu!ed the !omprehensive regulatory measures pres!ribed norms' the

eligibility !riteria' the !ode of obligations and the !ode of !ondu!t for different

intermediaries like' bankers to issue' mer!hant bankers' brokers and sub-brokers'

registrars' portfolio managers' !redit rating agen!ies' underwriters and others. It has


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framed by-laws' risk identifi!ation and risk management systems for !learing houses of

sto!k e&!hanges' surveillan!e system et!. whi!h has made dealing in se!urities both safe

And transparent to the end investors.

Another signifi!ant event is the approval of trading in sto!k indi!es ?like S7P 4O

ifty and Sense&@ in E. A market inde& is a !onvenient and effe!tive produ!t be!ause

of the following reasonsJ

It a!ts as a barometer for market behavior.

It is used to ben!hmark portfolio performan!e.

It is used in derivative instrument like inde& futures and inde& options.

It !an be used for passive fund management as in !ase if inde& funds.

#wo board approa!hes of S02I is to integrate the se!urities market at the national

level' and also to diversify the trading produ!ts' so that there is an in!rease in number of

traders in!luding banks' finan!ial institutions' insuran!e !ompanies' mutual funds'

primary dealers et!. to transa!t through the e&!hanges. In this !onte&t the introdu!tion of

derivatives trading through Indian sto!k e&!hanges permitted by S02I in E A is a

real landmark.

S02I appointed the L.4. :upta 4ommittee in CHH= to re!ommend the regulatory

frameworks for derivatives trading and suggest by-laws for regulation and !ontrol of

trading and settlement of derivatives !ontra!ts. #he board of S02I in its meeting held on

1ay CC' CCH= a!!epted the re!ommendations of the !ommittee and approved the phased

introdu!tion of derivatives trading in India beginning with sto!k inde& futures. #he


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board also approved the “Suggestive by-laws9 as re!ommended by the r. L.4. :upta

4ommittee for regulation and !ontrol of trading and settlement of derivatives !ontra!ts.

S02I then appointed the . *. /erma 4ommittee to re!ommend *isk 4ontainment

1easures ?*41@ in the Indian sto!k inde& futures market. #he report was submitted in

ovember CHH=.

3owever the Se!urities 4ontra!ts ?*egulation@ a!t' CHM ?S4*A@ re+uired amendment

to in!lude “derivatives9 in the definitions of se!urities to enable S02I to introdu!e

trading in derivatives. #he ne!essary amendment was then !arried out by the

:overnment in CHHH. #he Se!urities law ?Amendment@ bill' CHHH was introdu!ed. In

e!ember CHHH the new framework was approved.

erivatives have been a!!orded the status of KSe!uritiesD. #he ban imposed on trading in

derivatives in CHH under a notifi!ation issued by the !entral government was revoked.

#hereafter S02I formulated the ne!essary regulations and intimated the sto!k e&!hanges

in the year E. #he derivatives trading started in India at S0 in E and 2S0 started

trading in the year EC.

RESEARCH METHODOLOGY

*esear!h design - es!riptive resear!h


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Statisti!al tools - Per!entage method

*esear!h instrument - 8uestionnaire

8uestionnaire - pen ended and !lose ended

4onta!t method - Survey

- Personal interview

- nline interview

1ethod of data 4olle!tion - Primary data and Se!ondary data

Sampling method - on-probability sampling

Sampling type - Area sampling

Sampling unit - 4onsumers

Sampling si;e - M

*esear!h esign

#here are three types of resear!h design. #hey are

es!riptive

0&ploratory

0&planatory

In this resear!h the resear!h design adopted is es!riptive resear!h design.

es!riptive *esear!h esign


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It is designed to des!ribe something' su!h as demographi! !hara!teristi!s of !onsumers

who use the produ!ts. It deals with determining fre+uen!y with something o!!urs or how

two variables vary together. #his study is also guided by an initial

3ypothesis.

Importan!e of es!riptive Study

uring the analysis of !hara!teristi!s of !ertain groups' for e.g. users of a produ!t

with different age' se&' edu!ation et!.

#o fore!ast the future trends' e.g. sales of a !ompanyDs produ!t in ea!h of ne&t

five years.

#o study whether !ertain variables are asso!iated' e.g. in!ome and usage of a

produ!t.

8uestionnaire esign

esigning and implementing the +uestionnaire is one of the most interesting and

!hallenging tasks of !ondu!ting resear!h. 8uestionnaire designing also be!omes

important and ne!essary when he$she observes that unless the data dis!ussion or

otherwise is noted down' is basi! form will be distorted. #he +uestionnaire is the


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ba!kbone for obtaining data during a personal interview' telephone survey' and mail

survey.

1eaning of 8uestionnaire

A +uestionnaire is a form prepared and distributed to se!ure response to !ertain

+uestion. #he term +uestionnaire refers to a self-administration pro!ess here by the

respondent himself$herself reads the +uestionnaire and re!ords his$her answer assistan!e

of an interviewer.

Purpose of +uestionnaire is two fold

#o !olle!t information from the respondent who are s!attered in a vast area.

#o a!hieve su!!ess in !olle!ting reliable and dependable data.

etermining #ype of 8uestion

After spe!ifying the re+uired data' the resear!her must de!ide the type of

+uestion re+uired to be asked from the respondents to !olle!t this data. 3e$she must

understand various e&isting types of +uestion and de!ide whi!h of these would suit the

most of his$her pro(e!t situation. #here are different types of +uestions they are as

followsJ

ire!t +uestion G ire!t +uestion are (ust what their name indi!ates e.g. 3ave you ever

pur!hased brandB


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Indire!t +uestion G Indire!t refers to those whose responses are used to indi!ate or

suggest date about respondents other than the a!tual fa!ts given in the answer. )or e.g.

why you think most other people buy prefer S3A*053A B

pen ended +uestion G Sometimes these +uestion are !alled free answer +uestions the

respondent answer in his$her words' for e.g. and open ended +uestion on a study on

“range s+uashes9 !an be asked as what suggestion do you make for improving orange

s+uashesB In this !ase no answer !hoi!e is given to the respondent and he$she may give

any answer he$she thinks.

4lose ended +uestion G Su!h guests are also !alled fi&ed alternative +uestions. #he

alternative +uestionnaire may take the form of di!hotomous +uestion multiple !hoi!e

+uestion !he!klist and rating s!ales' su!h as ordinal s!ale nominal s!ale et!.

8uestion method of data !olle!tion is +uite popular and !onsists of +uestion printed or

typed in a form or set of forms. 4are was taken in the main aspe!t as general form.

8uestion se+uen!e' +uestion formulation and wording' the study was asso!iated with

both the +uestion i.e.' !losed ended and open ended +uestions. )ree responses were

invited from the respondents.

#ypes of 8uestionnaire


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#he study !ondu!ted by using stru!tural and undisguised +uestionnaire. It !omprises of

both open and !losed ended +uestions. 8uestions are rather framed for the !ustomer

attitude in!luding the multiple !hoi!e and di!hotomous +uestions.

#he following are the !onta!t method generally user for survey.

C. 1ail survey

E. #elephone interview

N. Personal interview

1ethod of ata 4olle!tion

#he task of !olle!ting data being after a resear!h problem has been defined and plan is

!halked and plan is !halked out. #his study pertains to !olle!t data from primary sour!es

primary data and from se!ondary sour!es se!ondary data.

Primary data

Primary data are that information whi!h is !olle!ted' fresh and for the first time thus

happens to be original in !hara!ter primary data !an be !olle!ted in marketing by three

basi! methods' vi;.' survey' observation and e&periments.

Se!ondary data


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n the other hand are those' whi!h have already been passed through the statisti!al

pro!ess.

#he se!ondary data are that information whi!h is !olle!ted from internal sour!es

as well as e&ternal sour!es' 6i;Ds from the !ompany own the re!ords and do!uments.

Se!ondary data was !olle!ted from the registers' manuals' information bulletins

maintained by the personnel department and other re!ords' information !olle!ted in this

manner was immediately !omplied pro!essed manually and a statisti!al stru!ture was

given to the data to help interpretation of the statisti!al data.

Sampling Pro!edures

Sampling !an be !arried out fewer than two important methods' in order to obtain a

respe!tive of the sample they are !lassified asJ

C. Probability sampling

E. on-probability sampling

Sampling Si;e

M !onsumers are taken as samples.


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FINDINGS

In the prevailing !ompetitive environment e&isting in the share industry' the

market potential and promotional strategy is !hanging from time to time. So there is a

need to analy;e the market effi!ien!y and promotional strategy prevailing in the market

for the development of S3A*053A .

It is found from the study !ustomer awareness toward S3A*053A in different

aspe!ts are as followsJ

C. A:0 wise highest people !ome between the age of F G M i.e. E.

Se!ond highest E G N i.e. C=.

E. As S3A*053A deals with online shares' F of the !ustomers

are aware of the online shares and N of the respondents are not

aware of online shares.


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N. out of M respondents ' CF believe that shares offer an investment

poli!y ' CE people are believes that shares are earn +ui!k profit $

gain ' C are believe that it is a part of an investment ' CF people

are believes that shares are useful for easy li+uidity.

F. 1a&imum no. of !ustomers got knowledge about S3A*053A

through )riends that is EF' ne&t to that they !ome to know through

the Share 2rokers that is CE and rest of the !ustomers through

online adv. and bankers.

M. 1a(ority of the !ustomers main ob(e!tive is to invest in shares is

earn high returns that is C ' easy li+uidity around = ' C of the

respondents invest be!ause of the ta&-saving rest to CM !apital

appre!iation in long run. So overall result is people invest shares

only for earning high dividends and 4apital appre!iation for long

term .

. Around = of the !ustomers invest shares in the time gap within N

months. EE of the !ustomers invest 1onthly. It is the ma(or in

numbers.

. 6hen we talk about risk taking' CC people are take risk on the

depends on market' C people are take risk on a parti!ular brand

only' C people are take risk for them !anDt say.


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=. CM of the !ustomers feels slow operations' ina!!essibility to the

servi!e !enter and fund transfer fa!ility and very few !ustomers

are dissatisfied for their delayed !orresponden!e.

H. #he brokerage !harges are highly issatisfied by CM of the

!ustomers' says dissatisfied' H are moderate and CE are satisfied.

nly of the !ustomers say highly satisfied so almost R of

them are 3ighly issatisfied with the brokerage !harge.

C. F of the !ustomers are satisfied with the 2#S# provided by the

!ompany< only few !ustomers that are C are not satisfied and

said no.

CC. A14Ds absen!e in the !ompany is aware to all M of the

!ustomers and not aware that is .

CE. 4ompanyDs #*A0 #I:0* software used for online transa!tion

is aware to F of the !ustomers and only few' N are not aware.


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CONCLUSION

Share trading as a whole is now !onsidered as a spe!ifi! sour!es of investment.

6ith the advent of new online based trading !ustomers are very mu!h satisfied. Share

trading industry has reviewed up its standards on!e again investment !enters.

It !an be e&pli!itly noted from the pro(e!t that the awareness level are high with

the present youngsters and the middle-aged group whi!h !an be observed as a positive

sign for the growth of the industry. #he effe!tiveness of the other supporting instrument

like !lient relationship !an be further improved so that the impa!t will be high.

It doesnDt end at (ust opening the demat a!!ount but the a!tual implementation is

!onsidered with the !ustomer related servi!es. #he !ustomer should be updated on re!ent


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trends market news and the value of the investment that in!reases their satisfa!tion and

awareness and trust on the !ompany.

RECOMMENDATIONS

)rom the analysis of the survey and personal observation of the !ustomer towards

the awareness of the share and the share !ompany S3A*053A. Lots of e&perien!e

gained from the survey. #his will help the !ompany to survive in the market and also

improvise their market potential in the !urrent !ompetitive environment. 6ith this the

!ompany should take immediate steps to improve the nature of the business.

)rom the surveyJ -

C@ #ry to en!ourage people who !ome between the age group of N G F. #hey are

very less in number.


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E@ 1ost of the !ustomers got information about the !ompany only through the

)riends. #he !ompany should take ne!essary steps to !on!entrate on the

advertisements. #hrough they are advertising online' it is ne!essary to advertise

in #/' radio' presses< only when they give these kinds of advertisements they

!an get lots of !ustomers. Also they have to go for boarding' whi!h !an be

viewed by everyone passing by.

N@ It was found that ma&imum no of !ustomer is investing in shares after a time

gap of N months. #he !ompany should e&plain the benefits of intraday ?buy

today and sell today@ operations !ertain !ustomers invest in shares with a long

term on !apital apper!eptions. #he benefits of short term trading !an be

e&plained to the !ustomers so that they may be persuaded to go in for the same.

F@ #here is an unfavorable feedba!k from the !ustomers about brokerage !harges

as per transa!tions. . #he !ompany should take ne!essary steps to !on!entrate on

the 2rokerage !harges a!!ording to !ompetitors.

M@ 1any of the !ustomers are not aware of my broker software. #his usefulness

should be e&plained to them.

@ 4ustomers with money to invest may be living in isolated areas with no proper

telephone or !omputer fa!ility' the !ompany may think of deputing relationship

managers to help the !ustomers through proper guidan!e and by passing on

relevant information.


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@ 1ore number of !ustomers is dissatisfied with slow operation and delay

operation of transa!tion' so it is advisable to take some steps for that.

BIBILIOGRAPHY

WEBSITES

www.sharekhan.!om

www.e!onomi!times.!om www.money!ontrol.!om

www.bseindia.!om

www.nseindia.!om

www.sebi.gov.in

www.investors.!om

www.investopedia.!om

http://www.sharekhan.com/http://www.economictimes.com/http://www.moneycontrol.com/http://www.bseindia.com/http://www.nseindia.com/http://www.sebi.gov.in/http://www.investors.com/http://www.investopedia.com/http://www.sharekhan.com/http://www.economictimes.com/http://www.moneycontrol.com/http://www.bseindia.com/http://www.nseindia.com/http://www.sebi.gov.in/http://www.investors.com/http://www.investopedia.com/


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BOOKS

Professional Sto!k trading by 1ark *. 4onway

2etter Sto!k #radingJ 1oney and *isk 1anagementby aryl :uppy

2usiness of Share #radingJ )rom Starting ut to 4ashing in with #radingby

Leon 6ilson

to study the shares and equity market.doc

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