INTRODUCTION OF KOTAK MAHINDRA GROUP:

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial 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 and corporate. The group has a net worth of over Rs. 6,799 crore and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 6.4 million customer accounts.

Kotak Group Products & Services

Bank Credit Cards Life Insurance Mutual Fund Car Finance Securities Institutional Equities Investment Banking International Business Kotak Private Equity Kotak Realty Fund Wealth Management

HISTORY:

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Since then it's been a steady and confident journey to growth and success.

Table shows the brief story about the Kotak Mahindra Group: 1986 1987 1990 1991 1992 1995 Kotak Mahindra Finance Limited starts the activity of Bill Discounting. Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market. The Auto Finance division is started. The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks. Enters the Funds Syndication sector. Brokerage and Distribution businesses incorporated into a separate company Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company. The Auto Finance Business is hived off into a separate company - Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group's entry into information distribution. Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. Matrix sold to Friday Corporation Launches Insurance Services Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

1996

1998

2000

2001 2003 2004 2005

2006

This graph illustrates the journey so far:

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group. In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital and Kotak Securities.

GROUP STRUCTURE:

* Includes direct and indirect holdings Key group companies and their businesses: Kotak Mahindra Bank: The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. Kotak Mahindra Capital Company: Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services. Kotak Securities: Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and coordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on well-researched expertise and financial products to non-institutional investors. Kotak Mahindra Prime: Kotak Mahindra Prime Limited (KMPL) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMPL offers customers

retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMPL continues to be among the leading car finance companies in India. Kotak Mahindra Asset Management Company: Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 25,628 crore and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gild scheme investing only in government securities. Kotak Mahindra Old Mutual Life Insurance Limited: Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. Kotak's International Business: With a presence outside India since 1994, the international subsidiaries of Kotak Mahindra Bank Ltd. operating through offices in London, New York, Dubai, San Francisco, Singapore and Mauritius specialize in providing asset management services to specialist overseas investors seeking to invest into India. The offerings are differentiated India investment solutions that span all major asset classes including listed equity, private equity and real estate. The subsidiaries also lead manage and underwrite international issuances of securities. With its commendable track record, large presence on the ground and a team of dedicated staff in India, Kotaks International arm is suitably positioned for managing assets in the Indian Capital markets.

GROUP MANAGEMENT:
Mr. Uday Kotak Mr. C. Jayaram Mr. Dipak Gupta Executive Vice Chairman & Managing Director Director Director

Corporate Identity:
The symbol of ka reflects our global Indian personality. The ka is uniquely Indian while its curve forms the infinity sign, which is universal. One of the basic tenets of the economists is that mans need are unlimited. The infinite ka symbolises that we have infinite number of ways to meet those needs.

Fig. Kotaks Corporate Identity.

INTRODUCTION OF KOTAK SECURITIES LTD.:

Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and largest broking firms in the Industry. The company was set up in 1994. Kotak Securities offers include stock broking through the branch and Internet, Investments in IPO, Mutual funds, Equity Shares and Portfolio Management Service. Kotak Securities Accolades include:

Finance Asia Award (2009)-Best Brokerage Firm In India. Best Brokerage Firm in India by Asia money in 2008, 2007 & 2006. Best Performing Equity Broker in India CNBC Financial Advisor Awards 2008. Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector. The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007. Euro money Award (2007 & 2006) - Best Provider of Portfolio Management: Equities. Euro money Award (2005)-Best Equities House in India. Finance Asia Award (2005)-Best Broker in India. Finance Asia Award (2004)- India's best Equity House. Prime Ranking Award (2003-04)- Largest Distributor of IPO's, which include the most successful issues like Maruti, ONGC, NTPC, TCS and many more.

It have been the first in providing many products and services which have now become industry standards. Some of them are:

Facility of Margin Finance to the customers. Investing in IPOs and Mutual Funds on the phone. SMS alerts before execution of depository transactions. Mobile application to track portfolios. AutoInvest - A systematic investing plan in Equities and Mutual funds. Provision of margin against securities automatically against shares in your Demat account.

Kotak Securities have a full-fledged research division involved in Macro Economic studies, Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange (NSE) of India. It is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can avail our brokerage services for executing the transactions and the depository services for settling them. It processes more than 4, 00,000 trades a day which is much higher even than some of the renowned international brokers. Its network spans over 331 cities with 870 outlets. Its employee strength extends beyond 2750 Kotak Securities Limited has Rs. 2599 crore of Assets Under Management (AUM) as of 30th June, 2009. The portfolio Management Service provides top class service, catering to the high

end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert. Its operations include stock broking and distribution of various financial products - including private and secondary placement of debt, equity and mutual funds. Currently, Kotak Securities is one of the largest broking houses in India with wide geographical reach. The company has four main areas of business: (1) Institutional Equities, (2) Retail (equities and other financial products), (3) Portfolio Management and (4) Depository Services.

Institutional Business This division primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). The division also incorporates a comprehensive research cell with sectoral analysts who cover all the major areas of the Indian economy. Client Money Management This division provides professional portfolio management services to high net-worth individuals and corporate. Its expertise in research and stock broking gives the company the right perspective from which to provide its clients with investment advisory services. Retail distribution of financial products Kotak Securities has a comprehensive retail distribution network, comprising 870 offices (own and franchisees) across 331 cities and towns, servicing 590,000 customers. This network is used for the distribution and placement of a range of financial products that includes company fixed deposits, mutual funds, Initial Public Offerings, secondary debt and equity and small savings schemes. Depository Services Kotak Securities is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Since it is also in the broking business, investors who use its depository services get a dual benefit. They are able to use its brokerage services to execute transactions and its depository services to settle these. Kotak Securities' width, volume and quality of offerings regularly earn it accolades from industry monitors. In recent times, these have included:

Asiamoney 2008 Brokers Poll: Kotak Securities was voted the Best Brokerage in India and Sanjeev Prasad was ranked Indias Best Analyst by investors.

Kotak Institutional Equities:

Kotak Institutional Equities, among the top institutional brokers in India. It mainly covers secondary market broking and the marketing of equity offerings, including IPOs, to domestic and foreign institutional investors. Its full-fledged research division comprises 26 analysts engaged in macro-economic studies, industry-and company-specific equity research. Kotak Institutional Equities has full financial service capability, which includes derivatives, facilitating market access through affiliates and the distinctive offering of corporate access to investors. The division services over 250 clients including FIIs (Foreign Institutional Investors), domestic institutions and mutual funds. The division has sales desks in Mumbai, London and New York, with the India desk also servicing clients in Hong Kong, Singapore, Japan and Australia.

Board of Directors of Kotak Securities Ltd.:

Chairman: Mr. Uday Kotak. Managing Director: Mr. Narayan S.A. Directors: Mr. C. Jayaram Mrs. Falguni Nayar. Mr. Vikram Sud. Executive Director & Chief operating Officer: Mr. D. Kannan

Kotak Securities Products its features:

Kotak Securities offers you a range of products and services to meet your investing needs. Whether you are a savvy investor or just getting started, you would find our services just right to meet your specific needs.

Kotak Gateway Account:

If you are new to do trading, open a Kotak Gateway Account with Kotak Securities. Its a basic account that always you to do trading over the Internet and phone. Offering ease and convenience, Kotak Gateway Account allows you to make smart investments through its research-based assistance. You can activate Kotak Gateway Account with any amount between Rs 20,000 to 5, 00,000/as margin, by way of Cash/Demand Draft. With Kotak Gateway account you can avail of the following: 4 times exposure on the margin. Exposure of up to 12 times your initial margin on select stocks with Super Multiple. Access to K.E.A.T Desktop. Research Reports on companies, industries and sectors for making informed investment decisions.

 Research Advice via SMS. Call and Trade facility. Free news and updates on the markets. Access to 14 top-performing mutual funds through Easy Mutual Fund. Now, you can trade Currency Derivatives as well through your Kotak Gateway Account.

Special service charges:

Access K.E.A.T Desktop free of cost and K.E.A.T. Premium for Rs. 500/- per month. Get Kotak Securities SMS Alerts @ Rs. 100/- per month. Call & Trade free for first 20 calls. From the 21st call, you pay Rs. 20/- per call. Margin finance at 20% p.a.

Kotak Privilege Circle:

Why stop at anything when you can potentially do so much more with your money. Open a Kotak Privilege Circle Account make more, make most, with all our premium services readily available for you. You can activate a KPC Account any amount more than Rs. 10, 00,000/- as margin, by way of cash or stock. In the Kotak Privilege Circle you can avail of the following: 6 times exposure on the margin Exposure of up to 12 times your initial margin on select stocks with Super Multiple. Access to K.E.A.T Premium. Assistance in terms of Research Reports on companies, industries and sectors for making informed investment decisions. Research Advice via SMS. Call & Trade facility. Lowest delayed payment interest. Margin finance at attractive rates. Dedicated KPC customer service desk available for assisting right from opening the account to handling day-today problems. Assistance from Relationship Managers for taking care of all your investment needs. Free news updates from the market. Access to Easy IPO and 14 top-performing mutual funds through Easy Mutual Funds. Now, you can trade Currency Derivatives as well through your Kotak Privilege Circle Account.

Special service charges

Access K.E.A.T Premium absolutely free of cost.

Unlimited Call & Trade - absolutely free. *Conditions apply

Kotak Super Saver Account

If you are a regular trader in stock market and looking for good brokerage deals then we have something that's just right for you. Presenting "Kotak Super Saver" an internet based investment account with attractive Flat Brokerage rate and a Low Margin. Here you get a brokerage rate as low as 0.45 % on delivery and only 0.05% on square up which is irrespective of the size of order placed. You just need to pay Rs. 2000 as advance fee once for the period of six months. The advance fee is completely reversible on generating the brokerage above Rs. 2000 during the specified period. How does Super Saver Work? When you open a Kotak Super Saver account you need to pay an advance fee to Kotak Securities to get a better brokerage rate compared to the regular rates. The advance fees you pay will be valid for tenure i.e. month of activation of account plus 6 months. Once you start trading, you will be charged the discounted brokerage rate. At the end of the given tenure in which you pay us brokerage there could be 3 scenarios. You pay advance fees of Rs. 2000 Scenario 1: If the brokerage given by you is Rs. 1400 (which is less than Rs. 2000) there will be no reversal. Advance fee will be reversed only if brokerage generated is more than Rs. 2000 at the end of the tenure. Scenario 2: If the brokerage given by you is Rs. 2000 (which is equal to Rs. 2000). Advance fee Rs. 2000 will be reversed, at the end of the tenure. Scenario 3: If the brokerage given by you is Rs. 5000 (which is more than Rs. 2000). Advance fee Rs. 2000 will be reversed, at the end of the tenure After the reversal of the advance fee, if you wish to retain the account then you pay the advance fee and continue trading. Product Details: Advance Fees Rs. 2000 Margin amount Rs. 1000 Application Fees Rs. 500 Exposure Up to 4 times Tenure 6 months (can be renewed)
Brokerage

For Cash Segment 0.45% on Delivery transactions on both sides 0.05% on intraday transactions on both sides

For Derivatives Segment Future Settlement & Sq. off - 0.06% (Both sides) Option Settlement & Sq. off - 2.5% / Rs.100 (Both sides) whichever is higher. Call n Trade First 20 calls free for a month (Rs.20/- per call from the 21st call) Sms/Keat Premium SMS- Rs. 100 per month/quarter, KEAT Premium Rs 500 per month. Keat Lite Free. Super Multiple facility available. Advantages of Kotak Super Saver Account Reversible advance fees of Rs. 2000 against brokerage above Rs. 2000 in specified period. Lower Brokerage Rates. Buy and sell stocks on phone using Call & Trade. Research advice via Kotak Securities SMS alerts, so you don't miss out any important buying and selling opportunities. Kotak Securities Knowledge Centre that helps you learn more about stock markets and investments.

Super Derivatives
Super Derivatives is a product specially designed for investors who are averse to taking risks and trade high volumes in futures and options. Advantages of investing in Derivatives Get larger exposure on margin money which helps manage your money better & gives you an option to take larger positions if needed. Use it as a hedging tool to curb your losses on delivery positions. Investment combinations using derivatives can be used to be protected from volatile & uncertain situations. Thus reducing risks. Using derivatives you can take positions where losses can be limited.

Benefits of Kotak Super Derivatives Combination of Technical and Derivative Analysis: We believe that Technical and Derivative analysis are different fields of research and hence we have dedicated teams for both. Independent analysis of both are done and then combined to give excellent results. State of the art Dealing Desk: We have one of the best systems in the industry to evaluate and analyze the derivatives market. Our information sources and interpretation of the market movements gives our customers the edge over other market players. Access to both Dealers and Experts: Get access to both dealers and experts. Speak

to them directly via phone/chat at pre-designated timings. This gives you the opportunity to know the rationale behind a particular position or strategy at all times, identify opportunities and know details on market movements etc. Focused Account: Since the account mainly focuses on derivative investments there is better management of funds. Your margins against positions, Mark to Market fund utilization, are all simpler to understand. There is also a better implementation of strategies. No wastage of time on analyzing data: Save yourself from analyzing various parameters of derivative data. Our team will do this for you and present it in the form of opportunities for trading. Advanced rebalancing tools: You may have existing positions which may require hedging; you may have positions which might be out of the money. Our experts can devise strategies which will rebalance your positions and portfolio to reduce the risk and better chances of gains.

Advanced derivative strategies: The biggest benefit of Super Derivatives is that you
will be able to use advanced strategies. Our experts will suggest strategies on your positions where the risk return ratio is much lower.

Account Details
Account opening Charges Minimum Cash Margin / Stock Margin Derivative brokerage Derivative brokerage Delivery Brokerage Nil 25 lakh Futures 0.05% both sides Options 0.05% or Rs 150 per contract whichever is higher (both sides) 0.45%

AutoInvest
Presenting AutoInvest - an Online Trading Account based on Systematic Investment Planning, in Gold ETFs (Exchange Traded Funds), Equities and Mutual Funds. Assistance in investments, coupled with Systematic Investing, truly makes this product a very good option for investors. AutoInvest provides a combination of Gold ETFs, Stocks and Mutual Funds recommended by our Advisors, depending on an investor's risk appetite and investment view. AutoInvest is unique from a general SIP in a way that it assesses the risk profile and investment objectives of the investor, an important practice that Mutual Funds fail to carry. We offer 4 distinct Investment Portfolios based on your risk taking ability. How AutoInvest will work? Step 1. Our relationship manager will suggest an Investment plan based on your Risk

profile. Step 2. You need to transfer a fixed amount monthly to your Kotak Securities account. Step 3. Complete assistance to invest your Money according to the Gold ETF, Stock, MF prescribed for your profile. This will be done periodically every month. Benefits Of AutoInvest SIP Styled Investments. Diversified investment with Compounding effect. Option to Invest In Gold ETFs. Option to purchase Gold Bars/Coins at the time of redemption of Gold ETFs. Wide Array of Portfolio Selections. The Investor holds his stocks in a Demat Account unlike Mutual Funds. Investment amount starts as low as Rs. 5000.

Portfolio Management Service

Investing in equities requires time, knowledge and constant monitoring of the market. For those who need an expert to help to manage their investments, portfolio management service (PMS) comes as an answer. The business of portfolio management has never been an easy one. Juggling the limited choices at hand with the twin requirements of adequate safety and sizeable returns is a task fraught with complexities. Given the unpredictable nature of the market it requires solid experience and strong research to make the right decision. In the end it boils down to make the right move in the right direction at the right time. Thats where the expert comes in.

About Kotak Securities Portfolio Management.

Kotak Securities is one of Indias oldest portfolio management companies with over a decade of experience. It is also one of the largest, with Assets Under Management of over Rs. 3300 Crores. Kotak Portfolio Management comes as an answer to those who would like to grow exponentially on the crest of stock market, with backing of an expert. We, at Kotak, measure our success through the success of our clients. Whatever be your requirement, we will tailor your portfolio to your specific investment need. At the very base of a financially sound portfolio lies the identification of ones investment objective. We help you identify your investment objectives and also outline important requirements like liquidity, capital appreciation, current income, time span and fiscal implications and then suggest an appropriate scheme. How do you benefit from our Portfolio Management Service? An Investment Relationship Manager will ensure that you receive all the services related to your investment needs.

A dedicated website and a customer service desk allow you to keep a tab on your portfolios performance. Your portfolio is tailored after a thorough research backed by the expertise from the Kotak Securities Research team. An experienced team of portfolio managers ensure your portfolio is tracked, monitored and optimised at all times. The personalised service also translates into zero paper work and all your financial statements will be e-mailed.

Products: We have a product for every investment need and period.

Following are the offerings:

BEP Large cap focus portfolio. GEMS Portfolio Origin Invest guard Portfolio. Core Portfolio. NRI

Non Discretionary Portfolio Management Service (NDPMS)

When you invest your hard earned money, it is imperative to know all about your investments. Take a step forward towards Informed Investments, with Kotak Securities Non Discretionary Portfolio Management Service (NDPMS) - a consultative and transparent method of investing. With NDPMS you are always consulted and informed of all investment decisions, thus giving you total control of your portfolio.

How you benefit with NDPMS:

Transparency: At most times the rationale behind your investments is a matter of concern. With NDPMS our Portfolio Managers will always keep you apprised of the reason behind investment decisions, plus you are always kept up-to-date on the allocation and distribution of your funds. Scientific Investment Decisions: NDPMS provides a scientific and disciplined basis for investing. Besides you have the flexibility of making investment decisions after speaking to our Research Team. Expertise: Traditional investment options do not provide a team of dedicated investment consultants. NDPMS will provide you exclusive access to the Research Desk and their Proprietary Research Reports.

Learn while your earn: The Consultative Investment Approach of NDPMS gives you an opportunity to learn the nuances, understand the rationale and details behind every investment decision. Convenience: View all your transactions online and get access to an auditor's report which simplifies tax filing.

The NDPMS research desk :

A 12 member research team lead by an experienced Economist. Specialized Sector Analysts with diverse domain knowledge. Emphasis on global research and benchmarks. Active use of alternative research methodologies.

So if you have an investment surplus of Rs. 15 lakhs and above, opt for NDPMS today!

BROKERAGE STRUCTURE:
BROKERAGE STRUCTURE Delivery < 1lakh 1 - 5 lakh 5 - 10 lakh 10 - 20 lakh 20 - 60 lakh 60 lakh - 2 crore > 2 crore Intraday brokerages < 25 lakhs 25 lakhs - 2 crores 2 crores - 5 crores > 5 crores Futures 0.06% both sides 0.05% both sides 0.04% both sides 0.03% both sides Gateway A/C 0.59% 0.55% 0.45% 0.36% 0.27% 0.23% 0.18% Gateway A/C

Privilege A/C

Privilege A/C

< 2 crores 2 - 5.5 crores 5.5 - 10 crores 10 - 25 crores > 25 crores Options Monthly Premium Volume Upto 4Lacs 4Lacs11Lacs 11Lacs20Lacs 20Lacs50Lacs > 50Lacs

Intraday brokerages 0.07% both sides 0.045% both sides 0.036% both sides 0.027% both sides 0.023% both sides

Settlement 0.09% both sides 0.073% both sides 0.046% both sides 0.046% both sides 0.032% both sides Gateway A/C

Privilege A/C

Intraday Brokerage% 2.5 2.25 1.8 1.35 1.15

Settlement Brokerage% 2.5 2.5 2.3 2.3 1.6

Minimum Minimum Brokerage Per Brokerage Per Lot Lot (Intraday) (Settlement) 100 100 Gateway 100 100 80 70 100 100 100 100 Privilege

Here Premium Volume is considered as (Premium x Lot Size x No. of Lots). As per this new structure you will be charged either a fixed minimum brokerage per lot or the new brokerage rate based on the monthly premium value slabs you achieve, whichever is higher. Kindly note that this new brokerage structure for option contracts will be applicable with effect from 23rd February 2007. Note: Service Tax of 10.2% of brokerage will be charged in addition. The brokerages charged are as per the volumes that are achieved. Based on these volumes a client can be either debited or credited an amount which is as per the volumes he/she may achieve at the end of the month. Securities Transaction Tax (STT) @ 0.1% of turnover will be charged in addition to the brokerage on all delivery trades STT @ 0.02% of turnover will be charged in addition to the brokerage on sell leg of all non delivery trades in the cash market STT @ 0.0133% of turnover will be charged in addition to the brokerage on sell leg of all non delivery trades in the derivative market.

Salient Features Offered by Kotak Securities for its' investors:

K.E.A.T.

Kotak E-trading Access Terminal is the live terminal on your desktop. Wherever you go, with you always. With K.E.A.T. you get live tick-by-tick updated rates. To assist you in your investment and trading, our team of experts and professionals give you research reports on companies, industries and sectors for making informed investment decisions research inputs and valuable recommendations. Get Free SMS alerts delivered to your mobile phone. This way you can be in touch with market wherever you are. Call and Trade enables you to while or the move. Make a call from where ever you are and get your market on your phone. Get Free Portfolio Advice and constantly monitor the value of your portfolio with inputs from our expert advisor. To help you invest in your dream stocks, we offer you margin Trading Facility. With you easy IPO service, you can now apply for IPOs at a click of a button. You can even place your bid over the phone. Which means, no more hassles of standing in long queues and tedious paperwork. Easy Mutual Funds is a one stop-shop for multiple mutual funds. All you have to do is log on our website or simply call us and invest in the Mutual Fund of your choice. Kotak Securities, in collaboration with HDFC bank, UTI Bank, ICICI Bank, Citi Bank and Kotak Mahindra Bank provides online payment facility. You can make and receive you payment directly to your bank account. Therefore, no hassle of going to the bank and stand in long queues, also hassle free transaction of your money at any time form anywhere across the globe.

Research & Advice

SMS Alerts Call and Trade Portfolio Advice Margin Trading Easy IPOs

Easy Mutual Funds

Easy Payment

LEADING THROUGH RESEARCH

Kotak Securities has a strong research team that is involved in macroeconomic studies, and industry & company specific equity research. Our research constantly helps investors take informed investment decisions.

KOTAK RESEARCH PRODUCTS:

Market Morning: A daily dose of vital market information with concise technical review of the index along with technical support and resistance of the select stock. Daily Morning Brief: The Daily Morning Brief features economy and corporate news enabling buy/sell calls based on the company fundamentals. It also lists bulk deals, Nifty gainers and losers and forthcoming corporate events. Stock Ideas: A detailed report based on company fundamentals covering research team analysis of several pick of the companies, which are primarily strong and offer high returns. Sector Reports: The research team regularly studies various factors, which could impact a particular sector. It provides a list of all stocks / companies which could either be affected positively or negatively and give recommendations on the same. Weekly Technical Analysis: A definitive tool that besides summarizing the calls for the week. Monthly Research Reports: A consolidated report of all the research calls \ given during the month with insights that enable wise financial decisions in a time bound manner. SMS Alerts: Critical information on the move. Get FREE SMS Alerts delivered to your mobile phone and stay in touch with the market wherever you are. SHARES: At Kotak Securities we enhance every opportunity and stretch every possibility in the equity market for right investment decision based on our in-depth research studies. DERIVATIVES: Constant risks have stimulated market participants to manage their risks through various risk management tools. Derivatives product is one such risk management tool. We will offer you insights into the world of derivatives enabling you to cope with market volatility. MUTUAL FUNDS: Kotak Securities offers wealth of mutual fund choices along with competitive research and advice to help you invest wisely. The investors also have the option of choosing from some of the best mutual fund options available as we have a tie-up with most of the leading mutual fund companies in the country. IPOs: Kotak securities enable you to invest wisely in the potential and lucrative IPOs with all the ease. MARGIN TRADING: Kotak Securities enables not just stock trading but also gaining through it. To help you invest in your dream stock we offer margin-trading facility. We bring up to 50% of the margin.

Kotak Securities Services:

Training in Shares Kotak securities offer investors various options while trading in shares.

Delivery Basis This is a delivery based trading system, which is generally done with the intention of taking delivery of shares. A case position is meant to be settled by delivery, the required cash or securities are blocked in full. For example: If a person place an order to buy 100 shares of Kotak Mahindra Bank, he need to have 100% of the order value in his available limit/funds, and in case he wishes to sell 100 shares of Kotak Mahindra Bank, he need to have 100% shares in his Demat balance. Kotak sec. gives the facility of up to 6 times limits against the margin. Intra Day Trading Through super multiple offer investors can do an intraday trading 15 times against this available funds, where in they take long buy /short sell positions in stocks within the intention of squaring off the position within the same day settlement cycle. Super multiple offers will give a much against their limit. BNST-G (Buy now sell tomorrow) Buy now sell tomorrow (BNST-G) is a facility that allows investors of sell shares even on 2 nd day after the buy order date, within having to wait for the receipt of shares in to the Demat account. It is an intermediate option between cash and margin trading sometimes people miss huge profits because they have purchased shares one day back and the shares have not been credited to their Demat. For Example: Assume that a person buys shares of XYZ ltd. at 10:30 a.m. today suppose at 3:00 p.m. today. The price of this script has risen by Rs. 10. But he wants to sell these shares tomorrow because he feels that the script price will rise further. But the shares would not have come into your Demat Account tomorrow. BNST-G is the solution to this problem. If he uses margin funding, he would gain only to the extent of the price rise that happens today i.e. Rs. 10. However, if he wishes to take advantage of the price rise over a longer times period he would purchased the share today at 10:30 a.m. and sell it say tomorrow using BNST-G at 3:00 pm. In short, BNST-G helps non intraday square off trading too profitable. BNST-G gives 2 more trading days, thereby increasing the perfectibility of better returns. So even a cash trader may like to use BNST-G.

Kotak Securities Advantages:

Convenience: Through these services investors can trade on a chair, he can buy and sell shares self without depending on any broker. In this service any cheque or paper are not required. Speed: One can get the latest quotes of scrips on KotakSecurities.com and place an order almost instantly.

KEAT Software provides the best Terminal for the investors. With the help of KEAT investor get profile of any company and see sensex, share prices, nifty and up and down market position. KEAT is a dynamic, trading terminal that facilities instant order placement and more. Things you can do with KEAT Live ticker rates. Speedy transactions. Script alerts. Customize watch list. View status of orders. Intraday alerts and exchange messages. Trade report, net position report, exercise report. Company research. Satisfaction: With Kotak investors satisfy within its services. They care transfer of funds from trading account to their saving account within only 30 seconds and withdrawal by ATMs. Kotak comes from KMG, the organization trusted by millions of Indians. Centralized Risk Management: At Kotak Securities Risk Management means state of the art quality management that seeks to generate, not constrain. Our Risk Management Team comprises 30 members who have implemented systems in different areas and structured the Risk Management Cell primarily managing online risk, Market risk and Operational risk. Centralized Back Office: To handle large operations an efficient back office is essential. While most broking firms worked with decentralized back office, we were the ones to set a trend of a centralized back office. Today, we have a dedicated centralized back office in Mumbai, which has a work force of over 500 dedicated people. Robust Direct Sales Force: Our strong and well-networked direct sales force is available you to sound investment solutions in an ever changing market environment.

Dedicated Customer Service desk: In order to assist you in every step of investing. They have a dedicated customer service desk, ready to answer all your investment related queries. Leading Edge Technology: Technology is decisive in raising the competence level in the business of broking. With a robust and scalable technology platform Kotak Securities has succeeded in managing customers and their needs.

DEMAT SERVICE:

A Demat account is like a bank account of securities instead of money. In this accounts shares are transferred in paperless dematerialized electronic form. It increases securities transparency and control. A person can check the status and holdings of his securities without visiting DP account. Demat- Basic Concepts: The Indian Capital Market has witnessed an unprecedented growth in the past few years facilitated by modernization of the trading system. Automation of the trading infrastructure in 1994 has given us a trading system comparable with the best in the world. The establishment of a settlement guarantees scheme has removed counterpart risk in trading. Though the advent of automated trading brought with it several associated benefits as transparency in trading and equal opportunity for market players all over the counts the problems related to settlement of trades such as high instances of bad deliveries, delay in transfer of ownership has continued. As an answer to settlement problems, National Securities Depository Ltd. (NSDL) was inaugurated in November 1996 as the first depository in the country. In a depository system, securities are held in securities account, which is more or less similar to holding funds in bank accounts. Transfer of ownership is done through simple account transfers. This method does away with all the risks and the hassles normally associated with the paper work. Consequently, the account transacting in the deposit environment is considerably lower as compared to transacting in certificates. Dematerialization (Demat): Dematerialization is the process of converting the securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investor's Demat account. Dematerialized securities do not have any certificate numbers or distinctive numbers and are deal only in quantity i.e. the securities are tangible. Dematerialization of holdings is not mandatory. One can hold its securities either in Demat form or in physical form. One can also keep part of its holdings (in the same scrip) in Demat form & part in physical form. However, a select list of securities announced by SEBI can be delivered only in Demat form in the stock exchanges connected to NSDL Depository: A Depository is like a bank where securities are held in electronic (dematerialized) form. In India, there are two Depositories National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Under the Depositories Act, investors can avail of the services of the Depositories through Depository Participants (DP) such as ICICI Bank DPs are like bank branches wherein shares in physical form need to be deposited for converting the same to electronic (Demat) form. Depository Participant: Under the Depositories Act, investors can avail the services of the depositories through Depository Participants (DPs) such as Kotak Securities Ltd. DPs are like bank branches wherein shares in physical forms need to be deposited for converting the same to electronic (Demat) form. Market Transaction: When securities are transferred from a beneficiary account of an investor to a clearing member account of a broker for ensuring delivery of securities on a stock exchange, there it is a market transaction.

Off-Market Transaction When securities are transferred from the beneficiary account of one investor to that of another, and the transaction does not get routed to the stock exchange, it is an off-market transaction. Pledge of Securities: Beneficiary account holders who do not wish to sell their shares but are willing to avail advances against dematted shares can take loans by marking pledge/lien against those shares. There are always two parties involved under pledge, pledgor (borrower) and pledgee (lender). There are certain set procedures that need to be followed. Rematerialization: Rematerialization is the process of converting the securities held in electronic form in a Demat account to an equivalent number of securities in physical form (certificates) after debiting the same from the Demat account.

Benefits Of the Demat:

In the depository system the ownership and transfer of securities takes place by means of electronic book entries. At the outset, the system rids the capital market of the dangers related to the handling of paper. Several direct and indirect Benefits of Demat are:
Elimination of bad deliveries: In the depository environment once holdings of

investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held under objection. Statistically, in physical environment about 20% of the delivered stock constitutes bad deliveries. Of these, about 1 % are ultimately absorbed by the system as the bad delivery cost. Rectification of objection usually involves extensive follow up by the investor. Also the investor cannot sell the securities till they are registered. This means that in the physical environment, every fifth person taking delivery of stocks gets securities till they are registered.
Elimination of all risks associated with physical securities: Dealing in physical

securities have associated security risks of theft of stocks, mutilation of certificates, loss of certificates during movements through duplicate certificates and advertisements etc. This problem does not arise in depository environment.
No stamp duty required: There is no stamp duty for transfer of equity instruments

and units of mutual funds in the depository. In case of physical shares stamp duty of 0.5% is payable on transfer of shares.
Immediate transfer and registration of securities: In the depository environment,

once the securities are credited to the investors account on the payout, he becomes the legal owner of the securities. There is no need to send it to the company's registrar or registration. Having purchased securities in the physical environment, the investor has to send it to the company's registrar so that change of ownership can be registered. The

process usually take's around three to four months and is rarely completed within the statutory framework of two months thus exposing the investor to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this normally accepted practice is to hold the securities in street names i.e. not to register the change of ownership. However, if an investor misses a book closure the securities are not good for delivery and the investor would also stand to lose his corporate entitlements.
Faster settlement cycle: The exclusive Demat segment follow rolling settlement cycle

of t+2 that is the settlement of trades will be on the 3rd working day. This will enable faster turnover stock and more liquidity with the investor.
Faster disbursement of the non-cash corporate bonus etc: NSDL provides for

direct credit of non-cash corporate entitlements to an investor account, thereby ensuring faster disbursement and avoiding of risk of certificate in transit.
Reduction in rate of interest of loans granted: Some banks provide this benefit

against pledge of dematerialized securities a dematerialized securities eliminate the following hassles/risks: getting securities registered in their name at the time of book closure and risks of stocks coming under objections when they are sent to the companies registrar for the registration if the pledgee defaults in payment.
Periodic status report: This is provided to investors on their holdings and

transactions, leading to better controls. Dematerialized securities can be delivered in the dematerialized or physical segment from April 1998 at those stock exchanges where trading in dematerialized securities is allowed. But physical securities are not allowed to be delivered in dematerialized segment held with the investors more liquid that physical stocks the process of conversion of securities from electronic to physical form.

Safety in Demat:
There are various checks and balances in the depository design to ensure of the investor holdings. This includes: A depository can be operational only after registration of SEBI, which is based on the recommendations from NSDL and their own independent evaluation. SEBI has prescribed criteria for becoming a DP in the regulations. Depository accounts are allowed to affect any debit or credit to an account on the basis of valid instruction from the client. Every day there is a system driven mandatory reconciliation between participants. There are periodic inspections into the activities of both DP and a RT agent by NSDL. This also includes records based on which debits and credits are affected. The data interchange between NSDL and its business partners is protected by standard protection measures. All the investors have right to receive an account statement periodically from the DP.

 Every month NSDL forwards statement of account to a random sample of investors as a counter check. Kotak Securities Ltd. Demat Services boasts of an ever-growing customer base of over 5 Lac account holders. In its continuous endeavour to offer best of the class services to its customers it offers its customers with the following features: Online access to the Demat account. Check your holdings, transactions, and status of requests and much more. Dedicated specially trained customer care executives at its call centre, to handle all the client queries. Holding and Transaction details available round the clock on IVR (Interactive Voice Response) system. With a countrywide network of over 200 branches, you are never far from a Kotak Securities Demat Services outlet. You will find its service charges very competitive, offering the best value for your money. You can also avail yourself of online share trading services from kotaksecurities.com and go for a 3 in 1 account inclusive of a Demat, Trading and a Kotak Mahindra Bank account.

What Kotak Securities Services will offer:

Reduction in brokerage. Near-immediate ownership of securities on settlement leading to increased liquidity. Clarity in the title of ownership of securities at all times. Ready acceptance of securities for pledge and hypothecation. Easy receipt of public issue allotment. Quick receipt of corporate benefits like rights and bonus.

What Kotak Securities Ltd. Demat Services will take away: Bad deliveries caused by signature mismatch. Postal delays and loss of certificates in transit. Risks of forgery, counterfeiting and loss due to fire, theft or mutilation. Stamp duty (as against 0.5 % payable on physical shares). Filling up of transfer deeds.

How to open a Kotak Securities Ltd. Demat account: Approach your nearest Kotak Securities Ltd. Branch. Fill up the Demat Account Opening Form. If your shares are held in joint names, be sure to open your account in the same order of

names. If A, Band C jointly hold 100 shares in the company and have three share certificates all named as ABC, one DP account will suffice. For different combinations of names, open separate accounts for each combination if the three certificates are held as ABC, BAC and CBA, three accounts are required. There is no limit to the number of accounts you can open. You can even open a multiple-sign Depository Participant - Client Agreement, which each investor must sign at the time of account opening. You will receive an account number and a DP ID number with each account. Quote both these in all future correspondence with Kotak Securities Ltd. After opening the account, you can hold shares of any number of companies in your account, provided all such companies have entered the depository system. Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN along with defaced physical securities. Kotak Securities Ltd. provides you with one blank Dematerialization Request Form (DRF). Additional forms are available at any of the Kotak Securities Ltd. branches offering Demat Services. Documents Required: Two passport size photographs. One Xerox of ID proof (PAN card, Passport etc). One Xerox of address proof (Driving License, Recent 2 months Bank statement etc.). One cancelled cheque. One cheque of margin amount + application fee.

Introduction to Project
I like to introduce my project as Study on Perception of Potential Investors towards Stock Market Investment. In this project, I tried to analyze the potential investors perception to invest in stock market. I have prepared a questionnaire for getting more appropriate result. I have undergone a detailed
survey of direct investors. In this survey I have taken sample size of about 100 investors to know about their investment profile and investment policies in different investment sectors.

Major concentration was on those investors who do not invest in the stock market. I have noticed the trends of these investors that where they are interested to invest their savings.

There are several factors which influence the investment preferences of the investors like higher return, lower risk, higher degree of certainty, easy investment and accordingly most of the investors prefer to invest in insurance policies due to higher degree of certainty, some invest in mutual funds due to lower risk and almost good return due to diversified investment of money. Those who lack in knowledge of capital market or do not understand the workings of capital market prefer to invest in postal savings and fixed deposits. On the basis of my analysis, I have tried to provide some solution and suggestion. I have also mentioned the limitation of my project work.

Background to the Research Problem:

Stock market is considered as very much volatile in its nature. Therefore despite having good savings most of the people do not attract towards making investment in share market. Not only its volatility but lack of knowledge, complex decisions to make investment in shares and higher risk are the other factors which contribute equally in the formation of very hard reason which restricts the potential investors from making investment in this unstable capital market. So it is very much important and necessary to analyze and understand the perception of potential investor towards share market investment.

Objectives of Project:

1: Study of work done in Kotak Securities. 2: Investors awareness in stock market investment. 3: Finding the trend of perception for stock market investment.

Investors Preferences: An Overview.

Investment constraints are generally in terms of predetermined levels of liquidity Tax savings, legal compliance, and Investment horizons. On the other hand are generally imposed on the portfolio by the investor himself, such as a desire to invest at least 25% of the total funds in sectors such as information technology or in the other areas at the other extreme in government securities. The investment policy should be a fine blend of the goals with the constraints and preferences. To put it differently each investor has his/her own set of objectives and constraints. While most of these are known only in qualitative terms, they will eventually lead to form quantitative objectives and constraints by the investment manager which in turn from the basis for the formulation of the optimal portfolio. Investors have highly diverse objectives, constraints and preferences they do form homogeneous groups each of which distinctly differ from the other. Investors can be categorized into individual investors and institutional investors. While most of what we discussed above in principle applies to both, the following differences can be noticed. Individual investors generally treat risk as the possibilities of losing money, or sometimes even as losing money. Institutions are more technical, sophisticated and define risk clearly as the standard deviations or in more general terms as the variability of the return. Individual investors can be categorized based on psychological characteristics such as being an introvert or extrovert, aggressive or conservative, confidant etc. Institutions, on the other hand fit more readily in to a definition, based on the nature of their liabilities and the requirements of their owners or beneficiaries in to pension funds provident funds insurance companies, banks etc. Investment policies of the investors can be laid down based on what the investor think is best for them while often the investment policies of the institutions are determined to a significant extent based on various legal requirements. For example in India the government lays down the investment pattern of provident funds and also insurance companies and the freedom available to portfolio managers while handling the portfolio of these institutions is limited Investment policies of the individuals generally become complex because they are subject to taxes. Allocation of a significant portion of the portfolio to tax saving investments makes the job of the portfolio manager much more difficult as the returns have to be brought up to the desired level with the remaining funds. Most of the major investment institutions are other hand exempt from tax.

Investors Goals

The investors have different goals under different market conditions. It is not sufficient to decide about the investment motives but one has to cautiously watch the market conditions to protect their goals. In the recent years, investors have lost a lot of money worldwide due to the tech melt down. Still investors hope to make money and their primary goal of investment is capital appreciation. Considering the volatility of markets the question that arises will capital appreciation still be the primary goal of primary investors? the capital appreciation is the obvious answer for majority of the investors but one has to invest to earn a return on his money in excess of the risk free rate considering the risk involved in investing stock market. Above all returns should exceed the average return on a benchmark return; say sensex or S&P 500 to achieve investment goals. The primary goal of capital appreciation does not arise if the investors do not preserve the capital. Therefore, it can be said that capital preservation must be the primary goal of any investor in comparison to capital appreciation. Many of the investors have lost money this process, as they are only bothered about making money by beating the market without even thinking of the survival of their portfolio. Few have thought about capital preservation during the 1990s bull runs in the U.S. as people could make returns of over hundred percent in a few months time. People started believing that the only way the stock markets can move is upward. It is said that everything is fine in the bull market. One may call it insane or irrationality but when reality sets in situations turns worse when it enters a bear phase. One key lesson is that market movement change but investors do not. In spite of sophistication in research, technology, level of maturity in markets, the fundamental analysis is glaringly insufficient in incorporating the behaviour of investors. It is not that technical analysis is perfect in this area. Time after time analysts changed the per share valuation without incorporating the behaviour of investors and traders.

Research Methodology:
1. Source of data. 2. Questionnaire design. 3. Interview Schedule. 4. Sampling 5. Analysis and Interpretation. 1. Source of data: For finding the reason behind perception of potential investors. I have collected data from both the sources i.e. primary source and secondary source. Primary Source: Primary data has been collected by interacting with various persons. Some of the investors contacts were given to me by company staffs, but most of being I have covered through my friends contact, visiting different areas of Raipur covering shopkeepers, malls and many others.

Secondary Source: 1: www.kotaksecurities.com 2: www.kotak.com 3: Books 4: Brochures and forms of Kotak Securities. 2. Questionnaire design: The questionnaire contained 12 questions helped me in collecting the relevant data for my project. It includes close ended questions. In order to get the information through the questionnaire, I adopted personal interview method also and it helped both the purpose of getting the information, which was mentioned, in the questionnaire and some vital additional information, which employees expressed while talking to me. 3. Interview Schedule: I used to schedule interviews for the contacts being referred to me by office members and staffs. For some of the contacts, I have telephonically interviewed because of lack of time. And rest of them were by personally visiting to them. But most of the surveyed people are directly contacted by visiting them. 4. Sampling: Sampling procedure: The sample is selected in a random way, irrespective of them being investor or not. It was collected through personal visits to the known and unknown persons, by formal and informal talks and through filling up the questionnaire prepared. Sample size: The sample size of my project is limited to 100 only. Sample design: Data has been presented with the help of column chart and pie charts. 5. Analysis and Interpretation: I had conducted survey of sample size 100. Following are the analysis and interpretation for each questions of questionnaire. Table shows the no. of potential investors knows about different financial instruments:Financial Instruments Mutual funds Insurance Fixed Deposits Post office Savings Equity Shares Others (Real Estate, Property etc.) No. of respondent 96 100 100 100 97 77

Analysis

Interpretation: The sample size consists of 100 investors and out of which almost all the
people are aware of financial instruments like insurance, fixed deposits, equity shares and mutual funds.

Table shows investors source of information about those financial instruments. Source of Information Advertisements (Television/Internet) Company Sales Force Friends/ Relatives/ Colleagues Magazines/Newspaper Others No. of Respondents 57 19 13 11 0

Analysis :

Interpretation : Above chart shows that out of 100 investors more than 50 % of investors
get informed about those financial instruments by advertisements in televisions and internet. And rest of them were come to know by company sales force, friends/ relatives/ colleagues and magazines/ newspaper.

Table shows investors more preferred financial instruments as per their investment preference. Financial Instruments Mutual Funds Insurance Fixed Deposits Post Office Savings Equity Shares Prefered Rating 19 21 44 8 13

Analysis Shows the investors rating acc. to their preference for different financial instruments.

Interpretation : Out of 100 investors 44% of investors prefered fixed deposits, and the
rest prefered insurance with 21%, mutual with 19%, equity shares with 13% and post office savings with 8%.

Table shows investors opinion for factor considered in doing investment. Factors Return Tax Saving Liquidity Regular Income Flow Safety Risk No. of Respondent 44 7 4 9 23 13

Analysis :

Interpretation : Out of 100 investors, most are of the opinion that return and safety are the
main reasons behind their investment decisions.

Table shows investors opinion for their % of savings wants to invest . % of savings >50 30 50 15 30 <15 No. of investors 20 35 34 11

Analysis :

Interpretation: Most of the investors surveyed were mostly those who invest 30% to 50 % of
their money in these instruments.

Table shows the investment horizon of the investors. Investment Horizon Less than 6 months 6 months 1 year 1 year 3 year More than 3 year No. of respondent 7 10 15 68

Analysis:

Interpretation: Out of 100 investors mostly were of the view that they invest their money
for more than 3 years. And the rest of them choose for less than 3 years of period.

Table shows the expected return from any financial instrument. Expected Return 10% - 20 % 20% - 30% 30% - 50% More than 50 % No. of Respondent 54 23 18 5

Analysis :

Interpretation : Out of 100 investors most of them expects 10% -20% of return of their
investments while rest of them expects more than 10% - 20%.

Table shows the risk profile of the investors : Risk Profile High risk-high return Medium Risk-Medium Return. Low Risk-Low Return. No. of investors 34 55 11

Analysis :

Interpretation : The above chart shows that 55% investors want medium risk-medium
return. 33%wants high risk-high return and rest 12% of them wants low risk-low return.

Table shows that if investors opinion to invest in share market. Investors Opinion Yes No No. of respondent 38 62

Analysis :

Interpretation : The above result shows that 62% of people does not want to invest in
share market, while 38% wants to invest in share market.

Table shows the factors affecting most for not to invest in share market: Here the sample size is 62 Affecting Factor Lack of Knowledge High Risk Uncertainity Other factors No. of respondents 22 24 11 5 Percentage 35% 39% 18% 8%

Analysis :

Interpretation : Out of 62 investors, most of them donot want to invest due to high risk
and lack of knowledge. While rest of them donot want to invest due to uncertainity and other factors.

Table shows the investors opinion to overcome lack of knowledge ground. Here the sample size is 62 Investors Opinion Yes No Cant say No. of respondents 37 14 11 Percentage 60% 23% 17%

Analysis :

Interpretation : Out of 62 investors, 60% of investors wants to overcome lack of

knowledge ground, 23% donot wants to overcome lack of knowledge ground and 17% of investors cant say anything about overcoming lack of knowledge ground.

Table shows the satisfaction level of their present investment decision. Here sample size is 100. Level of satisfaction Highly Satisfied Satisfied Less Satisfied No Satisfaction No. of respondent 15 20 39 26

Analysis:

Interpretation: The above result shows that 39% of investors are less satisfied with
present investment decision, 26% of investors are not satisfied, 20% of investors are satisfied while 15% of investors are highly satisfied.

Findings of survey:
In this survey, I have come across different persons of different professions who invest differently in different investment schemes according to the limits of investment from their savings. But the main aspect that came in front of me was that all the investors have one thing common in their mind, it is as follows LOWEST RISK FACTOR AND HIGHEST RETURN But according to the business policy of different schemes of various companies it is very obvious that where there is low risk there is most probably the low return. In case of stock

markets the common investor (investor lacking the knowledge of stock market) feels that stock market is a risky field to get-in due to the high degree of uncertainty in these markets. So due to this uncertainty factor I asked the investors that what if some experts assist them to overcome this lack of knowledge ground? And the result was most of the investors agreed with this assistance plan.

Suggestions:
I have surveyed at many places and different persons who can invest in share markets but presently does not invest in these equity share market due to some above mentioned reasons. My major constraint was on these types of people who can be the customers of KOTAK SECURITIES in near future as they might invest in stock markets after overcoming the above mentioned problems. The following are the suggestions that can be used to convert the prospective customer into permanent customer of the company. 1) The customer should be educated about the stock market to overcome his fear of uncertainty in these markets. 2) The customer must be assured of expert advice in case of market fluctuations. 3) The customer should be educated about the benefits of investment in stock markets over other investment schemes. 4) Regular customer meets should be arranged to know the satisfaction level of the customers.

Conclusion:
This project is based on a survey of prospective investors who can invest in stock markets but presently does not invest in these markets. There are many reasons for such investors not to invest in stock market. The main reasons for the customer not to invest in stock markets are High risk High uncertainty Lack of knowledge High rate of fluctuations

These are the reasons why investors hesitates to invest in stock markets but there are some suggestions provided in this project through which these hesitations of the customers can be overcome, so that they can easily invest in stock markets by the assistance of experts of these markets.

LIMITATIONS:
Although full efforts have been made in the study but the following limitations should be kept in the mind before making any conclusion: 1: Shortage of time. 2: The sample size is a limitation in this report as I only considered 100 investors, which is not representative of the whole city. 3: More over our research depends on the behaviour of the respondents. So it can also vary from person to person

Achievements:
In this project, I have also been taught How to open Demat accounts? How to make Sub broker for primary market (i.e. for IPOs, mutual funds etc)? and How to make Sub broker/Franchisee for secondary market? So along with this project work, my achievements are: 2 Demat accounts opened. 5 sub brokers for primary market. and 1 sub broker for secondary market is not yet final, but under processing.

Bibliography:
www.kotak.com : About company profile. www.kotaksecurities.com : About company profile. http://demataccount.com : About Demat account. www.amfiindia.com : For primary market sub brokers information. www.google.com : About Demat Services. http://en.wikipedia.org/wiki/Demat_account :

References:

C.R. Kothari, Research Methodology, Sampling Techniques.

ANNEXURE:

Questionnaire

Name: Age: Occupation: Contact No: Q 1.Do you know about the following financial instruments? a) Mutual Fund Yes No b) Insurance Yes No c) Fixed Deposits Yes No d) Post Office Savings Yes No e) Equity Share Yes No f) If any other please specify................................ Q2.How do you get information about these financial instruments? a) Advertisement b) Company sales force c) Friends/ Relatives / Colleagues d) Magazines/Newspaper. e) If any other please specify.................................... Q3.Please rate the financial instruments as per your preference.... Financial Instruments More Preferred Mutual Fund Insurance Fixed Deposits Post Office Savings Equity Shares Q4.What is the factor which you consider while investing in any financial instrument? a) Return (Capital Appreciation) b) Tax Saving c) Liquidity d) Regular Income Flow e) Safety f) Risk

Q5.How much % of savings you wants to invest? a) >50 % b) 30 % - 50 % c) 15 % - 30 % d) < 15 % Q6.How long you prefer to keep your money in any financial instrument? a) Less than 6 months. b) 6 months 1 year

c) 1 year 3 year d) More than 3 year Q-7.How much returns you expect from any financial instrument? a) 10 % to 20 % b) 20 % to 30 % c) 30 % to 50 % d) More than 50 % Q-8.As per your view on Risk, which option will you prefer to be better for you? a) High Risk-High return. b) Medium Risk-Medium Return. c) Low Risk-Low Return. Q9.Do you want to invest your money in share market? a) Yes b) No Q10.If No, then what are the factors affecting you most for not to invest in share market? a) Lack of knowledge b) High Risk c) Uncertainty d) Other factors Q11.What you think if some experts assist you to overcome this lack of knowledge ground? a) Yes b) No c) Cant say. Q12.Are you currently satisfied with your investment decision. Please rate. a) Highly satisfied. b) Satisfied c) Less satisfied. d) No satisfaction.