summer intenship project on marketing strategy adopted by

sharekhan

1. 1. Project Report ON LATEST MARKETING STRATEGIES OF SHAREKHAN Kurukshetra

University kurukshetar Master of Business Administration Submitted to: Submitted By:
Name: SUDHIR NIGAM Ravi Garg Designation: TERITORRY MANAGER Roll No-M1212 Raj
Pal Inderprastha Institute of Technology Bastara (Karnal) (Kurukshetra University
kurukshetar)
2. 2. TO WHOM IT MAY CONCERN This is to certify the fact that Mr. Ravi Garg of RAJ PAL
INDERPRASTHA INSTITUTE OF TECHNOLOGY has undergone his summer Training as a
part of the degree of MBA in Sharekhan Ltd. Panipat from 13/06/2013 to 31/07/2013 and
submitted his project entitled Latest marketing strategy of sharekhan. Mr. Ravi Garg
Date Date (Internal Guide) 2
3. 3. STUDENT DECLARATION I, Ravi Garg, hereby declare that the piece of dissertation
report entitled Latest Marketing Strategies of Sharekhan has been prepared under
the guidance and Supervision of Mr. Umang kapoor Sharekhan limited, Panipat as a
part for the requirement of the degree in Master of Business Administration under
kurukshetra University kurukshetar during the session 2012-14.To the best of my
knowledge & belief, this is my own work and has not been submitted anywhere earlier
for any other degree. RAVI GARG MBA 3rd Sem 3
4. 4. TABLE OF CONTENT S.No. TOPIC Page No. 1. Preface 4 2. Executive Summary 5 3.
Objective & Nature of the Study 6 4. Industry overview 7 5. Development 8 6. Company
profile 10 7. Indian scenario 45 8. Strategy of sharekhan 51 9. Research metrology 58
10. Data analysis 64 11. Swot 71 12. Conclusion 77 13. Limitation 78 14. Suggestion 79
15. Bibliography 80 16. Appendix 81 4
5. 5. PREFACE . With the ongoing revolution in M.B.A. where Innovations are taking at the
blink of eye; it is impossible to keep the pace with the emerging trends. Excellence is
an attitude that whole of human race is born with. It is the environment that makes
sure that whether the result of this attitude is visible or otherwise. A Well planned,
properly executed and evaluated Industrial Training helps a lot in inculcating a
professional attitude. It provides a linkage between the student and industry to develop
an awareness of industrial approach to problem solving, based on a broad
understanding of processes and mode of operation of organization. During this period,
the student gets the real experience for working in the actual Industry Environment.
Most of the theoretical knowledge that has been gained during the course of their
studies is put to test here. Apart from this the student gets an opportunity to learn the
latest technology, which is immensely helpful in building their career . The project
entitled Latest marketing strategy of share khan has been done in Panipat,
Sharekhan RAVI GARG MBA 3rd SEM. 5
6. 6. EXECUTIVE SUMMARY The research work had an object oriented and realistic
approach towards the online share trading scenario in India as well as covering the
globe by and large, precisely speaking economic giants like Sharekhan. I follow market
research procedure to get an extensive idea about the general perception in the mass
when online share trading considered, the exact figures are involved in share trading
online. To acquire customers in favor of Sharekhan was also an integral part of the job.
I covered Karnal for this purpose. A brief profile about the organization was also
intimated to each and every respondent in order to increase the popularity of
Sharekhan.The next phases were all about to have an international look in this field of
online share trading. The team examined thoroughly areas such as the number of
players, technology they are offering, their customer base, whether this is appealing to
the common people or not, how they market their services etc. The Indian scenario has
 been evaluated considering the facts like, players in the market, advantages,
drawbacks, and connectivity hazards. Still, in due course of time, Indian online share
trading will be able to find its hold; there is not doubt about that. 6
7. 7. OBJECTIVES There is always a purpose of every research study. The main objective
of the study is given below: - To study the attitude of people towards sharemarket or
online trading. To study the strategy of sharekhan. To knowing the effect of
marketing strategy on people. To study the satisfaction of customers 7
8. 8. INDUSTRY OVERVIEW INTRODUCTION Stock exchanges to some extent play an
important role as indicators, reflecting to performance of the countrys economic state
of health. Stock market is a place where securities are bought and sold. It is exposed
to a high degree of volatility; prices fluctuate within minutes and are determined by the
demand and supply of stocks at a given time. Stock brokers are the ones who buy and
sell securities on behalf of individuals and institutions for some commission. The
Securities and Exchange Board of India (SEBI) is the authorized body, which regulates
the operations of stock exchanges, banks and other financial institutions. The past
performances in the capital markets especially the securities scam by Hasrshad
Mehta has led to tightening of the operations by SEBI. In addition the international
trading and investment exposure has made it imperative to better operational
efficiency. With the view to improve, discipline and bring greater transparency in this
sector, constant efforts are being made and to a certain extent improvements have
been made. 8
9. 9. HISTORY HISTORY OF THE STOCK BROKING INDUSTRY Indian Stock Markets are
one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest
records of security dealings in India are meager and obscure. By 1830's business on
corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though
the trading list was broader in 1839, there were only half a dozen brokers recognized by
banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development
of commercial enterprise and brokerage business attracted many men into the field
and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War
broke out and cotton supply from United States of Europe was stopped; thus, the 'Share
Mania' in India begun. The number of brokers increased to about 200 to 250. However,
at the end of the American Civil War, in 1865, a disastrous slump began (for example,
Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the
end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a
place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in
Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively
known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in
the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay
was consolidated. Thus in the same way, gradually with the passage of time number of
exchanges were increased and at currently it reached to the figure of 24 stock
exchanges. 9
10. 10. DEVELOPMENT An important early event in the development of the stock market in
India was the formation of the Native Share and Stock Brokers Association at Bombay
in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by
the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and
Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in
buoyant periods to recede into oblivion during depressing times subsequently. In order
to check such aberrations and promote a more orderly development of the stock
market, the central government introduced a legislation called the Securities Contracts
(Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock
exchanges to seek government recognition. As of January 2002 there were 23 stock
exchanges recognized by the central Government. They are located at Ahemdabad,
 Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ),
Cochin, Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana,
Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock
Exchange), papularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of
India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot.
Of course, the principle bourses are the National Stock Exchange and The Bombay
Stock Exchange , accounting for the bulk of the business done on the Indian stock
market. While the recognized stock exchanges have been accorded a privileged
position, they are subject to governmental supervision and control. The rules of a
recognized stock exchanges relating to the managerial powers of the governing body,
admission, suspension, expulsion, and re-admission of its members, appointment of
authorized representatives and clerks, so 10
11. 11. on and so forth have to be approved by the government. These rules can be
amended, varied or rescinded only with the prior approval of the government. 11
12. 12. COMPANY PROFILE It is a Stock Broker: Sharekhan is one of the leading retail
broking houses of SSKI GROUP, Which was running successfully since 1922 in the
country? It is the retail broking arm of the Mumbai based SSKI GROUP, which has over
eight decades of experience in the stock broking business. SHAREKHAN offers its
customers a wide range of equity related services including trade execution on BSE,
NSE, Derivatives, depository services, online trading, investment advisory, mutual fund
advisory etc. The firms online trading and investment site www.sharekhan.com was
launched on Feb 8, 2000. The site gives access to superior content and transaction
facility to retail customers across the country. Known or its jargon-free, investor
friendly language and high quality research, the site has a registered base of over two
lakhs customers. The number of trading members currently stands over 3 lacks. while
online trading currently accounts for just over 5 percent of the daily trading in stocks
in India, share khan alone accounts for 32 percent of the volumes traded online. About
SSKI (Shri Shantilal Kantilal,Ishwarlal pvt. Ltd) group: SSKI groups also comprise
institutional broking and corporate finance. While the institutional broking division
caters to the largest domestic and foreign institutional investors, telecom and media.
SSKI holds a sizeable portion of the market in each of these segments. As the
forerunner of investment research in the Indian market, we provide the best research
coverage amongst broking houses in India. Our research team is rated as one of the
best in 12
13. 13. Providing quality service effectively and efficiently 13the country. Voted for times
as the Top domestic brokerage house by Asia-money survey SSKI is consistently ranked
amongst the top domestic brokerage houses in India. Broking personalized if you
prefer the assurance and reliability of trading through a broker, you can use our
network of 250 branches and 1200 business partner outlets in over 123 cities to trade
in equities as well as derivatives. We will help you with the investment process, give
you advice based on extensive research and provide you with relevant and updated
information to help you make informed investment decisions. Our trading services are
designed to offer an easy, hassle free trading experience, whether you trade daily or
occasionally. You will be entitled to a host of value added services, intended to assist
you in your investment process depending of your investing style and frequency.
CURRENT POSITION VISION To empower the investor with quality advice and superior
service to help him take better investment decisions. We believe that our growth
depends on client satisfaction. MISSION To provide the best customer service and
product innovation tuned to diverse needs of : Continuous up-gradation with changing
technology, while maintaining human values. Respond to progressive globalization
and achieving international standard. Efficiency and effectiveness built on ethical
practices. CORE VALUE Customer satisfaction through
14. 14. Smile, it enhances your face value service quality stressed on periodic customer
service Audits. Maximization of stakeholder value Success through Teamwork,
integrity and People DEMAT ACCOUNT SHAREKHAN ONLINE TRADING PRODUCTS: (a)
CLASSIC ACCOUNT: DEMAT A/C free for first year and Rs.400 from 2nd year onwards.
(Annual Maintenance charges) Online Trading through website. No volume commitment
required. Account Opening Charges: Nil (b) SPEED TRADE: A/C Opening charges: Rs. Nil
DEMAT A/C free for first year and Rs.400 from 2nd year onwards.(Annual Maintenance
charges).Software downloading.(CASH and DERIVATIVE) Live NSE terminal. Live BSE
terminal Access charge is adjustable as per new Speed Trade Pricing Policy.
BROKERAGE: - CASH BROKERAGE: - DELIVERY: 0.20%, INTRADAY: 0.02% (Negotiable
According To Margin Money) EXPOSURE: - 10 TIMES (ON MARGIN MONEY) 14
15. 15. F&O BROKERAGE : - 0.02% OTHER FEATURES:- No Demat Transaction Charges in
case of buying and selling through Sharekhan. For the fund transfer and withdrawal, we
have tie-up with ten BANK'S- - HDFC Bank, - CITI Bank, - IDBI Bank, - UTI Bank, - UBI
Bank, - Indus Bank. - Oriental Bank of Commerce -ICICI Bank -Yes bank -Bank of India If
you are having bank a/c in one of them, you can transfer the funds and withdraw the
funds online from your trading a/c at anytime. Along with above following benefits are
available: BTST (Buy today Sell Tomorrow) Online IPO's available. Online Mutual Funds
available. Dial -n- Trade facility 15
16. 16. DOCUMENTS REQUIRED:- (A) TWO PHOTOGRAPH (B) For Identification Proof -
VOTER ID / DRIVING LICENCE / PASSPORT/ PAN CARD (C) For Residence Proof - BANK
STATEMENT / VOTER ID / RATION CARD / DRIVING LICENCE/PASSPORT /TELEPHONE
BILL STATEMENT / ELECTRICITY BILL STATEMENT (ANY ONE) (D) Cheque of account
opening amount ****PAN Card is Mandatory 16
17. 17. 17
18. 18. Unlike browser based trading applications that require moving from page to page to
execute a single transaction, trade tiger is a net based executable application that
provides everything a trader needs on one screen, thereby, reducing the maximum time
required to execute a trade by a huge margin. SPEEDTRADE offers a tick-by-tick update
on stock price movements with market depth and intra-day chart and lets the client do
his own stock/technical analysis. Speed Trade Plus extents the power of online trading
from cash markets to futures & options on a single screen, you can trade cash as well
as future & option contracts other features include advanced intra-day charting (Bar &
Japanese Candlestick Charts) easy order placement and instant trade confirmations in
seconds, price alters, research calls, and derivative tool-kit to help you trade like the
experts. Power packed features 1. Real time streaming quotes, tic-by-tic chart 2.
Market summary (most traded, highest value etc) 3. Ability to customize the terminal
screen 4. Hot keys similar to BOLT & NEAT 5. Instant order execution & confirmation 6.
Reports for personal account details 7. Pre-defined detailed sector-wise script list 8.
Simple order entry process 9. Alerts and remainders 10.Ability to place limit order and
subsequently modify /cancel instantly. Sharekhan Research: Receive high performance
trading recommendations from Sharekhan yes we boast of strike rates as high as 70-
90% in booking recommendations in the money. Our first rule is not to 18
19. 19. lose money and the second to make some. If you didnt believe making money was a
scientific process and there was a method in the madness we have broken the myth
and with consistency. Investment ideas: For investment the application of the bottom-
up approach of investing with a clear focus on stock picking has resulted in investment
ideas that have withstood the storm to deliver returns to patient investors. Effective
money management with appropriate risk rewards, the relentless use of stop losses.
And our clear cut focus on the importance of timing the market accurately has
contributed to this success. Trading calls: Trading will never be the same again once
you are accustomed to the disciplined trading tools that we provide, that help you to
achieve your trading objective of high profits and limited risk. Some of the most unique
 and customized products are developed to meet your specific needs. We believe that
making money involves had work and you need to be brace thats right a brave heart.
Research team: All this is made possible by a team of dedicated analysts who have
years of working experience in the industries that they track, and a proven track in
using their knowledge of the investment science to deliver results. Depository
services: Sharekhan offers you the convenience of broker DP. It will help you meet
your pay-in obligations on time thereby reducing the possibility of auctions. They
understand your need for flexibility therefore they accept late instructions without any
extra charge. They execute 19
20. 20. the instruction immediately on receiving it. You can view your update account
statement on internet. Sharekhan depository service offers DMAT services to individual
and corporate investors. We have a team of professionals and the latest technological
expertise dedicated exclusively to out DMAT department. You can avail of Demat
Remant, Repurchase, Pledge, Transmission facilities at our branch and business
partners outlets.They have designed product like classic, speed trade and speed trade
plus. Classic: This account allows you to trade through their website and is suitable for
the retail investor. There online trading website also comes with a Dial in trade service
that enable you to buy and sell shares by calling there dedicated toll-free number 1800-
22-7050.1800-22-7500. Speed trade: Speed trade is a next generation online trading
product that brings the power of your brokers terminal to your PC. It is ideal for active
traders who transact frequently during days trading session to capitalize on Intraday
price movement. Speed trade is an internet based application available on a CD, which
provides everything a trader is needs on one screen, thereby, reducing the time
required to execute a trade. Trade tiger:: This comes with all the features of speed
trade along with an additional power to trade in derivatives. If he ask more details
about speed trade and ST plus then proceed with below given key features. 20
21. 21. Key features of Speed trade and Speed trade Plus: 1. Single Screen Trading
Terminal for NSE cash, NSE F$O & BSE 2. Real-time Screaming Quotes. 3. Live Tic-by-
Tic intra day Charting 4. Instant order / Trade confirmations in the same window 5. Hot
keys similar to Brokers Terminal 6. Alerts and reminders 7. Market summary(cost traded
scrip, highest value etc) 8. Back-up facility to place trade on direct phone lines
Classic / Speed Trade / Speed Trade Plus one time registration fee 750/500 / 1500.
0.50% (plus 8% service tax, 0.005% turnover tax, 0.01% stamp duty) will be charged on
each side. Minimum brokerage of 10 paisa on each share will be charged on 3 each
side. Minimum brokerage of Rs.16 will be charged per transaction. 0.1% (plus 8%
service tax, 0.005% turnover tax, 0.01% stamp duty) will be charged on each side
Minimum brokerage of 2 paisa will be charged on each side. For margin trading the
exposure is 10 times. 21
22. 22. 22
23. 23. 23
24. 24. 24
25. 25. System Requirements You'll need access to a computer which has at least the
following configuration: A. Pentium, Minimum 1 GB RAM B. Windows 7/XP/VISTA C.
Internet Connection D. Internet Explorer E. Java enabled in IE 25
26. 26. 26
27. 27. Area of investment through Sharekhan 1. Derivative 2. Commodity 3. Equity 4. IPOs
( Initially Public Offer) 1. Derivative Market: Financial markets are, by nature, extremely
volatile and hence the risk factor is an important concern for financial agents. To
reduce this risk, the concept of derivatives comes into the picture. Derivatives are
products whose values are derived from one or more basic variables called bases.
These bases can be underlying assets (for example forex, equity, etc), bases or
reference rates. For example, wheat farmers may wish to sell their harvest at a future
date to eliminate the risk of a change in prices by that date. The transaction in this
 case would be the derivative, while the spot price of wheat would be the underlying
asset. Development of exchange traded derivative: Derivatives have probably been
around for as long as people have been trading with one another. Forward contracting
dates back at least to the 12th century, and may well have been around before then.
Merchants entered into contracts with one another for future delivery of specified
amount of commodities at specified price. A primary motivation for pre-arranging a
buyer or seller for a stock of commodities in early forward contracts was to lessen
possibility that large swings would inhibit marketing the commodity after a harvest.
The need for a derivative market: The derivative market performs a number of
economic functions. 1. They help in transferring risk from risk averse people to risk
oriented people. 27
28. 28. 2. They help in the discovery of future as well as current prices. 3. They catalyze
entrepreneurial activity 4. They increase the volume traded in market because of
participation of risk averse people in greater numbers. 5. They increase savings and
investment in the long run. The participants in a derivative market: The following three
broad categories of participants who trade in the derivatives market: 1. Hedgers 2.
Speculators and 3. Arbitrageurs Hedgers: Hedgers face risk associated with the price
of an asset. They use futures or options markets to reduce or eliminate this risk.
Speculators: Speculators wish to bet on future movements in the price of an asset.
Futures and Options contracts can give them an extra leverage; that is, they can
increase both the potential gains and potential losses in a speculative venture.
Arbitrageurs: Arbitrageurs are in business to take advantage of a discrepancy between
prices in two different markets. For example, they see the futures price of an asset
getting out of line with the cash price; they will take offsetting positions in the two
markets to lock in a profit. Factors driving the growth of financial derivatives: 1.
Increased volatility in asset prices in financial markets. 2. Increased integration of
national financial markets with the international markets 28
29. 29. 3. Marked improvement in communication facilities and sharp decline in their costs
4. Development of more sophisticated risk management tools, providing economic
agents a wider choice of risk management strategies. 5. Innovations in the derivatives
markets, which optimally combine the risks and returns over a large number of
financial assets leading to higher returns, reduced risk as well as transactions costs as
compared to individual financial assets. 2. Commodity: Although commodity derivatives
command a humble share of 6% in the derivatives segment across the world, yet these
record high volumes in the markets the world over compared to equity derivatives. In
an era where risks to investments are on the rise. India needs to switch to commodity
derivatives and also to whether derivatives (when these are launched), if it needs to
top the list of developed nations. Of course with the other asset classes offering
attractive returns. Why commodities? is the inevitable question that pops in ones
mind today, more so considering that the BSE sensitive index is scaling new highs by
the day well, despite offering relatively lower returns, commodity derivatives provided
unique money-making opportunities to a wider section of market participants, starting
from planters to exporters, importers detail and to the agrarian Indian population
commodities are obviously not new, nor are the advantages of trading in them
unknown. 1. No balance sheet, P & 1, statement, EBITDA and regarding between the
lines Commodity trading is about the simple economics of supply and demand 2.
Supports are known, only resistance matters Minimum support price acts as a
statutory support for many commodities. 3. No Dollar Rupee premiums / Discounts no
hedging on the NYMEX Indian commodity derivatives hedge both forex and commodity
specific risks at a single cost. 29
30. 30. 4. No breaking of heads over market direction seasonality patterns quiet often
provide clue to both short-and long-term players. 5. No scam, no price rigging
commodity trading comes with nil insider trading and company specific risk. Whats
more, why invite risk by investing in a metal company when you can trade in the metal
 itself? After all, while the stock price of the company is dependent on several factors
including the companys own fundamentals, the price of the metal is driven by the
simple economics of demand and supply. The more demand for the mental , the higher
its price and vice versa. Also compared to equities if is much cheaper to trade in
commodities, where margin requirements are lower. Commencement of live trading in
commodities: Black Pepper, Castor, Seed, Gold, Gold M. Silver M, RBD Palmolien, Castor
Oil, Soy Seed, Refined Soy Oil, Groundnut Oil, Crude Palm Oil, Steel Long, Steel Flat,
Copper, Nickel, Tin, Guarseed, etc. Soy Bean, Refined Soy Oil, Mustard Seed, Expeller
Mustard Oil, RBD Palmolien, Crude, Palm Oil, Medium Staple Cotton, Long staple
Cotton, Pepper, Rubber, Jute, Chana, Guar, Seeds, Gold, Kilo Gold, Silver, Mega Silver,
etc. 30
31. 31. 3. Equities: Trading accounts With a Sharekhan online trading account you can buy
and sell shares in an instant. Any time you want, from anywhere you like. A Sharekhan
online trading account comes with a depository participant account where you can
keep all your shares, in safe custody with National Securities Depository. You can also
like a Sharekhan online trading account to an Internet banking account of your choice,
so that you can move cash in and out of this account easily, without the bother of
writing Cheque all the time. Sharekhan offers two types of trading accounts to suit
your trading habits. Sharekhan account and Sharekhan. Trading services Trading is
super fast , extremely safe and high secure at Sharekhan. Apart from providing the
most advanced trading platform in the country, Sharekhan also offers facilities like
instant cash transfer, after-market order, limit against shares and four times exposure
on margin. Trading products: 31
32. 32. For timely and accurate Buy and Self recommendations try our Super-Duper
trading products. Depository services: You can open a Depository Participant (DP)
account, either through a Sharekhan branch or through a Sharekhan franchisee. There
is no fee for opening a DP account with Sharekhan. However a nominal deposit
(refundable) is charged towards services which are adjusted against all future billings.
Sharekhan offers dematerialization/ Rematerialisation services to individual and
corporate investors. Dematerialization is the process by which a client can get
physical certificates converted into electronic balances maintained in his account with
the DP. Rematerialisation is the process by which a client can get his electronic
holdings converted into physical certificates. Sharekhan also offers Pledge facility
which enables you to obtain loans against your dematerialized shares. So you get
liquidity without having to sell your shares. You can also obtain RBI Relief Bond forms
from any of our branches and franchisees present in over 123 cities. Visit our site for
more information on RBI Relief Bonds. 32
33. 33. Content features: At Sharekhan online trading in equities is made easy with the
help of jargon-free investment advice. If you experience our language presentation
style or content, you will find a common thread the one that helps you make informed
investment decisions and simplifies investing in stocks. Track domestic and
international stock incidents with Indices at a Glance Get real-time stock quotes ,
live NSE ticker, daily top 5 gainers/losers, volume toppers and more market statistics,
all at Sharekhan. Known about the market as it happen through Live markets. Keep
abreast of the latest news and developments not only in the stock market but also in
the world outside with Live News brought to you by Reuters. We also have a tie-up
with Capital Market News Service for Archive News. Market Commentary brings you
a birds eye view of the days market. Track the futures market with Future
Commentary. Tune in to Punters Call for technical analysis of the market. 33
34. 34. Have exhaustive data on over 5,000 companies at your fingertip with All Company
Info. Which stock is on Share khans recommendations list? Find answer to this billion
dollar question in the Investment Ideas section. New want investing? Join our
School for a crash course in investing and more. Equip yourself with Find Company
 an immensely powerful tool that helps you sift through 6,000 companies to home in on
only those that meet your stringent fundamental parameters. Keep abreast of all
corporate action like board meetings general body meetings bourses splits etc. with
Market Calendar. 4. IPOs: An IPO, or Initial Public Offering, is the sale of shares by a
company to the public for the first time colloquially, it is said that a company is going
public. How is then that company like ONGC and GAIL, which are already listed, are
going for an IPO again? The government is the majority stockholder in these
companies and it is offering a percentage of its stock now to the public. So strictly
speaking, public sector companies that are already listed are not having their IPO but
they are going for a public offering of their shares its technical distinction and one
that should not bother individual investors. To apply to an IPO you have to fill an IPO
application form. These forms are available in stalls outside the stock exchanges and
with vendors in various other areas.You can also get an application form through a
share broker or investment consultant, if you have one. Else forms are available at
various banks. 34
35. 35. A good idea is to check the Web site of Karvy Consultants (www.karvy.com) who
are often registrars or lead managers for issues. The other option is to check the SEBI
website (http//www.sebi.gov.in) for the prospectus of a particular IPO. The prospectus
lists the lead managers for the IPO and you can get a copy of the application form from
their centers. Once you get the form, you have to fill it, remit the amount after
calculating the number of shares applied for the bank that is designated in the form as
collecting center for that IPO. If you have a demat account, then you can apply for the
shares directly through your demat account or thee is an option of physical delivery of
share certificates. Some IPO offer only demat (dematerialized) form of shares, while
others offer both demat as well as regular (physical) shares. SEBI advices investors to
get the allotment in demat forms as the shares in IPO are tradable only in demat
segment in the stock exchanges. Dealing of physical shares (allocated in IPO) is not
accepted. When shares are bought in an IPO it is termed primary market. The primary
market does not involve the stock exchanges. A company that plans an IPO contacts an
investment banker who will in turn called on securities to help, sell the new stock
issue. This process of selling the new stock issues to prospective investors in the
primary market is called underwriting. When an investor buys shares from another
investor at an agreed prevailing market price, it is called as buying from the secondary
market. 35
36. 36. The secondary market involves the stock exchanges and it is regulated by a
regulatory authority in India, the secondary and primary markets are governed by the
security and exchange board of India (SEBI). Currently, IPOs are being heavily
oversubscribed and there are many retail investors applying for the same IPO. In such a
situation, there is a high risk that even after applying for an IPO an Individual investor
might not get an allotment of the shares. Buying in the primary market does not assure
an investor of allotment of shares.There is also a risk that the price of the share may
fall within a few days or weeks of the listing. An individual investor needs to take a call
on how he thinks the market will behave over the next few months and decide on
his/her strategy accordingly. In a bear run, prices usually fall after the stock lists.
Hence, it might make more sense to buy in the secondary market. But in a bull run, like
the Sensex is experiencing now, prices of the shares are likely to zoom up and so
applying during the IPO is the best way to get the share at its cheapest. If you are in
the market for the long term this question should not bother you as you would not be
looking at profit booking within a few months. Track record of the promoters:
Background and experience of the promoters, the management team and their
expertise is one of the main factors that needs to be Considered as they will be ones
responsible for the profitability of the company. Studying this point will help investors
avoid fly by night promotes and companies. Financials: The Companys balance sheet is
a very important document and investors should look at it carefully. Investors should
 look at not just the current balance sheet but also that of the last three to four years to
get an idea o the companys growth and focus. 36
37. 37. Prospectus: Read the prospectus for the company carefully. The prospectus called
as red- herring prospectus is a document that every company that goes for a public
offering has to file with the SEBI. The prospectus has all the details about the
company, the risk factors and the companys financials. You can get the prospectus for
companies going public at the SEBI website http://www.sebi.gov.in/index.jsp? Content
Disp= Department & dep_id=1. Issue price: Investors need to decide if the issue is
worth investing in at that price. One-way of checking the valuation is to look at the
price-earnings (P/E) multiple. The P/E multiple is the ratio of the share price to earnings
per share (EPS which is listed in the balance sheet). P/E of the issue should be
compared with the industry average and the other companies in the sector. Apart from
these three important points other factors like amount to be paid on application, the
lead manages for the issue, the stock exchanges that issue plans to list on and the
current market sentiment are other factors to watch out for. Price band comes into play
when IPOs are done through a book-building process. IPOs if they have gone for the
book-building route will mention a price bank. For instance, Biocon which has declared
a price band of Rs. 270 to Rs. 315 per equity share of face value Rs. or ONGC which has
set a price bank of Rs. 680-750. Book-building is a mechanism where, during the period
for which the IPO is open, bids are collected from investors at various prices which are
above or equal to the floor price (the minimum price). The final price of the share is
determined after the bid closing date, based on certain evaluation criteria. 37
38. 38. Individual investors are encouraged to bid at the floor price. When all the bids are
received and the final price is decided, those who have got the allotments will have to
pay that price, irrespective of the price they had bid on. So price bank indicates the
range which the investment bankers think that the share is likely to be priced in. No. if
the offer is oversubscribed by a few times then the chances of getting an allotment is
high. However, if it is oversubscribed heavily (by over 15 times) then the chances of
getting an allotment progressively decrease SEBI uses a lottery system as well as a
proportionate allotment formula. The key is to remember that there is no guarantee
that you will any shares at all if you apply for an IPO. If you have applied, you can know
the status by calling the registrar, whose name will be listed on the prospectus or the
application form, after 30 to 40 days from the closing date of the issue. In a book-
building issue, you can know the status by calling the registrar after 20 days from the
closing date. If you have got an allotment then the share certificates will be mailed to
you. Karvy consultants act as registrars to a large number of issues. If the are the
registrars you can check the allotment status on their web site. If you have got an
allotment then the share certificates will be mailed to you.You will get a refund 40-45
days from the closing date of the issue. In book-building issue, you will be getting the
refund in 30-40 days from the closing date. AWARDS AND ACHIEVEMENT: 8 July 2005,
Mumbai: Sharekhan won the award by the vote of consumers around the country, as
part of Indias largest consumer study cover 7000 respondents 21 products and
services across 21 major cities. The study, initiated by Awaaz Indias first dedicated
38
39. 39. consumer channel and member of the worldwide CNBC Network, and AC Nielsen
ORG, Marg, was aimed at understanding the brand preferences of the consumer and to
decipher what are the most important loyalty criteria for the consumer in each vertical.
In order to select the award recipient, spontaneous responses, rather than promoted
responses were garnered, with an intention to glean unbiased preferences. Opinions
were garnered from owners of each of the categories, to get experimental responses,
which are likely to be more realistic and grounded in nature. Further, preference also
indicates future intentions of repeat purchases. The reasons behind the preferences for
brands were unveiled by examining the following. Tangible features of product /
service. Softer, intangible features like imagery, equity driving preference. Tactical
 measures such as promotional / pricing schemes. Sharekhan is honored to be voted as
the most preferred stock broking brand in India our focus has always been to demystify
the stock market and empower the investors to take informed decisions, said Jaideep
Arora, Director, Sharekhan The Award increases Sharekhans responsibility to
persistently delight our customers with user-friendly trading experience and we shall
continue our focus to evolve business strategies that keep us aligned with our
customers need Sharekhan signs on Blue Lotus as communication partner: Mumbai
July, 2005 Sharekhan, the retail broking arm of SSKI group, one of the largest stock
broking houses in the country, signed on Blue Lotus Communication Consultancy as its
communications partner recently. Sharekhan aims to gain a substantial market share
through various new initiatives like First step, Platinum Guild & Power Club and
communications has been identified as a major marketing initiative by the company. 39
40. 40. First step, an initiative aimed at demystifying the stock markets to the layperson,
provides guidance, knowledge and jargon-free research to help the first time investor
take their careful first steps in the stock market. With over a million new investors
having entered the stock market over the last year, the product was launched to
address the market need to provide structured supervision to the stock market novice.
On a fast growth spree, Blue Lotus Communications Consultancy has acquired its 6th
client over the last month amounting to an addition of Rs.5 crores to the agencys
capitalized turnover. Speaking on the growth of the company, N. Chandramouli, CEO,
Blue Lotus Communications Consultancy said, The acquisition of the Sharekhan
account is extremely prestigious for Blue Lotus. The communication of Sharekhan will
be unique since it uses a combination of technology and finance to achieve the
objectives of the client. Our strengths have in these sectors have proven to be a
dovetail fit for Sharekhan. Founded in October 2002, Blue Lotus has an impressive
client portfolio with names like Trend Micro, TWS Holding, Bristlecone, Mahindra
Special Services Group, Habitat International Spryance and Johnson & Johnson
Acuvue. Having gained these accounts through aggressive pitches the Rupees Fifteen
Crore agency employs 50 people across its 5 offices. We have always believed that
public relations are an essential marketing tool that helps build brand credibility, trust
and recall. PR is an essential ingredient in any communications portfolio and the
progressive companies like Sharekhan have recognized this need. We have an
aggressive education and awareness campaign linked up for this online stock trading
major, added Chandramouli. 40
41. 41. Sharekhan seen to revive interest in net trading : Trading in stock markets through
the internet, which took a dip due to investor apathy because of prolonged bearishness
in recent years, is witnessing a revival of interest and is expected record growth in the
coming years. The retail investors in the capital market are the most neglected lot with
no access to research and Sharekhan, the retail broking arm of SSKI group, one of the
oldest members of the BSE, seeks to fill this vacuum felt by retail investors, according
to Mr. Tarun Shah, CEO, Sharekhan, Mumbai. Speaking to business line on the sidelines
of the opening of the Coimbatore branch of Sharekhan, he said the company had
invested about Rs.13 crore in the last two years is creating the requisite infrastructure
by way of branches and for internet trading. With presence in about 123 cities across
the country now, it will seek to consolidate its presence in the current year and focus
on expanding its membership. He said Sharekhan enjoyed about 20 percent market
share in Web business (Internet trading) in stock markets. Three years ago, web trading
showed lot of promise but with the market witnessing a downturn, there was not much
interest among retail customers. The company has been adding around 1,000
customers a month and felt that for retail customer; web trading was a very good
medium particularly as it provided live information. Mr. Tarun shah, when asked about
the number of investors who were hooked on to Web trading, said numbers could be
misleading. While his company has about 10,000 plus 41
42. 42. customers, ICICI securities claimed to have 1.20 lakh customers and there were
other players like HDFC too. His estimate was that the number of active web traders
would be in the 30,000 50,000 regions. He said this number was growing at 5 percent
to 10 percent a month and this was a segment that could not be ignored. He said in
Sharekhan, web trading constituted about 1 percent to 2 percent of the revenue in
2001-02. But in 2002-03, when the overall revenue trebled, the share of Web trading
constituted 22 percent of the revenue. As Sharekhans daily trading volume was over
Rs.200 crore, the share of web trading at about Rs.40 crore a day was substantial and a
larger part of the volume was coming from day traders. Commenting on the growth of
internet trading in the stock markets, he said share of web trading in the total turnover
of the capital markets was miniscule now just about 1 to 2 percent. But in the next two
or three years, he expected this to go up to 10 to 15 percent. There was huge scope for
growth in this segment of business, he said. His company knew share broking best and
would stick to that, he added Mr. Tarun shah said Sharekhan recently obtained license
to offer Portfolio management services (PMS). It was offering a range of products to
suit retail investors and PMS when launched, would cater to the requirements of the
high worth-individuals. The entry-level investment for PMS membership may be around
Rs.5 Rs.10 lakh, which was need for having a well-diversified portfolio. This could be
by way of taking over existing portfolio or fresh investment, he added. 42
43. 43. Sharekhan vs ICICI Direct vs HDFC vs Kotak vs Indiabulls vs 5 Paise 5 paisa 15
25.00% Sharekhan 14 23.33% Motilalsowal 0 0% ICICI Direct 15 25.00% HDFC 2 3.33%
India bulls 12 20.00% Kotak 1 1.67% Any other (mention name) 1 1.67% Starcom bags
Share khans Rs.10 core media duties: Starcom India has won the media business of
Sharekhan.com and its parent company SS Kantilal Ishwarlal Securities Pvt. Ltd.
(SSKI). The size of the business is estimated to be around Rs.10 crore. The
development has been confirmed by Utkarsh Singh head of IP business, Starcom. The
Business is moving from Insight singh told agencyfaqs! That Starcom got the online
media business of Sharekhan.com in may. The client subsequently wanted to hire a
new agency for the conventional media. They had already seen our work on the online
media front. So, it was not very difficult to convince them to award us the entire media
business, says Singh. The company is launching a new programme for first-time
investors to invest in the equity market. For this, the company will be launching mass
media campaigns very soon. Singh mentioned that our of the total media budget, 70
percent would be spent on mass media, while the remaining 30 percent would be
through online media. 43
44. 44. SSKI is among the leading brokerage companies in India with over eight decades of
experience in the Indian stock markets. Synapze, a Goa based agency, handles the
entire communication for the company including the creative business. Online Profit: A
Tigers Tale: SSKI Investor services pvt. Ltd has been in the equities solutions business
for the past eight decades. SSKI created Sharekhan in 1999, when it wanted to utilize
the internet for providing financial services through an online trading website.
Sharekhan is one of the countrys strongest names in the online trading domain today.
The company runs Indias largest chain of share shops with around 280 outlets in 123
cities. Sharekhan handles revenues to the tune of Rs.800 crore to Rs. 1, 000 crores on
a daily basis. Says Ketan Parekh, CTO, and Sharekhan, The focal point for any manager
should be on business expansion. Technology is just a tool to achieve it, not the focus
area. At the end of the day, you are simply running a business. Parekhs role has been
critical in keeping IT investments under control, and helping in keeping these spends
aligned with Share khans business goals. He runs a team with 50 people on board,
Parekhs unit ensures that Sharekhan retains its focus on providing reliable, secure,
and fast trading services inside the jungle Sharekhan operates through online offline
(SSKI) channels. The online structure forms the most integral point for business and
transactions. The online component is made up of a conventional portal, a chat facility
and a few speed trade terminals. What the speed trade channels, customers gain a
 better and more efficient platform for transactions. It has a terminal at the user end,
connected to Sharekhans systems through a 44
45. 45. TCP/IP link. When a web trade request is made, it travels via HTTP/HTTPS and is not
real- time. But with a speed trade transaction, the transfer of information is directly
with the trading system and is entirely live. Sharekhan uses 128-bit SSL encryption
technology by Revising and can also operate on cable connections, GPRS and dial up.
The offline model is more personalized in the sense that it provides the customer the
opportunity to interact with a human voice through the IVR or a team of customer
service executives over the telephone. InvestingOnlineissomucheasier: This account
enables you to buy and sell shares through our website. You get features like a)
Streaming quotes (using the applet based system) 45
46. 46. Instant cash transfer facility against purchase Integration of: Online trading +
Bank + Demat account Online trading account for investing in Equities and
Derivatives via sharekhan.com b)Multiple watch lists c) Integrated Banking, demat
and digital contracts d) Instant credit and transfer e) Real-time portfolio tracking with
price alerts and, of course, the assurance of secure transactions. Features of Classic
Account: That enables you to invest effortlessly & Your very own Portfolio Tracker!
46 Single screen interface for cash and derivatives Personalized Market Scan with
your own customized stock ticker! Streaming Quotes You get Instant order and
trade confirmations by e-mail Make IPO bookings Click on the images for larger
Screenshots sale of shares
47. 47. Are you an Investor? Get our Classic Account! The Classic Account enables you to
trade online on the NSE through our website, gives you access to all our research
content and also comes with Dial-n-Trade, enabling you to buy shares using your
telephone. Are you a Trader? Get Trade Tiger! Trade Tiger is a next-generation online
trading product that brings the power of your broker's terminal to your PC... It's the
perfect trading platform for active day traders. Trade using your phone! Dial-n-Trade
Free with our Classic Account, Dial-n-trade is an exclusive service for trading shares
from your landline telephone or cell-phone. Demat Account Sharekhan Demat Account
Our demat account services are quick, convenient and secure, coupled with the
Classic Account or Speed trade. We provide standalone demat services as well. 47
48. 48. Get the Trade Tiger advantage: Live Streaming Quotes Access all Trading Calls
Advanced Charting features Create your own technical rules for trading A Single
Trading Screen for BSE & NSE FEATURES OF TRADE TIGER:- A single platform for
multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs Multiple
Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and
End of Day Charting powered with various Studies Graph Studies include Average,
Band- Bollinger, Know SureThing, MACD, RSI, etc Apply studies such as Vertical,
Horizontal, Trend, Retracement & Free lines User can save his own defined screen as
well as graph template, that is, saving the layout for future use User-defined alert
settings on an input Stock Price trigger Tools available to guage market such as Tick
Query, Ticker, Market Summary Online fund transfer activated with 12 Banks 48
49. 49. INDIAN SCENARIO Background of Exchanges: The stock trading history in India is
obscured in the mists of time. Historical records, as and where they exist, rarely speak
about business and speculative activity except in passing. However, the origin of stock
broking in the country may go back to a time, when shares, denatures and bonds
representing titles to property were first issued on the condition of transfer from one
person to another and the earliest record of dealings in securities in India is the East
India Companys loan securities, way back in the 18th century. The first stock exchange
in India, Bombay stock exchange was established in 1875 as the native share and
stockbrokers association and has evolved over the year into its present status as the
premier stock exchange in the country. It may be noted that BSE is the oldest stock
exchange in Asia, even older than the Tokyo stock exchange, which was founded in
 1978. The country second stock exchange was established in Ahmedabad in 1894,
followed by the Calcutta stock exchange (CSE). CSE can also trace its origin back to
19th century from a get together under a neem tree way back in the 1830s; the CSE
was formally established in May 1908. Indias other major stock exchange National
Stock Exchange (NSE) promoted by leading financial institutions, was established in
April 1993. Over the year, several stock exchanges have been established in the major
cities of India. There are now 23 recognized stock exchanges Mumbai (BSE, NSE and
OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore,
Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot,
Vadodara, Indore and Meerut. Today most of the global stock exchanges have become
highly efficient, computerized organizations. Computerized networks also made it
possible to connect to each other and have fostered the growth of an open, global
securities market. 49
50. 50. Though Stock Broking was practiced in Calcutta as early as 1836, the members of
the broking profession had neither any code of conduct for their guidance, nor any
permanent place for congregation. The centre of their activity was near a neem three,
where at present, stands the offices of the Chartered Bank (now know as Standard
Chartered) on Netaji Subhas Road, Calcutta. In 1905, Chartered Bank began t construct
their own building which led brokers to shift the arena of their operation, to the
neighborhood of the recent Allahabad Bank. The brokers had no shelter and business
was carried on in the open place. The inconvenience of such trading, promoted brokes
to organize themselves and in may 1908, an association was formed under the name
and style of the Calcutta Stock Exchange Association at 2, China Bazaar Street. At the
time of incorporation in 1908, the Stock Exchange had 150 members. Today the total
membership has risen to more than 900, which contains several corporate and
institutional members. The number of companies listed on the exchange is more than
3,500. The annual turnover of the exchange in 1997-98 was to the tune of Rs.1, 78,779
crores. The Calcutta stock exchange has been granted permanent recognition by the
Central Government with effect from April 14, 1980 under the relevant provisions of the
securities contracts (Regulation) Act, 1956, with a view to render useful service to
investors. In December 1993, SEBI directed the stock exchanges to discontinue the
traditional system of carry forward of transactions (badla). Subsequently, it proposed
an alternative system in March 1994, but no agreement could be reached on
implementing this system. In February 1995, SEBI set up the G. S. Patel Committee
(GSPC) to review the system of carry forward transactions. The GSPC submitted its
report in March 1995. SEBI adopted the system recommended by the GSPC with some
modifications in its decisions of July 27, 1995 and October 5, 1995. 50
51. 51. This Revised Carry Forward System (RCFS) was implemented in the BSE in January
1996, but the other exchanges in which the traditional carry forward system had been
prevalent before December 1993 did not come forward to adopt the RCFS. A year after
the implementation of RCFS, the President of the BSE wrote to SEBI in January 1997
requesting a relaxation of certain aspects of the RCFS to make to more practical and
efficient. In its meeting of March 27,1997, SEBI reviewed the entire sequence of
developments relating to the RCFS and specifically noted that while introducing the
RCFS in July 1995, SEBI had decided that the implementation of the revised carry
forward system would be reviewed periodically by the Board, the first review being
after three months. BSE Background: The BSE sensitive index (1978, 79-100) has, to a
considerable extent, been serving the purpose of quantifying the price movements as
also reflecting the sensitivity of the market in an effective manner. The number of
companies listed on the Bombay Stock Exchange has registered a phenomenal
increase from 992 in the year 1980 to about 3,200 companies by the end of March 1994
and their combined market capitalization rose from Rs. 5,421 crores to around
Rs.5,63,748 crores on 31st March 1996. These factors necessitated compilation of a
new broad-based index series reflecting the present market trends in a more effective
 manner and providing a better representation of the increased equity stocks, market
capitalization as also the newly emerged industry groups. Towards this end, the
exchange constructed and launched on 27th May 1994, two index series viz. the BSE
200 and the DOLLEX. 51
52. 52. Coverage: The equity shares of 200 selected companies from the specified and non-
specified lists of this exchange have been considered for inclusion in the sample for
BSE 200. The selection of companies has primarily been done on the basis of current
market capitalization of the listed scrips on the exchange. Besides market
capitalization, the market activity of the companies as reflected by the volumes of
turnover and certain fundamental factors were considered for the final selection of the
200 companies. Choice of Base Year: The financial year 1989-90 has been chosen as
the base year for the price stability exhibited during that year and due to its proximity
to the current period. NSE: The 13 year old National Stock Exchange (NSE) has
outshined the 130 year old. Bombay stock exchange (BSE) in terms of turnover and
volume. The BSE has lost its market share in these segments from 36 percent to 31
percent in the last three years. While, the turnover in BSE stood at Rs. 1,996 crore as
on March 24, 2005, the turnover in NSE was Rs.3,926 crore. The volumes (numbers of
shares traded) of NSE at 2.94 crore was also much higher than the volumes of BSE. In
the derivatives segment, the NSE is a clear winner. It currently accounts for about 97
percent of the countrys equity derivatives volume. However, the BSE was the first
stock exchange in the country to start trading in derivatives segment on June 9, 2000.
The NSE has rewritten a number of rules and upset many traditions. As the derivatives
segment has immense effect on the cash market, the movement in this segment mostly
determines the trend in the market. 52
53. 53. Against nearly 1,000 companies listed on the NSE, the BSE has nearly 4,800 listed
companies despite such a huge number of listed companies; the total market
capitalization of BSE is around Rs.17 lakh crore. On the other hand the NSE has a total
market cap of Rs.16.7 lakh crore. The most tracked index on NSE, CNX, and Nifty also
has more number of stocks than the BSE Sensex. While, the Nifty represents 50 stocks,
the Sensex represents only 30 stocks. The presence of more stocks on Nifty also gives
a better valuation than Sensex. 53
54. 54. Latest Marketingstrategies of Sharekhan 1. SURVEY & INSPECTION:- The growth in
technology and communications has impacted every aspect of business in some or the
other forms. These effects are enduring and have changed the very way in which
business is carried out. The stock market is one such institution whose very existence
has been challenged by the growth in information technology. It has turned very idea of
a stock market on its head. Technology has impact the working of stock markets in
every sense. However, useful starting point for this study would be the study of
dematerialization, or demat as it is Popularly known as. This is simply because demat
has change the way stocks are held and traded and therefore has effect on every other
function of the market. Dematerialization in simple terms means the conversion of
shares from physical to electronic form. Demat, enabled by the use of technology is
probably is single most important factor which has repercussions on every aspect of
the stock markets. Demat in India started with the creation of NSDL (National stock
depository limited) in 1996. UTI was one of the first institutions to use demat when it
decided to dematerialize 50% of its holdings in 1997. SEBI gave a boost to demat, with
compulsory trading on shares in demat form in specified scrips by institutional
investors from Jan 15, 1998. 54
55. 55. Table 1: percentage of trade in demat form Timeline Percentage of trade in demat
form Apr 2002 2.5% Dec 2008 79.3% Since 2012 99% 0.00% 10.00% 20.00% 30.00%
40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Percentage of trade in demat
form Apr-02 Dec-08 Since 2012 Dematerialization has benefited the market and the
market players in more than one way. Demat is instrumental in: 55
56. 56. Abolition of market lots Introduction of rolling settlements Enhancing liquidity
Brining stamp duty to zero Reducing chances of bad delivery Increased lending by
banks and other FIs SEBI extended demat to IPO during capital reforms in capital
markets in 2002. The premise being elimination of problems due to loss of allotment
letters, share certificates etc., encouraging shareholders to out of for demat credit
allotments, trading compulsorily in demat form within an option of holding shares in
physical form for retail investors. BSE, the first exchange to be set up in India, Started
as a floor-based exchange. However, NSE, setup as an alternative to BSE, was an
electronic (computerized) exchange. With advancements in technology, both these
exchanges moved to SBTS (Screen Based Trading System) in 1997. While NSE
introduced NEAT (NSEs Online Trading System) in May 1997, BSE introduced BOLT
(BSEs Online Trading System) in September 1997 in Mumbai. The outcome has
phenomenal with respect to the number of trades taking place on these two
exchanges. Information Flow: Any trading system disseminates data to market
constituents, in other words, information is freely available. This has two
disadvantages- It makes easier for off-exchange transactions to occur because of
availability of information. 56
57. 57. It makes off-exchange transactions attractive due to absence of trading costs. On
the other hand rapid flow of information has also meant increased volatility in the
markets. In financial terms, volatility is: The degree to which the price of a security,
commodity, or market rises or falls within a short-term period. An obvious reason for
market volatility is technology. This includes more timely information dissemination,
improved technology to make trades and more kinds of financial instruments. The
faster information is disseminated, the quicker markets can react to both negative and
positive news. Improved trading technology makes it easier to make it easier to take
advantage of arbitrage opportunities, and the resulting price alignment arbitrage
causes. Finally, more kinds of financial instruments allow investors more opportunity to
move their money to more kinds of investments positions when conditions change.
Adverse impacts of IT on stock markets: Some other interesting observations about
impact of technology on stock markets 1. The vintage capital model teaches us that
technological change destroys old capital. We have gone further and argued that major
technological change like the IT revolution destroys old firms. It does so by making
machines, workers, and managers obsolete. Product-market entry of new firms and new
capital takes time, and their stock-market entry takes even longer. In the meantime,
the stock market declines. We have argued that aggregate valuation can fall below the
present value of dividends because capital, private companies. Later, these companies
are IPOs, and only then does their value become a part of stock-market capitalization.
2. Indeed, the innovation may, at first, reduce the markets value because some firms,
usually large or old, will cling to old technologies that have lost their momentum. (a)
The market declined in the late 1960s because it felt that the old technologies either
had lost 57
58. 58. their momentum or would give way to IT. And (b) IT innovators boosted the stock
markets value only in the 1980s. To sum up, we can say that computerization and
automation are not to be avoided. Technology has been able to make the stock markets
accessible to every individual. It has also led to positive developments in terms of
reduced costs and fewer errors. But, as some experiences have indicated, IT cannot be
applied as a panacea for all problems. Regulation and knowledge dissemination are
still important. The use of technology should be proceeding by a detailed study and
assessment of all other alternatives. The key to successful use to technology is the
appreciation of its constraints. 3. CANOPY:- Canopy method is one of the best method
to aware the public about the something or about some product and to collect the data
to accomplish the target. Sharekhan used/conducted Canopy, at various places where
people mostly go or get together, such as malls, garden, banks and their ATMs, and
other fabulous places. We have a proper format of questionnaire for that purpose, which
 should be filled by the visitors to the camp. That questionnaire has two part one about
the awareness of visitor to stock market and second about their personal detail. In
personal detail he should have to give their name, phone no and address, each part is
mandatory to fill. 58
59. 59. 4. Advertisement through website:- This advertisement method is used by
sharekhan to get popular among the net users. As we know Internet is most important
factor of the human being life in todays era of advancement. There is a form type pop-
up occur on screen of the user that should be filled by user. 59
60. 60. That information automatically distributed to their nearest sharekhan outlets. And a
contact made by sales executives to that client for their help. For more details or to
open an account, submit the form and our representative will get in touch with you...
Name: Email : City: Phone: Pin code: Nearest Sharekhan Office: Sharekhan client? Yes
No *Min Investment for PMS is 10 Lacks Submit 60
61. 61. 5. Pumplates distribution:- Pumplates that having the key features of the broking
company and address of nearest outlet to contact for help. These are distribute by the
trainees, executives or other hired persons, mostly to those places where huge rush
passed daily. These also supports to the outlets to collect the raw data for their further
use to making them their customer and providing services. Pumplates consist key
features and new achievements of the company that aware to the customer for their
special services. 6. Survey Findings: This survey shows the how much the market
capture by the different companies & how they satisfy their customer with the aim of
profit maximization. The leader in the market is Icicidirect.com. Another leader in the
market is Sharekhan, which is also on the second place & gives satisfaction to their
customer in the better way. 61
62. 62. RESEARCH METHODOLOGY Methodology for Market Research: I have divided the
entire city into zones and drew out samples out of each zone. The size of samples
drawn from each zone depended on the prospective ness of the particular area. For
e.g., if a particular research area consisted of Offices then the sample size would
obviously be higher than an area like shopping mall or PVR. This is because office
employees constitute the service sectors who are the active investors of today. Also,
the office areas consist of people from the business class who have always been in the
hunt for quick money, not to forget that smart and timely investment in the share
market can yield to enormous returns. After dividing the city into zones, the target
audience was probed using interviews and questionnaires. These were later analyzed
to draw out conclusive results. 62
63. 63. Methodology for Customer Acquisition : The leads for customer acquisition primarily
came from the questionnaires filled up by the prospective customers. A part from these
customers was also pitched through personal references and contacts. Moreover the
organization takes every possible effort in order to spread mass awareness. As a result
of this publicity campaign, influenced prospective customers approach the
organization. There are various ways to make people aware about the organization as
such marketing research, Canopy, Personal References, Pop-up windows having
collaboration with various portals e.g. Rediffmail.com. Person with adequate interest
leaves his contact information. Later on these leads are contacted personally for
further development. The organization has efficient sales stuff that excels in this job.
Part time trainees are also appointed for the same. This work force been perfectly
supervised by the managers. Thus all these factors sum up into a result oriented work
force. These leads were the contacted through tale-calling and after developing a
relationship, they were pitched in at the addresses provided by them. After giving them
a presentation about the product and its advantages over its competitors, they were
promised of a Demo by company sales force in case a sale had resulted. Also
references were collected from such people and the same methodology was repeated.
 For each and every customer personal quarries have been entertained after the sale is
done. 63
64. 64. Technique used by research team:- (a) Daily moving averages: Buy shares of
companies that are trading above a particular long term DMA. 200 DMA is a very
popular moving average. Select a shorter term moving average for the "sell" trigger.
This trigger can depend on the ferocity of the rise in share price. The more ferocious
the rise the shorter should be the time period for the loss cutting moving average. (b)
Trend Lines: Cut losses when price of the share breaks either a trend line or a strong
support. Similarly check your buys so as to ensure that they do not coincide a break in
a trend line or support. On its way down from Rs 650 recently the share price of M&M
looked very attractive when it briefly stabilized at Rs 350 but the share had broken a
major support as also the north bound trend line. All value investors who picked up the
share at that time have seen their value halve within days. (c)
Accumulation/Distribution: If this indicator shows a downward trending and price is
seen going up, tighten your stop losses as the price generally corrects to the trend of
this indicator. (d) Price - ROC: This measures how fast the price is rising relative to the
past price rise. If the share price is at a 52 week high but 'Price - ROC' is not - take
notice - this could be your best price. Tighten the stop loss. (e) Moving Average cross
over: If a shorter-term moving average dips below the longer term moving average
there is a lack of interest in buying in the stock. If this happens when you have just
bought - SELL. You can always buy later when you are sure of the stock's prospects. It
may in the long-term move up but you may be able to pick it up much cheaper. 64
65. 65. (f) Volumes: Any rise in share price unaccompanied by volumes may be the
handiwork of the 'O' brigade. Similarly if volumes rise with a fall in price, money is
moving out of your stock and you may like to get out too. In any case do not buy when
share prices fall with increased volumes. Wait till volumes and the price stabilize. (g)
Crests and Troughs: The share price should be forming higher crests and troughs. Try to
buy on troughs following the peak that pierced a long term moving average. Cut losses
if subsequent troughs are formed below the selected DMA. 65
66. 66. COLLECTION OF DATA The study was conducted by the means of personal interview
with respondents and the information given by them were directly recorded on
questionnaire. For the purpose of analyzing the data it is necessary to collect the vital
information. There are two types of data, this are- Primary Data Secondary data
PRIMARY DATA:- Primary data can be collected through questionnaire. The
questionnaire can be classified into four main types. Structured non disguised
questionnaire Structured disguised questionnaire. Non structured non disguised
questionnaire Non structured disguised questionnaire. For my market study, I have
sleeted structured non-disguised questionnaire because my questionnaire is well
structured, listing of questions are in a prearranged order and where the object of
enquiry is revealed to the respondents. To making a well-structured questionnaire, we
have adopted three type of questions- Open ended question Multiple choice
questions 66
67. 67. These types of questions are easy to understand and easy to give required answers.
SECONDARY DATA:- Secondary data means data that are already available i.e. they
refer the data which have already been collected and analyzed by someone else. When
the researcher utilizes secondary data, than he has to look into various sources from
where he can obtain them, in this case he is certainly not confronted with the
problems that are usually associated with the collection of original data. Secondary
data may either be published data or unpublished data. Usually published data are
available in: Various publications of the central, state and local government; Various
publications of foreign government or of international bodies and their subsidiary
organizational; Technical and trade journals; Books, magazines and newspapers;
Reports and publications of various associations connected with business san industry,
 stock exchanges etc.; Reports prepared by research scholars, universities,
economists etc; Public records and statistics, historical document and other source
of published information. The source of unpublished data are many; they may be found
in diaries, letters, unpublished biographies and autobiographies and also may be
available with scholars and research 67
68. 68. workers, trade associations, labor because and other public private individuals and
organization. 68
69. 69. DATA ANALYSIS 1.Share Market Preference:- Interpretation: This chart shows that
number of 60 % of people interested in share market .Right now most people shows
their interest to invest in this rather than savings. 69 60 40 0 20 40 60 80 100 120 No
Yes
70. 70. 2.Portfolio size: 0 10 20 30 40 below 10 upto50 30-40 20-30 10-20 0-10 Interpretation
Most people fears to risk of share market therefore rarely they are interested to invest
more than 10 lakh. 70
71. 71. 3.Awareness about Sharekhan: 70 30 0 20 40 60 80 No Yes Interpretation: Mostly
customers in the market are aware about the Sharekhan due to their Achievement and
growth in sort period and their goodwill that generated through their services. 71
72. 72. 4. facilities awareness: 55 45 0 10 20 30 40 50 60 No Yes Interpretation Most
customer are interested in Sharekhan for investing option so they have maximum
knowledge about their facilities. 72
73. 73. 5.New Features awareness: 0 10 20 30 40 50 60 70 Yes No Interpretation About 60
% customer shows their keen interest to know about Sharekhan therefore they are
mostly aware about new plans and feature of this. 73
74. 74. 6.Knowing about Sharekhan 20 25 10 45 Friend Website Newspaper others
Interpretation Most customer knows about Sharekhan company from their friend
because they are using services of Sharekhan and suggested to their friends to invest
through Sharekhan. 74
75. 75. 7.Interest to service use 20 70 10 0 10 20 30 40 50 60 70 Offline Online Both I
Interpretation Most people want to use online service due to some shortcomings of
offline services like telephone line congestion etc. 75
76. 76. SWOT ANALYSIS Strengths: The do-it-yourself framework of online share trading
offers retail investors the three benefits of transparency, access and efficiency.
Paperwork diminishes significantly, and no more painful trips to your broker to check if
everythings in order online trading has made it possible to universalize access to retail
investors. This was earlier very difficult, as the cost of servicing often-outweighed
transaction volumes. Online brokerage ranges between 0.01- 0.05 percent of the value
of transactions for non-delivery-based traders, and 0.20 percent for delivery- based
trades. Once major investments in online infrastructure are over and done with and
with the economies of scale coming into play it is expected that brokerage rates
would head further head further downwards. Access to online trading and latest
financial happenings, apart from quotes and unbiased investment analyses, all
consolidate into a value added product mix in tandem with evolving markets that are
freer and fairer. The net result: n inquisitive, informed and demanding investor. Todays
investor is more involved in managing his or her assets and analyzing a vast array or
investment options. Technology and todays enabled investor have, turn, driven
competition, resulting in reduced costs of trading, transparency in dealings, and 76
77. 77. pricing info that is accurate and real time. More and more investors now want to
know how their trades are executed, and whether they have received the best possible
price. Critical components of execution quality include the prices at which orders were
executed as well as the speed of execution. The quality of execution, in turn, hinges on
efficient order routing. We owe this to our investor fraternity. Weakness: Everything in
the world has a flip has side to it- Transaction velocity is crucial and more often than
not, connections are lousy. Theres also a degree of investor skepticism about online
 payment and settlement mechanisms in spite of all the encryption and firewalling
brought into playtime and technology will soon assuage these concerns, which hark
back to the physical days. The three main technology obstacles which have
prevented Internet broking from taking off are: Lack of Internet penetration
Bandwidth infrastructure Poor quality of ISP infrastructure Opportunities: You have
some money to dabble with trading shares on BSE/NSE has always been your dream.
When will you ever find the time? And besides, the hassle of finding a broker is not
easy. This is your main opportunity. 77
78. 78. Realizing there is untapped market of investors who want to be able to execute
their own trades when it suits them, brokers have taken their trading rooms to the
Internet. Known as online brokers, they allow you to buy and sell shares via Internet.
There are 2 types of online trading service discount brokers and full service broker.
Discount online brokers allow you to trade via Internet at reduced rates. Some provide
quality research, other dont. Full service online brokerage is linked to existing
brokerages. These brokers allow their clients to place online orders with the option of
talking / chatting to brokers if advice is needed. Brokerage rates here are higher. 5
paisa.com, icicidirect.com, indiabulls.com, Sharekhan.com, geojitsecurities.com,
hdfcsec.com, tatatdw.com and kotakstreet.com are some of the online broking sites in
India. Threats: On to some threat perception Domestic funds, foreign institutional
investors and operators comprise the three main market constituents. And all three
include term investors as well as opportunities in their pecking order. Some, for
instance, hitch their fate with what the FIIs are up to. All this spells spurting volumes.
But nobody gives a damn about the resultant volatility. And some, not all, offer free
investment advice over the net to lure rookie investors with misleading information.
Prices of scripts can also be influenced to the advantage of vested interests, courtesy
the net unlike in the US; stockbrokers out here willingly (or under the force of
circumstance) assume the role of advisors, sans the neutral, non-vested stance. So,
how does all this impinge on the ordinary guys ordinary dreams? Hurdles for online
share trading:- 1. Internet fraud: 78
79. 79. In India, we see this kind of frauds happening in different way due to nature of our
society. Here when you talk to brokers staff while buying or selling, he will usually
advice you to buy share which he has bought and plans to dump when price goes up.
We have seen enough of pump and DUMP even without help of internet in cases of
Harshad Mehta boom of 1992 and Ketan Parekh boom of 2000 (he even had cult
following with index of 10 shares called K-10). Today lot of investors depending on TV
channel for recommendation about stocks to sell, or buy or hold. Channels like CNBS
offer array of experts from economist to brokers to analyst. Most of these people have
vested interest in stocks they recommend and promote. One of the most common
forms of securities fraud on the Internet involves an imposter who attempts to
manipulate the price of a stock by disseminating phony press releases or information,
or creating phony websites. A recent example of this scheme is the hoax perpetrated
against US based, Pair Gain Technologies. 2. Volatility of Indias Stock Markets: Recent
market developments have one more focused attention on the volatility that has come
to characters Indias stock markets. Movements in the Sensex during the two years
have clearly been driven by the behavior of foreign institutional investors (FIIs), who
were responsible for net equity purchases of as much as $6.6 and $8.5 billion
respectively in 2003 and 2004. These figures compare with a peak level of net
purchases of $3.1 billion as far back as 1996 and net investments by FIIs of just $753
million in 2002. In sum, the sudden FII interest in Indian markets in the last two 79
80. 80. years account for the two bouts of medium term buoyancy that the Sensex
recently displayed. Given the presence of foreign institutional investors in Sensex
companies and their active trading behavior, their role in determining share price
movements must be considerable. Indian stock markets are known to be narrow and
shallow in the sense that there are few companies whose shares are actively traded.
 Thus, although there are more than 4700 companies listed on the stock exchange, the
BSE Sensex incorporates just 30 companies, trading in whose shares is seen as
indicative of market activity. This shallowness would also mean that the effects of FII
activity would be exaggerated by the influence their behavior has on other retail
investors, who, in herd-like fashion tend to follow the FIIs when making their
investment decisions. 3. Rampant Speculation: The Indian stock markets are perhaps
the only place in the world where you can buy shares without having to put money on
the table and sell shares you do not own. This extraordinary situation has facilitated
rampant speculation by all sorts of operators the indigenous variety. FIIs and even our
own native financial institutions (FIs) as the massive UTI scandal of recent years has
demonstrated. So, when the stock markets were made to collapse by a record 800-plus
points on May 17 under the pretext that the left is opposed to divestment, the profits
reaped by short sellers were astronomical and incalculable. Could this situation have
been avoided? As aforesaid, the answer is yes. The electronic monitoring system in
both the Bombay Stock Exchange and the bigger National Stock Exchange
automatically stopped trading for half-an-hour when the two markets respectively 80
81. 81. collapsed by 10 percentage points. Thereafter when trading resumed and the
markets fell further to another stipulated lower level, the electronic system
automatically stopped all trading again for another two hours. A similar situation had
occurred on Tuesday, Sept 11, 2001, the day of the terrorist attacks in New York City. At
the end of the day the stock exchange authorities of both the New York Stock Exchange
and the heavily weighted software exchange called NASDAQ suspended all trading for
the remainder three working days during that fateful week to safeguard investor
interests. So, advanced capitalism does know how to intervene politically in the
markets when fundamental interests are in danger of violation by short sellers. 81
82. 82. 82
83. 83. CONCLUSION Sharekhan used the strategies to sell them in spite of selling their
services to penetrate the todays competitive age. Such strategies like canopy, market
survey, pump late distributing etc. Therefore they are able to understand the
customers problem and try to solve them and make a healthy relation with them for
their proper guidance and achieving the maximum profit. 83
84. 84. Sometimes, they try to hide information . Lack of Techno Savvy People and Poor
Internet Penetration: Since most of the people are quite experienced and also they are
not techno savvy. Also Internet penetration is poor in India. Some respondents are
unwilling to talk: Some respondents either do not have time or willing does not
respond, as they are quite annoyed with the phone call. Inaccurate Leads: Sometimes
leads are provided which had error in it which varies from only 5 digit phone numbers
to wrong phone number. 84 The marketing person might be possible, is not through
with all concepts to which I contacted. The data on websites might be possible, not
get updated. LIMITATIONS Lack of Awareness of Stock Market: Since the area is not
known before it takes lot of time in convincing people to start investing in shares
primarily in IPOs. Services of SHAREKHAN: We cannot give proper comment on
competitors services till we use it. But I try to collect as accurate information as
possible. As we all know services are intangible and we cannot predict its quality, it is
a thing to feel not to see. No Proper Assurance of Right Information: The main data
sources are websites, telephonic information and offices visit.
85. 85. SUGGESTIONS SHAREKHAN should be organize seminar kitty parties with their
customers. SHAREKHAN should be start welfare programmes to make aware of stock
market people. SHAREKHAN should be focused on customer satisfaction and the
product availability and treat their customer as GOD. The best way of competing with
the competitor is to make your customer satisfied, which results in the loyalty of your
customers for your company. SHAREKHAN should provide better services after selling
the services. 85
86. 86. BIBLIOGRAPHY Book and Newspapers: C. R. Kothari Research Methodology New
age international private limited(second revised edition-2004) The Economic Times,
Business Standard, Business Line etc. Intelligent Stock Market Investing by N. J.
Yasaswy. The Indian Securities Market by Tadashi Endo. The Big Picture Reflections
on Our Economic Times by T.T. Ram Mohan. URLs: http.www.netcontent.share
http.www.prweb.com.releases2005_7prweb261788hun. http:www.me-
mdia.com.centerfolds_stortes59110html. http:www.sharekhan.com
http:www.google.com http: www.sharekhanlearning.com 86
87. 87. No 2. What percentage of your earnings do yo Yes QUESTIONNAIRE 1. Do you
invest in stock market? Online 87 No 6. Which service you like more in Sharekhan?
Yes Others (specify) 5. Are you known about facilities provided by Sharekhan?
Newspaper Website Friend No 4. How you know about Sharekhan? Yes Above
50% 3. Are you aware about brand name Sharekhan? Up to 50% Up to 25% Up to
10% u invest in share trading?
88. 88. No 9. What are your expectations about future of Sharekhan?
_____________________________________________________
____________________________________________________ 10. How Sharekhan can help you
realize your stock market dream? _____________________________________________________
____________________________________________________ PERSONAL DETAIL NAME:
_________________ AGE: __________________ CONTACT NO:______________ 88 Yes No 8. Is
Sharekhan market strategies better than other companies? Yes Both 7. Do you know
about new features of Sharekhan? Offline
89. 89. 89