A PROJECT REPORT On

Comparative analysis of stock brokers with Indiabulls

In the partial fulfillment of MASTERS OF BUSINESS ADMINISTRATION Financial Services Management (Session 2010-2012)

Faculty Of Management Studies, MLSU Udaipur Rajasthan

Under the guidance of:Mr. Abhishek Goswami

Submitted by:Ravi Soni MBA- FSM (IIIrd semester)

DECLARATION

I hereby declare that the project entitled Comparative Analysis Of Stock Brokers With IndiaBulls submitted in partial fulfillment of MBA- FSM degree is my original work done at IndiaBulls, Jaipur from 5 July 2011 to 20 August 2011. I also declare that it has not been previously submitted for any other degree at any other institutions.

Ravi Soni MBA- FSM

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to all the people who are instrumental in the successful completion of this project.

I would like to express my sincere gratitude to my Project guide Mr. Abhishek Goswami, for his continuous support & guidance towards making this project success.

I would also like to thank Mr. Kshitiz Ganeriwal, Vice President & Mr. Rajat Sharma, Senior Vice President for providing me the chance to undergo my training at IndiaBulls & gain such rich experience.

I would also like to show my greatest appreciation to all those who have directly & indirectly supported me with their encouragement & guidance. Without their encouragement & guidance this project would not have been a success.

EXECUTIVE SUMMARY

The objective of the project was to learn about the various products that the IndiaBulls has to offer to the customers. The main purpose of study is to know about the competitive edge of IndiaBulls over other stock brokers & for this purpose only a comparative analysis has been done with other stock brokers.

In this report along with the analysis organization structure, functioning of departments, promotion etc. of IndiaBulls have also been described . A questionnaire was also designed in order to evaluate certain facts which will be helpful in order to complete the study. The first part of the report consists of Introduction to the industry, the next part includes Introduction to the organization and after that study report has been given. A SWOT analysis was also done to know about the strengths, weaknesses, opportunities and threats of the organization. In the end conclusions and recommendations were given on the basis of the study done.

TABLE OF CONTENTS

*Introduction *Growth of IndiaBulls *Product & services offered by IndiaBulls *Overview of company people *Vision *IndiaBulls securities limited *IndiaBulls offerings *Benefits *Competitors *Comparative analysis between different stock brokers *Organization structure *Functioning of departments *SWOT analysis of IndiaBulls *Edge of IndiaBulls over others *Depository services *Promotion *Research methodology *Sample design & data collection *Details of actual work done *Interpretation & analysis *Findings of study *Recommendation & benefits to company *Limitations *Suggestions *Bibliography

6-7 8 9 10 11 12 13-14 15 16-18 19-23 24 25-26 27 28-30 31 32 33-34 35-36 37-40 41-49 50 51-52 53 54 55
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INTRODUCTION
IndiaBulls Group is one of the top business houses in the country with business interests in Real Estate, Infrastructure, Financial Services and Power sectors. IndiaBulls Group companies are listed in Indian and overseas financial markets. The Networth of the Group exceeds USD 3 billion. IndiaBulls has been conferred the status of a Business Superbrand by The Brand Council, Superbrands India. IndiaBulls and its group companies have attracted USD 800 million of equity capital in foreign direct investment (FDI) since March 2000. Some of the large shareholders of IndiaBulls are the largest financial institutions of the world such as Fidelity Funds, Capital International, Goldman Sachs, Merrill Lyinch, George and Farallon Capital.

The Group Companies

IndiaBulls Financial Services IndiaBulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. IndiaBulls Financial Services Ltd is amongst 68 companies constituting MSCI Morgan Stanley India Index. IndiaBulls Financial is also part of CLSAs model portfolio of 30 Best Companies in Asia. IndiaBulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, has set up Indias 4th Multi-Commodities Exchange. IndiaBulls Real Estate Limited IndiaBulls Real Estate Limited is Indias third largest property company with development projects spread across residential projects, commercial offices, hotels, malls, and Special Economic Zones (SEZs) infrastructure development. IndiaBulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. IndiaBulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces.

IndiaBulls Real Estate has diversified significantly in the following business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development, Power : Thermal and Hydro Power Generation.

IndiaBulls Securities Limited IndiaBulls Securities Limited is Indias leading capital markets company with All- India Presence and an extensive client base. IndiaBulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power IndiaBulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country. IndiaBulls Securities Limited is the first brokerage house to be assigned the highest rating BQ 1 by CRISIL.

GROWTH OF INDIABULLS

Year 2000-01: One of Indias first trading platforms was set up by IndiaBulls Financial Services Ltd. with the development of an in-house team. Year 2001-03: The service offered by IndiaBulls was increased to include Equity, F&O, Wholesale Debt, Mutual fund, IPO Financing/Distribution and Equity Research. Year 2003-04: In this particular year IndiaBulls ventured into Distribution and Commodities Trading business. Year 2004-05: This was one of the most important years in the history of IndiaBulls. In this year: IndiaBulls came out with its initial public offer (IPO) in September 2004. IndiaBulls started its Consumer Finance business. IndiaBulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. IndiaBulls won bids for landmark properties in Mumbai. Year 2005-06: In this year the company acquired over 115 acres of land in Sonepat for residential home site development. The world renowned investment banks like Merrill Lynch and Goldman Sachs increased their shareholding in IndiaBulls. It also became a market leader in securities brokerage industry, with around 31% share in Online Trading. The worlds largest hedge fund, Farallon Capital and its affiliates committed` 2000 million for IndiaBulls subsidiaries Viz. IndiaBulls Credit Services Ltd. and IndiaBulls Housing

PRODUCTS AND SERVICES OFFERED BY INDIABULLS

IndiaBulls Securities Equity research Commodities Internet trading Online IPO

Consumer finance SME loans Commercial vehicle loan Insurance

Mortgage Home loans Loans against Property

Real estate Organized Retail Commercial development Residential development

AN OVERVIEW OF COMPANY PEOPLE

The company was established by three engineers from IIT Delhi, and has attracted significant amount of investments from venture, private equity and institutional investors. The details are as follows:-

Mr. Sameer Gehlaut Mittal Chairman, CEO

Mr. Rajiv Rattan

Mr. Saurabh

President, CFO

Co-Founder

Whole-time Director Mechanical Engineer

Whole-time Director Electrical Engineer

Director Electrical Engineer

IIT Delhi Worked for Halliburton in United States

IIT Delhi Worked in Schlumberger

IIT Delhi Worked in Schlumberger

Acquired Inorbit Securities in 2000 to establish Indiabulls

MBA from Harvard Business School

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VISION

To achieve and retain leadership, India Bulls shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, India bulls will strive to exceed Customers expectations. QUALITY OBJECTIVES:As per the Quality Policy, IndiaBulls will: Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services. Establish a partner relationship with its investor service agents and vendors that will help in keeping up its commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customers needs. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics. Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. Strive to be reliable source of value-added financial products and services and constantly guide the individuals and institutions in making a judicious choice of same.

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INDIABULLS SECURITIES LIMITED :-

The Company's primary business activity is to carry on business of stock and share broker on National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The Company also provides depository services,mutual fund and initial public offering (IPO) distribution to its clients. The Company is a depositary participant with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for settlement of dematerialized shares. It performs clearing services for all securities and commodities transactions. Clients of the brokerage business are able to use the depositary services to execute trades through the Company and settle transactions. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd.

IndiaBulls Commodities Private Limited (ICPL), a 100% subsidiary of IndiaBulls Securities Limited, offers commodity brokerage services to its customers. ICPL is a registered Tradingcum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and National Commodity and Derivatives Exchange Ltd (NCDEX). .

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INDIABULLS OFFERS

Broker Assisted trade execution Automated online investing Access to all IPOs [Initial Public offer] Sales of Equity, Derivatives and commodities instruments listed on NSE, BSE, NCDEX and MCX

BROKERAGE OFFERING:- IndiaBulls retail equity business primarily covers secondary market equity broking. It caters to the needs of individual Indian and Non-resident Indian (NRI) investors. They offer broker assisted trade execution and automated online investing and trading facilities to the customers. Automated online investing and trading includes automated order placement and execution of market and limit equity orders; and advanced trading platforms for active traders. All investors have full access to real -time quotes, personalized portfolio tracking, charting and quote applications, real-time market commentary, real-time quotes and news. ONLINE AUTOMATED CHANNEL:- Automated Online Business contributes
more than 34.6% of their overall revenues. They control more than 20% market share in the online business. Clients are able to obtain financial information and execute trades on an automated basis through their online channel using product offerings like Power IndiaBulls and IndiaBulls Market Trader. This channel is designed to provide added convenience for clients and minimize our costs of responding to and processing routine client transactions. Online channels include the IndiaBulls Group Professional Network that provides access via our web-site www.indiabulls.com to information and trading service on the Internet. Additionally, Power IndiaBulls online trading system is designed for the high volume trader and provides enhanced trade information and order execution integrated software-based trading platform.

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There are 3 mediums of using / accessing their Trading Services. Power IndiaBulls (PIB) IndiaBulls Signature Account Relationship manager(RM)

Power IndiaBulls:- The Power IndiaBulls software is ideally suited for the active trader. This software gets installed on the client machine and is similar to a Dealer Terminal over the Internet. The terminal has a lot of features that makes it extremely usable from the point of view of a trader who is active in the market. Some of the product features are Integrated market watches for cash and derivatives Multiple tick by tick charting Advanced Technical Analysis Single key stroke order entry Multiple customizable market watches Easy to use risk management reports Secured Socket Layer connectivity with server Two second order confirmation turnaround time even during peak hours.

INDIABULLS SIGNATURE ACCOUNT:- A multitude of ways to access the account either through priority access to Relationship Manager over phone or online access to the Account & Research Tools FEATURE:Priority Service Enjoy priority telephone access that gives direct access to the Relationship Manager. Premium Research Benefit from full access to IndiaBulls Equity Analysis , our objective, fact-based approach to rating stocks. Online Accounting Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

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BENEFITS: Control Stay on top of your investments with convenient access to your account online or by phone. Confidence Support your investing decisions with premium in-depth research - IndiaBulls Equity Analysis. Value Enjoy competitive commissions and get the service and support you need at a fair price It offers the unique feature of relationship manager. RELATIONSHIP MANAGER:- Relationship Manager driven sales model, provide high quality service and exploit cross-sell opportunities. Companys clients benefit from the personal attention and advice of the trained and motivated relationship managers. All our relationship managers are qualified and educated professionals, who have been extensively trained in-house to provide the products and services to the clients. These relationship managers are encouraged to develop long-term relationships with the clients and can access a variety of resources within our Company, such as insurance specialists, research services and others to add value to our clients. Most of our clients have dedicated relationship managers irrespective of the channel they use. IndiaBulls Securities And Derivatives Broking:- ISL is engaged in the business of Internet based trading and is registered with SEBI as a stockbroker, trading and clearing member of NSE, member of BSE and as a depositary participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). ISL is also a member of the National Securities Clearing Corporation Limited

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THE COMPETITORS

India Infoline: Strengths of the 5paisa or infoline are: 1. Very fast execution speed. 2. Rates are very competitive then other providers. 3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks. 4.Free facility of subscribing to mutual funds, equity IPOs and other investment products.

ICICI Direct: Strengths of the ICICI direct are: 1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment. 2. Unlike most of the online trading companies in India which require transferring money to the broker's pool or towards deposits, at ICICI Direct you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICI Direct receive it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. 4. Trading is available in both BSE and NSE .

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Religare: Strengths of the Religare are:-

1. Religare gives interest on unutilized cash when investor is waiting to make next trade or online investment. 2. Religare Allow their investor to trade without having to worry about cash margin. Investor can get exposure (on cash segment) as high as 20 times for intraday trades. 3. They provide intraday reports and historical charting. 4. Lifetime free DP account. 5. Varity of fee structure to fulfill need of different type of investors.

ShareKhan: Strengths of the Sharekhan are:

1. Online trading is very user friendly and one doesn't need any software to access. 2. They provides good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. 3.Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modernbanks .

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HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators, i.e, SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC SECURITY

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

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COMPARATIVE ANALYSIS BETWEEN DIFFERENT STOCK BROKERS

After the whole study I found out the following results:There are the two type of the transaction: 1.Intrabased 2. Delivery based

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Indiabulls security ltd: Charge a 0.05 % on intra based and 0.25 % on delivery based transactions per 100 rupees.

ICICI Direct: charge a 0.75 % on delivery based and 0.15 % on intra based transactions per 100 rupees.

Indiainfoline security ltd: Charges a 0.01 % brokerage for intraday transactions. For trades that do result in delivery which is less than 20% of total trades, statistically speaking there is a nominal charge of 0.5 % for securities handling.

Religare Securities Limited:. Religare security ltd charges a 0.3 % on delivery based and 0.03 % on non delivery based transaction. Service charges and other charges are separately

Sharekhan: Sharekhan charges a 0.10 % on non delivery based and 0.50 % on delivery based transactions.

HDFC Securities: HDFC charges 0.15 % on intraday transactions and 0.50 % on delivery transaction

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COMPETITIVE ANALYSIS
The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis
.

It has two main interdependent segments: Primary market and the Secondary market Objective: Analyze retail brokerage industry taking into account the health of the capital markets, Derivative Market and the intensity of competition among the brokerage companies. Doing Competitive Analysis for IndiaBulls.

The major growth drivers for brokerage revenue and trading volume are: Adoption of technology screen-based trading, electronic matching, and paperless securities Centralized operations, effective risk management, and control on large interconnected operations spanning multiple locations, which is enabled by telecom connectivity and low costs Increasing access to capital and the ability to provide margin finance Parameter Assessment for Doing Competitive analysis A differentiating aspect is a comparative assessment of the top retail brokerages on various value indicators, comprising of Product Pricing Service delivery model Unique selling proposition

Customers need to analyze the Brokerage Firms Based on these 5

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Parameters : Brokerage & Miscellaneous charges Quote Software Execution Platform Demat Account Back office Support.

Brokerage & Miscellaneous charges: This accounts for all the charges that you incur for your trading/investing. A few examples would be: Demat Account maintenance, Brokerage, Annual account Fee, Telephone based trading charges, trading software usage charges, etc. We should understand what all charges we are bound to incur from our broker.

Quote Software: This is used mainly for technical study and for live quotes. Many people dont evaluate quote software. We typically use software that have stumbled upon and stick with it just because we have eventually grown comfortable using it. Does it allow us to back test our strategy? Does it allow customizing technical signals/parameters? Does it allow adding new indicators? Does it allow us to see historic data? For, what period is intraday data available? We might need all this information. We should be clear on what we need and ensure our quote software provides it all.

Execution Platform: Its nothing but a platform that allows us to execute our trade fast. It should automate trade management and execution, and should give protection against human errors.

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Demat Account: Demat account should only be opened with a well known and established brokerage firm in the market.

Back office Support: People while trading face lots of problem because of lack of good back office support. Relationship Managers trading without their clients knowledge, funds not being transferred, trades not being executed, slow execution etc are a few examples. IndiaBulls Securities Trading Products They provide three products for trading. They are Cash account Intraday account Margin trading

Cash account provides the client to buy 4 times of cash balance in his trading account. Intraday product provides the client to buy 8 times of his cash balance in the trading account. Mantra account called as margin trading, is a special account to buy on leverage for a longer duration

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ORGANIZATION STRUCTURE

Senior Vice President

Regional Manager

Branch Manager, Senior Sales Manager

Support System

Sales Function

RM/ SRM Back Office Executive Local Compliance Officer

ARM

Dealer

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President

FUNCTIONING OF DEPARTMENTS
SALES KEY ASPECTS OF RMS ROLE

a)CLIENT ACQUISITION Primary responsibility is to register clients who have the potential of generating high brokerage annually Focus not only on account opening but also on margin money from clients Educate the customers on Indiabulls Trading platform so that he can trade on his own Ensure smooth handling of the clients in terms of margin collection and relationship management Achieve monthly targets as given by the Vice President(VP) / Assistant Vice President (AVP) or above.

b) REVENUE GENERATION

Primary responsibility is to generate revenue in excess of 3/4/5 times of own salary on a monthly basis from the allocated/acquired base of clients Prepare the plan of action; maintain the daily activity report and daily revenue plan so that you can meet your brokerage targets. Identify and acquire high net worth individuals (HNI) clients.

c) CLIENT SERVICING Guide clients in terms of investment and trading Rigorous follow up with the allocated clients. Explain ledgers, contract notes and charges . This maintains complete transparency with the clients . Ensure that clients are receiving all relevant documents on time Visit the top revenue generating clients at least once a week. Call up clients for trading, margin calls and for margin collection. Develop and maintain relation with the Clients. Ask for references.
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2. OPERATIONS All work related to: Punching in kits Punching in cheques Checking client account status Maintaining vouchers of expenses Payment of various bills

3. LOCAL COMPLIANCE

To check whether the dealer is putting correct order or not. Issuing warning letters. Verifying the signatures of clients

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SWOT ANALYSIS OF INDIABULLS

STRENGTHS
Integrated technology platform Pan India distribution network Relationship manager facility Power Indiabulls has dev eloped into brand Strong sales & marketing team

WEAKNESSES
Lack of banking arm Loss of relationship manager leads to loss of clients

OPPORTUNITIES
Changing demographics with higher disposable income Rapid penetration of computers & internet Market size & characteristics

THREATS
Economic slowdown Political instability Volatile movement in market indices Competition Substitutes Low product differentiation

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OFFERINGS
IndiaBulls offers two products: -Get More At IndiaBulls. 1. NIB - Normal IndiaBulls 2. PIB - Power IndiaBulls

NIB Normal IndiaBulls: A multitude of ways to access your account either through priority access to Relationship Manager over phone OR online access to your Account & Research Tools. Enjoy priority telephone access that gives you direct access to your Relationship Manager. Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

PIB Power IndiaBulls: Features of PIB: Live Streaming Quotes Fast Order Entry Live Charts Technical Analysis Live News and Alerts

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IndiaBulls: A Cut Above The Rest

Service Industry is base on differentiation of the product and service IndiaBulls is different from its competitors because of following reason

Internal Marketing: The main aim of internal marketing is to train and motivate employees to serve customers. The selection, training and motivation of the employees will make a huge difference in customer satisfaction. In IndiaBulls the employees are well trained and motivated to work and they work delicately. Because IndiaBulls know that employees attitude will promote stronger customer loyalty. IndiaBulls designed a sound training programme and support and rewards for good performance. They can use Internet, internal newsletters, daily remainders, and employee roundtables to reinforce customer-centered attitude.

External Marketing: Describe the normal work to prepare, price, distribute and promote the service to customers. It is mainly for customers to provide better service for this purpose IndiaBulls is providing following unique services to his customers: 1. Relationship Managers who are dedicated to supporting customers trading and investing needs. They always keep in touch with client and they give various tips to client by which he can invest in good stocks. 2. Dealers everyday gives confirmations of the clients whole day trading in the evening after signing out from the Market.

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IndiaBulls is providing funding for trading to its client on nominal rates of interest i.e. on 18% limit of funding is as follow Delivery- for delivery trading IndiaBulls providing 2 times funding Intraday- for this type of trading IndiaBulls is proving 8 times funding without charging any interest. Risk management team of IndiaBulls taking care of client portfolio and whenever the value of his portfolio will go decrease by 30% client always informed by his Relationship Manager. IndiaBulls is providing a software called Power IndiaBulls as describe above if a client have his own PC and Internet then he can trade from his home or office.

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DEPOSITORY SERVICES: IndiaBulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. IndiaBulls performs clearing services for all securities transactions through its accounts. Company offer depository services to create a seamless transaction platform execute trades through IndiaBulls Securities and settle these transactions through the IndiaBulls Depository Services. NRI Account You can now enjoy the convenience of hassle-free and fast way of trading in the Indian Equity Markets through IndiaBulls NRI Investor Services Our unique integrated service creates one window for all your trading, depository and banking needs. You can buy and sell on your computer using our NRI Trading Account Services, which have been seamlessly integrated with your IndiaBulls Depository Account and with the HDFC NRE/NRO Bank Account. IndiaBulls NRI Trading Account - Provides access to comprehensive trading tools for independent NRI investors IndiaBulls Depository Services - Integrated services for seamless delivery HDFC Bank Account - NRE/NRO Accounts with built in tax management solutions and facility to source all regulatory approvals IndiaBulls Equity Analysis - Premium Research on 540+ companies updated daily

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PROMOTION: IndiaBulls is turning to marketing public relations to directly support corporate and product promotion and image making. Because public is any group that has an actual or potential interest in or impact on a companys ability to achieve its objective. IndiaBulls has its team relationship manager that monitors the attitudes of organizations publics and distributes information and communications to built goodwill. They are performing following five functions:1. Press Relations: - They present news about the organization in the most positive light. 2.Product Publicity: - All Relationship managers are sponsoring efforts to publicize product offerings by IndiaBulls i.e. NIB and PIB. 3. Corporate Communication: - They promoting understanding of the organization through internal and external communications. 4.Counseling: - All RMs advise management about public issues and company positions and image during good and crises. IndiaBulls is promoting its product by advertising by following medium: Electronic media: - By advertise its product via Television Print media: - By various newspapers, brochures, etc. Infrastructure: - IndiaBulls also try to demonstrate its service quality through physical evidence and presentation. Because if we talk about online security trading then we have to say that physical evidence is important for the company in IndiaBulls office all client come every day and they trade but with the time passing IndiaBulls is growing and number of client increasing day by day so space of office is not sufficient for both staff members and clients.

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TITLE OF THE PROJECT

Project Profile:
COMPARITIVE ANALYSIS OF STOCK BROKERS IN JAIPUR REGION

Each research study has its own specific purpose. It is like to discover to question through the application of scientific procedure. But the main aim of my research is to find out th e truth that is hidden and which has not been discovered as yet. My research study has two objectives:OBJECTIVE OF THE PROJECT:

PRIMARY OBJECTIVE: - How IndiaBulls Securities Ltd is best service provider as a stock broker in the Tri-city region. SECONDARY OBJECTIVE: 1. To know about the awareness towards stock brokers and share market.

2.To study about the competitive position of IndiaBulls Securities Ltd in competitive market. 3. To know the perception and psychology of investors towards share trading. 4.To study about the effectiveness & efficiency of IndiaBulls Securities Ltd in relation to its competitors. 5. To know the perception and psychology of investors towards share trading. 6.To study about whether people are satisfied with IndiaBulls Securities Services & Management System or not. 7.To study about the difficulties faced by clients while Trading in IndiaBulls Securities Ltd. 8. To study about the need of improvement in existing Trading system

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RESEARCH METHODOLOGY
Research Methodology refers to the search for Knowledge. It is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them.
TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these are distributed on the nature of research. Some of these are like 1. Descriptive and Analytical 2. Qualitative and Quantitative 3. Conceptual and empirical 4. Applied and fundamental 5. One time research My research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research:- Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between different stock brokers. So this based on all qualitative data. In short, Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior. Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike a particular thing Quantitative research:- Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. So we can use it in our research for collection of all the numerical data.

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SAMPLE DESIGN
"A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample Generally Sample designs are two types 1. PROBABILITY RESEARCH DESIGN 2. NON PROBABILITY RESEARCH DESIGN I used the probability research design.
SAMPLING UNITS

Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. In my research study Jaipur as a sampling unit.
SIZE OF SAMPLE

This refers to the number of items to be selected from the universe to constitute a sample. In my research sample size is 70. But I also studied the 5 stock broker companies related to security market like India infoline, ICICI direct, HDFC securities, Religare etc. for the appropriate collection of the information.

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DATA COLLECTION
While deciding about the method of data collection to be used for the study the researcher should keep two types of data.

1. Primary Data: - which is collected by new research called primary data. Personal Interview Close observation Survey conduction 2. Secondary Data: - already existing data is called secondary data. I collected them by following method Internet Books

Survey Method: - Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents of the concerned area. In a survey the investigator examines those phenomena which exist in the universe independent of his action. We used the Scheduling Method.

Scheduling: - In this method the enumerators along with schedules, go to respondents, put to them the questions from the Performa in the order the questions are listed and recorded the replies in the space meant for the same in the performa.

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DETAILS OF WORK DONE

As per my project which is Comparative Analysis of Stock Brokers in Jaipur Region I have to compare the different stock brokers present in the Jaipur region and I have to find out how many people know about the stock market and whether they are interested in investing. I have also learned how demat accounts are opened and what all documents are required to open an account. ACCOUNT OPENING
To avail the services of a depository an investor is required to open an

account with a depository participant of any depository. PROCEDURE FOR OPENING AN ACCOUNT A demat account are opened on the same lines as that of a Bank Account. Prescribed Account opening forms are available with the DP, needs to be filled in. Standard Agreements are to be signed by the Client and the DP, which details the rights and obligations of both parties The DP officials will make available the relevant account opening form (depending on whether the client is a retail investor or corporate client/clearing member) and specify the list of documents regarding references that should be submitted along with the form. It will also give a copy of the relevant agreement to be entered with the client, in duplicate. The client will submit the duly filled in account opening form and client has to visit personally for opening the account in DP. The DP officials have to do in person verification and affix the IN PERSON VERIFICATION stamp on the account opening form. It should also furnish such documents regarding references, as specified by the DP, along with the account opening form. After executing the agreement the client has to forward it to the DP.

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 The DP officials will verify that the account opening form is duly filled in. It will also verify the enclosed documents, if any. Incomplete forms will be forwarded to the client for rectification. For Corporate Clients, the DP officials will verify if the board resolution for the authorized signatories is enclosed. In case the documents are not proper, the DP officials will reject the form and intimate the client of the same, stating the reasons for doing so. If the form is in order; the DP officials will accept the same and affix the stamp verified with original on each and every proof after seeing the original proofs. After completion of all documentation, the DP officials will verify the pan from income tax website. And affix the stamp PAN VERIFIED with date and sign on the stamp. The DP officials will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL & CDSL to the Participant) screen provided for the purpose. In case of NSDL A/c opening the SR. Assist will capture all the details in the DPM and record the clients signature (on the form) as specimen for authorizations in the future. After entering client details in the system, a client account number will be generated by the DPM. The DP officials will enter this in the account opening form. After that the officers will verify the details in the DPM captured by the SR. Assist. and activate the account. The DP officials are not allowed to give the demat a/c no to the clients until the a/c is activate, this is applicable for both NSDL & CDSL. When the demat a/c is activated the DP officials have to send the client master and the copy of agreement between DP and client at the clients address The account holder is called 'beneficial owner' in a depository system and the account is known as 'beneficiary account'.

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DOCUMENTS REQUIRED FOR DEMAT ACCOUNT

. Proof of Identity (POI): Passport Voter ID card Driving license PAN card with photograph Identity card with applicants photograph issued by

1. Central or state government and its department 2. Statutory/regulatory authorities 3. Public sector undertakings 4. Scheduled commercial banks 5. Public financial institutions 6. College affiliated to universities Proof of Address (POA): Ration card Passport Voter ID card Driving License Bank passbook Verified copies of :

1. Electricity bills (not more than 2 months old) 2. Residence landline telephone bill (not more than 2 months old) 3. Leave & license agreement/agreement to sell (duly attested) 4. Self declaration by supreme court/high court judges, giving the new address in respect of their own accounts.

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Passport-size photograph

Copy of PAN card along with original PAN card for verification Bank details: Copy of cancelled cheque with printed name from the bank.

Copy of bank passbook with name and address and copy of cancelled cheque. Bank statement with name and address (duly authorized by the bank, if statement is on plain paper) not more than 4 months old and copy of cancelled cheque of MICR & bank detail verification. In case of minor Date of birth certificate duly notarized

Proof of address and identity documents of the guardian both minor and guardians photograph and guardian to sign across both photographs PAN card of minor as well guardian is mandatory

In case of NRI Foreign address and RBI approval date attested copy of RBI approval NRO-Indian address alonwith proofs Bank account details

In case of joint holdings In case of joint holdings, POI and POA documents alongwith PAN card must be submitted in respect of all account holders.

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INTERPRETATION & ANALYSIS

Research is conducted for finding the solution of the problem. So to find the solution of the problem data analysis and interpretation is must. There are some questions related to this research to interpret the result.

The sample size in this study consisted of 70 individuals and data analyzed from the response of these 70 individuals.

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Question no. 1

Do you know about investment options available ?

Interpretation

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

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Question no. 2

Are you aware of DeMat acaount? The basic purpose of this question is to know about awareness of demat account among respondents.

Interpretation

The above table clearly shows that from a sample size of 70 respondents, 60 individuals were aware of demat account

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Question no. 3 :-

Most preferable investment scenario

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

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Question no. 4 :-

What is the basic purpose of your investment?

Interpretation

75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and Others.

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Question no. 5

Most important things you take into your mind while making investments?

Interpretation

75% people are considered the both factors risk as well as returns but, only 25% considered the risk or returns factor

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Question no.6

Do you have any demat & trading account?

Interpretation

Only 60% respondents have de-mat and trading account and remaining 40% says no because they dont know why shares move up and down

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Question no. 7

Specify the reason of satisfaction with the current broking house

Interpretation

We can see that most of the clients are satisfied with their broking houses because of the lower brokerage charges which is followed by services they provide.

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Question no. 8

In which company you have demat and trading account?

Interpretation

In IndiaBulls Securities Ltd 38% respondents have de-mat & trading account because of better services and no annual maintenance and other charges except for brokerage chargesv

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FINDING OF THE STUDY

According to the survey most of the clients of IndiaBulls Securities Ltd says that it is pocket friendly. Coming to faith 70% say IndiaBulls Securities Ltd is better than others stock brokers due to customers satisfaction. Lack of promotional activities undertaken by IndiaBulls Securities Ltd. in Jaipur Region. Main purposes of investments are returns & liquidity. Investors take risk as well as returns into their mind while making the investment. Businessmen are more interested in the stock market than the others. Commodity market is less preferred by the investors. People want to invest their money in the security market but they havent the proper knowledge. People are not aware of hedging in stock market. People pay more emphasis on brokerage than service provided by brokerage houses.

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RECOMMENDATIONS

Commitment should be equalized for every person. Provide the facility of free demonstrations for all. Improvement in the opening of De-mat & contract notice procedure is required. There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly. Some promotional activities are required for the awareness of the customer. People at young age should be encouraged to invest in stock market. Seminars should be held for providing information to prospective and present clients.

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BENEFITS TO COMPANY

Research, as a general concept, is the process of gathering information to learn about something that is not fully known. Nearly everyone engages in some form of research.

1) Will help you better communicate: By conducting the research Indiabulls Securities Limited will be able to communicate to its clients easily. If the company has proper information regarding the market then they will be able to provide the required services to its clients on time. 2) Will help identify opportunities: By conducting research the company can check the competition. They will also be able to know that are they missing something they can capitalize on. What can they do better than they can? Are their clients in need of something nobody else is offering? 3) Will minimize risk: Just like any situation, if the company is well prepared then they will be less likely to loose and more likely to win. If the research is conducted on timely basis then they can also retain their clients for longer period of time. 4) Will create benchmarks to help you measure progress: If the research is conducted then they will come to know how well they are doing. By setting the standard high from the start, the company will be in a better position for sustained growth. 5) Will help to set competitive price: The research will also help to set better price as against its competitors in the market, like, many stock broking houses have low account opening charges as compared to Indiabulls Securities Limited.

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LIMITATIONS

As only JAIPUR was dealt in survey so it does not represent the view of the total Indian market. Size of the research may not be substantial. There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions were based on perception.

There may be biasness in information by market participant. Complete data was not available due to company privacy and secrecy.

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SUGGESTIONS

Aggressive Promotions: Indiabulls Securities compared to its competitors concentrates less on advertising and promotions, especially through electronic media. Its competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media. Hence Indiabulls should concentrate more on advertising through print and electronic media. Tapping Rural Market: The Indian rural investors markets are relatively untapped, with only small firms meeting the current demand. Indiabulls Securities can gain the First Mover Advantage over its competitors, especially in areas were commercial crops are grown and the standard of living is high. These people do not have much option to invest other than banks and post offices. Reduce the initial account opening charges: The charge for opening a trading and demat account in Indiabulls securities is high compared to its competitors. This influences the potential investors to open their account with another company which provides the same at lower prices. Thus it acts as a mental barrier for potential customers, who tend to overlook all other benefits offered by Indiabulls. Hence Indiabulls should consider reducing their account opening charges. Bring in more product differentiation: Product differentiation here means that Indiabulls securities should bring in more customized services and more value proposition for large investors. It can reduce the brokerage charges for large investors which will encourage them to invest more in the company. Invest more on R&D: Indiabulls should concentrate on its research and development since most of its competitors are investing on R&D. This will help the company to read the market better and will also be in a better position to understand the needs of the customers.

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BIBLIOGRAPHY

Websites Visited www.sebi.gov.in www.nseindia.com www.bseindia.com www.indiabulls.com www.icicidirect.com www.sharekhan.com www.hdfcsec.com www.religareonline.com

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