Bharati Vidya Peeth

Summer Internship Project Report

on

Comparative Analysis of services provided by Angel

Broking Ltd. and other Broking Houses in Pune.
(With special reference to Angel Broking Limited, Pune.)

Submitted by:
AVNEESH SINGH
PGDTM

Batch 2008-10
Under the guidance of

Mr. Khuzema Jinwala

Branch Head Faculty Guide

Angel Broking Ltd., Satara Road Pune ( Mr. V J Gomes )
 Table of Contents

Acknowledgement 3

About the company 4

Organisation structure 7

Products 7

Introduction of stock market 13

Some basics of stock and capital market 20

Research methodology 23

Major players in the region 24

Comparative study 29

Profiler for wealth management 33

Suggestions 34

Conclusion 35

Bibliography 36

Questionnaire 37

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ACKNOWLEDGEMENT
It gives me pleasure to present this project report, which is an outcome of the study
“Comparative research analysis of the services provided
by Angel Broking Ltd. with other broking houses”.
Completing a task is a never a one-man effort. It is often the result of valuable
contribution of a number of individuals in a direct or indirect manner that
helps on shaping and achieving an objective.

I wish to express my sincere gratitude to innumerable number of people who have

been associated with me throughout this project. I feel blessed to have the
opportunity of expressing my hearty gratitude to the following personalities, without
the help of whom my project could not have been hatched.

Source of firstly I would like to acknowledge my sincere thanks to Mr. Khuzema

Jinwala (Assit unit manager), who gave me an opportunity to carry out this project
and had been a constant inspiration.

I am grateful to my faculty guide Col V.J Gomes (Amplify Mindware , Bharati vidya
Peeth,Pune) for the Summer Internship Project, for their regular guidance without
which my project report would not have been completed.

I am also thankful to the other staff member of Angel Broking ltd. for their continuous
motivation throughout this program, which really helped me in completing this
project.

I have no words to express my indebtness for the ungrudging and unfailing co-
operation of my parents. Finally I want to thank all the friends, colleagues for their
constant co-operation, encouragement, help and support throughout the study
without which this work would not have been possible.

3
 About the Company
Angel Booking’s tryst with excellence in customer relations began more than 20
years ago. Angel Group has emerged as one of the top 10 retail broking houses in
India and incorporated in 1987. Today, Angel has emerged as a premium Indian
stock-broking and wealth management house, with an absolute focus on retail
business and a commitment to provide "Real Value for Money" to all its clients.

It has memberships on BSE, NSE and the leading commodity exchanges in India
NCDEX & MCX. Angel is also registered as a depository participant with CDSL.

Angel Group Companies

Member on the BSE and Depository Participant
Angel Broking Ltd.
with CDSL

Angel Capital & Debt Market Membership on the NSE Cash and Futures &
Ltd. Options Segment

Angel Commodities Broking

Member on the NCDEX & MCX
Ltd.

Angel Securities Ltd. Member on the BSE

• Incorporated :1987

• BSE Membership :1997

• NSE membership :1998

• Member of NCDEX and MCX

• Depository Participants with CDSL

Angel’s presence-

• Nation- wide network of 21 regional hubs

• Presence 124 cities
• 6800 + sub brokers & business associates
• 5.9 lakh +clients

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 Management
S.No Name Designation & Department
1. Mr. Dinesh Thakkar Founder Chairman & Managing Director

2. Mr. Lalit Thakkar Director – Research

3. Mr. Amit Majumdar Executive Director – Strategy and Finance

4. Mr. Rajiv Phadke Executive Director – HR & Corp
5. Mr. Vinay Agrawal Executive Director – Equity Broking
6. Mr. Nikhil Daxini Executive Director - Sales and Marketing
Executive Director - Distribution & Wealth
7 Mr. Hitungshu Debnath
Management

8. Mr. Mudit Kulshreshtha Executive Director – Operations

Milestones

• Awarded with 'Broking House with Largest Distribution Network' and 'Best
Retail Broking House' at Dun & Bred street Equity Broking Awards 2009

• August, 2008 Crossed 500000 trading accounts

● November, 2007 ‘Major Volume Driver’ for 2007

● December, 2006 Created 2500 business associates
● October, 2006 ‘Major Volume Driver’ award for 2006
● September, 2006 Launched Mutual Fund and IPO business
● July, 2006 Launched the PMS function
● October, 2005 ‘Major Volume Driver’ award for 2005
● September, 2004 Launched Online Trading Platform
● April, 2004 Initiated Commodities Broking division
● April, 2003 First published research report
● November, 2002 Angel’s first investor seminar
● March, 2002 Developed web-enabled back office software
● November, 1998 Angel Capital and Debt Market Ltd. Incorporated
● December, 1997 Angel Broking Ltd. Incorporated
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 Vision of the Company
To provide best value for money to investors through innovative products,
trading / investment strategies, state-of-the-art technology and
personalized service

Philosophy of the Company

Ethical practices & transparency in all our dealings customer interest above
our own always deliver what we promise effective cost management.

Quality Assurance Policy

We are committed to being the leader in providing World Class Product &
Services which exceed the expectations of our customers Achieved
by teamwork and a process of continuous improvement
CRM Policy
A Customer is the most important visitor on our premises. He is not
dependent on us but we are dependent on him. He is not
interruption in our work, but is the Purpose of it. We are not doing
him a favour by serving. He is doing us a favour by giving us an
opportunity to do so

Logo of the company

6
 OUR ORGANIZATIONAL STRUCTURE

CSO (Central
Support Office)

Regional Office Regional Office Regional Office

Branches & Branches &

Branches & Franchise Franchise
Franchise Branches Branches
Branches

Angel Clients Business Associates

Angel Clients

Products of Angel Broking

● Online Trading

● Commodities

● DP Services

● PMS (Portfolio Management Services)

● Insurance

● IPO Advisory

● Mutual Fund

● Personal loans

● Quality Assurance

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E-Broking
Angle has different products and voila trading on BSC, NSC, F&O, MCX & NCDEX.
It provides four softwares to customers for online trading.

Angel Investor

• User-friendly browser for investors

• Easy online trading platform
• Works in proxy and firewall system set up
• Integrated Back office: Access account information – anytime,
anywhere
• Streaming quotes
• Refresh static rates when required
• Multiple exchanges on single screen
• Online fund transfer facility

Angel Trade

• Browser based for investor

• No installation required
• Advantage of mobility
• Trading as simple as internet surfing
• BSC, NSC, F&O, MCX & NCDEX

Angel Diet

• Application based ideal for traders.

• Multiple exchanges on single screen
• Online fund transfer facility
• User friendly & simple navigation
• BSC, NSC, F&O, MCX & NCDEX

Angel Anywhere

• Application-based platform for day traders

• Intra-day/historical charts with various indicators
• Online fund transfer facility
• BSC, NSC, Cash & Derivatives

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Investment Advisory Services

To derive optimum returns from equity as an asset class requires professional

guidance and advice. Professional assistance will always be beneficial in wealth
creation. Investment decisions without expert advice would be like treating ailment
without the help of a doctor.

● Expert Advice: Their expert investment advisors are based at various

branches across India to provide assistance in designing and monitoring
portfolios.

● Timely Entry & Exit: Their advisors will regularly monitor customers’
investments and guide customers to book timely profits. They will also guide
them in adopting switching techniques from one stock to another during various
market conditions.

● De-Risking Portfolio: A diversified portfolio of stocks is always better

than concentration in a single stock. Based on their research, They diversify the
portfolio in growth oriented sectors and stocks to minimize the risk and optimize
the returns.

Commodities

A commodity is a basic good representing a monetary value. Commodities are most

often used as inputs in the production of other goods or services. With the advent of
new online exchange, commodities can now be traded in futures markets. When
they are traded on an exchange,

Commodities must also meet specified minimum standards known as basic grade.

Types of Commodities

● Precious Metals : Gold and Silver

● Base Metals : Copper, Zinc , Steel and Aluminum
● Energy : Crude Oil, Brent Crude and Natural Gas
● Pulses : Chana , Urad and Tur
● Spices : Black Pepper, Jeera, Turmeric , Red Chili
● Others : Guar Complex, Soy Complex, Wheat and Sugar

9
Benefits at Angel

● Three different online products tailored for traders & investors.

● Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.
● Streaming Quotes and real time Rates. Intra-day trading calls.
● Research on 25 Agro Commodities, Precious and Base Metals, Energy
products and Polymers.
● An array of daily, weekly and special research reports.
● Highly skilled analysts with professional industry experience.
● Active relationship management desk.
● Seminars, workshops and investment camps for investors

Depositary Participant Services

Angel Broking Ltd. is a DP services provider though CDSL. We offer depository

services to create a seamless transaction platform to execute trades through Angel
group of companies and settle these transactions through Angel Depository services.

● Wide branch coverage

● Personalized/attentive services of trained a dedicated staff
● Centralized billing & accounting
● Acceptance & execution of instruction on fax
● Daily statement of transaction & holdings statement on e-mail
● No charges for extra transaction statement & holdings statement

Portfolio Management Services

Successful investing in Capital Markets demands ever more time and expertise.
Investment Management is an art and a science in itself. Portfolio Management
Services (PMS) is one such service that is fast gaining eminence as an investment
avenue of choice for High Net worth Investors (HNI). PMS is a sophisticated
investment vehicle that offers a range of specialized investment strategies to
capitalize on opportunities in the market. The Portfolio Management Service
combined with competent fund management, dedicated research and technology,
ensures a rewarding experience for its clients.

Angel PMS brings with it years of experience, expertise, research and the backing of
India's leading stock broking house. At Angel, experienced portfolio management is
the difference. It will advise you on a suitable product based on factors such as your
investment horizon, return expectations and risk tolerance.

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Mutual Fund

To enable clients to diversify their investment in the right direction. Angel Broking
has added another product in its range with mutual funds.

● Access to in-depth research & proper selection from diversified funds based
on your preferred criteria
● Rating and rankings of all mutual funds from our in house expert analysts
● News and alert for your Mutual fund Portfolio and performance tracking with
watch lists
● Current and historical performance of different funds enabling comparisons

Benefits

● No risk of loss, wrong transfer, mutilation or theft of share certificates.

● Hassle free automated pay-in of your sell obligations by your clearing
members
● Reduced paper work.
● Speedier settlement process. Because of faster transfer and registration of
securities in your account, increased liquidity of your securities.
● Instant disbursement of non-cash benefits like bonus and rights into your
account.
● Efficient pledge mechanism.

FUNDAMENTAL SERVICES

The Sunday Weekly Report

This weekly report is ace of all th reports. It offers a comprehensive market overview
and likely trends in the week ahead. It also presents top picks based on an in-depth
analysis of technical and fundamental factors. It gives short term and long-term
outlook on these scripts, their price targets and advice trading strategies. Another
unique feature of this report is that it provides an updated view of about 70 prominent
stocks on an ongoing basis.

Stock Analysis

Angel’s stock research has performed very well over the past few years and angel
model portfolio has consistently outperformed the benchmark indices. The
fundamentals of select scripts are thoroughly analyzed and actionable advice is
provided along with investment rationale for each scrip.

Flash News

Key developments and significant news announcement that are likely to have an
impact on market / scripts are flashed live on trading terminals. Flash news keeps
the market men updated on an online basis and helps them to reshuffle their
holdings

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 TECHNICAL SERVICES

Intra-Day Calls

For day trader’s angel provides intraday calls with entry, exit and stop loss levels
during the market hours and our calls are flashed on our terminals. Our analysts
continuously track the calls and provide the recommendations according to the
market movements. Past performance of these calls in terms of profit/loss is also
available to our associates to enable them to judge the success rate.

Posting Trading Calls

Angels “Position Trading Calls” are based on a through analysis of the price
movements in selected scripts and provides calls for taking positions with a 10 - 15
days time span with stop losses and targets. These calls are also flashed on our
terminals during market hours.

Derivative Strategies

Our analyst take a view on the NIFTY and selected scripts based on derivatives and
technical tools and devise suitable “Derivative Strategies” , which are flashed on our
terminals and published in our derivative reports.

Future Calls

A customised product for HNIs to help them trade with leveraged positions wherein
clients are advised on stocks with entry, exit and stop loss levels for short-term
benefits. Over and above this, financial status of the calls is mentioned at all times.

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 Introduction of Stock Market

In most industrialized countries, a substantial part of financial wealth is not managed

directly by savers, but through a financial intermediary, which implies the existence
of an agency contract between the investor (the principal) and a broker or portfolio
manager (the agent). Therefore, delegated brokerage management is arguably one
of the most important agency relationships intervening in the economy, with a
possible impact on financial market and economic developments at a macro level.

As the per-capita-income of the city is on the higher side, so it is quite obvious that
they want to invest their money in profitable ventures. On the other hand, a number
of brokerage houses make sure the hassle free investment in stocks. Asset
management firms allow investors to estimate both the expected risks and returns,
as measured statistically. There are mainly two types of Portfolio management
strategies.

● Passive Portfolio Strategy

● Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal expectation

input, and instead relies on diversification to match the performance of some
market index. A passive strategy assumes that the marketplace will reflect all
available information in the price paid for securities

2. Active Portfolio Strategy: A strategy that uses available information and

forecasting techniques to seek a better performance than a portfolio that is
simply diversified broadly.

Indian Stock Market

Share or stock is a document issued by a company, which entitles its holder to be
one of the owners of the company. A share is issued by a company or can be
purchased from the stock market.

Share market where dealing of securities is done is known as share market.

There are two ways in which investors gets share from market:

13
Primary market: markets in which new securities are issued are known as primary
market. This is part of the financial market where enterprises issue their new shares
and bonds. It is characterized by being the only moment when the enterprise
received money in exchange for selling its financial assets.

Secondary Market: Market in which existing securities are dealt is known as

secondary market. The market where securities are traded after, they are initially
offered in the primary market. Most trading is done in the secondary market.

The Stock Market is an invisible market that trades in stocks of various companies
belonging to both the public and private sectors. The Indian Stock Market is often
referred to as the Share Market since it deals primarily with shares of various
companies.

A Stock Exchange is a place where the stocks are listed and traded. Such
exchanges may be a corporation or mutual organization which specializes in the
business of introducing the sellers with the buyers of stocks and securities.

The Indian Stock Market in India comprises of two stock exchanges:

● Bombay Stock Exchange (BSE)

● National Stock Exchange (NSE)

BSE
The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock
Exchange serves as the most important for companies to raise money. The chief
function of the Stock Market of India is to help raise money as capital for the growth
and expansion of various private and public sector enterprises. Besides, the Stock
Market of India provides able assistance to the individual investors through daily
updates on current position of the stocks of the respective companies that are
enlisted in the Stock Index in which the movement of prices in a section of the
market are captured in price indices. The popular acronym for Stock Index is
Sensitive index or sensex. Moreover, the liquidity provided by the exchange enables
the investors to sell securities owned by them easily and quickly. Hence a person,
who is subjected to sudden dearth of funds, can immediately sell his shares for cash
in India Stock Market.

The BSE Sensex, also known as “BSE 30” is a widely used market index not only in
India but across Asia. In terms of volume of transactions, it is ranked among the top
five stock exchanges in the world.

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NSE

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today
the largest stock exchange in India and a preferred exchange for trading in equity,
debt and derivatives instruments by investors. NSE has set up a sophisticated
electronic trading, clearing and settlement platform and its infrastructure serves as a
role model for the securities industry. The standards set by NSE in terms of market
practices; products and technology have become industry benchmarks and are
being replicated by many other market participants.

NSE provides a screen-based automated trading system with a high degree of

transparency and equal access to investors irrespective of geographical location.
The high level of information dissemination through the on-line system has helped in
integrating retail investors across the nation.

The exchange has a network in more than 350 cities and its trading members are
connected to the central servers of the exchange in Mumbai through a sophisticated
telecommunication network comprising of over 2500 VSATs.

NSE has around 850 trading members and provides trading in equity shares and debt
securities. Besides this, NSE provides trading in various derivative products such as index
futures, index options, stock futures, stock options and interest rate futures.

In addition to these organizations there are other organizations highlighting on the share
trading in the Indian Stock Market are:

● Securities and Exchange Board of India (SEBI)

● NSDL
● CDSL

The Nifty and the Sensex are the indicators which are the parameters denoting the
prices of the stocks of the major companies of the NSE and the BSE respectively.

15
Stock Broking Sector in India
The Indian broking industry is one of the oldest trading industries that has been
around even before the establishment of the BSE in 1875. Despite passing through a
number of changes in the post liberalization period, the industry has found its way
towards sustainable growth. In this section our purpose will be of gaining a deeper
understanding about the role of the Indian stock broking industry in the country’s
economy.

What is meant by a Stock Exchange?

The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’ as
anybody of individuals, whether incorporated or not, constituted for the purpose of
assisting, regulating or controlling the business of buying, selling or dealing in
securities. Stock exchange could be a regional stock exchange whose area of
operation/jurisdiction is specified at the time of its recognition or national exchanges,
which are permitted to have nationwide trading since inception. NSE was
incorporated as a national stock exchange.

What is an ‘Equity’/Share?

Total equity capital of a company is divided into equal units of small denominations,
each called a share. The holders of such shares are members of the company and
have voting rights.

What is a ‘Debt Instrument’?

Debt instrument represents a contract whereby one party lends money to another on
pre-determined terms with regards to rate and periodicity of interest, repayment of
principal amount by the borrower to the lender. In the Indian securities markets, the
term ‘bond’ is used for debt instruments issued by the Central and State
governments and public sector organizations and the term ‘debenture’ is used for
instruments issued by private corporate sector.

What is a Derivative?

Derivative is a product whose value is derived from the value of one or more basic
variables, called underlying. The underlying asset can be equity, index, foreign
exchange (forex), commodity or any other asset. Derivative products initially
emerged as hedging devices against fluctuations in commodity prices and
commodity-linked derivatives remained the sole form of such products for almost
three hundred years. The financial derivatives came into spotlight in post-1970
period due to growing instability in the financial markets.

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What is a Mutual Fund?

A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board
of India) that pools money from individuals/corporate investors and invests the same
in a variety of different financial instruments or securities such as equity shares,
Government securities, Bonds, debentures etc. Mutual funds can thus be considered
as financial intermediaries in the investment business that collect funds from the
public and invest on behalf of the investors. Mutual funds issue units to the investors.
The appreciation of the portfolio or securities in which the mutual fund has invested
the money leads to an appreciation in the value of the units held by investors. The
investment objectives outlined by a Mutual Fund in its prospectus are binding on the
Mutual Fund scheme. The investment objectives specify the class of securities a
Mutual Fund can invest in. Mutual Funds invest in various asset classes like equity,
bonds, debentures, commercial paper and government securities. The schemes
offered by mutual funds vary from fund to fund. Some are pure equity schemes;
others are a mix of equity and bonds. Investors are also given the option of getting
dividends, which are declared periodically by the mutual fund, or to participate only in
the capital appreciation of the scheme.

What is an Index?

An Index shows how a specified portfolio of share prices is moving in order to give
an indication of market trends. It is a basket of securities and the average price
movement of the basket of securities indicates the index movement, whether
upwards or downwards.

What is a Depository?

A depository is like a bank wherein the deposits are securities (viz. shares,
debentures, bonds, government securities, units etc.) in electronic form.

What is Dematerialization?

Dematerialization is the process by which physical certificates of an investor are

converted to an equivalent number of securities in electronic form and credited to the
investor’s account with his Depository Participant (DP)

What is meant by ‘Securities’?

The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA),
1956, includes instruments such as shares, bonds, scrips, stocks or other
marketable securities of similar nature in or of any incorporate company or body
corporate, government securities, derivatives of securities, units of collective
17
investment scheme, interest and rights in securities, security receipt or any other
instruments so declared by the Central Government.

What is the function of Securities Market?

Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares, bonds, debentures etc. Further, it performs
an important role of enabling corporate, entrepreneurs to raise resources for their
companies and business ventures through public issues. Transfer of resources from
those having idle resources (investors) to others who have a need for them
(corporate) is most efficiently achieved through the securities market. Stated
formally, securities markets provide channels for reallocation of savings to
investments and entrepreneurship. Savings are linked to investments by a variety of
intermediaries, through a range of financial products, called ‘Securities’.

Which are the securities one can invest in?

● Shares
● Government Securities
● Derivative products
● Units of Mutual Funds etc.

Why does Securities Market need Regulators?

The absence of conditions of perfect competition in the securities market makes the
role of the Regulator extremely important. The regulator ensures that the market
participants behave in a desired manner so that securities market continues to be a
major source of finance for corporate and government and the interest of investors
are protected.

Who regulates the Securities Market?

The responsibility for regulating the securities market is shared by Department of

Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of
India (RBI) and Securities and Exchange Board of India (SEBI).

What is SEBI and what is its role?

The Securities and Exchange Board of India (SEBI) is the regulatory authority in
India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for
establishment of Securities and Exchange Board of India (SEBI) with statutory
powers for (a) protecting the interests of investors in securities (b) promoting the
development of the securities market and (c ) regulating the securities market. Its
regulatory jurisdiction extends over corporates in the issuance of capital and transfer

18
of securities, in addition to all intermediaries and persons associated with securities
market. SEBI has been obligated to perform the aforesaid functions by such
measures as it thinks fit. In particular, it has powers for:

● Regulating the business in stock exchanges and any other securities markets

● Registering and regulating the working of stock brokers, sub–brokers etc.

● Promoting and regulating self-regulatory organizations

● Prohibiting fraudulent and unfair trade practice.

● Calling for information from, undertaking inspection, conducting inquiries and

audits of the stock exchanges, intermediaries, self- regulatory organizations,
mutual funds and other persons associated with the securities market.

Broking houses in India

India is a country having a big list of Broking Houses. The Equity Broking Industry in
India has several unique features like it is more than a century old, dynamic, forward
looking, and good service providers, well conversant, highly innovative and even
adaptable. The regulations and reforms been laid down in the Equity Market has
resulted in rapid growth and development. Basically, the growth in the equity market
is largely due to the effective intermediaries.

The Broking Houses not only act as an intermediate link for the Equity Market but
also for the Commodity Market, Foreign Currency Exchange Market, and many
more. The Broking Houses has also made an impact on the Foreign Investors to
invest in India to certain extent.

In the last decade, the Indian brokerage industry has undergone a dramatic
transformation. From being made of close groups, the broking industry today is one
of the most transparent and compliance oriented businesses. Long settlement cycles
and large scale bad deliveries are a thing of the past with the advent of T+2
settlement cycle and dematerialization. Large and fixed commissions have been
replaced by wafer thin margins, with competition driving down the brokerage fee, in
some cases, to a few basis points.

There have also been major changes in the way business is conducted. Technology
has emerged as the key driver of business and investment advice has become
research based. At the same time, adherence to regulation and compliance has
vastly increased. The scope of services have enhanced from being equity products
to a wide range of financial services. Investor protection has assumed significance,.

19
 Some basics of stock and capital market
Investment
The money you earn is partly spent and the rest saved for meeting future expenses.
Instead of keeping the savings idle you may like to use savings in order to get return
on it in the future. This is called Investment.

Why should one invest?

● Earn return on your idle resources

● Generate a specified sum of money for a specific goal in life

● Make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the cost of
Inflation. Inflation is the rate at which the cost of living increases. The cost of living is
simply what it costs to buy the goods and services you need to live. Inflation causes
money to lose value because it will not buy the same amount of a good or a service
in the future as it does now or did in the past.

What care should one take while investing?

● Obtain written documents explaining the investment

● Read and understand such documents

● Verify the legitimacy of the investment

● Find out the costs and benefits associated with the investment

● Assess the risk-return profile of the investment

● Know the liquidity and safety aspects of the investment

● Ascertain if it is appropriate for your specific goals

● Compare these details with other investment opportunities available

● Examine if it fits in with other investments you are considering

● Deal only through an authorised intermediary

● Seek all clarifications about the intermediary and the investment

● Explore the options available

20
What is meant by Interest?

When we borrow money, we are expected to pay for using it – this is known as
Interest. Interest is an amount charged to the borrower for the privilege of using the
lender’s money. Interest is usually calculated as a percentage of the principal
balance (the amount of money borrowed). The percentage rate may be fixed for the
life of the loan, or it may be variable, depending on the terms of the loan.

What factors determine interest rates?

When we talk of interest rates, there are different types of interest rates - rates that
banks offer to their depositors, rates that they lend to their borrowers, the rate at
which the Government borrows in the Bond/Government Securities market, rates
offered to investors in small savings schemes like NSC, PPF, rates at which
companies issue fixed deposits etc. The factors which govern these interest rates
are mostly economy related and are commonly referred to as macroeconomic
factors. Some of these factors are:

● Demand for money

● Level of Government borrowings

● Supply of money

● Inflation rate

● The Reserve Bank of India and the Government policies

What are various options available for investment?

One may invest in:

Physical assets like real estate, gold/jewellery, commodities etc.

Financial assets such as fixed deposits with banks, small saving instruments
with post offices, insurance/provident/pension fund etc. or securities market
related instruments like shares, bonds, debentures etc.

What are various Short-term financial options available for investment?

Broadly speaking, savings bank account, money market/liquid funds and fixed
deposits with banks may be considered as short-term financial investment options:

Savings Bank Account is often the first banking product people use, which offers
low interest (4%-5% p.a.), making them only marginally better than fixed deposits.

Money Market or Liquid Funds are a specialized form of mutual funds that invest in
extremely short-term fixed income instruments and thereby provide easy liquidity.
21
Unlike most mutual funds, money market funds are primarily oriented towards
protecting your capital and then, aim to maximize returns

Fixed Deposits with Banks are also referred to as term deposits and minimum
investment period for bank FDs is 30 days. Fixed Deposits with banks are for
investors with low risk appetite, and may be considered for 6-12 months investment
period as normally

What are various Long-term financial options available for investment?

Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits,
Bonds and Debentures, Mutual Funds etc.

Post Office Savings: Post Office Monthly Income Scheme is a low risk saving
instrument, which can be availed through any post office.

Public Provident Fund: A long term savings instrument with a maturity of 15 years
and interest payable at 8% per annum compounded annually. A PPF account can be
opened through a nationalized bank at anytime during the year and is open all
through the year for depositing money. Tax benefits can be availed for the amount
invested and interest accrued is tax-free. A withdrawal is permissible every year from
the seventh financial year of the date of opening of the account and the amount of
withdrawal will be limited to 50% of the balance at credit at the end of the 4th year
immediately preceding the year in which the amount is withdrawn or at the end of the
preceding year whichever is lower the amount of loan if any.

Company Fixed Deposits: These are short-term (six months) to medium-term

(three to five years) borrowings by companies at a fixed rate of interest which is
payable monthly, quarterly, semi10 annually or annually. They can also be
cumulative fixed deposits where the entire principal along with the interest is paid at
the end of the loan period.

Bonds: It is a fixed income (debt) instrument issued for a period of more than one
year with the purpose of raising capital. The central or state government,
corporations and similar institutions sell bonds. A bond is generally a promise to
repay the principal along with a fixed rate of interest on a specified date, called the
Maturity Date.

Mutual Funds: These are funds operated by an investment company which raises
money from the public and invests in a group of assets (shares, debentures etc.), in
accordance with a stated set of objectives. It is a substitute for those who are unable
to invest directly in equities or debt because of resource, time or knowledge
constraints

22
 Major Players in the Region

● Religare Securities

● ICICI Direct

● India Infoline Security Pvt. Ltd.

● HDFC Securities

● Indiabulls

● Kotak Securities

● Reliance Money

● Sharekhan Securities

● Motilal Oswal

● Anand Rathi Securities

● Hem Securities

23
RELIGARE SECURITIES LIMITED

Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial

product and service Provider Company. Religare provides its service in three
different segments including Retail, Wealth management and the Institutional
spectrum. It offers wide range of services including equities, commodities, insurance
broking, wealth advisory, PMS, personal finance services, Investment banking and
institutional broking services. Religare retail network spreads across more than 900
locations across more than 300 cities and towns in India.

Religare Securities Limited is a subsidiary company of Religare Enterprises Ltd

and involve in equity related services include online trading at BSE and NSE,
Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional
broking services.

REL offers a multitude of investment options and a diverse bouquet of financial

services and can boast of a reach that spreads across the length and breadth of the
country with its presence in more than 1460 locations across more than 450 cities
and towns.

Services

● Equity & Derivatives

● Research and Advisory

● Depository

● Portfolio Management Services

● International Advisory Fund Management Services (AFMS)

● Investment Banking

ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after

referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and
the Website is owned by ICICI Bank Limited. IWTL has launched and established an
online trading service on the Website.

24
Products and Services of ICICI DIRECT

● Investing in Mutual funds

● Personal Finance
● Customer Service Features
● IPO’s
● Margin Trading
● Margin PLUS Trading
● Call Trade
● Trading on NSE/BSE
● Trade in derivatives

India Infoline Security Private Ltd.

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India

Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary
was formed to comply with regulatory guidelines. www.5paisa.com is a focused
website for online stock market trading. 5paisa.com is a trade name owned by the
India Infoline.com group. IILSPL has applied for trading membership of the BSE
under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers)
Rules 1992.

Product offered by IILSPL

Stock market:-IILSPL deals in stock market by trading in equity and derivatives.

Personal finance: - It Deals In Mutual Fund and Insurance.

Online Trading: - It provides services in stock and commodity trading (through

Internet).

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)
25
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).

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on

June 9, 1995. The name of the company was changed to Orbis Securities Private
Limited on December 15, 1995 to change the profile of the company and
subsequently due to the conversion of the company into a public limited company;
the name was further changed to Orbis Securities Limited on January 5, 2004. The
name of the company was again changed to Indiabulls Securities Limited on
February 16, 2004 so as to capitalize on the brand image of the term “Indiabulls” in
the company name. ISL is a corporate member of capital market & derivative
segment of The National Stock Exchange of India Ltd.

PRODUCT OFFERED BY INDIA BULLS

● Equity & Debt Stock Broking

● Insurance
● Commodity trading
● Depository Services
● Derivatives Broking Services
● Equity Research Services
● Mutual Fund Distribution

26
 ● IPO Distribution

SHAREKHAN SECURITIES

Sharekhan Securities is one of the leading retail brokerage of Citi Venture which is
running successfully since 1922 in the country. Earlier it was 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 advice etc.

SSKI group ventured into institutional broking and corporate finance 18 years ago.
SSKI is one of the leading players in institutional broking and corporate finance
activities. SSKI holds a sizeable portion of the market in each of these segments.
SSKI’s institutional broking arm accounts for 7% of the market for Foreign
Institutional portfolio investment and 5% of all Domestic Institutional portfolio
investment in the country. It has 60 institutional clients spread over India, Far East,
UK and US. Foreign Institutional Investors generate about 65% of the organization’s
revenue, with a daily turnover of over US$ 2 million.

● Equity Trading Platform (Online/Offline).

● Commodities Trading Platform (Online/Offline).

● Portfolio Management Service.

● Mutual Fund Advisory and Distribution.

● Insurance Distribution.

27
 Comparative Study
Brokerage Equity

Intraday Delivery Sub- DMAT Margin

Name of Firm (In Paisa) (In Paisa) Clients Broker in Rs. Money

Angel Broking
Ltd. 5 50 10000 75 760 5000

Reliance Money 5 50 40000 35 950 0

Sharekhan
Securities 5 25 10000 50 850 10000

Motilal Oswal
Securities 3 30 3000 40 650 5000

India Infoline 3 25 3500 15 805 5000

ICICI Direct 7.5 75 400 0 499 5000

Kotak Securities 3 30 4000 0 300 5000

India Bulls 3 30 10000 0 888 0

Anand Rathi
Securities 3 20 15000 25 736 0

Religare
Securities 2 25 17000 80 750 5000

Hem Securities 1.5 20 12000 40 660 7000

1st Qtr
2ndQtr
3rdQtr
4thQtr

28
 Fund
Mutual

Insurance

PMS

Back office

E-Broking
Advisory
Investment

M-Connect

Funding
Loans
Personal

Software
Choupap
E-
Services

Religare Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes
Securities

ICICI Direct No Yes Yes Yes Yes Yes No Yes Yes Yes No

India Infoline
Security Pvt. Yes No Yes Yes Yes Yes No No Yes Yes No
Ltd.
HDFC Yes No Yes Yes Yes Yes No Yes Yes Yes No
Securities

Indiabulls Yes Yes No Yes Yes Yes No No Yes Yes No

Kotak Yes Yes Yes Yes Yes Yes No No Yes Yes No

Securities
Reliance Yes Yes No Yes Yes Yes No No Yes Yes No
Money
Sharekhan No No Yes Yes Yes Yes No No Yes Yes No
Securities

Motilal Oswal No Yes No Yes Yes Yes No No Yes Yes No

Anand Rathi No Yes Yes Yes Yes Yes No No No Yes No

Securities
Hem Yes Yes Yes Yes Yes Yes No No No Yes No
Securities

29
 M arket Share Of Companies

11%
26%
Angel Broking Ltd
Religare
28% Indiabulls
Anand Rathi
Others
19%

16%

30
 Account opening Charges
Value in Rs.

1200
999
1000 900 865
800 750
700

600 560
460
400 350

200

0
Angel Indiabulls Religare ICICI Sharekhan Anand India Hem
Broking Securities Securities Direct Securities Rahti Infoline Securities
Ltd. Comapny Name Securtites

SatisfactionLevel of clients In Angel BrokingLtd.

Unsatisfied
17%

Satisfied
83%

31
 Findings

• Angel Broking Ltd. is the second in charging lowest brokerage

• Reliance Money is having 32% market share in Jaipur (Market Leader)
because of lowest brokerage whereas Angel Broking is performing best on
country level
• Company is having 75 Sub-brokership in Jaipur which provides a major
part of revenue
• Despite three branches Angel Broking Ltd. has 10000 clients whereas Hem
Securities has 70 branches and only 12000 clients
• Angel Broking Ltd. is providing free of cost softwares for online clients
• Company is providing M-connect software whereas other companies are
not having this service
• Angel Broking Ltd. has the highest market coverage with respect to
channel sales. This is because Angel has the highest number of sub-
brokers. There are 140 sub-brokers in Jaipur

32
 Recommendations
• Angel broking Limited has to decrease it’s margin money up to Rs. 3000 it
attracts more new clients and for sub-brokership company should decrease its
security up to Rs. 50,000

• There should be two more branches of Angle Broking Limited in Jaipur as well
as in Rajasthan so that clients will get its services easily

• There should be more public awareness programmed and advertisement

related to company’s product and services so that people should be more
aware about Angel Broking Limited

• Company should organise customer happiness survey for active and inactive
clients both

• Company has to more aggressive toward its existing client’s feedback and for
their services after giving them products because it can increase company
loyalty as well its brand name

• They should provide demo version of software and its training for each clients

33
 Profiler for Wealth Management

* First Name

* Last Name

* Gender

* Date Of Birth

Planned Retirement Age

Marital Status

No. of Kids

Age of Kids

My Income

My monthly income take home *

Income of the other members of my family

My Expense

Life Insurance Premium (Annual)

What do I own Value

Assets Yearly Inflow

Property

Investments Yearly Inflow

Short Term/ Liquid

Equity

Insurance

Provident Fund

Mutual Funds

Fixed Deposit

Interest/Returns Rate

What do You owe Amt. Outstanding

Borrowing Yearly Outflow

Housing/ Property Loan (Amount O/s and tenor)

Car loan (Amount O/s and tenor)

Name of the Policy Term/ Remaining Term Premium / SA

SUGGESTIONS:-

34
● 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 more held for providing information to prospective and
present customers
● In the organization, There must me be co-operation with other department
and other branches
● Company should make more promotional activities by giving advertisements
and publicity.
● Give more demonstration to customers so that they can get complete
knowledge about online trading
● Give the complete information about products and services offered by the
company to the customers.
● The number of branches it has at present should be increased all over the
country, which will attract a large number of customers.
● Company should educate about the rules and regulations of SEBI to its
customers.

35
 CONCLUSION

On the basis of the study it is found that Angel Broking Ltd. is better services
provider than the other stockbrokers because of their timely research and
personalized advice on what stocks to buy and sell. Angel Broking Ltd. provides the
facility of Trade tiger as well as relationship manager facility for encouragement and
protects the interest of the investors. It also provides the information through the
internet and mobile alerts that what IPO’s are coming in the market and it also
provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity market and
while it’s going to be biggest market in India. From the above survey and observation
it is found that most of the people who are trading in share market belongs to the
employee group, next comes the business men and other class of income people.
As the share market value goes on increasing day by day the investor who wants to
invest in shares also increasing. But investing in shares is as risky as earning yield.
Trading in online trading firm is easy as it all delivered with internet and within a few
minutes the customer can buy and sell shares which save time as well as reduction
of paper work. Hence trading in share market is increasing day by day and investors
are ready to invest their investment in share market only.

I got the knowledge about the customer’s needs and their references for having a
particular product. The need of customers differs from person to person, area,
locality and occupation. Customer always wants more service by paying less.

They expect all the information such less rates, less brokerages, highly returns and
better service level without delay.

36
BIBLIOGRAPHY

Websites
● www.usectrade.com
● www.angeltrade.com
● www.indianshareshistory.com
● www.bseindia.com
● www.nseindia.com

News Papers

● Times of India
● Business Standard
● Market Express

Books
● Research Methodology (C. R. Kothari, 2nd Revised Edition)

● Financial Management (I M Pandey)

● Broachers and Pamphlets of Angel Broking Ltd.

37
 Questionnaire Date _ _ /_ _ /_ _

Name of Company : _____________________________________________________

Address : _____________________________________________________

Name of Representative :____________________ ___ Contact No. : ______________

1. Are you offering these products/services to your existing customers? (Please tick on this)

Products:

A) Online Trading B) Commodities C) PMS

D) E-Broking E) Insurance F) Mutual Fund

G) Personal Loans H) IPO I) Others ( _______________)

Services:
A) Research & Advisory Services B) Depository Services C) Back Office
D) NRI Services E) M-Connect G) Others ( ___________)

2. How many clients are you having active? ________________________________________

3. How many sub-brokers is your company having? __________________________________

4. How much you charge for Products/services?

S. No. Name of service/Product Charges (In Rs.)

1 DMAT Account

2 Margin Money

3 Brokerage (Equity) Same Day // Delivery

4 Brokerage (Commodity)

5 Sub - Broker ship charges

6 Mutual fund

7 PMS

8 Insurance

9 Trading Account

10 Other

5. Are you organizing any events or survey for customer’s awareness? (If yes then specify)

38
 ______________________________________________________________________________

6. Any special services which makes you different in market or any USP of your company?

______________________________________________________________________________

7. Who are the major competitors in market for your company?

_____________________________________________________________________________

39