INVESTORS SATISFACTION LEVEL FOR ONLINE TRADING

AT

Project Report on

[As a partial fulfillment for the requirement in summer project as a part of MBA programme] UNDER THE SUPERVISION OF

SWETA BAMBUWALA

Submitted By: DARSHAN VAJA [NR-11169] FARHAN MANSURI [NR-11075]

Class Alpha
N.R. Institute of Business Management

PREFACE

The project has been initiated for the purpose of acquainting us with knowledge right from the basics of the financial term used in the stock market, further up to gaining of in-depth knowledge of online trading and customer satisfaction with respect to online trading facility provided by Sharekhan.

This work is a detailed study of stock market and about the way in which investors invest. The initial phase of the project explains what I have learned about thecompany, their products and the functioning of the stock market.

The next phase was about the study of customer's satisfaction level with respect to online trading for which a questionnaire is developed and a survey is conducted. At the same time we have also learnt about the latest and future development in the stock exchange trading system.

DECLARATION

We DARSHAN VAJA AND FARHAN MANSURI do hereby declare that the project report entitled INVESTORS SATISFACTION LEVEL FOR ONLINE TRADING IN SHAREKHAN being submitted to N.R. INSTITUTE OF BUSINESS MANAGEMENT, GUJARAT TECCHNICAL UNIVERSITY is our own piece of work and it has not been submitted to any other institute or published at any time before.

Darshan Vaja Farhan Mansuri N.R. Institute of Business Management, Gujarat Technical University, Ahmedabad, Gujarat.

ACKNOWLEDGEMENT

Our due acknowledgement to all those people who have helped me during my SIP. This includes our respected Company Guide Mr. Hemant Chaudhary, Faculty Guide Ms. Shweta Bambuwala and the whole staff at Sharekhan without whom we might not have gained enough knowledge and also not been able to complete the this project. Our SIP would not have been possible without the guidance, support and encouragement provided by faculties and company people whose belief and confidence in us have enabled us to do this SIP successfully. My special recognition to GLS-NRIBM for allotting this task to us which opened a new door of knowledge for us. We are very grateful to our team at Sharekhan who always offered a helping hand all our way through.

Darshan Vaja [NR-11169] Farhan Mansuri [NR-11075] NRIBM Ahmedabad Date: 28/07/2012

EXECUTIVE SUMMARY

Customer Satisfaction is very important aspect of any business. So, for the success of organization in the present days customer should be satisfied with the services provided by the particular organization. Due to the increases of heavy competition in Broking industry, it becomes difficult for the companies to retain the customers for longer time. So retain the customer for longer time the marketer has to do only one thing i.e. customer satisfaction. The main objecting of our project was to analyze the satisfaction level & Expectation of customers from the Sharekhan Ltd. online trading system. Sharekhan Ltd. delivers different broking services to customers like online Trading, equity & derivatives trading, depository services, online services, commodities trading, dial-n-trade, portfolio management, share shop, fundamental research and technical research. So, it has become very crucial for every company to acquire new customers and serving them profitably, providing cost effective Service without compromising on quality. It also enlightens the readers about Sharekhan Limiteds strategies to acquire new customers. Further the project tells us about the profile of the company(Sharekhan Ltd.). It provides knowledge to the readers regarding the companys history, mission, vision, customer base and the reasons to be associated with the company. Also it gives special emphasis on the customer's satisfaction and management of the company. For analyzing the satisfaction level of Customers we used Focused Group Research where, we had taken 100 Existing customer of Sharekhan Ltd. On that basis we have prepared structured questionnaire & with the help of questionnaire we tried to find out the satisfaction level as well as the expectation of clients towards the Sharekhan.

TABLE OF CONTENTS
Chapter Number
PART I 1 2 PART II 3 GENERAL INFORMATION Industry Profile Company Profile, Products & Services PRIMARY STUDY Introduction of Study Literature Review Problem Statement of Study Objectives of Study Scope of Study Hypothesis 4 Research Methodology Research Design Source/s of Data Data Collection Method Sampling Design Statistical Tool Period of Study 5 6 7 8 9 10 11 Data Analysis & Interpretation Results and Findings Limitation of study Conclusion Suggestion Annexure Bibliography
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Chapter Name

Page Number
9 10 38 67 68 68 70 71 72 73 78 78 78 78 79 79 80 81 107 109 110 111 112 116

Part I General Information

INDUSTRY PROFILE

Structure of Indian financial system :

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FINANCIAL SYSTEM The financial is one of the most important inventions of the modern society. The phenomenon of imbalance in the distribution of capital or funds existed in every economic system. There are areas or people with surplus funds and there are those with a deficit. A financial system functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A financial system is a composition of various institutions, markets, regulations and laws, practices, money managers, analysts, transactions and claims and liabilities.

The functions performed by a financial system are: THE SAVINGS FUNCTION: LIQUIDITY FUNCTION: PAYMENT FUNCTION: RISK FUNCTION: POLICY FUNCTION:

According to functional basis financial markets are classified into two types. They are:

Money markets (short-term) Capital markets (long-term)

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According to institutional basis again classified in to two types. They are

Organized financial market Non-organized financial market.

The organized market comprises of official market represented by recognized institutions, bank and government (SEBI) registered/controlled activities and intermediaries. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and nonprofessionals.

MONEY MARKET: The money market is better known as a place for large institutions and government to manage their short-term cash needs. However, individual investors have access to the market through a variety of different securities.

The money market is a subsection of the fixed income market. We generally think of the term fixed income as being synonymous to bonds. In reality, a bond is just one type of fixed income security. The difference between the money market and the bond market is that the money market specializes in very short-term debt securities (debt that matures in less than one year). Money market investments are also called cash investments because of their short maturities.

Money market securities are essentially IOUs issued by governments, financial institutions and large corporations. These instruments are very liquid and considered extraordinarily safe. Because they are extremely conservative, money market securities offer significantly lower returns than most other securities.
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One of the main differences between the money market and the stock market is that most money market securities trade in very high denominations. This limits access for the individual investor. Furthermore, the money market is a dealer market, which means that firms buy and sell securities in their own accounts, at their own risk. Compare this to the stock market where a broker receives commission to acts as an agent, while the investor takes the risk of holding the stock. Another characteristic of a dealer market is the lack of a central trading floor or exchange. Deals are transacted over the phone or through electronic systems.

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CAPITAL MARKET:
A market in which individuals and institutions trade financial securities. Organizations/institutions in the public and private sectors also often sell securities on the capital markets in order to raise funds. Thus, this type of market is composed of both the primary and secondary markets.

Both the stock and bond markets are parts of the capital markets. For example, when a company conducts an IPO, it is tapping the investing public for capital and is therefore using the capital markets. This is also true when a country's government issues Treasury bonds in the bond market to fund its spending initiatives. Capital market is classified in to two types and they are Primary market and Secondary market. E.g.: Shares, Debentures, and Loans etc.

PRIMARY MARKET Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, diversification and up gradation. Primary market is also referred to as New Issue Market. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc. The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority).

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FUNCTIONS:-

The main services of the primary market are origination, underwriting, and distribution. Origination deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market: 1. Merchant banker/book building lead manager 2. Registrar and transfer agent 3. Underwriter/broker to the issue 4. Adviser to the issue 5. Banker to the issue 6. Depository 7. Depository participant

INVESTORS PROTECTION IN PRIMARY MARKETS:-

To ensure healthy growth of primary market, the investing public should be protected. The term investor protection as a wider meaning in the primary market. The principal ingredients of investors protection are Provision of all the relevant information Provision of accurate information and Transparent allotment procedures without any bias.

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SECONDARY MARKET:-

The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. The secondary market is a market where scrips are traded. It is a market place which provides liquidity to the scrips issued in the primary market. Thus, the growth of secondary market depend on the primary market. More the number of companies entering the primary market, the greater is the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India, National Stock Exchange of India and Interconnected Stock Exchange of India.

Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatorily required to list their shares on one or more stock exchanges in India including stock exchanges. Listing of scrips provides liquidity and offers an opportunity to the investors to buy or sell the scrips. The following intermediaries in the secondary market: 1. Broker/member of stock exchange buyers broker and sellers broker 2. Portfolio Manager 3. Investment advisor 4. Share transfer agent 5. Depository 6. Depository participants.

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STOCK MARKETS IN INDIA

Stock exchanges are the perfect type of market for securities whether of government and semigovt bodies or other public bodies as also for shares and debentures issued by the joint-stock companies. In the stock market, purchases and sales of shares are affected in conditions of free competition. Government securities are traded outside the trading ring in the form of over the counter sales or purchase. The bargains that are struck in the trading ring by the members of the stock exchanges are at the fairest prices determined by the basic laws of supply and demand.

DEFINITION OF STOCK EXCHANGE:-

Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. The securities include: 1. Shares, scrip, stocks, bonds. Debentures stock or other marketable securities of a like nature in or of any incorporated company or other body corporate; 2. Government securities; and 3. Rights or interest in securities.

HISTORY OF STOCK EXCHANGE:-

The only stock exchanges operating in the 19th century were those of Mumbai setup in 1875 and Ahmedabad set up in 1894. These were organized as voluntary non-profit-marking associations of brokers to regulate and protect their interests. Before the control on securities under the constitution in 1950, it was a state subject and the Bombay securities contracts
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(control) act of 1925 used to regulate trading in securities. Under this act, the Mumbai stock exchange was recognized in 1927 and ahemedabad in 1937. During the war boom, a number of stock exchanges were organized. Soon after it became a central subject, central legislation was proposed and a committee headed by a.d.gorwala went into the bill for securities regulation. On the basis of the basis of the committees recommendations and public discussion, the securities contract (regulation) act became law in 1956.

FUNCTIONS OF STOCK EXCHANGE:-

Stock exchanges provide liquidity to the listed companies. By giving quotations to the listed companies, they help trading and raise funds from the market, savings of investors flow into public loans and to joint-stock enterprises because of this ready marketability and unequalled facility for transfer of ownership of stocks, shares and securities provided by the recognized stock exchanges as a result, over the hundred and twenty years during which the stock exchanges have existed in this country and through their medium, the central and state government have raised crores of rupees by floating public loans; municipal corporations, improvement trust, local bodies and state finance corporations have obtained from the public their financial requirements, and industry, trade a commerce- the backbone of the countrys economy-have secured capital of crores or rupees through the issue of stocks, shares and debentures for financing their day-to-day activities, organizing new ventures and completing projects of expansion, diversification and modernization. By obtaining the listing and trading facilities, public investment is increased and companies were able to raise more funds. The quoted companies with wide public interest have enjoyed some benefits and assets valuation has become easier for tax and other purposes. VARIOUS STOCK EXCHANGES IN INDIA:There are 25 stock exchanges in the country, 20 of them being regional ones with allocated areas. Three others set up in the reforms era, viz., National Stock Exchange (NSE) the Over the Counter Exchange of India Limited (OTCEI) and Inter-connected Stock Exchange of India Limited (ISE) have mandate to nationwide trading network. The ISE is promoted by 15 regional stock exchanges in the country and has been set up at Mumbai. The ISE provides a member18

broker of any of these stock exchanges an access into the national market segment, which would be in addition to the local trading segment available at present. The NSE and OCTEI, ISE and majority of the regional stock exchanges have adopted the screen based trading system (SBTS) to provide automated and modern facilities for trading in a transparent, fair and open manner with access to investors across the country.

At present there are 25 stock exchanges recognized under the securities contracts (regulation), Act, 1956. Those are as under

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DETAILS OF STOCK EXCHANGES Sr. No. 1 2 3 4 5 6 7 8 9 10 11 Ahmedabad Stock Exchange Ltd. Bangalore Stock Exchange Ltd. Bhubaneswar Stock Exchange Ltd. Bombay Stock Exchange Ltd. Calcutta Stock Exchange Ltd. Cochin Stock Exchange Ltd. Coimbatore Stock Exchange Ltd. Delhi Stock Exchange Ltd.,The Gauhati Stock Exchange Ltd. Hyderabad Stock Exchange Ltd.,The Interconnected Stock Exchange of India Ltd. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Jaipur Stock Exchange Ltd. Ludhiana Stock Exchange Ltd.,The Madhya Pradesh Stock Exchange Ltd Madras Stock Exchange Ltd. Magadh Stock Exchange Ltd. * Mangalore Stock Exchange MCX Stock Exchange Ltd National Stock Exchange of India Ltd. OTC Exchange of India Pune Stock Exchange Ltd. Saurashtra Kutch Stock Exchange Ltd. U.P. Stock Exchange Limited United Stock Exchange of India Limited The Vadodara Stock Exchange Ltd. 2-Jun-12 21-Mar-12 3-Jan-12 15-Sep-11 PERMANENT 22-Aug-12 1-Sep-12 8-Jan-12 27-Apr-12 PERMANENT PERMANENT 17-Nov-11 PERMANENT PERMANENT 4-Jun-12 PERMANENT PERMANENT 7-Nov-11 17-Sep-06 PERMANENT 30-Apr-12 Name of the Exchange Valid Upto

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OUT OF THESE MAJOR STOCK EXCHANGES ARE:-

NSE (National Stock Exchange) [NIFTY]

NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. In April 1993, it was recognized as a stock exchange under the securities contracts( Regulation) Act, 1956. NSE commenced its operation in the wholesale Debt Market (WDM) segment in June 1994. The capital market (Equities) segment of the NSE commenced operation in November 1994. The National Stock Exchange as a first step in reforming the securities market through improved technology and introduction of best practices in management. It started with the concept of an independent governing body without any broker representation thus ensuring that the operators' interests were not allowed to dominate the governance of the exchange. The practice of physical trading imposed limits on trading volumes and, hence, the speed with which new information was incorporated into prices. To prevent this, the NSE introduced screen-based trading system (SBTS) where a member can punch into the computer the quantities of shares and the prices at which he wants to transact. The transaction is executed as soon as the quote punched by a trading member finds a matching sale or buy quote from counter party. SBTS electronically matches the buyer and seller in an order-driven system or finds the customer the best price available in a quote driven system, and, hence, cuts down on time, cost and risk of error, as well as on the stock

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exchange governance, screen based trading, compression of settlement cycles, dematerialisation and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology.

BSE (Bombay Stock Exchange) [SENSEX]

BSE Ltd, the first ever stock exchange in Asia established in 1875 and the first in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, has had an interesting risetoprominenceoverthepast137years.

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asias first Stock Exchange and one of Indias leading exchange groups. Over the past 137 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was established as "The Native Share & Stock Brokers' Association" in 1875.

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BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes two leading global exchanges,

Deutsche Bourse & Singapore Exchange as strategic partners

BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME). Around 5000 companies are listed on BSE making it world's No. 1 exchange in terms of listed members. The companies listed on BSE Ltd command a total market capitalization of USD Trillion 1.06 as of May 15, 2012. BSE Ltd is world's fifth most active exchange in terms of number of transactions handled through its electronic trading system. It is also one of the worlds leading exchanges (5th largest in May 2012) for Index options trading BSE also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. BSE is the first exchange in India and second in the world to obtain an ISO 9001:2000 certification. It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT).

VISION
To be amongst most trusted power utility company of the country by providing environment friendly power on most cost effective basis, ensuring prosperity for its stakeholders and growth with human face.

MISSION
Perfection in Power To ensure most cost effective power for sustained growth of India.
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To provide clean and green power for secured future of countrymen. To retain leadership position of the organisation in Hydro Power generation, while working with dedication and innovation in every project we undertake. To maintain continuous pursuit for cost effectiveness, enhanced productivity for ensuring financial health of the organisation, to take care of stakeholders aspirations continuously. To be a technology driven, transparent organization, ensuring dignity and respect for its team members. To achieve excellence in every activity we undertake. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

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REGULATORY FRAME WORK OF STOCK EXCHANGE :

A comprehensive legal framework was provided by the Securities Contract Regulation Act, 1956 and Securities Exchange Board of India 1952. Three tier regulatory structure comprising

Ministry of finance The Securities And Exchange Board of India Governing body

Members of the stock exchange:

The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below: The minimum age prescribed for the members is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any other business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required education is a pass in 12th standard examination.

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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

The securities and exchange board of India was constituted in 1988 under a resolution of government of India. It was later made statutory body by the SEBI act 1992.according to this act, the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and exchange board of India act, 1992 some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI.

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SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES):

Board of Directors of Stock Exchange has to be reconstituted so as to include non-members, public representatives and government representatives to the extent of 50% of total number of members. Capital adequacy norms have been laid down for the members of various stock exchanges depending upon their turnover of trade and other factors All recognized stock exchanges will have to inform about transactions within 24 hrs.

Capital Market Intermediaries:

There are several institutions, which facilitate the smooth functioning of the securities market. They enable the issuers of securities to interact with the investors in the primary as well as the secondary arena.

Merchant Bankers:
Among the important financial intermediaries are the merchant bankers. The services of merchant bankers have been identified in India with just issue management. It is quite common to come across reference to merchant banking and financial services as though they are distinct categories. The services provided by merchant banks depend on their inclination and resources technical and financial. Merchant bankers (Category 1) are mandated by SEBI to manage public
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issues (as lead managers) and open offers in take-over. These two activities have major implications for the integrity of the market. They affect investors' interest and, therefore, transparency has to be ensured. These are also areas where compliance can be monitored and enforced. Merchant banks are rendering diverse services and functions. These include organizing and extending finance for investment in projects, assistance in financial management, acceptance house business, raising Euro-dollar loans and issue of foreign currency bonds. Different merchant bankers specialize in different services. However, since they are one of the major intermediaries between the issuers and the investors, their activities are regulated by: (1) SEBI (Merchant Bankers) Regulations, 1992. (2) Guidelines of SEBI and Ministry of Finance. (3) Companies Act, 1956. (4) Securities Contracts (Regulation) Act, 1956. The Merchant Bankers Regulations of Securities and Exchange Board of India (SEBI) regulate merchant banking activities, especially those covering issue and underwriting of shares and debentures. SEBI has made the quality of manpower as one of the criteria for renewal of merchant banking registration. These skills should not be concentrated in issue management and underwriting alone. The criteria for authorization take into account several parameters.

OBJECTIVES AND FUNCTIONS OF SEBI

I. To protect the interest of investors in securities. II. Regulating the business in stock exchanges and any other securities market. III. Registering and regulating the working of intermediaries associated with securities market as well as working of mutual funds. IV. Promoting and regulating self-regulatory organizations. V. Prohibiting insider trading in securities. VI. Regulating substantial acquisition of shares and takeover of companies.
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VII. Performing such functions and exercising such powers under the provisions of capital issues (control) act, 1947and the securities to it by the central government.

SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES):

1. Board of Directors of Stock Exchange has to be reconstituted so as include nonmembers, public representatives and government representatives to the extent of 50% of total number of members. 2. Capital adequacy norms have been laid down for the members of various stock exchanges depending upon their turnover of trade and other factors. 3. All recognized stock exchanges will have to inform about transactions within 24 hrs.

Types of order:

Buy and sell orders placed with members of the stock exchange by the investors. The orders are of different types.
Limit orders: Orders are limited by a fixed price buy Reliance Petroleum at Rs.50.Here, the

orders has clearly indicated the price at which it has to be bought and the investor is not willing to give more than Rs.50.
Best rate order: Here, the buyer or seller gives the freedom to the broker to execute the order at

the best possible rate quoted on the particular date for buying. It may be lowest rate for buying and highest rate for selling.
Discretionary order: The investor gives the range of price for purchase and sale. The broker can

use his discretion to buy within the specified limit. Generally the approximation price is fixed. The order stands as this buy BRC 100 shares around Rs.40.
Stop loss order: The orders are given to limit the loss due to unfavorable price movement in the

market. A particular limit is given for waiting. If the price falls below the limit, the broker is authorized to sell the shares to prevent further loss. E.g., Sell ANDHRABANK at Rs.105 stops loss at Rs.100.
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Buying and selling shares: The to buy and sell the share the investor has to locate register broker or sub broker who render prompt and efficient to service to him. The order to buy or sell specified number of shares of the company of investors choice are placed with the broker. The order may be of any of the above any mentioned type. After receiving the order the broker tries to execute the order in his computer terminal. Once matching order is found, the order is executed. The broker the delivers the contract note To the investor. It gives the details regarding the name of the company, number of shares bought, price, brokerage, and the date of delivery of share. In this physical trading form, once the broker gets the share certificate through the clearing houses he delivers the share certificate along with transfer deed to the investor. The investor has to fill the transfer deed and stamp it. The stamp duty is one of the percentage considerations, the investor should lodge the share certificate and transfer deed to the register or transfer agent of the company. If it is bought in the DEMAT form, the broker has to give a matching instruction to his depository participant to transfer shares bought to the investors account. The investor should be account holder in any of the depository participant. In the case of sale of shares on receiving payment from the purchasing broker, the broker effects the payment to the investor. Share groups: The listed shares are divided into 3 categories: Group A shares, B1 shares, B shares. The last 2 groups are referred to cleared securities or non specified shares. The shares that come under the specified group can avail the carry forward transaction. In A group, shares are selected on the basis of equity, market capitalization and public holding. Further it should have good track record and dividend paying company. It should have good growth potential too. The trading volumes and the investors base are high in A group shares. Any company when it satisfies these criteria would be shifted from B group to A group. In the B1 group actively traded share are included. Carry forward transactions are not allowed in this group. Settlement takes place through the clearinghouse along with the A group shares. The settlement cycle and the procedure are identical to A group security. The rest of the company shares listed from the B group.

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Rolling settlement system: Under rolling settlement system, the settlement takes place n days (usually 1, 2, 3 or 5days) after the trading day. The shares bought and sold are paid in for n days after the trading day of the particular transaction. Share settlement is likely to be completed much sooner after the transaction than under the fixed settlement system. The rolling settlement system is noted by T+N i.e. the settlement period is n days after the trading day. A rolling period which offers a large number of days negates the advantages of the system. Generally longer settlement periods are shortened gradually. SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they were in compulsory demat list and had daily turnover of about Re.1 crore or more. Then it was extended to A stocks in Modified Carry Forward Scheme, Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS) with effect from dec 31, 2001. SEBI has introduced T+5 rolling settlement in equity market from July 2001 and subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement experience it was further reduced to T+2 to reduce the risk in the market and to protect the interest of the investors from 1st April 2003.

Activities on T+1: conformation of the institutional trades by the custodian is sent to the stock exchange by 11.00 am. A provision of an exception window would be available for late confirmation. The time limit and the additional changes for the exception window are dedicated by the exchange. The exchanges/clearing house/ clearing corporation would process and download the obligation files to the brokers terminals late by 1.30 p.m on T+1. Depository participants accept the instructions for pay in securities by investors in physical form up to 4 p.m and in electronic form up to 6 p.m. the depositories accept from other DPs till 8p.m for same day processing.
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T+2 activities: The depository permits the download of the paying in files of securities and funds until 10.30 am on T+2 from the brokers pool accounts. The depository processes the pay in requests and transfers the consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing house/clearing corporation executes the pay-out of securities and funds latest by 1.30 p.m on T+2 to the depositories and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale positions in the same scrip can be settled and net quantity has to be settled.

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INDUSTRY ANALYSIS
Industry Analysis Using Porters 5 Forces Model

POTENTIAL ENTRANTS Heavy Investment Various Banks Geojit Cipher UTI Securities IDBI Capital Mkt. Services

BUYERS SUPPLIERS Web maintainers NSCL CSDL NSE BSE MCX NCDEX COMPETITORS ICICI Web Trade Ltd. Angel Broking IndiaBulls Reliance Capital Motilal Oswal Security Ltd. HDFC Securities Ltd. Religare Ltd. Small Investors Franchise/Business Partners HNIs MF Companies HUF Institutional Investors

SUBSTITUTES Mutual Funds Insurance Bank FO

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 Suppliers
o NSDL & CSDL are the regulatory bodies for Depository Participants like SSKI, SHCIL, ICICIdirect.com, etc. Also these regulatory bodies have got an upper hand as the bargaining power stock broking houses like SSKI, etc. would be less. o NSE & BSE are playgrounds where common an investor trade through stock broking houses, for which they have to take permission from NSE/BSE. o NSE & BSE are under the purview of SEBI, thats why stock broking houses like SSKI, have low bargaining power. But here there is one advantage that NSE/BSE have i.e. they cannot go for forward integration. o MCX & NCDEX are stock exchanges which trade in commodities and derivatives. Here again stock broking houses have to follow rules and regulation of the same. o Web maintainers are companies which maintain web sites & technical aspects of the same. Here stock broking houses like SSKI can have more bargaining power due to stiff competition among web maintaining companies. o Web maintainers are companies who make and maintain softwares for stock broking houses. If say for example stock broking houses switches over to other web maintainers then that company cannot understand the mechanisms of softwares. So it is quite high switching cost.

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 Buyers
o There are various types of investors who trade through stock broking houses like SSKI, which includes investors like small investors, medium net worth investors, business partners, institutional investors and mutual fund companies. o Here the bargaining power of stock broking houses depends on how big the investor is. o So here we can say that bargaining power of stock broking houses is high in case of small investors & HUF. o While the bargaining power is moderate in case of HNI (High New Worth Investors)/ MNIs (Medium Net Worth Investors) and business partners. o But the in case of mutual fund companies and institutional investors bargaining power is less. o There is competitive buzz in stock broking industry; competitors are offering low brokerage and best services with added feature. So switching cost is pretty much less. So the buyer can easily switch over to competitors product.

Competitors
o The company is facing the competition from local as well as national level players. The local players provide facility for off-line trading while the national players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide online trading services. o There are also other big names like Indiabulls, Motilal Oswal, 5paisa and Marwadi encircles the company from both the sides by providing online and offline trading with competitive services.

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 Potential Entrant
o The potential entrants in like Investment, Geojit and Cipher which are coming in near future. o Nationalized banks are also thinking to enter in this field by tying up with broking houses.

Substitute
o Here substitutes are such instruments which can be used instead of investing in shares. o The instruments like Bank FD, insurance, mutual funds are the substitutes. o If the use of this instruments increase this may be disadvantage for the stock broking houses. o The companies and banks which are having these instruments can plunge into this industry.

Entry Barrier
o Huge capital: - Capital is necessary not only for fixed facilities but also for customers credit and absorbing start up losses. To start a stock brokinghouse, one needs huge capital for technology up gradation and skilledmanpower. o Technology: - Technology for stock broking houses is life saving device.Stock broking requires huge capital to make their products user friendly,which in turn requires capital to employ skilled manpower. Thus, technologycould be one of the entry barriers. o Regulatory Constraints: - Obtaining a license is a tedious job for a stockbroking house. It should comply with the regulation of the governing bodieslike SEBI, NSDL, etc. For a stock broking houses to plunge into the stockbroking industry, it needs to have some kind of financial background andexpertise. Thus, regulators constraints could be an entry barrier.

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o Experience curve: - The core competency in this industry is the services which are provided to the end-users and the research based activities which includes TIPS, fundamental as well as technical script analysis. Also the most important thing which helps already established firms is-TRUST which people would be having on firms like SSKI , Motilal Oswal, etc. this is very difficult for new companies to imitate. o Network: - The Reach to the customer is the key factor in the industry. The network of the companies like Motilal Oswal, Sharekhan, and ICICI is very efficient and spreaded all over India. It will take time for a new entrant to establish such a huge network (e.g. Marwadi), which say that, Network can come up as most difficult entry barrier to overcome. o Expected Retaliation: - Whenever a new player comes in the industry, the old companies have an option to reduce the prices of their product. This kind of practice is called expected Retaliation which is also possible in this industry in terms of less brokerage rates and reduced account opening charges, so these makes really very difficult for any new company to compete and survive.

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COMPANY PROFILE

ABOUT SHAREKHAN LIMITED Sharekhan Ltd is Indias leading online retail broking house with its presence through 1700 Share Shops in 550 cities and serving more than 10,00,000 customers across the nation. It also has international presence through its branches in the UAE Launched on Feb 8th 2000 as an online trading portal. Sharekhan offers its services to all types of customers- individual investors and traders, corporate, institutional and NRIs; trade execution facilities for cash as well as derivatives, on BSE and NSE, depository services, mutual funds, initial public offerings (IPOs), and commodities trading facilities on MCX and NCDEX. Sharekhan provides market related news, stock quotes fundamental and statistical information across equity, mutual funds, IPOs and much more.

Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family, continues to remain the largest shareholder. It is the retail broking arm of the Mumbai-based SSKI [SHRIPAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. SSKI which is established in 1930 is the parent company of Sharekhan ltd. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance over a decade ago.

Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock
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Broking Brand by Awaaz Consumer Vote. It is first brokerage Company to go online. The Company's online trading and investment site - www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information.

Sharekhan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. One can surf across 5,500 companies for indepth information, details about more than 1,500 mutual fund schemes and IPO data. One can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players raising equity in the Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the Indian stock markets. If we experience their language, presentation style, content or for that matter the online trading facility, we'll find a common thread; one that helps us make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about.

Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part of the SSKI group, an Indian financial

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services power house, with strong presence in Retail equities Institutional equities Investment banking. Sharekhan has set category leadership through pioneering initiatives like Trade Tiger , a net based executable application that emulates a broker terminal besides providing information relevant to Day traders. Their second initiative, First Step is targeted at empowering first time investors. Recently Sharekhan has ventured into trader education with US-based Online Training Academy - one of the leading organizations in trading and investment education globally. Sharekhan has also set their global footprints through the India First initiative, a series of seminars conducted by Sharekhan to help NRIs participate and benefit from the huge investment opportunities in India.

To sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares.

In Ahmedabad, It is having the branch at Gagandeep Tower, Nr. Paldi bus stand, Paldi X-roads, Paldi and over 40 franchisees in Ahmedabad. We have been given the centre at Paldi X-roads, Ahmedabad.

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HIERARCHY IN SHAREKHAN:

Sales Side

Dealing Side

Trainees Super Trainees Sales Executives Senior sales executives Business development executive Assistant sales manager Deputy manager Territory manager Area sales manager/ Cluster manager Regional sales manager Regional Head Vice president Directors CEO

Junior Dealer Dealer Relationship manager Senior Relationship manager Equity advisor Assistant Branch Manager Branch Manager Cluster Head Directors CEO

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Mission:
To educate and empower the individual investor to make better investment decisions through quality advice and superior service.

Vision:
To be the best retail brokering Brand in the retail business of stock market.

Sharekhan is infact Among the top 3 branded retail service providers No. 1 player in online business Largest network of branded broking

outlets in the country serving more than 10, 00,000 clients.

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ACHIEVEMENTS OF SHAREKHAN:
A wired company along with Reliance, Hll, Infosys, etc by Business Today, January 2004 edition.

It was awarded Top Domestic Brokerage House four times by Euro and Asia money. It was Winner of Best Financial Website award.
Indias most preferred brokers within 5 years. CNBC Awaaz customers Award 2005.

Indias largest consumer study initiated by CNBC Awaaz and conducted by AC Nielsen - ORG Marg covering 7000 respondents - 21 products and services across 21 major cities.

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SWOT Analysis of Sharekhan

Strength

1. Widerange of innovative financial products 2. Intensive research on all industry sectors 3. Strong I.T infrastructure 4. Have one of the largest network of branches across country 5. Pan-India presence with over 1,700 outlets serving 10,00,000 customers across 550 cities.

Weakness

1. Penetration limited to urban areas

Opportunity

1. Growing rural market 2.Earning Urban Youth 3. Educating people about the benefits of investments to increase target audience. 1.Stringent Economic measures by Government and RBI 2.Entry of foreign finance firms in Indian Market

Threats

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STRATEGY/TASKS:
The main strategies/tasks used in and performed in our training were as follows: DATA CALLING In data calling we were provided data of mobile numbers and our job was to generate appointments. After that we were required to convert that appointment into closure. Apart from given data we also brought latest business directory. We called to different business people and tried to generate appointments. CALLED CALLING Called calling means to go at different corporate houses and to meet different people and to get their visiting card by it we get lead and our immediate task was to call them & to fix appointment. REFERENCE Another important strategy was to use our reference means our family, friends, relatives etc. In marketing or selling we can never neglect references & they always play a major role. TASKS To collect the leads. To do the telecalling and take appointments. To attend the appointment on prescribed time. To tell the client about the company and its products. To tell the client about the advantages of opening a demat account with Sharekhan limited.

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 To convince the clients to do Online Trading. To explain him the terms and conditions of the product. To convince the client to open Demat account at Sharekhan ltd. To give a live demo of how the online terminal works. By means of presentation explaining them how to trade online. To take signatures of the client on the KYC (know your customer) form. To collect the documents required to open a demat account. To fill up the KYC form for the customer. To install the software in the client`s computer. To make the client trade. To sell the mutual funds. To get the references from the client. To conduct seminars in the banks and good companies.

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OFFERINGS OF THE COMPANY:

Sharekhan provides 4 in 1 account. 1. De-mat a/c 2. Trading a/c [for cash calculation] 3. Bank a/c [for fund transfer] 4. Dial and Trade [for offline trading/for query relating trading]

[1] Dematerialization account:Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialized form are held in a De-mat account Sharekhan is a depository participant. This means that we can keep the shares in dematerialized form in Sharekhan. But for this one has to purchases the Demat account in Sharekhan. . Sharekhan provides no opening charge. Sharekhan provide de-mat account free of charge for first year, Rs.400/ year from the next year (year continued from the day of opening). Auto pay-in & Auto pay-out of securities. Waver of pay-in and pay-out charges (Due to link De-mate account).
FOR OPENING AN ACCOUNT:

2 passport size photograph Identity proof (PAN card is compulsory) Residence proof Cheque ( Min Rs.5,000 margin balance and another Rs.750 as a Advance brokerage )

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Proofs of Identity Customer can submit a photo copy of any one of the following o o o o o o Voter ID Passport PAN Card Driving License Photo I card issued by Employer registered under MAPIN Copy of Ration card

Address Proof Customer can submit a photo copy of any one of the following

o o o o o o o o o

Voter ID Card Driving License Passport Ration Card Telephone Bill Electricity Bill Leave-License Bank Passbook Latest Bank Statement.

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[2] Trading Account:

It is an electronic account which enables customers to trade in share through internet without help to broker. 1) NSE/BSE/F&O/Commodity terminal live screen:-

Provides online fluctuations rate on computer screen

2) Online Daily Tips: Sharekhan is providing tips through mails in 4 sessions Pre market Noon session Post market Late evening

Sharekhan is provide tips through SMS (chargeable) Sharekhan is provide tips through Yahoo Messenger Online

3) IPO/MF Online :Sharekhan provide IPO and MF facility for the customer.

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[3] Saving Account:

In Sharekhan, a customer can have a saving account for trading online with net banking facility; Sharekhan have a tie ups with following Banks.

1. HDFC Bank 2. CITI Bank 3. OBC Bank 4. YES Bank 5. UTI Bank 6. IDBI Bank 7. ICICI Bank 8. Union Bank 9. Indusind Bank 10. Bank of India 11. Deutsche Bank 12. SBI A customer can allocate and transfer fund from your respective bank account to your Sharekhan account for trading and transfer back to link bank account when and where needed.

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[4] Dial-N-Trade:Sharekhan provide Dial-N-Trade facility to the customer. AMC PLAN:- ( Annual Maintenance Cost Plan)

Different Plans for Purchasing of Demat Accounts for Equity:-

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Different Plans for Purchasing of Demat Accounts for Derivatives:-

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PRODUCTS & SERVICES OF SHAREKHAN LIMITED:

Sharekhan ltd. Provide different Product as follows

Share online & offline Derivatives Mutual fund online Commodities online IPO online Portfolio Management Services Insurance Fixed deposits Advisory products Currency trading

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SHARE ONLINE:
With a Sharekhan online trading account, you can buy and sell shares in an instant! Anytime you like and from anywhere you like! You can choose the online trading account that suits your trading habits and preferences - the Classic Account for most investors and TradeTiger for active day traders. Classic Account also comes with Dial-n-Trade completely free, which is an exclusive service for trading shares by using their telephone.

BENEFIT I. Freedom from paperwork:-Integrated trading, bank and de-mat account with digital contracts removers all paperwork. II. Instant credit and transfer:-instant transfer of funds from bank account of the choice to Sharekhan trading account. III. Trade anywhere:-enjoy the ease of trading from any part of the world in a completely secure environment. IV. V. Dial n Trade:-call toll free number (1-800-22-7050) to place orders through telebrokers. Timey advice:-make informed decisions with expert advice, investment calls and live market commentary. VI. Real-time portfolio tracking:-benefit from real-time information for investment and current portfolio value. VII. After-hour orders:-place order after market hours, which get executed as soon as the markets opens.
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Sharekhan provide two different accounts:

1) Classic account 2) Trade Tiger

CLASSIC ACCOUNT:The Classic Account enables customers to trade online on the NSE and the BSE, invest in IPO and Mutual Funds and access all the research and transaction reports through Sharekhans website. This account is suitable for the retail investors. In this account Shown the maximum script are 25 in the terminal and the technical chart are not shown in this account. The life time registration charge for this account is 750 rupees. Features Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) o Two dedicated numbers for placing your orders with your cell phone or landline. o Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) o Simple and Secure Interactive Voice Response based system for authentication o Get the trusted, professional advice of our telebrokers. o After hours order placement facility between 8.00 am and 9.30 am Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail
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 Single screen interface for cash and derivatives Online First Step: (For Beginners)

Name Of The Trader

An Investment Form through Which Trading Can Be Done

An Option By Which Bulk Trading Can Be Done.

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FAST TRADE:

Features Streaming quotes. Personalized market watch. Single screen interface for cash, derivatives and Commodities. New FastTrade is platform independent will support by all Operating System. New FastTrade will support all browsers in the market. New FastTrade is independent of existing website and can work even if content website is down. Fast trade is web base product and its a shown fluctuation rate.

Multiple Exchange

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TRADE TIGER: (For Active Traders) Trade tiger is a next-generation online trading product that brings the power of brokers terminal to customer pc. It is session to capitalize on intra-day price movement. Trade tiger is an internet based application available on a CD, which provides everything a trader needs on one screen. Key Features:-

A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs

Multiple Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies

Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD, RSI, etc Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines User can save his own defined screen as well as graph template, that is, saving the layout for future use

User-defined alert settings on an input Stock Price trigger Tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator

Shortcut key for FAST access to order placements & reports Online fund transfer activated with 11 Banks

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Advantages:

Multiple Exchange International Market Watch 24 Hour Market Access One Click Filter Unlimited Charts Create your own technical rules for trading A single Trading Screen for all segments Live Streaming Quotes Access all Trading Calls Advanced Charting features

Live Terminals

Traders Name

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THE PLATINUM CIRCLE: (For HNI)

Platinum Circle is Sharekhans personalized investment service for clients starting with over Rs 5 lakhs of initial investment. There Equity Advisor will not only create a personalised investment strategy for HNI client but will also constantly track latest market opportunities to minimize risk & maximize returns on clients investment. The HNI product Personalized portfolio tracking & restructuring advice. Monthly stock valuation statements, report profitability statement. Daily report on transaction sent in printed format as well as available online. Research-based investment advice tailored for different investment approaches

Nifty Thrifty: Sharekhans first product to be based completely on a mathematical model with zero human intervention. This product has come out of its fifth draw-down period (in 28 years of back testing) and the net asset value (NAV) is taking off to new heights. Beta Portfolio: Sharekhans product for positional trading with a long and short model investing in plain vanilla stock futures. In this, we identify stocks with greater risk-reward ratios with a time horizon of 1 to 2 months, based on the prevalent market situation. Trailing Stops: (For those focused on regular short-term returns.) The trading strategy is to buy short-term momentum over a time frame of 1 to 5 days and then book small profits consistently.

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Portfolio Management Services

Sharekhans Portfolio Management Services (PMS) use the expert management skills of their independent Fund Managers, backed by the expertise of 35 Financial Research Analysts, to get the best possible returns for you.

Sharekhan have various schemes that suits their customers needs. Like, PROTECH: Technical Analysis Trading. [Minimum Amount in PMS

(as prescribed by SEBI) - Rs. 25 Lacs] PROPRIME: Investing on Fundamentals.

Why Sharekhan ProTech PMS? 1| Focus on absolute returns:

Our Long-short strategies in Index/stock futures and index oriented funds ensure the perfect hedge against high market levels. 2| We charge fees only on profits We charge fees only when you make a profit. ProTech PMs has zero AMC or maintenance charges. 3| Systematically timing the market: ProTech works by timing the stock market using technical analysis. This is done by picking Stocks/Nifty before the infection points in their trading cycles. 4| Disciplined approach: While making investments based on market view, care is taken to maintain proportion of weightage for particular product and particular Stock/Nifty.

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5| Product Range: ProTech PMS has a range of 4 product schemes to choose from based on your risk-return appetites. You can choose between an automated model and a portfolio managed by our fund managers.

SHARE OFFLINE:

As the internet has taken over the physical trade, the same is the situation in trading in shares. Even the internet has not spared trading in shares and still the conventional system of offline trading continues in todays world.

Merits of offline trading

Low brokerage Less margin Flexibility in credit period Customized advice

Demerits of offline trading

Problems in getting in touch with the broker Limited clientele Problem of attention from the broker due to load Reliance on the brokers information Customer has to believe what the broker says
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 Broker Might not give the best price Reconciliation of account and cash settlements Paperwork Geographical Restriction

DIAL-N-TRADE:

Sharekhan provides complete trading facility like they are giving Toll free numbers the phone trading facility as an alternative of net trading where a customer can call n number of times.

Toll Free numbers: 1800-22-7500 1800-22-7050 Local number : 079-30307600 (chargeable)

Exposure: For Intraday = 10 times For Delivery = 04 times

Sharekhan is also providing the Margin on DP balance.

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 DERIVATIES:
Derivatives are financial contracts whose value/price is depends on the behavior of price of one or more basic underling assets. These contracts are legally binding agreement, made on the trading screen of stock exchange, buy or sell an asset in future. The assets can be share, index, interest rate, bond, rupee- dollar exchange rate, sugar, crude oil, soybean, cotton, coffee etc. Trading in Derivatives is an art and science that professional traders can master with the right knowledge, right tools and a lot of discipline. This is where Trade Tiger comes in. Trade Tiger is a next-generation trading and research software platform that allows you to easily execute your intra-day or F&O trades, access the latest market news and trading calls, and comes with some exquisite features.

What is a Financial Derivatives?

Derivative is a general term. Derivative literally means derived from. These are nothing but financial instruments that can be bought and sold. Futures and options are types of derivatives.

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What it carries is a right. When you buy derivative, you buy a Right. In normal stock market trading, we buy and sell shares. But in this case, the stock is not traded instead; the right to buy or sell a share is traded.

Note that, the right may be The right to buy or the right to sell. But, this right, to buy or sell, cannot be held on forever. The exchange sets a cut off date before which you have to either exercise your right or sell off the right to another person. The cost of buying a right is very less compared to the actual stock price. For example you hold the right to buy Infosys at Rs. 2000 per share today. You bought the right for Rs 200. Now, after a few days, Infosyss shares are trading at Rs.2500. But you can buy it at Rs 2000 since you have purchased the right to buy Infosys at that price. Naturally, since the price in cash market is Rs 2500, you can exercise the right to buy at Rs.2000 and sell it at Rs.2500. So, your investment of Rs 200 gave you return of Rs 300 ( Total cost = 2000 + 200) because the underlying asset (shares of Infosys) went up in value.

So, buying a derivative does not result in acquiring a share, but it results in buying the right to buy a share or to sell a share.

In other words, the buyer of a derivative gets a right over an asset (shares) which after a certain period of time might result in the buyer buying or selling the asset.

Not only shares, the base asset can be anything like commodities, foreign currency, treasury bills, bonds or share indices.

In fact, any transaction that results in a right without actually transacting the asset becomes a derivative instrument.

All derivative instruments are not the same. They differ when it comes to the kind of obligation it creates on the holder.

Forwards, Futures , Options and Swaps are the types of instruments that are clubbed under this general term.

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EQUITY FUTURE AND OPTION:

Future:-

An agreement between two parties to buy or sell an asset at a certain time in the Future at a certain price. Stock futures on certain specified securities and internet rate futures are available for trading at NSE (NATIONAL STOCK EXCHANGE).All the futures contracts are settled in cash.

Options:-

An Options is a contract which gives the right, but not buy or sell the underlying at a stated price, which a buyer of an option pays the premium and Options are of two types calls and put. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Calls also known as BULLS

Puts give the buyer the right, but not obligation to sell a given quantity of the underlying asset at a given price on or before a given date. Puts also known as BEARS.
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PART II PRIMARY STUDY

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Introduction of Study

Literature Review:

1. Dr. Jayanta Kumar Seal explore equity trading in India was basically a floor-based activity in the BSE. Traditionally, stock trading was done through stock brokers, personally or through telephones. As the no. of people trading in stock market increased enormously in last few years, a no. of stock brokers comes in the field, thus increasing further competition. Due to this, there come new innovations in trading. In this scenario, the existing players are left with two options-either to change their product offerings or to perish.

2. Ravinder Kumar & Nidhi Walia found Indian investors are more conservative; they do not adopt any change easily. Till now just few investors can be recognized who are using technology for online stock trading. Traditional traders still prefer to choose broker as a stock trading mechanism because they are more loyal to their broker. Online trading empowers educated investors to make their own decisions with close watch on market sensitivity by browsing through various sites.

3. Ms. Nidhi Walia explores that with IT fueling economy, internet is adopted as effective tool in catalyzing the business activities. Latest developments in information technology have altogether changed business done traditionally. As financial system is becoming more complex it has become need of hour, where investor should comprehend the data and understand recent intricacies of online trading. In Indian context, e-trading is relatively new concept, which has yet to gain some significant meaning. In the past, investor had no option to get market information
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except to contact local broker. But internet trading in stock trading is becoming medium of exchange whereby investor can order stock exchange on simple mouse click sitting at his place. Keeping in view current market requirement an attempt has been made in this research paper to analyze current status of online trading in Indian scenario.

4. Mr. Ajay Kumar through this research finds which brokerage house people prefer and to figure out what people prefer while investing in stock market. This study suggests that people are reluctant while investing in stock and commodity market due to lack of knowledge. Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge.

A study conducted on Analyzing the potential of E- Broking and preferences of the Investors in choosing a Bro for choosing the Brokerage firm by Dr. Prageetha Raju (faculty member of ICFAI Hyderabad) and published in Indian Journal of Finance June 2009.

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 Problem Statement of study:

Good customer service is the lifeblood of any business. You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business wont be profitable for long. Customer satisfaction is all about bringing customers back. And about sending them away happy happy enough to pass positive feedback about your business along to other, who may then try the product or service you offer for themselves and in their turn become repeat customer. Customer satisfaction is very important because, the customer is satisfied when only the product/ service meet the customers needs, wants, and expectations. To further understand customer satisfaction, we must take a deeper look at the level of specific satisfaction that, in a sense, define the basis ingredients what the customer really want.

Every organization needs to improve level of customer satisfaction and identify customer preference over various products so that they can implement measures to enhance customer satisfaction levels and to attract potential Customers. Hence a study has been undertaken on customer satisfaction.

The project aims at studying the customer satisfaction towards Sharekhan in terms of opening a d-mat account, customer services provided to them, online trading, brokerage commission, etc. It would include identifying the various groups of satisfied and unsatisfied customers and to know the reasons for the same. Further any suggestive methods that can be adopted to attain or regain customer satisfaction will be put forth. Also any further plans that would help share khan in exceeding customer expectations will also be identified. It would help the company to improve its CRM practices.

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 Objective of study:

PRIMARY OBJECTIVE

To study the overall satisfaction level of the customers with particular reference to Share khan services.

To identify various ways to improve the customer satisfaction level at Share khan.

SECONDARY OBJECTIVE

To identify the customer awareness of products of share khan ltd. To identify the need of the customers. To give suggestion to company in order to improve the satisfaction

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 Scope of study:
o o o

The research study was confined to the geographical limits of Ahmedabad city. The focus of this study was only on the satisfaction level of the customers. This report helps the stock broker to identify the expectations of the customers and serve better.

o o

It will also provide future growth opportunity. It will improve the awareness of various products of sharekhan.

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 Hypothesis:

H 0: there is no significance relation between age and who influence to begin online trading H 1: there is significance relation between age and who influence to begin online trading

Age * Who influence you to begin online share trading? Cross tabulation
Count Who influence you to begin online share trading? Advice Online Friends Age <25 25-35 35-45 45-55 Total 10 16 4 3 33 Relatives 6 9 3 2 20 Advertisement 6 1 1 0 8 Financial Consultant 7 6 7 4 24 Total 29 32 15 9 85 by

Chi-Square Tests
Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 12.348 12.383 85
a

df 9 9

sided) .194 .193

a. 9 cells (56.3%) have expected count less than 5. The minimum expected count is .85.

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Age * Where do you use the internet for online trading Cross tabulation
Count Where do you use the internet for online trading Stock home Age <25 25-35 35-45 45-55 Total 13 5 5 2 25 workplace 10 23 9 6 48 Office 6 4 1 1 12 broker Total 29 32 15 9 85

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Chi-Square Tests
Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 10.268 10.709 85
a

df 6 6

sided) .114 .098

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is 1.27.

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Gross Annual Income * since how many years you are using sharekhan service portal Cross tabulation
Count since how many years you are using sharekhan service portal <1year Gross Annual Income <120000 120000 - 300000 300001 - 600000 600000< Total 5 14 10 1 30 2 - 3 year 4 12 6 3 25 3 - 5 years 0 6 13 2 21 5 years < 0 2 2 5 9 Total 9 34 31 11 85

Chi-Square Tests
Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 27.394 25.274 85
a

df 9 9

sided) .001 .003

a. 10 cells (62.5%) have expected count less than 5. The minimum expected count is .95.

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Research Methodology

Research Design:

DESCRIPTIVE RESEARCH The type of the study or research used in this project is a descriptive research design. It mainly involves facts findings enquiries of different kinds of secondary sources of data and primary data.

DATA SOURCES

The data which is used for the research is primary and secondary data.

DATA COLLECTION

Primary:

The normal procedure is to interview some people individually or in group to get

a sense of how people feel about the topic So far as this research is concerned, primary data is the main source of information. The data collected is through questionnaire & information provided by the respondent.

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Secondary: So far as this research is concerned Internet, Company Brochures and pamphlets
have been referred to. Data that could be availed from company regarding the online and offline customer base does form part of secondary data.

SAMPLE DESIGN:

Mode of data collection: Personal visit & filling up the questionnaire, with little bit observation. Sample Universe Type of Sampling Sample size Research Instrument Ahmedabad Non Probability Convenience based Sampling 100 Respondents A structured formatted questionnaire

STATISCAL TOOLS:
For the purpose of analysis, Mean and percentage methods are used for the calculation and the result was interpreted. This test was used to minimize the error of the data collected. Graphs were used to represent the data for the better and accurate interpretation of the result.

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STATISTICAL TOOLS USED:

Sample tools are used for analyze purpose, they are follows:1.Percentage analysis2.Mean method.3.Chi-square test. PERCENTAGE ANALYSIS: Percentage refers to a special kind of ratio in making comparison between two or more data and to describe relationships between the data. Percentage can also be used to compare the relative terms, the distribution of two or more series of data. Percentage= no of respondent/ total respondent*100

CHI-SQUARE TEST ANALYSIS:

Chi-square test is used to find whether two or more attributes are associated. Inorder to test the association of the attributes, null hypothesis and the alternate hypothesisare taken.Null hypothesis (HO) states: the two attributes are independent of eachother.alternete hypothesis (HI) states: the two attributes are dependent on each other.

PERIOD OF STUDY:
The duration of the study is from June to August.

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Data analysis and interpretation

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ANALYSIS OF DATA

Questionnaires were been filled by 100 respondents as an investor followed by detailed interview who is currently using sharekhan online trading services in Ahmedabad. The data is collected from the questionnaire which is filled by the customer from different sharekhan franchises, Mini branches, and main Branches through personal interview or by telephonic interview from the Ahmedabad city customer. The data collected from such interviews and its analysis is as follows.

The data after collection has proposed & analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan.

The data collected in the stated manner tabulated according to the corresponding variables. The table thus prepared were analyzed & interpreted to draw the meaning, out of the study.

To analyse the data the software like SPSS, MICROSOFT EXCEL is used for the best quantitative and qualitative result. All the data is analysed by the SPSS software through coding system and data is interpreted in the charts form in Microsoft word for better understanding. Data collected from such interviews and its analysis is as follows.

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1. Gender Cumulative Valid Percent Percent 83.0 17.0 100.0 83.0 100.0

Frequency Percent Male 83 83.0 17.0 100.0

Female 17 Total 100

Gender
17

Male Female 83

Conclusion: From the available data we can see 83% of respondent are Male while other are Females. Its indicates that male are investing on doing transaction through online trading compare to female.

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2. Age Cumulative Valid Percent Percent 34.0 39.0 17.0 10.0 100.0 34.0 73.0 90.0 100.0

Frequency Percent <25 34 34.0 39.0 17.0 10.0 100.0

25-35 39 35-45 17 45-55 10 Total 100

Age
10 17 34 <25 25-35 35-45 45-55 39

Conclusion: Above date clearly shows that 25-35 year age people are using 39% online trading option out of total respondent and second is less than 25 year age people are using online trading with 34% out of the total respondent. While 17% are from the age of 35-45 year age and remaining 10% are from 45-55 year age.

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3. Educational Qualification Cumulative Valid Percent Percent 16.0 28.0 19.0 37.0 100.0 16.0 44.0 63.0 100.0

Frequency Percent Under Graduate 16 Post Graduate Masters Graduate Total 28 19 37 100 16.0 28.0 19.0 37.0 100.0

Educational Qualification
19 16 Under Graduate Graduate 28 37 Post Graduate Masters

Conclusion: Its not necessary to have qualification to trade online but for analysis part the qualification data is used to know which group is using online trading most. From the above data we can see almost every group is using online trading graduates are using most with 37% and second with postgraduates with 28% and rest masters are using 19% and 16% are used by undergraduate people.
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4. Gross Annual Income Cumulative Valid Percent Percent 11.0 38.0 39.0 12.0 100.0 11.0 49.0 88.0 100.0

Frequency Percent <120000 11 11.0 38.0 39.0 12.0 100.0

120000 - 300000 38 300001 - 600000 39 600000< Total 12 100

Gross Annual Income

12 11

<120000 39 38 120000 - 300000 300001 - 600000 600000<

Conclusion: This is the factor which influences most to trade in market through online or offline but with the subject of online trading customer should have the facility to trade online. Above data shows that who is having income 3 lack to 6 lack they are using the facility with 39% while another group is with 38% who is having the income more than 6 lack. Who is having income less than 3 lacks is 23%. From the data we 77% person out of the total is using online service are having more than 3lack.
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5. Who influence you to begin online share trading? Objective: The question was asked to know which type of group influence people to trade online.

Frequency Percent Friends Relatives Online Advertisement Advice by Consultant Total 38 22 10 38.0 22.0 10.0 30.0 100.0

Cumulative Valid Percent Percent 38.0 22.0 10.0 30.0 100.0 38.0 60.0 70.0 100.0

Financial 30 100

Who influence you to begin online share trading?

30

38 Friends Relatives

10 22

Online Advertisement Advice by Financial Consultant

Conclusion: From the data we can see that friends and advisory financial consultant are the people who refer investor to trade online for better service or privacy or any other feature.

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6. Where do you use the internet for online trading? Objective: The question was asked to know from where customer use online services most. Cumulative Valid Percent Percent 28.0 56.0 16.0 100.0 28.0 84.0 100.0

Frequency Percent home workplace Stock Office Total 28 56 broker 16 100 28.0 56.0 16.0 100.0

Where do you use the internet for online trading?

0 16 28 Home Workplace Stock broker Office 56 Browser Centre

Conclusion: From the data we can conclude that most of the people almost 56% are using online trading service from their work places. While 28% people use the service from their home to transect. While 16% people do online trading by visiting stock broker offices. And none is using browser centre to transect as there is no such facility avail in main or mini branches.
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7. How often you make online share transaction? Objective: The question was asked to know how often customer make online transaction. Cumulative Valid Percent Percent 18.0 38.0 19.0 25.0 100.0 18.0 56.0 75.0 100.0

Frequency Percent daily weekly 18 38 18.0 38.0 19.0 25.0 100.0

monthly 19 irregular 25 Total 100

How often you make online share transaction

25

18

Daily Weekly 19 38 Monthly Irregular

Conclusion: Its difficult have exact knowledge about the customer transaction frequency that how often customer do transaction. Reason its also depend on market situation but from the above customer answers we can say that 38% people do transect weekly on an average. The rest 25% people do irregular and 19% and 18% do monthly and daily respectively.

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8. In which of the financial instrument do you invest? (Give your preference rank wise). Objective: The question was asked to know in which financial instrument he invest what are the preferences for other investment options.

Particular Bond Mutual fund Online trading Derivatives

Ranking First Second 18 12 17 18 43 22 22 13

Third 17 19 18 10

Forth 12 26 6 9

50 45 40 35 30 25 20 15 10 5 0 Bond Mutual fund Online trading Derivities 18 12 17 12 6 19 17 18 26 22 18 13 10 9 22 First Second Third Forth 43

Conclusion: Every customer has different option to invest money in market as per their knowledge and experience. In the above data we can see that most of respondent have first preference as online trading which includes BSE, NSE, MCX, NCDEX, and CURRENCY. While second are derivatives and then bond and mutual fund has almost equal preference.

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9. Since how many years you are using sharekhans online service portal? Objective: The question was asked to know since how long customer using online trading facility.

Frequency Percent <1year 2 - 3 year 30 33 30.0 33.0 25.0 12.0 100.0

Cumulative Valid Percent Percent 30.0 33.0 25.0 12.0 100.0 30.0 63.0 88.0 100.0

3 - 5 years 25 5 years < Total 12 100

Since how many years you are using sharekhans service portal?

12 30 25 <1year 2 - 3 year 3 - 5 years 5 years < 33

Conclusion: We can easily can say that most of the user with 33% are 2-3 year old customer while 25% people are 3-5 year old customer and 30% are new who have not complete 1 year and 12% are having more than 5 years tenure in service.
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10. What are the factors that influence you to trade in Sharekhans online mode? Objective: The question was asked to know which factor influences customer the most to use sharekhan online trading service. Particular Access Stock Prices Verification Confirmation Speed Customization Technical Charts Online fund transfer Privacy First 14 & 22 15 18 18 3 10 Second 20 21 11 19 12 5 12 Third 19 13 12 18 7 2 12 Forth 19 12 10 19 9 11 12 Fifth 8 19 12 9 12 7 9 Sixth 12 12 17 7 19 8 4 seventh 15 9 9 13 11 9 9

25 20 15 10 5 0
20 19 19 15 12 8

22 21 19 17 15 13 12 12 9 12 12 11 10 13 9 9 7 7 5 3 2 12 9 7 12 11 11 8 9 12 12 12 10 9 9 19 19 18 18 18 19

14

First Second Third

4

Forth Fifth Sixth seventh

Conclusion: From the above customer preference we can see the mix preference of customer in access stock price, verification and confirmation of order , customization option out of the 7 option,

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11. Which of the following service do you use and admire provided broking firm? Objective: The question was asked to know which service is most preferable from the point of customer view to for different services. Particular Research Tips Research Reports Online Money Transfer Branch Training Dematerialization Trade Confirmation Stock Broker Office First 20 9 22 19 12 6 12 Second 21 8 12 7 11 12 9 Third 19 8 12 5 12 13 10 Forth 29 12 9 15 8 7 5 Fifth 22 15 22 12 9 12 7 Sixth 19 12 11 12 11 9 9 seventh 18 7 11 9 19 11 7

35 30 25 20 15 10 5 0
9 88 21 20 19 29

22 19 18 15 12 12 7

22

22 19 15 19

First
13 12 12 9 6 7 5

Second
11 12 9 10 7 9 7

1212 9

1111 7 5

1212 9

12 12 11 8 9

11

Third Forth Fifth Sixth seventh

Conclusion: From the above data we can conclude that customer preferred research tips, fund transfer option, and research report most as their preference from the available options. Which is useful to the customer for day to day trading and transaction.

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12. Do you feel sharekhan online trading is the easiest way to deal in the varieties of product? Objective: The question was asked to know is sharekhan online trading is the best way deal in the BSE, NSE, MCX, NCDEX, and CURRENCY. Cumulative Valid Percent Percent 65.0 17.0 18.0 100.0 65.0 82.0 100.0

Frequency Percent Yes No 65 17 65.0 17.0 18.0 100.0

May be 18 Total 100

Do you feel Sharekhan online trading is the easiest way to deal in varieties of product?

18

17 65

yes no may be

Conclusion: With the 65% strong customer feedback and view we can clearly say that sharekhan online trading is the easiest way to deal in varieties of product like BSE, NSE, MCX, NCDEX, and CURRENCY MARKETS.
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13. Does sharekhan provide you proper training? Objective: The question was asked to know whether sharekhan is giving proper training related to the online trading and software. Cumulative Valid Percent Percent 77.0 23.0 100.0 77.0 100.0

Frequency Percent Yes No 77 23 77.0 23.0 100.0

Total 100

Does sharekhan provide you proper training?

23

yes no 77

Conclusion: On the basis of the customer satisfaction view we can see that 77% customer admits that sharekhan provides the proper training for new user as well as old user for better use. Customer gets training by internet or from the executive.

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14. Does seminar guide customer to investment? Objective: The question was asked to know is sharekhan customer seminar are helpful to do transect in stock market and for investment. Cumulative Valid Percent Percent 60.0 40.0 100.0 60.0 100.0

Frequency Percent Yes No 60 40 60.0 40.0 100.0

Total 100

Do you feel sharekhan customer seminar helps customer to guide about trade and investment option?

40

60

Yes No

Conclusion: Sharekhan conducts regular seminar at branches on every or second Friday of each month. Which give customer to brief knowledge about online training, BSE, NSE, Commodities, currency market and transaction. from the customer feedback we can say 60% people getting help from the seminar to trade or for other investment options

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15. Is there transparency in sharekhan online trading? Objective: The question was asked to know is sharekhan policies are transparent in terms of online trading option. Cumulative Valid Percent Percent 75.0 25.0 100.0 75.0 100.0

Frequency Percent Yes No 75 25 75.0 25.0 100.0

Total 100

Do you feel there is more transperancy in sharekhan online trading?

25

Yes No 75

Conclusion: From the above data we can say that 75% of the people feel that sharekhan having more transparency in online trading with respect to policies.

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16. Are you aware about Share khans Trade Tiger Account which have single platform for multiple exchanges BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs? Objective: The question was asked to know that is customer aware about sharekhan is providing multiple trade exchanges from single platform. Frequency Percent Yes No 77 23 77.0 23.0 100.0 Valid Percent Cumulative Percent 77.0 23.0 100.0 77.0 100.0

Total 100

Response
23

Yes No 77

Conclusion: Sharekhan online trading software provides customer to access the price or transaction of different exchanges like BSE, NSE, Commodities, Currency market from the single platform. Though we can see that 23% people are still not aware about this function.

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17. Does Sharekhan study and research and forecast helps you to trade in market? Objective: The question was asked to know whether sharekhan research and forecast helps to customer for trading. Cumulative Valid Percent Percent 64.0 36.0 100.0 64.0 100.0

Frequency Percent Yes No 64 36 64.0 36.0 100.0

Total 100

Does Sharekhan study and research and forecast helps you to trade in market?

36

Yes 64 No

Conclusion: Share market is tool of investment which needs knowledge like When to invest, Where to invest, how much invest. Sharekhan gives customer to service short term or long term tips, study and research to assist the customer choice for investment but its never can be 100% true. Though 64% of people admit that sharekhan study, research, and tips help customer to trade.

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18. How do you rate Sharekhan in terms of charts, study, tips, research, and forecast consistent and efficient to use in trade? Objective: The question was asked to know the efficiency of the sharekhan study, research, tips, charts, and forecast. Cumulative Valid Percent Percent 18.0 43.0 32.0 5.0 2.0 100.0 18.0 61.0 93.0 98.0 100.0

Frequency Percent Very good 18 Good Average Bad 43 32 5 18.0 43.0 32.0 5.0 2.0 100.0

Very bad 2 Total 100

How do you rate Sharekhan in terms of charts, study, tips, research, and forecast consistent and efficient to use in trade?

5 32

18 Very good Good Average 43 Bad Very bad

Conclusion: Any company try their best to provide best service to their customer by giving advices, suggestion, tips, research, forecast, and study but it depends on market and situation is it work actually or not. With the subject of the sharekhan services we can see the customer feedback 18% admits that the sharekhan study is very good while 43% says its good and 32% says its average. While 7% feels is bad or very bad. From the data we can say that 93% says service is average or more than average.
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19. Do you think Sharekhan charts are easy to understand and provide right guidance to trade? Objective: The question was asked to know is sharekhan charts are easy to understand for trading purpose. Cumulative Valid Percent Percent 80.0 20.0 100.0 80.0 100.0

Frequency Percent Yes No 80 20 80.0 20.0 100.0

Total 100

Do you think Sharekhan charts are easy to understand and provide right guidance to trade?

20

Yes No 80

Conclusion: Charts give the knowledge about forecast and trend about the particular stock or market of short term or long term. As the data 80% says that the sharekhan charts are easy to understand and which help them to trade.

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20. Do you face any problem with respect to online trading? Objective: The question was asked to know that is customer facing any problem related to online trading with sharekhan. Cumulative Valid Percent Percent

Frequency Percent

Yes No

56 44

56.0 44.0 100.0

56.0 44.0 100.0

56.0 100.0

Total 100

Do you face any problem with respect to online trading?

44

56

Yes No

Conclusion: Online trading is technological tool to trade which is subject to error. Its acceptable that some customer face problem with the online trading tools. In the data 56% of the people face problem related to the online trading.
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21. Which feature of only trading software is not friendly to you? Objective: The question was asked to know which feature is not user friendly. Cumulative Valid Percent Percent 15.0 18.0 13.0 22.0 3.0 19.0 10.0 100.0 15.0 33.0 46.0 68.0 71.0 90.0 100.0

Frequency Percent Function key Charts Fund transfer Tools function Reports Server problems Others Total 15 18 13 22 3 related 19 10 100 15.0 18.0 13.0 22.0 3.0 19.0 10.0 100.0

Which feature is not friendly to you?

10 19

15 18

Function key Charts Fund transfer Tools Functions

22

13

Reports Server relatex problems Others

Conclusion With respect to the question number 20th we can see in which function customer are facing problem. 22% face problem with tool function , 19% with server related , 18% with charts, 15% with function key, 13% with fund transfer related, 10% with others and rest of with reports.
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22. When you have any problem related to online trading or with access does Sharekhan assist you with proper Services? Objective: The question was asked to know if customer has any problem regard to online trading does sharekhan solve problem with proper service. Cumulative Valid Percent Percent

Frequency Percent

Yes No

78 22

78.0 22 100.0

78.0 22 100.0

78.0 100.0

Total 100

When you have any problem related to online trading or with access does Sharekhan assist you with proper Services?

22

Yes No 78

Conclusion: When customer having problem sharekhan is always ready to solve their problems with their best assistant we can say this with the help of above data that 78% people admits same
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23. How do you rate Sharekhan in terms of Technology? Objective: The question was asked to know what will be the rating of sharekhan in terms of the technology. Cumulative Valid Percent Percent 21.0 49.0 24.0 4.0 2.0 100.0 21.0 70.0 94.0 98.0 100.0

Frequency Percent Very good 21 Good Average Bad 49 24 4 21.0 49.0 24.0 4.0 2.0 100.0

Very bad 2 Total 100

How do you rate Sharekhan in terms of Technology?

4 24 2 21 Very good Good Average Bad 49 Very bad

Conclusion: Sharekhan is believe to provide the best service to their client and by asking the question of what is the rating of sharekhan in respect of the technology we can say that sharekhan is giving technology is good or more than good from the data. 21% says its very good and 49% says is good and 24% its average and rest says below average.
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24. What is the satisfaction level of Sharekhan online trading? Objective: The question was asked to know about what is the satisfaction level of customer who is using sharekhan online trading. Cumulative Valid Percent Percent 21.0 40.0 26.0 7.0 6.0 100.0 21.0 61.0 87.0 94.0 100.0

Frequency Percent Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total 21 40 26 7 6 100 21.0 40.0 26.0 7.0 6.0 100.0

Satisfaction Level of Sharekhan online trading

7 6 21 Highly Satisfied 26 Satisfied Neutral 40 Dissatisfied Highly Dissatisfied

Conclusion Last question is what is satisfaction level of sharekhan of their customer we can see that 21% says that they are highly satisfied and 40 says they satisfied with sharekhan services and 26% says neutral neither good nor bad while 13% says its worst than average.

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Results and Findings

o 73% of the respondents belong to the age of less than 35 years old. o 83% of the respondents are male and remaining 17% are female. o 60% of the respondents influenced by friends and relatives to use online trading. o 75.7% of the respondents are aware of the sharekhan products. o Many of the respondents prefer market tips, fund transfer and report feature. o 78% of the respondents felt that better service is provided if they have any problem. o A majority of the respondents 40 % to 61% are satisfied with the services provided by sharekhan. o 80% respondent admits that sharekhan charts are easy to understand and it helps to trade. o 44% of the respondents are comfortable with easy accessibility. o The trading software is friendly user to the customers. But 56% face some technical problem for using which differs from customer to customer. o 40% to 60% respondent feels the efficiency of sharekhan study, research, tips, charts, and forecast is good. o 50% to 70% are satisfied with sharekhan technology. o Research reports and script recommendations are being provided. o Sharekhan website provides the best outlook to the new investors. o The brokerage rate is high as compared to the other broking firms.

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o 64% respondent felt that sharekhan study and forcast helped them to trade online. o 77% respondent aware about sharekhan providing single platform for multiple exchanges. o Sharekhan conducts regular seminar at branches on every or second Friday of each month. o Each customer having different point of view to use online trading but most of them give their first preference to access stock price, verification & confirmation, customization service. o 43% customer having online trading as a first preference to invest and rest is derivities, Mutual Fund, Bonds,

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 Limitations:
o The survey was restricted to Ahmedabad city , hence the findings cannot be generalized o The sample size is only 100 but the customers of sharekhan are much higher. So the sample size wont represent the whole population. o The survey was limited during the short span. o Biased answers are unavoidable. o Respondents are busy. So the questions answers of the answer cant be perfect.
o o

It may not possible to arrive at the exact value of the findings. The entire online share trading investor may not be covered.

o The result obtained from this project is based on survey.

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 Conclusion:

Online trading services have cast a spell on the Customers due to better online services, easy accessibility and time management.

For the company to sail past the rest it has to build on the already existing software that is available to the user, which will pave the way for an illustrious journey.

Both the company and the customer can benefit from the advancements in the field of online trade services thus finding avenues to improve upon.

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 Suggestions
o From the study it was found that the level of awareness is high and to get more awareness, the company can do more advertisement through internet, brochure set. o The brokerage rate is high compare to other broking firm. So the company can decrease the charges for brokerage, along with the other services than before. This will helpful to get more investors. o The company should more concentrate to the age group of 30-40.so that they will invest more than before. o The company can provide more market tips through SMS. o From the study it was found that the market opportunity for sharekhan will be excellent in future. o It was found that the exiting customers were not aware of the new products launched. So the company should deliver the message about the new products launched. o Increase the level of employees (relationship manager, sales executives) to achieve more targets. o Various sales promotion techniques can be introduced. o Sharekhan should provide the better training to the customer so that customer doesnt face any problem regards to use any function.

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Annexure
QUESTIONAIRE ON INVESTORS SATISFACTION LEVEL OF ONLINE TRADING

Name: _______________________________________ Gender: Age: Male < 25 25-35 Female 36-45 45-55 55<

1. Educational Qualification:

School Level Under Graduate Post Graduate Masters Degree ____________ Others (Please Specify) < 120000 120000 300000 300001 600000 <600000

2. Gross Annual Income:

3. In which of the financial instrument do you invest? (Give your preference rank wise) Bonds Derivatives Mutual Funds Online Trading

4. Who influences you to begin online share trading? Friends Online Advertisement Relatives Advice by Financial Consultant

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5. What are the factors that influence you to trade in Sharekhans online mode? (Give your preference rank wise) Access Stock Prices Privacy
Customization Online fund transfer

Verification & Confermation Speed

Technical Charts

6. Which of the following service do you use and admire provided broking firm? (Give your preference rank wise). Research Tips Research Reports Online Money Transfer Branch Training
Dematerializtion Stock Broker Office Trade Confirmation

7. Where do you access the internet for online trading? Home Stock Broker Office Workplace Browser Centre

8. Since how many years you are using sharekhans service portal? < 1year 2 to 3 years 3 to 5 years 5yers <

9. How often you make online share transaction/trading? Daily Basis Weekly Basis Monthly Basis Irregular

10. Does Sharekhan provide you proper training for online trading? Yes No

11. Do you feel sharekhan customer seminar helps customer to guid about trade and investment option? Yes No

12. Do you feel there is more transperancy in sharekhan online trading? Yes No

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13. Do you feel Sharekhan online trading is the easiest way to deal in varieties of product? Yes No May be

14. Are you aware about Share khans Trade Tiger Account which have single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs? Yes No

15. Does Sharekhan study and research and forecast helps you to trade in market? Yes No

16. How do you rate Sharekhan in terms of charts, study, tips, research, and forecast consistent and efficient to use in trade? Very Good Good Average Bad Very Bad

17. Do you think Sharekhan charts are easy to understand and provide right guidance to trade? Yes No

18. Do you face any problem with respect to online trading? Yes No

19. If yes then which feature is not friendly to you? Function Key Charts Fund Transfer Tools Function Reports Server related problems Others 20. When you have any problem related to online trading or with access does Sharekhan assist you with proper Services? Yes No

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21. Satisfaction Level of Sharekhan online trading Highly Satisfied Average Dissatisfied Satisfied Highly Dissatisfied

22. How do you rate Sharekhan in terms of Technology? Very Good Good Average Bad Very Bad

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Bibliography
www.Share Khan.com www.bseindia.com www.sebi.com www.moneycontrol.com www.economictimes.com www.nseindia.com www.reuters.com

http://www.linkedin.com/company/sharekhan http://www.investopedia.com/university/moneymarket/moneymarket1.asp#axzz216GiGXkE http://www.sebi.gov.in/investor/recog.html

Sharekhan Customer Database Sharekhan templates, books, magazine

News Paper Economic times of India Times of India

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