Project report on Analysis of Marketing Strategies of E-Broking in

Subhlagan Finance Ltd. in subhlagan finance ltd.

A
PROJECT REPORT
ON

Analysis of Marketing Strategies of E-Broking in

Subhlagan Finance Ltd.
45 days summer training project with

SUBHLAGAN FINANCE LTD

Submitted by:
Sunil kumar dadhich
MBA - III Semester

POORNIMA SCHOOL OF BUSINESS MANAGEMENT

ISI 2, RIICO Institutional Area, Goner Road, Sitapura, Jaipur
POORNIMA SCHOOL OF BUSINESS MANAGEMENT
(ISI-2, Goner Road, Sitapura, Jaipur)

CERTIFICATE OF
Summer training during June July, 2010
Certified that Mr. Sunil kumar dadhich, student of Master of business administration, III semester has submitted
his report on Analsis of marketing strategies of E- Broking after successfully completing the summer
st
practical training at SHUBLAGAN FINANCE LTD from16th May to 1 July 2011, towards fulfillment of the
syllabus requirement prescribed by Rajasthan technical university, Kota for MBA III semester Paper.

Dr. R P Rajoria (Director, PCE)

Manoj Gupta (Director, PIET)
Vandana Sharma (Director, PSOM)
Mohd. Rizwanullah (Director, PSBM)

ACKNOWLEDGEMENT
The path to success is never so smooth and simple to achieve. However, our learnings and motivation by our
close ones and our mentors helps us to reach beyond our potential. My Project would remain partial without
acknowledging people who encouraged me to achieve a milestone.
I would also like to thank Mr. R.K. Agarwal, Advisor and the supporting staff of Department of Management
Studies, Poornima School of Business Management for their help and cooperation throughout my project.
I express my sincere thanks to my project guides faculty, Department of Management Studies for guiding me
right form the inception till the successful completion of the project. I sincerely acknowledge them for extending
their valuable guidance, support for literature, critical reviews of project and the report and above all the moral
support they had provided to me with all stages of this project.
I would like express my heartily thankfulness to Mr. JAIPAL (). I am also thankful to Mr.
(Head of F&A). He has given me valuable guidance and other information for the preparation of this
report.
Finally I would like to thanks to all the staff of his company for extending their helping hands whenever I needed.

(Signature of student)
SUNIL KUMAR DADHICH

MBA (III rd SEM.)

DECLARATION
I SUNIL KUMAR DADHICH Student of MBA, POORNIMA
SCHOOL BUSINESS MANAGEMENT JAIPUR Analysis of Marketing Strategies
of E-Broking in Subhlagan Finance Ltd.. In Partial Fulfillment of MBA Degree
Course in INDIA ADVANTAGE PVT LTD is my Original Work.

(SUNIL DADHICH

PREFACE
Quite frequently these days people talk of practical knowledge, both in academic institutions and outside. At
each and every aspect in life we require some sort of theoretical and practical knowledge too.
It means only classroom lecture may not be enough to get the proper knowledge either in the business field or
social life.
Keeping all this in view, the present report has been written for the promotion the brand position of INDIA
ADVANTAGE in the highly competitive environment and to study the consumer behavior by working as a
promoter at Modern Trade Centers.
I am grateful to all those who have helped me in the successful completion of this report.
I hope I have tried my level best in making this Report.
If there is any error, in this Report I want to apologies for that.

CONTENTS

Introduction to the Industries

Indian Stock Market
Major players the Broking industry in India
Introduction of the company
Products of INDIA ADVANTAGE Broking
Fundamental Services
Technological Services
Commodity Services

About the other companies

Comparative Analysis of the company
Market share of INDAIN ADVANTAGE
Limitations
Study of Selected research problem
Description of terminology used in Broking company
Research Methodology
Data Analysis and Interpretation
Findings and summary of learning experience
Achievement
Conclusion
Recommendation

Questionnaire
Bibliography

7
21
27
28
33
41

48
52
53
55
60
67
81
85
96
99
100
101
102
109

OBJECTIVE OF THE STUDY

Main objective of the project is to find out the strategies of different E-Broking firms and evaluate them.
Project is about to penetrate the competitors of SHUBLAGAN FINANCE LTD. Conclusion of this project can give
an idea of strategies of different companies which may be helpful to the company. Now days all the broking
companies in India are trying to establish themselves in the competitive market. They are introducing innovative
marketing
Strategies to survive in the market. Many other private companies are looking to enter in the Indian Broking
market .so it is very essential to a company to innovate their marketing strategies in terms of

Well educated and capable employee in the agency

Marketing of their products
Deployment of their products
Targeting the right and potential customers
Differentiating from other companies
Future plan of the company
This study consists of to find out the marketing strategies of different Broking companies which are the
competitors of SHUBLAGAN FINANCE LTD.

INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIA E-BROKING INDUSTRY
The first publicly issued security can be tracked back to the fourteenth century in Venice where the
government made the first known issue of bonds. These government securities were purchased by merchants
and landowners as investments.
In and around 1750s in England, traders in the shares of early companies would commonly meet in
Jonathans Coffee House to trade shares and make business deals. Early share bids and offers were written on
the Coffee House walls and the trading process was highly unregulated, with insider trading forming the basis for
most investment decisions.
By 1773, Trading Clubs had formed, and in 1801 a group of traders raised 20,000 pounds to build the
London Stock Exchange in Capel Court. A similar process was occurring in America. By the early 1790s many
merchants had begun trading shares. Just as in London, these early traders often met at coffeehouses in an
informal environment.
In 1792, 24 Brokers who each paid $400 for a "trading seat" signed the Buttonwood Tree Agreement.
This agreement outlined the regulations under which shares could be bought and sold. These regulations formed
the basis for trading rules that
Still exist today and led to the formation in 1817 of the New York Stock Exchange. Much water has
passed under the bridge since then and we forward all the way to late 1990s.
By late 1990s, most of the stock exchanges had been automated, and the open outcry method of
trading was the thing of the past. Most stock exchanges began to use computers to replace floor traders. Floor
traders take phone and computer orders from brokers, and negotiate a trade with stock specialists at trading
stations on the trading floor. The internet orders placed by clients are first processed and authorized through the
stock brokers computer system before being automatically placed on the stock exchanges computer systems.
This period saw the rise in popularity and acceptance of online stock broking.
India Advantage was established to perform these core functions three decades ago. Prior to this, it
operated as M/s Mehta Investments, founded by Mr. Pravin Mehta, Chartered Accountant in 1990. It is under
the able guidance of Mr. Mehta, the Chairman and Managing Director, that India Advantage is today reaching
new heights in financial consultancy. India Advantage was founded with a vision of creating a ONE-STOPINVESTMENT SOLUTION PROVIDER TO ALL INVESTORS. Strong team of qualified and experienced
professionals is the key success of our organization. With latest IT infrastructure set-up we provide hassle free
connectivity and fastest trading platform. It is backed up by focused professionals. We have catered number of
clients by giving end to end wealth solutions. We are based
on the principles of highest standards of excellence, ethics, efficiency and professionalism.

Introduction
Meaning of stock market
A stock market is a private or public market for the trading of company stock and derivatives of company stock
at an agreed price; both of these aresecurities listed on a stock exchange as well as those only traded privately.
Trading
Participants in the stock market range from small individual stock investors to large hedge fund traders, who can
be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the
order.
Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known
as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may
enter "verbal" bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a
network of computers where trades are made electronically via traders.
Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock
and a potential seller asks a specific price for the stock. (Buying or selling at market means you will
accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes
place on a first come first served basis if there are multiple bidders or askers at a given price.

Stock market index

The movements of the prices in a market or section of a market are captured in price indices called stock market
indices, of which there are many, e.g., the S&P, the FTSE and the Euronext indices. Such indices are
usually market capitalization (the total market value of floating capital of the company) weighted, with the weights
reflecting the contribution of the stock to the index. The constituents of the index are reviewed frequently to
include/exclude stocks in order to reflect the changing business environment.

Derivative instruments

Financial innovation has brought many new financial instruments whose pay-offs or values depend on the prices
of stocks. Some examples areexchange-traded funds (ETFs), stock index and stock options, equity
swaps, single-stock futures, and stock index futures. These last two may be traded on futures exchanges (which
are distinct from stock exchangestheir history traces back to commodities futures exchanges), or traded overthe-counter. As all of these products are only derived from stocks, they are sometimes considered to be traded in
a (hypothetical) derivatives market, rather than the (hypothetical) stock market.

The Bombay Stock Exchange

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The Bombay
Stock Exchange, or BSE) is the oldeststock exchange in Asia. It is located at Dalal Street, Mumbai, India.
The Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the
[1]
stock exchange , and has a significant trading volume. As of August 2007, the equity market capitalization of the
[2]
companies listed on the BSE was US $ 1.11 trillion . The BSE SENSEX (SENSitive indEX), also called the
"BSE 30", is a widely used market index in India and Asia. It is located at Dalal Street, Mumbai, India.
Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the
[1]
stock exchange , and has a significant trading volume. As of August 2007, the equity market capitalization of the
[2]
companies listed on the BSE was US $ 1.11 trillion . The BSE SENSEX(SENSitive indEX), also called the "BSE
30", is a widely used market index in India and Asia .

National stock Exchange

The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest
[1]
stock exchange in India and the third largest in the world in terms of volume of transactions . NSE is mutuallyowned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in
[2]
India but its ownership and management operate as separate entities . As of 2006, the NSE VSAT terminals,
[3]
2799 in total, cover more than 1500 cities across India . In July 2007, the NSE had a total market
capitalization of 42,74,509 crore INR making it the second-largest stock market in South Asia in terms of market[4]
capitalization .
The National Stock Exchange of India 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. In April 1993, it was
recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced
operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment
of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced
in June 2000

Hang Seng Index

Hang Seng" redirects here. For the bank with the same name, see Hang Seng Bank. For all other uses,
see Hang Seng (disambiguation).
The Hang Seng Index (abbreviated: HSI, Chinese: ) is a freefloat-adjusted market capitalizationweighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest
companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong
Kong. These 40 companies represent about 65% of capitalization of the Hong Kong Stock Exchange.

Stock market crash

A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. In
parallel with various economicfactors, a reason for stock market crashes is also due to panic. Often, stock market
crashes end up with speculative economic bubbles.
There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth
destruction on a massive scale. An increasing number of people are involved in the stock market, especially
since
the social
security and retirement
plans are
being
increasingly
privatized
and
linked
to stocks and bonds and other elements of the market. There have been a number of famous stock market
crashes like the Wall Street Crash of 1929, the stock market crash of 19734, the Black Monday of 1987,
the Dot-com bubble of 2000. But those stock market crashes did not begin in 1929, or 1987. They actually started
years or months before the crash really hit hard.
One of the most famous stock market crashes started October 24, 1929 on Black Thursday. The Dow Jones
Industrial lost 50% during this stock market crash. It was the beginning of the Great Depression. Another famous
crash took place on October 19, 1987

Function and purpose

The stock market is one of the most important sources for companies to raise money. This allows businesses to
go public, or raise additional capital for expansion. The liquidity that an exchange provides affords investors the
ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other
less liquid investments such as real estate.
History has shown that the price of shares and other assets is an important part of the dynamics of economic
activity, and can influence or be an indicator of social mood. Rising share prices, for instance, tend to be
associated with increased business investment and vice versa. Share prices also affect the wealth of households
and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock
market and, in general, on the smooth operation of financial system functions. Financial stability is the raison
d'tre of central banks.
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares,
and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that
the counterparty could default on the transaction.
The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks
promote the production of goods and services as well as employment. In this way the financial system
contributes to increased prosperity.

Relation of the stock market to the modern financial system

The financial system in most western countries has undergone a remarkable transformation. One feature of this
development is disintermediation. A portion of the funds involved in saving and financing flows directly to the
financial markets instead of being routed via banks' traditional lending and deposit operations. The general
public's heightened interest in investing in the stock market, either directly or through mutual funds, has been an
important component of this process. Statistics show that in recent decades shares have made up an
increasingly large proportion of households' financial assets in many countries. In the 1970s, in Sweden, deposit
accounts and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth,
compared to less than 20 per cent in the 2000s. The major part of this adjustment in financial portfolios has gone

directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of
individuals, e.g., pension funds, mutual funds, hedge funds, insurance investment of premiums, etc. The trend
towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance,
permitting a higher proportion of shares to bonds. Similar tendencies are to be found in other industrialized
countries. In all developed economic systems, such as the European Union, the United States, Japan and other
developed nations, the trend has been the same: saving has moved away from traditional (government insured)
bank deposits to more risky securities of one sort or another.

The stock market, individual investors, and financial risk

Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks.
Stock prices fluctuate widely, in marked contrast to the stability of (government insured) bank deposits or bonds.
This is something that could affect not only the individual investor or household, but also the economy on a large
scale. The following deals with some of the risks of the financial sector in general and the stock market in
particular. This is certainly more important now that so many newcomers have entered the stock market, or have
acquired other 'risky' investments (such as 'investment' property, i.e., real estate and collectables).
With each passing year, the noise level in the stock market rises. Television commentators, financial writers,
analysts, and market strategists are all overtalking each other to get investors' attention. At the same time,
individual investors, immersed in chat rooms and message boards, are exchanging questionable and often
misleading tips. Yet, despite all this available information, investors find it increasingly difficult to profit. Stock
prices skyrocket with little reason, then plummet just as quickly, and people who have turned to investing for their
children's education and their own retirement become frightened. Sometimes there appears to be no rhyme or
reason to the market, only folly.
This is a quote from the preface to a published biography about the long-term value-oriented stock
[2]
investor Warren Buffett. Buffett began his career with $100, and $105,000 from seven limited partners
consisting of Buffett's family and friends. Over the years he has built himself a multi-billion-dollar fortune. The
quote illustrates some of what has been happening in the stock market during the end of the 20th century and the
beginning of the 21st.

The behavior of the stock market

NASDAQ in Times Square, New York City.
From experience we know that investors may temporarily pull financial prices away from their long term trend
level. Over-reactions may occurso that excessive optimism (euphoria) may drive prices unduly high or
excessive pessimism may drive prices unduly low. New theoretical and empirical arguments have been put
forward against the notion that financial markets are efficient.
According to the efficient market hypothesis (EMH), only changes in fundamental factors, such as profits or
dividends, ought to affect share prices. (But this largely theoretic academic viewpoint also predicts that little or no
trading should take placecontrary to factsince prices are already at or near equilibrium, having priced in all
public knowledge.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash
in 1987, when the Dow Jones index plummeted 22.6 percentthe largest-ever one-day fall in the United States.
This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a
definite cause: a thorough search failed to detect any specific or unexpected development that might account for
the crash. It also seems to be the case more generally that many price movements are not occasioned by new
information; a study of the fifty largest one-day share price movements in the United States in the post-war period
[3]
confirms this. Moreover, while the EMH predicts that all price movement (in the absence of change in
fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the
stock market to trend over time periods of weeks or longer.
Various explanations for large price movements have been promulgated. For instance, some research has
shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and Value at
Risk limits, theoretically could cause financial markets to overreact.
Other research has shown that psychological factors may result in exaggerated stock price movements.
Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will

perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes inclouds or ink blots.) In
the present context this means that a succession of good news items about a company may lead investors to
overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor's self[4]
confidence, reducing his (psychological) risk threshold.
Another phenomenonalso from psychologythat works against an objective assessment is group thinking. As
social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An
example with which one may be familiar is the reluctance to enter a restaurant that is empty; people generally
prefer to have their opinion validated by those of others in the group.
[5]
In one paper the authors draw an analogy with gambling. In normal times the market behaves like a game of
roulette; the probabilities are known and largely independent of the investment decisions of the different players.
In times of market stress, however, the game becomes more like poker (herding behavior takes over). The
players now must give heavy weight to the psychology of other investors and how they are likely to react
psychologically.
The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the
assistance and support they need. In the period running up to the recent Nasdaq crash, less than 1 per cent of
the analyst's recommendations had been to sell (and even during the 2000 - 2002 crash, the average did not rise
above 5%). The media amplified the general euphoria, with reports of rapidly rising share prices and the notion
that large sums of money could be quickly earned in the so-called new economy stock market. (And later
amplified the gloom which descended during the 2000 - 2002 crash, so that by summer of 2002, predictions of a
DOW average below 5000 were quite common.)

Irrational behavior
Sometimes the market tends to react irrationally to economic news, even if that news has no real effect on the
technical value of securities itself. Therefore, the stock market can be swayed tremendously in either direction by
press releases, rumors, euphoria and mass panic.
Over the short-term, stocks and other securities can be battered or buoyed by any number of fast marketchanging events, making the stock market difficult to predict.

INDIAN STOCK MARKET

Thee origination of the Indian securities market may be traced back to 1875, when 22 enterprising brokers
under a Banyan tree established the Bombay Stock Exchange (BSE). Over the last 125 years, the Indian
securities market has evolved continuously to become one of the most dynamic, modern and efficient securities
markets in Asia. Today, Indian markets conform to international standards both in terms of operating efficiency.

Structure and size of the markets:

Today India has two national exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE).Each has fully electronic trading platforms with around 9400 participating broking outfits. Foreign brokers
account for 29 of these.
There are some 9600 companies listed on the respective exchanges with a combined market capitalization near
$125.5bn. Any market that has experienced this sort of growth has an equally substantial demand for highly
efficient settlement procedures.
In India 99.9% of the trades, according to the National Securities Depository, are settled in dematerialized form in
a T+2 rolling settlement environments. In addition, trades are guaranteed by the National Clearing Corporation of
India Ltd. (NSCCL) and Bank of India Shareholding Ltd. (BOISL), Clearing Corporation houses of NSE and BSE
respectively. The main functions of the Clearing Corporation to work out.
Furthermore, each exchange has a Settlement Guarantee Fund to meet with any unpredictable situation and
a negligible trade failure of 0.003%. the Clearing Corporation of the exchanges assumes the counter-party risk of
each member and guarantees settlement through a fine-tuned risk management system and an innovative
method of online position monitoring. It also ensures the financial settlement of trades on the deliver the required
funds and/or securities with the help of a settlement guarantee fund.

Advantages Of Online Trading

The first major advantage of trading online is the ability to have total control over ones investments. Before the
advent of online trading, investors had to go through a stockbroker in order to buy and sell their stocks. This
process is tedious, can take up value able time and is costly. In addition to that, brokers can sometimes persuade
investors to buy and sell certain stocks because of personal reasons.
When investors trades online they have total control of their money. In addition to that, investors investors have
the luxury of speed. They can buy and sell stocks quickly, which can help them save money. An example of this
is if investors want to buy certain stocks at low price, by the time they call their broker and eventually buy the
stock the price could have increased during that time period. This same example applies to when investors want
to sell a stock at a certain time. While the investors are calling their broker and the stock is being sold, the
price could have dropped. This could sometimes cost investors thousands of dollars. With online trading, people
can buy and sell at the exact time they choose to do so because it is just a mouse click away.
Online trading is also beneficial because it reduces the cost of transaction. Instead of paying broker , which can
be very costly , investors can trade online and pay a small fee to their company. this saves the customers from
having to pay commission to the stockbroker. Furthermore, since the explosion of online brokerages has driven
the cost of transactions way down, trading online is cheaper than ever. This is because all the companied are
competing for business continue reducing their costs to attract customers.
The last major advantage of trading stocks online is that more information is available then ever before. Investors
can get the most up to date stock
quotes
and can reach any company they plan on buying stock for. This information was previously only available to
stockbrokers. With the new technology the internet offers, it is available to everyone. With this information the
investors can become more educated and make good decision on the stocks they want to buy and sell. One such
website that allows users to gather information is Quote.com. Quote.com has graphic charts that updates the
investors portfolio throughout the day and also lets investors create watch lists or mock portfolios that monitor
alternative investment options. This means that customers can plan out different investing stratifies and see how
those compare to the ones they are already invested in. These advantages have contributed greatly to the
increase of ntrading online.

Disadvantages of online training

One major disadvantage with online trading is that there are many security risks. The internet is a
wonderful but dangerous place to do business. Hackers have the ability to access personal information on
anyone who has ever searched the internet, which includes credit card information. This was the main reason a
company like Charles Schwab was reluctant to start trading online. Although the percentage is small, there is still
a small chance that hackers can access ones account (price 2) companies are taking the most serious
precautions on this matter.
Another drawback to trading online is that, while companies offer trades that are quick and on the spot, in
actuality it can take up to several hours to complete or even not to be completed at all. According to the
Securities and Exchange Commission, E-traders registered more than 3,300 complaints in the 12 months ended
in September 1999, a 197 percent increase over 1998 and nearly 2,000 percent higher than in 1997. This means
that here was an increase in problems that the web sites were having. This could have serious effects on
investors because they could think they bought a stock or sold a stock at a certain time but in actuality the
transaction registered late or not at all costing that investor money.
The internet is unpredictable and stable. One can never know when a web site will fail. In situations where
there is a problem like this, investors can usually call their brokerage firm and the problem is fixed right away.
However, the problem with online trading companies is that they are too large and are not easily reached by email or phone. This is the main concern for online brokerage firms and they are trying their best to alleviate these
problems.
Finally the most important problem with online trading is that it is so quick and easy to make transaction,
that money can be lost just as quick and just as easily. Some people that invest online do not know how the stock
market words and think they can just invest in anything and it will make them money. According into foresters
search, two types of traders have already moved online the aggressive affluent and those who want to get rich
quick.. These two groups make up 70 percent of the people that want investors trading online today. These
people can make rash decisions and lose a lot of their money. People like this generally think that investing in the
stock market is like gambling in Las Vegas. This is a dangerous attitude and could make people lose money they
cannot afford to lose.

Major Players in the BROKING

Industry in India
1

SHAREKHAN

ANAND RATHI

MOTILAL OSWAL

IL&FS

INDIABULLS

HDFC SECURITIES

INDIA INFOLINE

SHUBLAGAN FINANCEBROKING

RELIGARE

10

RELIANCE MONEY

11

ICICI DIRECT

12

BONANZA

13

MAGAL KESHAV

14

JAIPURK SECURITIES

15

UTI SECURITIES

16

GEOJIT

17

KARVY

18

MAN FINANCIAL

23

JP MORGAN STANLEY

24

ASIT C METHA

INTRODUCTION OF THE COMPANY

COMPANY PROFILE OF SHUBLAGAN FINANCE LTD
An arm of the flagship company , we at the shublagan finance group are dedicated to deliver
expert financial services that best suit your futuristic needs. Our fundamental areas of functioning include Shares,
Stocks (Capital Market and Futures & Options), Commodities, E-Broking, Internet Institutional Equities,
Research, Currency Derivatives, NRI Desk, PCG, IPOs and Depository services. We are a one-stop specialized
solution to all your financial requirements.
was established to perform these core functions three decades ago. Prior to this, it operated as M/s Mehta
Investments, founded byMr. Pravin Mehta, Chartered Accountant in 1990. It is under the able guidance of Mr.
Mehta, the Chairman and Managing Director, that India Advantage is today reaching new heights in financial
consultancy Shublagan was founded with a vision of creating a ONE-STOP-INVESTMENT SOLUTION
PROVIDER TO ALL INVESTORS. Strong team of qualified and experienced professionals is the key success of
our organization. With latest IT infrastructure set-up we provide hassle free connectivity and fastest trading
platform. It is backed up by focused professionals. We have catered number of clients by giving end to end
wealth solutions. We are based on the principles of highest standards of excellence, ethics, efficiency and
professionalism.
We channel our energies towards bringing out our best skills to ensure a maximum financial benefit for you.
Along with this, we uphold and augment the values of our shareholders. We are a visionary team with a deep
understanding of the financial diversity. We are a tram with intense passion for our goal of setting excellent
standards of Corporate Governance and meeting the financial needs and demands of society.

VISION
Shublagan Finance Group of Companies shall be professionally-managed one roof solution for Capital,
Financial & Commodities Market activity enabling social and individual financial benefits.
Every individual shall be focused, committed and part of empowered team constantly adding values to attaining
benchmarks
with
honesty
&
integrity
for
continuous
growth.
India Advantage Group of Companies shall foster a culture of caring, trust and continuous learning while
achieving goals and target.

BUSINESS PHILOSOPHY

ethical practices & transparency in all our dealings

customer interest above our own
always deliver what we promise
effective cost management

VALUES

INTEGRITY
TEAMWORK
QUALITY MINDSET
ENTREPRENEURSHIP

SERVICE ORIENTATION
PASSION & COMMITMENT

We offer services like:

Equity Broking
Commodities
Depository
Research
E-broking
Advisory

Portfolio Management Services

Mutual Fund Distribution

TIE UP BANKS

HDFC
ICICI
AXIS

CORPORATION
ORIENTAL BANK OF COMMERCE
KARNATAKA

Products of SHUBLAGAN FUNANCE Broking

E-Broking
It is user-friendly services to customers so that they can manage their stock portfolio. Including, online capabilities linked to
an information database to help customers invest, confidently. E-broking services are specially developed for the traders and
investors who prefer operating from their home or office, through the internet.

Equities
SHUBLAGAN FINANCE LTD. encourages its clients to deal on both the prominent exchanges of the country
the Bombay Stock Exchange and the National Stock Exchange of India Ltd. Capital Market segments though
smaller in volumes than Derivatives, are very vital for the success of the medium and small investors. We
advance client dealings on BSE and NSE for equities segment. Dedicated sales and trading teams in our trading
desks support these client deals.
Derivatives
Top
SHUBLAGAN FINANCE LTD., also provides services for its clients wanting to deal in the Derivatives segment of
the NSE. All client dealings on the exchange in all types of Futures and Options (Call and Put), conducted
through us are duly supported by a dedicated sales & trading teams in our trading
desks.
Commodities

Commodities have lately forged new possibilities for participation of investors and
traders. Commodities hold a wide range of unexplored opportunity to evade business
risks, while providing attractive investment and trading prospects for investors as
well as traders. Commodities hold great ability to turn into a separate asset class for
market-savvy investors, arbitrageurs and speculators. The best part is that they are
easily comprehendible for fundamentals of demand and supply.
At India Shublagan Finance Ltd., we back our clients and provide an efficient
platform to trade on both the commodities exchanges, which are the Multi
Commodity exchange of India Ltd. (MCX) and the National Commodity & Derivatives
Exchange Ltd. (NCDEX)

NRI SERVICE
FOR ONLINE TRADING ACCOUNT
Approach Register online for opening an account.. Our IASL executive will contact you through e-mail.
Processing Fill and submit your Bank account opening forms and Trading KYC to us. We will send the Bank
account documents to the Bank. Bank gives Bank a/c numbers to IASL. We will process the Demat and Trading
accounts
Open an account: On opening of Bank Accounts and PIS permission, Bank will send you the Bank account
opening kit on opening of Trading and Demat Account, IASL will send you the Welcome Kit containing your
Trading and Demat Account.

GUIDELINES

FOR

NRI

TRADING:

An NRI can deal with only one bank at any point of time. PIS (Portfolio Investment
Scheme)
approval
can
be
issued
by
only
one
bank.
Intraday trading is not allowed for NRIs. NRIs can trade only in delivery-based
transactions.
BTST

(Buy

Today

Sell

Tomorrow)

is

not

allowed

to

NRIs.

NRI will be allowed to invest only up to 5 % of the paid up capital of the company. NRIs
are NOT allowed to buy certain scrips under this regulation. Report of the same is available
on
the
RBI
website.
http://www.rbi.org.in/scripts/BS_FiiUSer.aspx
NRIs need to have 100% funds at the time of buying. No exposure is given to NRIs.
Same way, they need to have 100% stock available to them while selling. No short selling
allowed.
Contract notes of NRIs are daily reported to respective Bank and bank in turn reports
them to RBI. Reporting is taken care by India Advantage Securities Limited.
A NRI is required to make bill-to-bill payments. No adjustments of purchase against
sale consideration can be done. Purchase and Sales will be dealt separately for payments /
receipts.
IPOs/Mutual funds can be applied through NON PIS i.e. Through NRE/NRO Savings
account.
FNO transactions can be routed through NRO NON PIS i.e. through NRO Savings
account For FNO transactions separate code is allotted by NSE and the same has to be
punched at the time of placing FNO order for NRI clients along with the client code.
It may kindly be noted that NRI A/c's are controlled both by SEBI and RBI. Non
compliance on the above defined parameters is a very serious offence and is taken very
seriously
as
the
same
is
taken
a
violations
in
FEMA.
NOTE:

Online

Institutional Desk

trading

in

India

not

applicable

for

NRIs

in

USA

India Advantage Securities Pvt. Ltd. is a member of The Bombay Stock Exchange Ltd. (BSE)
as well as the National Stock Exchange (NSE). The institutional desk was established in 2009
with a vision to provide quality research and execution services to institutional as well as
corporate clients. IASL has significant net worth as well as expertise in managing large
transactions in the cash and derivatives market. Our expertise lies in Futures and Options
where we are the market leaders in Delta / Gamma Neutral arbitrage in the Indian markets
IASL services Financial Institutions, Mutual funds and Foreign Institutional Investors. The
quality, commitment and experience of our Institutional Sales Team is an essential element of
our ability to meet and surpass our clients expectations. We are confident and committed to
devise and conceptualize various investment and trading themes with respect to dynamic
market conditions in Indian equities and derivatives domain. Our team remains committed to
provide highest standards of Research, execution and client satisfaction.
Depository Services (CDSL)
We at SHUBLAGAN FINANCE LTD., also provide our client with the facility of
depository services through Depository Participants with CDSL. Through CDSL, we offer
you daily valuation of your holdings. Our depository services include settlement, clearing and
custody of securities, registration of shares and dematerialization. We offer this service with
the purpose of creating a flawless transaction platform as a part of our value-added services
for our precious clients.

Investment Advisory Services

To derive optimum returns from equity as an asset class requires professional guidance and advice. Professional
assistance will always be beneficial in wealth creation. Investment decisions without expert advice would be like
treating ailment without the help of a doctor.
Expert Advice: Their expert investment advisors are based at various branches across India to provide
assistance in designing and monitoring portfolios.
Timely Entry & Exit: Their advisors will regularly monitor customers investments and guide customers to book
timely profits. They will also guide them in adopting switching techniques from one stock to another during
various market conditions.
De-Risking Portfolio: A diversified portfolio of stocks is always better than concentration in a single stock.
Based on their research, They diversify the portfolio in growth oriented sectors and stocks to minimize the risk
and optimize the returns.

Depositary Participant Services

SHUBLAGAN FINANCE LTD. Is a DP services provider though CDSL. We offer depository services to create a
seamless transaction platform to execute trades through SHUBLAGAN FINANCE group of companies and settle
these transactions through I. A. Depository services.

Wide branch coverage

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

Portfolio Management Services

Successful investing in Capital Markets demands ever more time and expertise. Investment Management is an
art and a science in itself. Portfolio Management Services (PMS) is one such service that is fast gaining
eminence as an investment avenue of choice for High Networth Investors(HNI). PMS is a sophisticated
investment vehicle that offers a range of specialized investment strategies to capitalize on opportunities in the
market. The Portfolio Management Service combined with competent fund management, dedicated research and
technology, ensures a rewarding experience for its clients
.
SHUBLAGAN FINANCE PMS brings with it years of experience, expertise, research and the backing of India's
leading stock broking house. At SHUBLAGAN FINANCE, experienced portfolio management is the difference. It
will advise you on a suitable product based on factors such as your investment horizon, return expectations and
risk tolerance.

Mutual Fund

To enable clients to diversify their investment in the right direction. SHUBLAGAN FINANCE Broking has added
another product in its range with mutual funds.
Access to in-depth research & proper selection from diversified funds based on your preferred criteria
Rating and rankings of all mutual funds from our in house expert analysts
News and alertfor your Mutual fund Portfolio and performance tracking with watch lists
Current and historical performance of different funds enabling comparisons

Benefits

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

Reduced paper work.

Hassle free automated pay-in of your sell obligations by your clearing members

Speedier settlement process. Because of faster transfer and registration of securities in your account,
increased liquidity of your securities.

Instant disbursement of non-cash benefits like bonus and rights into your account.

Wide branch coverage.

Personalized/attentive services of trained help desk.

No charges for extra transaction statement & holding statement.

All in one combined Monthly Bill-cum Transaction-cum-Holding-cum-ledger statement.

Efficient pledge mechanism.

Zero upfront payment.

FUNDAMENTAL SERVICES
The Sunday Weekly Report
This weekly report is ace of all the reports. It offers a comprehensive market overview and likely trends
in the week ahead.

It also presents top picks based on an in-depth analysis of technical and fundamental factors.
It gives short term and long-term outlook on these scripts, their price targets and advice trading
strategies.
Another unique feature of this report is that it provides an updated view of about 70 prominent stocks on
an ongoing basis.

Stock Analysis
SUBHLAGAN FINANCE stock research has performed very well over the past few years and SHUBLAGAN
FINANCE model portfolio has consistently outperformed the benchmark indices. The fundamentals of select
scripts are thoroughly analyzed and actionable advice is provided along with investment rationale for each scrip.
Flash News
Key developments and significant news announcement that are likely to have an impact on market / scripts are
flashed live on trading terminals. Flash news keeps the market men updated on an online basis and helps them
to reshuffle their holdings.

TECHNICAL SERVICES

Intra-Day Calls

For day traders India advantage provides intraday calls with entry, exit and stop loss levels during the market
hours and our calls are flashed on our terminals. Our analysts continuously track the calls and provide the
recommendations according to the market movements. Past performance of these calls in terms of profit/loss is
also available to our associates to enable them to judge the success rate.
Posting Trading Calls
SHUBLAGAN FINANCEs Position Trading Calls are based on a through analysis of the price
movements in selected scripts and provides calls for taking positions with a 10 - 15 days time span with stop
losses and targets. These calls are also flashed on our terminals during market hours.

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

COMMODITIES SERVICES

Agro Tech Speak

Mainly gives the investors insight into and a
forecast
for agro commodities viz. pulses(urad channa etc); reports on oil complex (soyabean castor
etc.) along with spices with reports on kapas guar seed .

Commodities Tech Speak

This report mainly equips the investors dealing in MCX segment in commodities like
gold, silver, crude oil, copper etc with the market insight and expert recommendation on the
trading strategies.

About Anand Rathi

Anand Rathi (AR) is a leading full service securities firm providing the entire
gamut of financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has
a pan India presence as well as an international presence rough offices in Dubai and
Bangkok.
AR provides a breadth of financial and advisory services including wealth
management, investment banking, corporate advisory, brokerage & distribution of
equities, commodities, mutual funds and insurance - all of which are supported by
powerful research teams.
The firm's philosophy is entirely client centric, with a clear focus on providing long
term value addition to clients, while maintaining the highest standards of excellence,
ethics and professionalism. The entire firm activities are divided across distinct client
groups: Individuals, Private Clients, Corporates and Institutions.

About Indiabulls
Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all over India.
Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services
and products from securities, derivatives trading, depositary services, research & advisory services, consumer
secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000
Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through
its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several largescale projects worth several hundred million dollars.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and
Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st
December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007).
Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial
institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon
Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a
CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of
184%.
Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital
Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and
commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and
Delhi.

Religare Securities Limited (RSL):-

It is a leading equity and securities firm in India. The company currently handles sizeable volumes traded on NSE
and in the realm of online trading and investments it currently holds a reasonable share of the market. The major
activities and offerings of the company today are Equity broking, Depository Participant Services, Portfolio
Management Services, Institutional Brokerage & Research, Investment Banking and Corporate Finance. To
broaden the gamut of services offered to its investors, the company has also recently unveiled a new avatar of
it's online investment portal armed with a host of revolutionary feature.
RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository
Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and SEBI
approved Portfolio Manager
Religare has been constantly innovating in terms of product and services and to offer such incisive services to
specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take
all the portfolio investment decisions depending upon a clients risk / return parameter.
Religare has a very credible Research and Analysis division, which not only caters to the need of our Institutional
clientele, but also gives their valuable inputs to investment dealers.
Religare is also providing in-house Depository services to its clientele and is one of the leading depository
service providers in the country.

Comparative Analysis of Companies

COMPANIES NAME

SERVICES

SHUBLAGAN FINANCE BROKING

INDIA BULLS

MUTUAL FUND

YES

NO

INSURANCE

YES

YES

PMS

YES

NO

ONLINE BACK-OFFICE

YES

YES

E-BROKING

YES

YES

INVESTMENT ADVISORY

YES

YES

M-CONNECT

YES

NO

FUNDING

NO

YES

HOME LOANS

NO

YES

SOFTWARE USING

ODIN DIET

POWER INDIABULLS

MARKET SHARE OF SHUBLAGAN FINANCE BROKING LTD

SHUBLAGAN FINANCE Broking Ltd. has the highest market coverage with
respect to channel sales. This is because SHUBLAGAN FINANCE has the highest
number of sub-brokers. There are 105 sub-brokers in Jaipur

SHUBLAGAN FINANCE Broking Ltd Client wise is No. 2 in India

SHUBLAGAN FINANCE Broking Ltd has bagged the Major Volume Driver Award
(presented by the BSE) for 3 consecutive years

SHUBLAGAN FINANCE Broking Ltd. is no.1 in India with respect to service offered

DISCUSSIONS ON TRAINING
JOB PROFILE (ROLE AND RESPONSIBILITIES)
In Training, My profile was Marketing Executive. My responsibility was to do phone calls and take an appointment
with customer .Their role in the organization was a new client acquisition for account opening

Giving product presentation to newly join employee.

One of my roles in organization is to train newly joined employee. Tell them all about company, how the
working process of company. What are the advantages of company so that they can convert clients in
SHUBLAGAN FINANCE clients? How SHUBLAGAN FINANCE product is better than other competitor. What are
the facilities in SHUBLAGAN FINANCE product which was not there in other competitor product?

Be in touch with the existing client for purpose of quality

management
After opening account we have to follow-up the existing client so that we can get feed back from them. After
opening account what services executive promise did he getting all that services. It shows the quality of services.
What client need is most important. Most it was create a good relation in-between me and my client. Existing
client help me for my future target he can open account on name of his family member, relative or friends.
Which was good for me to complete my target and it shows that I m giving the best service to them and he was
happy with our service and quality.

Event organizing. To give the details of E-broking services

organizing
I have to take the responsibility of event for collecting data or leads. Before doing event we have to select a
place to organize, for example big shopping malls (center one), corporate (millennium business park) so that we
can get a proper or good feed back with a good collection of data. Why place important? For selling any product
in market, companies do market segmentation. So that there product failure should be very less and they can
success to achieve there target.

Visiting to clients for the purpose account opening

While visiting to client I have to put some points in my mind from were he was trading? What he not getting
there? what his needs?. This analysis I have to do while talking on telephonic for appointment with client and I
have make plan while going to client that, what best I can offer him. So that he can convert in my company client.
While visiting to all my appointment I notice that all client want best from other. My experience say that they are
competing with there friend relative indirectly. So if I m going to give best offer to them they are going to give me
more accounts, more contacts.

Solving technical related queries of the client

After opening account I give training to them, but human are not machine that they can learn all thing in a
single day. So they do mistake. While login on online product, not getting list of market on there display, login
problem, hanging problem, problem while placing order etc. this type of problem we have to solve. sometime they
forget to download master file from site of company so they cannot able to see the moving market, some time
people try to login more than 3 or 4 time in this process they get locked there id password so, to solve that
problem I have reset there password by the help of surveillance department and password directly send to there
email id which the client given when there account opening form filled. client complain that there order not going,
but they doing mistake because they are putting order more than there exposure given by company so order are
rejected.
This
type
of
queries
we
have
to
solve.

STUDENT CONTRIBUTION TO THE ORGANIZATION

The contribution towards the organization is adding values in order to bring business to the organization realizing
the responsibilities, bringing potential clients to the organization.

Furthermore I had to also manage various direct marketing activities such as

Tele-calling to clients regarding pre- meetings.
Mailing to potential customers of the company regarding products and services.
The new customers who want software demonstration, we provide that also etc.
Taking feedback of the services ,which we were providing because its a key factor for our company growth and
making long term relationships with customers
Bringing potential client to the organization, not only for the purpose of trading but also for wealth management
services (wms), which includes portfolio management services, mutual funds, IPO, SHUBLAGAN FINANCE gold.
was my major contribution to the company.

STUDY OF SELECTED RESEARCH

PROBLEM
STATEMENT OF RESEARCH OBJECTIVE
The objective of research is to know the competitors, volatile market, in order to bring improvement, in terms
there drawbacks limitations etc.

STATEMENT OF RESEARCH PROBLEM

1.
2.
3.

After sorting out the views, answers of the people, we can conclude the research problem like:
Drawbacks of our services. For Example: - The website based product which we were offering to the clients was
not good enough compare to other company.
To find out existing clients through research, who would not get all the services or may be some, were he might
have been deprived of recent facilities.
As per meeting with the existing and new clients, we come to know that many people do not know how to operate
certain technical products.

STATEMENT OF RESEARCH OBJECTIVE

What is E-Broking?
Prospects for E-Broking
Benefit of E-Broking
Benefit to User
Benefit to Broker

What is E-Broking?

E-Broking means electronic broking or online trading. An electronic market is an attempt use information
and communication technology to provide geographically dispersed traders with the information necessary for the
fair operation of the market. The e-market is in effect, a broking service to bring together supplier and customer in
the specific market segment. These markets give the customer easy access to comparative data on price
An electronic broker is an intermediary who:May take an order from customer and pass to supplier
May provide service to customer such as a comparison between goods with respect to particular criteria such as
price.

Prospects for E-Broking

E-Broking is still an evolving industry in India and the survivor are likely to be those brokers who are
integrated service and are financially resilient. The future of e-broking industry thus largely depends on the extent
of the penetration of the internet in the near future. Moreover the Bombay stock exchange (BSE) and National

stock exchange (NSE) have recently developed proprietary trading engines called WEBEX and DOTEX,
respectively.
These engines will obviate the need for a broker to develop his own engines, and thus, resulted in capital
investment savings. However, a user can log on to these engines using the website of the broker and trade
electronically. These developments are, therefore, expected to give a strong fillip to the e-broking industry in
India.

Benefit of E-Broking
In the recent year the use of internet has spread among investor in stock and shares. The internet can make
up to the minute information available to a large number of investor that until recently had only been available to
those working in financial institution. The use of online brokerage service automates the process of buying and
selling and hence reduction of commission charges. Also the commodity being traded is intangible; the ownership
of stocks and shares can be recorded electronically, so there is no requirement for physical delivery.

Transparency of fund

24*7 back office access

Privacy of there portfolio
Save time
Detail of company etc.

BENEFIT TO USER
1. Low transaction costs
Brokerage rate in India are in the range of 1 to 1.5%. Where the rate for e-broking are as low as 0.1%. The
Bombay stock exchange (BSE) and national stock exchange (NSE) recently develop proprietary trading engine
called WEBEX and DOTEX respectively. This engine will obviate the need for a broker to develop his own
engine. E-Broking in addition, not only brings down the cost of the execution of the transaction but also speeds
up the electronic transfer of securities.

2. Transparency
E-Broking empowers the customer to transact directly on the stock exchange and delayers the whole
process thereby improving transparency. The user does not need to rely on the brokers word of mouth or
transaction slip for confirmation of the price at which his trade was conducted.

3.Convenience
Online share trading is available merely at the click of a button, in the comfort of home / office. Thus, making
it much more convenient for the customer to trade anytime. Also with limit- based order being allowed, customer
can place there order even during the non-trading hour, which are executed at the earliest trading possibility.

BENEFIT TO BROKER

Easier risk management

Under the online mechanism, the system would first check the status of funds available with the client in his
bank account and only then allow to trade to take place. This process thus substantially reduces the exposure of
the broker to client related credit and payment risk.

Greater business potential

The new paradigm of e-broking which allows simple convenient and transparent transactions may encourage
more participants to trade. It is expected that the introduction of e-broking will expand the market horizon, thus
resulting in better business for brokers in the long term

Lower staff costs.

Automation of the broking processes results in reduced manpower requirement, flexibility of time, less
infrastructure cost etc. offering significant cost saving to broker.

DESCRIPTION OF TERMINOLOGY USED IN BROKING

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

Why should one invest?

One needs to invest to:

earn return on your idle resources

generate a specified sum of money for a specific goal in life
make a provision for an uncertain future
One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at
which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you
need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service
in the future as it does now or did in the past. For example, if there was a 6% inflation rate for the next 20 years,
a Rs. 100 purchase today would cost Rs. 321 in 20 years. This is why it is important to consider inflation as a
factor in any long-term investment strategy. Remember to look at an investment's 'real' rate of return, which is the
return after inflation.

The aim of investments should be to provide a return above the inflation rate to ensure that the investment does
not decrease in value. For example, if the annual inflation rate is 6%, then the investment will need to earn more
than 6% to ensure it increases in value.
If the after-tax return on your investment is less than the inflation rate, then your assets have actually decreased
in value; that is, they won't buy as much today as they did last year.

When to start Investing?

The sooner one starts investing the better. By investing early you allow your investments more time to grow,
whereby the concept of compounding (as we shall see later) increases your income, by accumulating the
principal and 7 the interest or dividend earned on it, year after year. The three golden rules for all investors are:

Invest early

Invest regularly
Invest for long term and not short term

What care should one take while investing?

Before making any investment, one must ensure to:
1. Obtain written documents explaining the investment
2. Read and understand such documents
3. Verify the legitimacy of the investment
4. Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment
6. Know the liquidity and safety aspects of the investment
7. Ascertain if it is appropriate for your specific goals
8. Compare these details with other investment opportunities available
9. examine if it fits in with other investments you are considering or you have already made
10. Deal only through an authorized intermediary
11. Seek all clarifications about the intermediary and the investment
12. Explore the options available to you if something were to go wrong, and then, if satisfied, make the
investment.
These are called the Twelve Important Steps to Investing

What is meant by Interest?

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

What factors determine interest rates?

When we talk of interest rates, there are different types of interest rates - rates that banks offer to their
depositors, rates that they lend to their borrowers, the rate at which the Government borrows in the 8
Bond/Government Securities market, rates offered to investors in small savings schemes like NSC, PPF, and
rates at which companies issue fixed Deposits etc.
The factors which govern these interest rates are mostly economy related and are commonly referred to as
macroeconomic factors. Some of these factors are:

Demand for money

Level of Government borrowings
Supply of money
Inflation rate
The Reserve Bank of India and the Government policies which determine some of the variables mentioned
above

What are various options available for investment?

There is a two way of invastment
Physical assets
Like real estate, gold/jewellery, commodities etc. and/or
Financial assets
Such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension
fund etc. or securities market related instruments like shares, bonds, debentures etc.

What are various Short-term financial options available for

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

Savings Bank Account

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

Money Market or Liquid Funds

They are a specialized form of mutual funds that invest in extremely short-term fixed income instruments and
thereby provide easy liquidity. Unlike most mutual funds, money market funds are primarily oriented towards
protecting your capital and then, aim to maximize returns. Money market funds usually yield 9 better returns than
savings accounts, but lower than bank fixed deposits.

Fixed Deposits with Banks

They are also referred to as term deposits and minimum investment period for bank FDs is 30 days. Fixed
Deposits with banks are for investors with low risk appetite, and may be considered for 6-12 months investment
period as normally interest on less than 6 months bank FDs is likely to be lower than money market fund returns.

What are various Long-term financial options available for

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

Post Office Savings:

Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any post
office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which can be
invested, is Rs. 1,000/- and additional investment in multiples of 1,000/-. Maximum amount is Rs. 3, 00,000/- (if
Single) or Rs. 6, 00,000/- (if held jointly) during a year. It has a maturity period of 6 years. A bonus of 10% is paid
at the time of maturity. Premature withdrawal is permitted if deposit is more than one year old. A deduction of 5%
is levied from the principal amount if withdrawn prematurely; the 10% bonus is also denied.

Public Provident Fund:

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

Company Fixed Deposits:

These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate
of interest which is payable monthly, quarterly, semi10 annually or annually. They can also be cumulative fixed
deposits where the entire principal along with the interest is paid at the end of the loan period. The rate of interest
varies between 6-9% per annum for company FDs. The interest received is after deduction of taxes.

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

Mutual Funds:
These are funds operated by an investment company which raises money from the
public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of objectives. It
is a substitute for those who are unable to invest directly in equities or debt because of resource, time or
knowledge constraints.
Benefits include professional money management, buying in small amounts and diversification. Mutual fund units
are issued and redeemed by the Fund Management Company based on the fund's net asset value (NAV), which
is determined at the end of each trading session. NAV is calculated as the value of all the shares held by the
fund, minus expenses, divided by the number of units issued. Mutual Funds are usually long term investment
vehicle though there some categories of mutual funds, such as money market mutual funds which are short term
instruments.

What is meant by a Stock Exchange?

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

What is an Equity/Share.?
Total equity capital of a company is divided into equal units of small denominations, each called a share. For
example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each.
Each such unit of Rs 10 is called a Share. Thus, the company then is 11 said to have 20, 00,000 equity shares of
Rs 10 each. The holders of such shares are members of the company and have voting rights.

What is a Debt Instrument?

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

What is a Derivative?
Derivative is a product whose value is derived from the value of one or more basic variables, called underlying.
The underlying asset can be equity, index, foreign exchange (forex), commodity or any other asset. Derivative
products initially emerged as hedging devices against fluctuations in commodity prices and commodity-linked
derivatives remained the sole form of such products for almost three hundred years. The financial derivatives
came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their
emergence, these products have become very popular and by 1990s, they accounted for about two thirds of total
transactions in derivative products.

What is a Mutual Fund?

A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools money
from individuals/corporate investors and invests the same in a variety of different financial instruments or
securities such as equity shares, Government securities, Bonds, debentures etc. Mutual funds can thus be
considered as financial intermediaries in the investment business that collect funds from the public and invest on
behalf of the investors. Mutual funds issue units to the investors. The appreciation of the portfolio or securities in
which the mutual fund has invested the money leads to an appreciation in the value of the units held by investors.
The investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme.
The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in 12
various asset classes like equity, bonds, debentures, and commercial paper and government securities. The
schemes offered by mutual funds vary from fund to fund. Some are pure equity schemes; others are a mix of
equity and bonds. Investors are also given the option of getting dividends, which are declared periodically by the
mutual fund, or to participate only in the capital appreciation of the scheme

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

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

What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted to an equivalent
number of securities in electronic form and credited to the investors account with his Depository Participant (DP).

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

What is the function of Securities Market?

Securities Markets is a place where buyers and sellers of securities can enter into transactions to purchase and
sell shares, bonds, debentures etc. Further, it performs an important role of enabling corporate, entrepreneurs to
raise resources for their companies and business ventures through public issues. Transfer of resources from
those having idle resources (investors) to others who have a need for them (corporate) is most efficiently

achieved through the securities market. Stated formally, securities markets provide channels for reallocation of
savings to investments and entrepreneurship.
Savings are linked to investments by a variety of intermediaries, through a range of financial products, called
Securities.

Which are the securities one can invest in?

Shares
Government Securities
Derivative products

Units of Mutual Funds etc. are some of the securities investors in the securities market can invest in.

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

Who regulates the Securities Market?

The responsibility for regulating the securities market is shared by Department of Economic Affairs (DEA),
Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and Exchange Board of India
(SEBI).

What is SEBI and what is its role?

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under
Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of
India (SEBI) with statutory powers for (a) protecting the interests of investors in securities (b) promoting the
development of the securities market and (c) regulating the securities market. Its regulatory jurisdiction extends
over corporate in the issuance of capital and transfer of securities, in addition to
All intermediaries and persons associated with securities market. SEBI has been obligated to perform the
aforesaid functions by such measures as it thinks fit. In particular, it has powers for:
Regulating the business in stock exchanges and any other securities markets
Registering and regulating the working of stock brokers, subbrokers etc.
Promoting and regulating self-regulatory organizations
Prohibiting fraudulent and unfair trade practices
Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges,
intermediaries, self regulatory organizations, mutual funds and other persons associated with the securities
market.

RESEARCH METHODOLOGY
Definition of Research
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process which
identifies and defines problems, within specified boundaries. It employs well designed method to collect the data and
analyses the results. It disseminates the findings to contribute to generalizeable knowledge.

The five characteristics of research presented below will be examined in greater detail later are:

Systematic problem solving which identifies variables and tests relationships between them.

Logical, so procedures can be duplicated or understood by others.

Empirical, so decisions are based on data collected.

Reductive, so it investigates a small sample which can be generalized to a larger population.

Replicable, so others may test the findings by repeating it.

OBJECTIVE OF RESEARCH
Research design phase :This phase mainly involve stating the conceptual structure within which research would be conducted. The main steps
involved in this phase are as:

Sampling Plan:
The sample was selected for the study by convenient method. This type of sampling where each & every item in the
population has an equal chance of inclusion in the sample.

Sample unit:
Under the study the customers are considered the sample unit in JAIPUR & Jaipur, Bundi Districts.

Sample size
The sample for research consisted of 100 Customers of JAIPUR Jaipur & Bundi Districts. The sample was spread all over
the JAIPUR Jaipur& Bundi Districts. The sample size was restricted to 100 because of financial & time constraint.

SOURCES OF DATA COLLECTION

There are two sources:
1.
Primary sources:Primary data is collected through market survey.
2.
secondary sources:Secondary sources are websites and brouchers.

Preparation of Questionnaire :The questionnaire was prepared by the researcher himself. The preparation of questionnaire was done
by keeping the objective of study in mind. The researcher took some help from experts during the framing of
questionnaires. The preparation of questionnaire took about 4-5 days. The questionnaire used for study was of
closed type since it is free from bias nature of respondents.

Analysis phase :After the data has been collected the researcher tabulated the data from the tables the researcher
analyzed the data. During the analysis of data help of various types of charts & graphs was taken. The analysis
phase took about seven days. For further results weighted average method was used whenever required. Finally
on the basis of analysis various results and conclusions were drawn.

Data Analysis & Interpretation

Q.1 Do you know about SHUBLAGAN FINANCE ?

Q.2 Where would you like to Invest ?

Q.3Which company of the share market are you aware of ?

Q.4 Do you invest in share market ?

Q.5 In which brokerage house you have your demat account ?

6 How often do you trade ?

Q.7 What is the brokerage charged(Intraday) by your company ?

Q.8 Which of these products apart from equity your company is providing ?

Q.9 Does your company provide online trading ?

Q.10 Are there any charges for online trading facility ?

Q.11 What ranks would you give to these companies as per their services ?

FINDINGS
SHUBLAGAN FINANCE Broking Ltd. is a world class company and providing very good services to its clients
Its main objective to provide personalize services to the clients

In the survey it found that 50 percent people among the whole are aware about the services providing by
SHUBLAGAN FINANCE Broking Ltd
44 persons are like to invest in share market among the total which is the highest among other alternatives

Around 38 People among total are more aware about SHUBLAGAN FINANCE Broking Ltd. and like to give
preference
There are 77 percent persons among total who like to invest in SHUBLAGAN FINANCE Broking Ltd. than others and
33 percent are used to trade daily

SHUBLAGAN FINANCE Broking Ltd. is providing lots of services to its clients like PMS, Investment Advisory, MConnect, E-Broking, Insurance, Mutual Fund
89 percent people said that their company from where they are availing investment in stock market is providing
online trading and others are not

Among all the companies SHUBLAGAN FINANCE Broking Ltd. is at the 1st no.