Amit Patel

Transcript

A PROJECT REPORT ON “MARKET BEHAVIOR TOWARDS INVESTMENT OF EQUITY” SUBMITTED BY: AMIT PATEL MBA-2 SUBMITTTED TO AES POST GRADUATE INSTITUTE OF BUSINESS MANGMENT ACKNOWLEDGEMENT I, Amit Patel, hereby acknowledge my special gratitude to Mr.Mehul Jani, branch manager of SHAREKHAN for carrying out summer training. I am gratefully to Mr. Pranav Patel, Sales Executive of Sharekhan, who helps me in explore my knowledge in Online Stock Trading and also gave guidance on my project. Signature, Amit Patel ACKNOWLEDGEMENT I, Amit Patel, hereby acknowledge my special gratitude to Mr.Mehul Jani, branch manager of SHAREKHAN for carrying out summer training. I am gratefully to Mr. Pranav Patel, Sales Executive of Sharekhan, who helps me in explore my knowledge in Online Stock Trading and also gave guidance on my project. Signature, Amit Patel PREFACE A project report on analysis of investment in equity is being prepared in attempts to know stock market and investment scenario. This report helps us to understand various terminologies in stock market. This report gave me opportunity to have complete idea about volatility in stock market. This gave me idea about technical and fundamental analysis in stock market and how trading is being done in stock market. This project report helps in following aspects,  Build understanding of central ideas and theories of Investment in stock  market.  Develop familiarity with the analysis of stock market.  Furnish institutional material relevant for understanding the environment in which trading decisions are taken. This project will guide to investors for an investment in stock market. This project deployed a lot time for collections of information from various internal and external sources, which were very essential. This project will be very helpful to our company to guide their clients for investment in volatile stock market. TABLE OF CONTENTS Sr. Subject Page no. no. 1 Executive Summary 5 2 Introduction of Stock Market 7 3 Fundamentals Points to Invest in Equity 14 4 Introduction of the Organization 24 5 Questionnaire 67 6 Results and Findings 68 7 Recommendations 73 8 Bibliography 75 9 Conclusion 77 EXECUTIVE SUMMARY PROJECT TITLE: “MARKET BEHAVIOR TOWARDS INVESTMENT OF EQUITY” The economic scenario of financial service of stock broking firm has dynamically changed. Just few years ago the all the transaction made through the broker where you place the order at morning and confirm the order at night, but this scenario has change due to the technology change, now a days investors has invest his money themselves without broker through online transaction. You wonder whether you had acquired the shares at the best possible price for the day. Today the picture is different. Imagine a scenario where you log on your account, get the live quote of scripts you are interested in, get advise from expert and research report on your investment choice and then just click the mouse to place your order, pay the amount due,. All this through just one click of mouse. Seems like a dream? But online trading this has become a reality. The positive transformation in the business brought about by the various reforms introduce by SEBI and perspective firms operating within the industry such as SHAREKHAN, ICICI SECURITIES, KOTAK SECURITIES, J K SECURITIES, JHAVERI, INDIA BULLS, KARVY and various others offering such value addition in the services have been major samples to study. To companies that are truly global in outlook and perspective, India offers a market that comprises a full spectrum of mankind and presents itself as a competitive location to fund managers spread from Hong Kong and Singapore, London and New York, India’s Capital Market offers higher rate of return in an atmosphere of relative safety and security. Therefore the report analyses all the opportunities available that an Investor’s broking firm can harness upon. At the same time when so many firms are listing intentionally the study of such a sector intensively lay down its importance. The various topics discussed in this report are based on the generalization of a few sample firms taken which are market leaders in providing the best quality services. The nature of the industry moreover has been self –regulating and therefore, the standard of one firm differs from the other to a huge extent. The basic similarities occur to the frame work of operation and governing bodies is the same within the industry. SYNOPSIS During my six week SIP I want to gain more knowledge, through practical experience from OJT. During my SIP in Sharekhan Ltd., I will learn about different human value, how to invest our money in equity and Share Market. I will also learn what the equities, derivatives, commodities and mutual fund and why it is important for the investor. My short term goal is to put my best efforts and complete the entire task assigned to me hereby, withheld the trust the company had kept on me at the time of selection for SIP. I will study the view existing customer of sharekhan and the services, product and brokerage is being provided by sharekhan and are they satisfied with the sharekhan I will also study the structure of a capital market in India, working of BSE and NSE functioning of capital market. I will study working of primary and secondary market. INTRODUCTION OF STOCK MARKET Stock exchanges to some extent play an important role as indicators, reflecting the performance of the country's economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are determined by the demand and supply of  stocks at a given time. Stockbrokers are the ones who buy and sell securities on behalf  of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by Harshad Mehta has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made. As the condition of capital markets are constantly improving, it has started drawing attention of lot more people than before. On the career related aspects, professionals have opportunities to choose from for a wide range of jobs available in a number of organizations in this sector and one can expect to have good times ahead of  him. 1.1 Indian capital market overview 1.1.1 Evolution Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. Thus, at present, there are totally twenty-one recognized stock exchanges in India excluding the Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). 1.1.2 Trading Pattern of the Indian Stock Market Trading in Indian stock exchanges is limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non-specified securities (cash list). Equity shares of  dividend paying, growth-oriented companies with a paid-up capital of at least Rs.50 million and a market capitalization of at least Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified group and the balance in nonspecified group. Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions "for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract”: and (b) forward transactions "delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract". The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (cantango or backwardation), which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian stock  exchanges in the very recent times. 1.1.3 over the Counter Exchange of India (OTCEI) The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional inefficiencies, such as, absence of liquidity, lack of  transparency, unduly long settlement periods and benami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ringless, scripless, electronic stock exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and CanBank Financial Services. Trading at OTCEI is done over the centres spread across the country. Securities traded on the OTCEI are classified into: • Listed Securities - The shares and debentures of the companies listed on the OTC can be bought or sold at any OTC counter all over the country and they should not be listed anywhere else • Permitted Securities - Certain shares and debentures listed on other exchanges and units of mutual funds are allowed to be traded • Initiated debentures - Any equity holding at least one-lakh debentures of  particular scrip can offer them for trading on the OTC. OTC has a unique feature of trading compared to other traditional exchanges. That is, certificates of listed securities and initiated debentures are not traded at OTC. The original certificate will be safely with the custodian. But, a counter receipt is generated out at the counter, which substitutes the share certificate and is used for all transactions. In the case of permitted securities, the system is similar to a traditional stock  exchange. The difference is that the delivery and payment procedure will be completed within 14 days. 1.1.4 National Stock Exchange (NSE) With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high-powered Pherwani Committee, Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others incorporated the National Stock Exchange in 1992. Trading at NSE can be classified under two broad categories: (a) Wholesale debt market and (b) Capital market. Wholesale debt market operations are similar to money market operations institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: (a) Trading members and (b) Participants. Recognized members of NSE are called trading members who trade on behalf of  themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism, which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows: • NSE brings an integrated stock market trading network across the nation. • Investors can trade at the same price from anywhere in the country since intermarket operations are streamlined coupled with the countrywide access to the securities. • Delays in communication, late payments and the malpractice’s prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network. Unless stock markets provide professionals service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system. 1.1.5 SENSEX - THE BAROMETER OF INDIAN CAPITAL MARKETS For the premier Stock Exchange that pioneered the stock broking activity in India, 128 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "The Stock Exchange, Mumbai" by paying a princely amount of Rs.1. Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of  eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of  30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media. The Index was initially calculated based on the "Full Market Capitalization" methodology but was shifted to the free-float methodology with effect from September 1, 2003. The "Free-float Market Capitalization" methodology of index construction is regarded as an industry best practice globally. All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float methodology. Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the pulse of the Indian stock market. As the oldest index in the country, it provides the time series data over a fairly long period of time (From 1979 onwards). Small wonder, the SENSEX has over the years become one of the most prominent brands in the country. The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of  various bull and bear runs. The SENSEX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market through SENSEX. SENSEX Calculation Methodology SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative t o a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. The base period of SENSEX is 1978-79 and the base value is 100 index points. The notation 1978-79=100 often indicates this. The calculation of SENSEX involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time. Market Timings Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the equities segment are: Normal Market Open: 09:55 hours Normal Market Close: 15:30 hours The Closing Session is held between 15.50 hours and 16.00 hours Securities Available for Trading The Capital Market (Equities) segment of NSE facilitates trading in the following instruments: A. Shares • • Equity Shares Preference Shares B. Debentures • • • • • Partly Convertible Debentures Fully Convertible Debentures Non Convertible Debentures Warrants / Coupons / Secured Premium Notes/ other Hybrids Bonds C. Units of the Mutual Funds. FUNDAMENTALS POINTS TO INVEST IN EQUITY Equity Investing  Equity Basics  5 Stock Selection Guidelines  Sources Of Stock Information  Equity Investing Strategies  Risks Associated With Equity Investing  Monitoring Your Equity Investments  Investing In Equity --- The Procedure  Costs Of Investing In Equity  Computing Returns On Your Equity Investments  Tax Impact On Equity Investing Equity Basics Non Promoter 2% Public 25% Promoter 47% Mutual Fund 14% FII 12% Equity is a share in the ownership of a company. It represents a claim on the company's assets and earnings Income from equity investing Capital appreciation Equity shares of companies are listed and traded on a stock exchange (BSE or NSE). The market prices of these shares are continuously moving up or down depending on the interest in the company’s stock, it’s business potential, etc Bonus shares Company declares a bonus in the ratio of 1:2 (this means it will issue one share for every two shares you hold) and if you hold 100 shares, you will be entitled to 50 shares as a bonus. Rights shares Company will offer fresh equity shares to its existing shareholders at a price, which is lower than the current market price of the share. For instance, if the current market price of the company’s share is Rs 35, it will offer shares at below this price, say Rs 25. Dividend income Based on the quantum of profits, companies declare dividends to distribute a portion of these profits to their shareholders. Dividends are declared as a percentage of the share’s face value Reasons for issuing equity To expand its business, a company, at some point, needs to raise money. To do this, it can either borrow by taking a loan or raise funds by offering prospective investors a stake in the company --- which is known as issuing stock. A company usually borrows from banks and/or financial institutions. This is called ‘debt financing’. Characteristics of equity  Equity is unsecured and a high risk-return investment  Equity remains in perpetual existence Stock Selection Guidelines  Know the Business Performance Track record Promoters & Credibility Warren Buffett, one of the world’s most successful investors, follows the philosophy of buying stocks of only those businesses that he understands… Financial performance, Ratio Analysis Competence, Credibility, Corporate governance & Concern for shareholders Stock Selection Guidelines  Prospects of the company Order Size, Execution Capacity, Industry Growth Assess the Stock price ROCE, EBITDA, P/E ratio & EPS Equity Investing Strategies  Diversification Equity, debt, mutual funds, gold, property, etc Growth Investing Investing in companies, whose turnover and profits are expected to grow significantly, which will result in appreciation in their share prices Value Investing Value investing means investing in companies that are believed to be currently undervalued but whose worth will be recognized by the market eventually Equity Investing Strategies  Rupee Cost Averaging / Value Averaging Investing in Dividend Yield Stocks To buy ‘low’ and sell ‘high’ is very difficult to do, especially in volatile markets. One investment strategy that helps overcome this volatility and take advantage of it by averaging out cost of investment Companies, which offer high dividend yields, are usually ‘value’ companies, which ‘value investors’ look for Monitoring Your Equity Investments  Can’t afford to forget your Investments  Business cycles  Mergers & acquisitions  New business developments  Changes in managements  Information on the economy and news on the global markets are available in daily business publications and websites of foreign business Publications. Investing in Equity – The Procedure  Step 1: Open the necessary accounts Broking account. Demat account Bank account Step 2: Decide your mode of transacting – in cash or with margins A. By making purchases in cash and taking delivery of the shares or B. By undertaking margin trading (you pay only a portion of the cost for purchases and Your broker funds the balance) and squaring off your positions (you don’t take delivery Of the shares. You simply book your profit or loss Step 3: Deciding on which mediums to use for transacting Visits to the broker’s office/branches  Your telephone  The Internet  Kiosks  Costs of Investing in Equity  Brokerage charges  Demat charges  Payment of Securities Transaction Tax (STT)  Payment of Service Tax (ST) and Education Cess (EC) Computing Returns on your Equity Investments Once you sell your shareholding, you should compute the returns you have earned on your investment. To do so, you should take into consideration the sale value, your cost, dividends received and rights/bonuses. Also take into consideration the time element of all your inflows and outflows and use the ‘Internal Rate of Return’ (IRR) formula (available in the MSExcel program) to compute your returns. IRR is the rate at which your cash outflows and inflows over different time periods are equal. Tax Impact on Equity Investment   Tax impact on your dividend income - Nil  Tax impact on your capital gains (sale of shares at a profit)  10% on Short Term Nil on Long Term  Setting off capital losses INTRODUCTION OF THE ORGANIZAION SSKI HISTORY Sevaklal Sevantilal Kantilal Ishwarlal Securities Private Limited. • • • • • Founded in 1922, it is one of India’s largest brokerage houses having over eight years of broking experience. Founding member of the stock exchange, Mumbai and pioneer instutional broker. SSKI is the only domestic player in a market crowed by 44 multinational securities firm. Foray into in instutional broking and finance 20 years ago. SSKI group also comprises institutional broking division caters to the largest domestic and foreign institutional investor, the corporate finance division focuses on niche areas such as infrastructure, telecom and media. SSKI holds a sizeable portion of the market in each of these segments. Forerunner of investment research coverage amongst broking house in India. the company’s research team was set up in December 1992 and is rated as one of the in the country. Voted four times as the top domestic brokerage house by Asia money survey, SSKI is consistently ranked amongst the top domestic brokerage house in India. • Retail broking started in 1985. • Research group was set up in December 1992. • It acts as pioneer if investment research in the Indian Market aimed at generating quick investment ideas. • Group interest investment banking, institutional broking. • It occupies 65% of business share from foreign institutional investors. • SSKI named its online division as “share khan” on February 8, 2000 coinciding with the launch of its website. Sharekhan is broking and retail broking arm of SSKI, an organization with more than 80 years of trust and credibility in the stock market. Retail distribution started in 1998. SSKI is the veteran equities solution company with over 8 decades of  experience in the Indian stock market. It helps the customers/people to make informed decisions and investing in stocks. SSKI named its online division as a Sharekhan and it is into retail broking. The business of the company overhauled 6 years ago February 8, 2000. It acts as a discount brokerage house to a full service investment solution provider. It has specialized research product for the small investors and day traders. Sharekhan has a shop 170 cities across India. They have talent pool of experienced professionals specially designated to guide customers when they need assistance, which is why investigating with Sharekhan is bound to be a hassle- free experience for customers! The Sharekhan Proves its customers First Step program, built specifically for new investors, which guide throughout investing lifecycle. They have 510 Share shop across 170 cities in India to get a host of trading related services. ABOUT SHAREKHAN • • • • • • • • • • • SSKI named its online division as SHAREKHAN and it is into retail broking. It acts as a discount brokerage house to a full service investment solutions provider. It has specialized research product for the small i nvestors and day traders. The site was also launched on February 8, 2000 and named it as www.sharekhan.com The Speed Trade account of Sharekhan is the next generation technology Product launched on April 17, 2002. It offers its customers with the trade execution facili ties on the NSE and BSE, for cash as well as derivatives, depository services. Ensures convenience in Trading Experience: Sharekhan’s trading services are designed to offer an easy, hassle free trading experience, whether tr ading is done done daily or occasionally. The customers will be entitled to a host of  value added services in the investment process depending on his investing style and frequency offers a suite of products and services, providing the customers with a multi- channel access to the stock markets. It gives advices based on extensive research to its customers and provides them with relevant and updated information to help him make informed about his investment decisions. Sharekhan offers its customers the convenience of a broker-DP. It helps the customers meet his pay in obligation on time thereby reducing the possibility of auctions. The company believes in flexibility and therefore allows accepting late instructions without any extra charge. A nd execute the instruction immediately on receiving it and thereafter the customer can view his update account statement on Internet. Sharekhan depository services offer Demat services to individual and corporate investors. It has a team of professionals and latest technological expertise dedicated exclusively to their Demat department. A customer can avail of Demat, repurchase and transmission facilities at any of the sharekhan branches and business partners outlets. BANK AFFILIATION Sharekhan has affiliation with 7 banks, which allows its customers to enjoy the facility of instant credit and transfer of funds form his savings bank account to his Sharekhan trading account. The affiliated banks are as follows: 1) 2) 3) 4) 5) 6) 7) HDFC BANK UTI BANK CITI BANK ORIENTAL BANK OF COMMERC IDBI BANK UBI BANK CORPORATION BANK BRAND NAME The company as a whole in its offline business has named itself as SSKI Securities Private Limited – Sevaklal Sevantilal Kantilal and Ishwarlal Securities Private Limited. The company has preferred to name themselves under a blanket family name. But in its online division started since 1997, the company preferred to name itself  as “SHAREKHAN”. The Brand name “SHAREKHAN” itself suggests the business in which the company is dealing so that the customer could easily identify the product or service category Sharekhan Services Sharekhan, one of India's leading brokerage houses, is the retail ar m of SSKI. With over 510 share shops in 170 cities, and India's premier online trading portal www.sharekhan.com, our customers enjoy multi-channel access to the stock markets. NATURE New to Stock Trading Why invest? If you were to open a book on economics and look up the word investing, chances are that you would find the following definition: investing is building up to meet future consumption demands with the intention of making surpluses or profits, as they are What is a share? Shares or equity represents part of an ownership of a business. So as a shareholder you own a piece of the action that happens in that business. Why would you want a piece of the action? For the rewards of course. As a shareholder you have a right over Why invest in shares? We know now that investing in shares is akin to owning part of a business. A profitable business keeps pouching back profits to earn more profits or should we say "compounding profits". Hence unlike investing in assets like gold and real estate what determines stock prices? In the short run, the market is a voting machine--reflecting a voter-registration test that requires only money, not intelligence or e motional stability--but in the long run, the market is a weighing machine. How much does a share cost? The price is set by the market and it all depends on how many buyers and sellers think  the share is worth that day. Some stocks sell for less than Rs10 a share, others for more than Rs1, 000 a share. But do not be misled that an Rs10 share is better than a Rs. 1,000 share When am I ready to buy shares? Before you decide to make your first share purchase, it helps to take stock of your net worth. Remember while investing in shares is lucrative i n the long run, it is also risky. Can I put all my surplus money in shares at the age of 40? Investing in shares is risky but also lucrative over the long run. Hence it makes utmost sense to have the maximum exposure to shares w hen you are young and reduce your exposure as you age. How do I manage the risks associated with investing in shares? Investing in stocks is risky since there are many uncertainties associated with the ability of a business to generate profits. Hence there is no control on the returns but an investor has control over managing her/his risks. Can I invest in any share? It is not how much you save but where you save it that holds the key to success. Similarly it is what share you buy rather than how much of it you buy that is more important. After all, when you buy a share you buy a business. I am ready to invest. Is there anything that I need to do before I buy my first share? There are three rules to follow before you take your first dip in the investing waters:  Make a plan  Take into account your strengths and weaknesses  Review the plan often and change it as your needs and circumstances change How do I buy a share? Unlike buying clothes from your favorite showroom where you just walk in, buy the stuff you like and pay for it, buying shares is a little different. Shares are traded on stock exchanges and you can buy them only from people recognized How do I sell a share? The same way you buy one, you just hold sell this time around. You call your broker and tell him or her to sell your shares (or you enter your sale with an online broker). You'll get the market price of the stock for that day. What if the price of my stock goes down? That can be an even better reason for not selling. The price of your stock is almost guaranteed to fall at some time. Maybe your company will go through a period when business isn't so great. What does going short on stocks mean? If you buy a share with the expectation that the price will rise, you are "long" on the stock. On the other hand, if you expect the price of a stock that you do not own to go down you can even sell it. Then you would be going "short" on the stock. What is the difference between investing and speculating? Here is the doyen of investing, Benjamin Graham expounding on the distinction between these two activities. An investment operation is one which, on thorough analysis, promises safety of principal and a satisfactory return. What are the common mistakes an investor should avoid? Panic selling. There is one certainty about investing in shares--that there will be a number of market panics during your investment lifetime. What y ou do during a market panic has a great impact on the eventual wealth that it creates What is the procedure for placing Stop Loss Orders? Stop Loss order can be placed while placing a fresh order as well as a square off  order. Basics of Stop Loss Order: Buy: Market Price < Trigger price < Order Price. (Trigger price entered should be greater than the market price) Sell: Market Price > Trigger price > Order Price. (Trigger price entered should be lesser than the market price) When the market hits the trigger price, the order is forwarded to the exchange and the same gets traded at a price between the Trigger price and the order price. What happens in case my shares are short sold? At any point of time when the shares are short sold and the same are not delivered for the pay-in to the exchange, then the shares go in for auction wherein the shares are purchased on behalf of the client in the auction market and delivered to the actual buyer. To carry on the auction procedure, 150% of the amount shall be blocked in your account. The same shall be reversed subject to t he debit of the actual auction charges. We request you to view the details in your ledger. Settlement Settlement/payment cycle when customer buys shares DAY Transaction Day Party with obligation Activity DAY1 T (SAY MONDAY) CUSTOMER BUYS SHARES OF A PARTICULAR COMPANY DAY2 T+1 (TUESDAY) CUSTOMER FUNDS TO BE PAID BY CUSTOMER TO Sharekhan FOR SHARES PURCHASED DAY3 T+2 (WEDNESDAY) Sharekhan TRANSFERS FUNDS TO STOCK EXCHANGE DAY3 T+2 (WEDNESDAY) STOCK EXCHANGE TRANSFERS SHARES TO Sharekhan T+3 (THURSDAY) Sharekhan SHARES PURCHASED ON DAY 1 IS REFLECTED IN THE CUSTOMER'S DEMAT ACCOUNT AND ARE MADE AVAILABLE FOR DELIVERY TRADE. DAY4 NOTE:-The table depicted above is applicable to delivery trades (the stock exchanges follow a system whereby the shares bought today will move into the demat account of  the customer in T+2 Days). However in the case of BTST, the customer may buy shares of a company today and sell of the shares bought the very next day .The facility of BTST is available all the scripts other then scripts which falls under BSE "T", "Z", "TS" and NSE "BE" Series. What is the advantage of Sharekhan? Sharekhan has the following advantages: a) it allows the customer to place an order even after the regular trading hours (9.56 a.m. to 3.30 p.m.) during which time he /she might have been busy. b) Based on the fluctuations in the Market on a particular day and taking into account factors such as the closing price of particular scrip, recommendations on scripts given by Sharekhan com, the customer might want to place an order using AMO which would be executed when the market opens the next day. How can I place an AMO? Now customers can place After Market Orders after the trading hours of a day. The process is simple and Sharekhan can be placed in two ways: After Market Orders can be placed by the customer himself by logging into his Sharekhan trading account and choosing Sharekhan.This facility is available in the time slots Anytime between 4.15 p.m. to 9.30 a.m. Can I fix any price on scrip that I want to place an AMO on? For particular scrip, Sharekhan can be placed with a price band of +/-5% of the closing price at the end of the day. Any AMO for scrip that is beyond this price band would not be executed. For example: If the closing price of a scrip X on Monday is 100 Rs., the customer can place an AMO within the price band of Rs. 95 to Rs.105. What is Call & Trade? Call & Trade is a service offered by Sharekhan Securities for its customers, which provides customers with a facility to trade over the phone. What is the contact number on which call has to be made? Sharekhan provides you a toll free number ----------. You can call from anywhere in India on our toll free number, without incurring any long distance phone charges. Is Call & Trade a secured option? Once you call our toll free number, our Call & Trade dealer will ask a few questions to verify your identity. Only after your identity is verified, you would be able to place/  modify/ cancel orders Can the rates be confirmed using Call & Trade? Yes. You can use Call & Trade for getting live rates prevailing in the market Can one trade in all scripts? You can trade in all scripts that are available for trading at Sharekhan.com. Can I forward the orders of T2T or suspended scripts till 3:30 PM? No. You can forward the offline orders till 3:00 PM only, after which no orders will be accepted. What are the charges for availing Call & Trade facility? No charges for Call N Trade facility. Can I place more than one order per call? Yes. Currently, there is no limit on the number of orders that can be placed per call. We may come with charges for the call & trade facility after the allotted call limit crossed. Can I inquire regarding registration / limits / position or Dp related etc queries to a Call & Trade dealer? No. For any inquiry, you need to call up our Customer Care on How do I confirm orders placed through phone? Details of the order placed through phone can be viewed on the site with respected User id & Password and can be confirmed through a Call & Trade Dealer only. Can AMO orders & Post closing orders be placed through Call & Trade? Yes. AMO orders can be placed from 4:15pm to 6:00pm & Post closing orders from 3.50pm to 4:00pm. Post closing session is subject to change, as per NSE directive. How do I place an order in BTST? You can place the normal delivery sell order to sell all the shares bought by you in the previous settlements till the payout date of the buying settlement. E.g. suppose you have bought 100 shares of ACC on Day 1. The settlement day for this buy transaction is Day 3. You can sell all 100 shares of ACC under BNSTG on Day 2 or on Day 3 till your buy transaction is settled. What will happen in case the delivery for shares sold by you is received short? Sharekhan.com does not provide any guarantee in case short delivery. In case of the short delivery then Client has to bear the auction charges. You would not be guaranteed against any auction that you might face due to short allotment on such bought quantity. What is the brokerage that would be charged? The brokerage would be charged as per normal delivery brokerage on either side of  the transaction. Please click here to view the Product Details. How would the movement of shares transacted for in BTST reflect in the Demat account? The shares that have been bought and subsequently sold under BTST would be first credited and then debited from your Demat account as per normal pay in and pay out. You would not be required to do anything different from your normal transaction. How will the margin be calculated in a BTST transaction? As you are selling the shares under Delivery, no extra limit would be required I have bought some stock on NSE; can I sell the same on BSE and vice versa? Yes. You can buy stock on NSE and sell the same, the next working day under BTST in BSE and vice versa what will happen if I do not square off the Trading Position? If you do not Square off the Trading open position then System will Auto-Square off  your trading open position after the cutoff t ime 3:15 p.m. Can I buy stock in NSE and sell the same in BSE or vice versa? You need to take delivery of the stock bought on NSE and then sell the same in BSE and vice versa. That is, you cannot buy in NSE and square off the same in BSE. However, you may sell the stock in BSE under BTST on the next working day. What is a portfolio tracker? The portfolio tracker is a tool that sharekhan.com has put in place so that investors may keep a track of how well their scripts are doing at a given point of time. In short it displays the current valuation of the holdings that an investor has. What is the advantage of a portfolio tracker? A portfolio tracker has several advantages to offer. It reveals data on: 1) The gain loss statements of an investor through the buy/sell trades that he has made. 2) The holdings of the investor at a particular point of time 3) The update prices of stocks What are the other benefits of a portfolio tracker? The portfolio tracker also gives data on the average holding cost of each scrip, the quantity of scripts that the investor holds in his account and the market price of the scripts. The biggest advantage of the portfolio tracker is that it goes on to explain the unrealized gain/loss of his individual holdings. This enables the investor to monitor his stock performance. Debtor's policy: Customers are requested to herewith note the debtor's policy. The settlement payment has to be made on the T day before 3.30 pm in case of the special request made to ignore the auto square off. Failing to do so we will be compelled to square off your position/stock, which shall be at the sole discretion of  Sharekhan.com. What is online trading? Generally, online trading refers to buying and selling securities via the Internet or other electronic means such as wireless access, touch-tone telephones, and other new technologies. With online trading, in most cases customers access a brokerage firm's Web Site through their regular Internet Service Provider. Once there, customers may consult information provided on the Web Site and log into their accounts to place orders and monitor account activity. Is there still a brokerage firm involved or do I really bypass the broker completely? All trades involve a brokerage firm even if a stockbroker is not used to help with the trade. Although customers may enter orders for trades via the Internet, customers do not have direct access to the securities markets and therefore must use a brokerage firm in order to execute their trades. Customers should also remember to do their homework where their investments are concerned. Why should I go for an online trading if I am satisfied with my Broker’s system? Internet share trading is more convenient and hassle free. No phone calls, No paperwork, No more writing of cheques, you can trade on your own. Market position will be in front of you. You can trade while working in the office, while you are at home. If computer/Internet is not available at your place; you can go to Cyber cafe also. You can take an experience once; you will know the advantages of that. Who can open a trading account with sharekhan.com? The facilities are available to Resident as well as Non-Resident Indians. Individuals as well as sole proprietary/partnership/corporate firms can open a trading account. What is sharekhan.com? It is a Financial Portal for online stock trading. Sharekhan.com is a trade name owned by Sharekhan. Why should I trade on sharekhan.com? Following reasons make you to trade with us. • • • • • • • • User friendly. Transparency in Dealing. Personalized customer service. Brokerage rate is very competitive. Instant Trade confirmation. Complete protection against fraud and hacking. 128 bit super safe encryption – SSL (Secured Socket Layer) Complete password protection. What is the 3-IN-1 concept? Here we take care of your trade settlements to avoid any delays in pay in and payout. Sharekhan com. allows you to integrate Trading Account, your Bank account and Demat account. What are the exchanges where sharekhan.com offers Internet trading facilities? Sharekhan com. offers trading on both NSE and BSE and all segments. Very soon we will come live with commodities as well. Do you offer banking and DP facilities? We are not a bank, and in that sense cannot offer any banking services. But what we have done is tied up with Internet enabled banks like HDFC Bank, ICICI Bank, UTI Bank, to offer you net transfer facility. We do provide DP facilities of both National Securities Depositories Ltd. (NSDL) and Central Depository Securities Limited (CDSL). It is mandatory to open the designated accounts with us, to avoid any delays in pay in and pay out. We have tied up with HDFC Bank, to offer you net transfer facility. If I already have a Demat/Bank account with other Bank or Depository? To avail of the advantage offered by the integration of the brokerage, Bank and the Demat account, all the three accounts will have to be opened with Sharekhan ltd. How do I become a sharekhan.com customer? To register with Sharekhan com., just email/call us and we will send you a kit with all required papers. You just have to fill the same with correct and sufficient details. The forms will be as under:• • • • • Client Registration Form HDFC/ICICI/UTI Bank Account Form DP Account Form Power of Attorney Member Client Agreement As soon as your application is accepted, we will inform you by e-mail. Do I have to maintain any minimum balance in my Bank Account? NO, you need not to maintain any minimum balance. How do I get my user ID and password for the first time? The trading password will be issued only on completion of all registration formalities and a email containing details about your trading id, login id and password will be sent you How safe is my user ID and password? The password is generated by the system and sent to you such that not even employees of Sharekhan would know about it. Password will be recorded in system in encrypted format. To ensure complete safety and privacy the user will be forced to change his password the very first time he logs into the trading site. If I’ve forgotten the password, what should I do? You can always contact our customer service executive by Email or Chat or Phone or you can click on forgot password link provided on the Ananrathi.com home page to request us to reset the password. What are the other charges? Following is the table showing payment details. Payment to HDFC/ICICI/UTI Bank for New Account Creation Deposits Rs. 2500/- in favour of Bank To be paid as per the product requirement. (Margin, Delivery, Margin & Delivery) Note: The management reserves the right to change these rates without any prior notice. If I already have a HDFC Bank account and a Demat account with ARG, can I use these accounts for online investing? Yes, you just need to tell us the account details and we shall link up your existing accounts for online investing. What about my Trading limits? Sharekhan allows Trading limits (exposure) depending upon the product selected by you at the time of opening the account & Respective balance (in ter ms of Stock & Ledger balance) available in your trading account. What if I am holding shares in my account? Can I use them as margin? You can use your shares and securities along with initial minimum deposit. We will apply a haircut of exchange vat margin on the valuation of your holding and then exposure will be provided. The shares considered for exposure purpose are NSE top 500 stocks and certain stocks approved by Sharekhan. Note: The management reserves the right to change or increase the exchange var margin (increase the haircut on the Stock Valuation) according to the Market situation without any prior notice. What is a depository? A depository is a facility for holding securities, which enables securities transactions to be processed by book entry. To achieve this purpose, the depository may immobilize the securities or dematerialize them (so that they exist only as electronic records).' India has chosen the dematerialization route. In India, a depository is an organization, which holds the beneficial owner's securities in electronic form, through a registered Depository Participant (DP). A depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open an account with it through a registered DP. How does the Depository System operate? A. The operations in the Depository System involve the participation of a Depository, Depository Participants, Company/Registrars and Investors. The company is also called the Issuer. A Depository (NSDL and CDSL) is an organization like a Central Bank, i.e. Reserve Bank where the securities of an investor are held in electronic form, through Depository participants. A Depository Participant is the agent of the Depository and is the medium through which the shares are held in the electronic form. They are also the representatives of  the investor, providing the link between the investor and the company through the Depository. To draw analogy, the Depository system functions very much like the banking system. A bank holds funds in accounts whereas; a D epository holds securities in accounts for its clients. A bank transfers funds between accounts whereas; a Depository transfers securities between accounts. In both systems, the transfer of funds or securities happens without the actual handling of funds or securities. Both the banks and the Depository are accountable for safe keeping of funds and securities respectively. The company has to sign an Agreement with NSDL/CDSL (the depositories) and install the necessary hardware/software for operations. Who is a Depository Participant? Similar to the brokers who trade on your behalf in and outside the Stock Exchange; a Depository Participant (DP) is your representative (agent) in the depository system providing the link between the Company and y ou through the Depository. Your Depository Participant will maintain your securities account balances and intimate to you the status of your holding from time to time. According to SEBI guidelines, Financial Institutions like banks, custodians, stockbrokers etc. can become participants in the depository. A DP is one with whom you need to open an account to deal in electronic form. While the Depository can be compared to a Bank, DP is like a branch of your bank with which you can have an account. What is dematerialization? Dematerialization is a process by which physical certificates are converted into electronic form. How do I demat my shares? You may request your Depository Participant to send you a Demat Requisition Form (DRF). After filling in the form, enclose the share certificates and submit them to Navia for dematerialization along with the stipulated fee. Please insist on collecting the stamped acknowledgement tear-off slip and retain it safely. A separate DRF form is required to be used for each company. How do I get to know about the status of the Demat? The account statement sent to you every fortnight will reflect credit balance of shares wherever the demat process has been completed. Normally the demat process takes 2 to 4 weeks. Who is a Beneficial Owner (BO)? "Beneficial Owner" is a person in whose name a demat account is opened with CDSL/NSDL for the purpose of holding securities in the electronic form and whose name is recorded as such with CDSL/NSDL. Who is a Depository Participant? A Depository Participant (DP) is an agent of the depository who is authorized to offer depository services to investors. Financial institutions, banks, custodians and stockbrokers complying with the requirements prescribed by SEBI/ Depositories can be registered as DP. Further information on DP, can be accessed from CDSL's web site www.cdslindia.com Who is an Issuer? Issuer means any entity making an issue of securities. What is an ISIN? ISIN (International Securities Identification Number) is the identification number given to a security of an issuer at the time of admitting such security in the depository system. Whether different securities issued by the same Issuer will have same ISIN? No, different securities issued by the same issuer will have different ISIN. What services are provided by a DP? Following services can be availed of through a DP: Dematerialization i.e. converting physical securities into electronic form. Rematerialisation, i.e. converting electronic securities balances in a BO account into physical form. To maintain record of holdings in the electronic form. Settlement of trades by delivering/ receiving underlying securities from/in BO accounts. Settlement of off-market trades i.e. transactions between BOs entered outside the Stock Exchange. Providing electronic credit in respect of securities allotted by i ssuers under IPO or otherwise. Receiving on behalf of demat account holders non-cash corporate benefits, such as, allotment of bonus and rights shares in electronic form or securities ensuing upon consolidation, stock split or merger/amalgamation of companies. Pledging of dematerialized securities. Facilitating Securities Lending and Borrowing, if the DP is registered as an "Approved Intermediary" for the purpose. • • • • • • • • • Account Opening Am I eligible for opening a trading account? Any individual, Hindu undivided family (HUF), proprietary firm, partnership firm, or a company can open an account with Sharekhan.com. How do I open an account? To open an online trading a/c you can apply online or visit any of our branches. Click  on the link to find out the nearest branch. What is the minimum amount required to start online trading? You can start trading by placing a minimum margin of Rs. 10000. This minimum margin can be in the form of Cash or Stocks What are the documents required for opening an online trading A/c? Passport size photo, Copy of pan card, copy of residence proof, photo identity proof, copy of bank details. Internet Based Trading The Securities & Exchange Board of India (SEBI) approved the report on Internet Trading brought out by the SEBI Committee on Internet Based Trading and Services In February 2000. Internet trading can take place through order routing systems, which will route client orders to exchange trading systems for execution. Thus a client sitting in any part of the country would be able to trade using the Internet as a medium through brokers' Internet trading systems. SEBI-registered brokers can introduce Internet based trading after obtaining permission from respective Stock Exchanges. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start Internet based trading and services, vide their circular no.SMDRP/POLICY/CIR-06/2000 dated February8, 2000. Internet Trading at NSE NSE became the first exchange to grant approval to its members for providing Internet based trading services. In line with SEBI directives, NSE has issued circulars detailing the requirements and procedures to be complied with by members desirous of providing Internet based trading and services. Members can procure the Internet trading software from software vendors who are empanelled with NSE or they may develop the software through their own in-house development team or may procure the software from other non-empanelled vendors. Members can also avail of services provided by Application Service Providers (which may inter-alia include providing / maintaining software / hardware / other infrastructure etc.) for providing Internet based trading services subject to the Application Service Provider (ASP) being empanelled with the Exchange for providing such services. Detailing the formalities / requirements for members desirous of using ASPs for providing Internet based trading services as well as formalities / requirements for ASPs desirous of being empanelled with the Exchange for providing such services to trading members of NSE. Vendors & ASPs empanelled with NSE The following vendors are empanelled with NSE for providing Internet trading solutions to its trading members: Vendor Name Address Contact Nos. M/s. Asian CERC Information Technology Ltd. B-7, 17th 1st Main, KHB Colony, 5th Block, Koramangla Layout, Bangalore560 095 Ph: 080-51104235/36 Fax: 080-51104244 M/s. Techspan India Ltd JP Techno Park, No. 3/1, Millers Road, Bangalore - 560 052 Ph: 080-41982000 Fax: 080-41327777 M/s. Marketplace Technologies Pvt. Ltd. (Formerly known as "ENC Software Solutions Pvt. Ltd.") 3rd Floor, B-Wing, Aggarwal Trade Centre, Plot No. 62, Sector 11, Belapur CBD, Navi Mumbai400 614 Tel. : 022-27566836 /  27560649 / 27506609 Telefax : 022-27566906 M/s. Financial Technologies (India) Ltd. 6th Floor, Boston House, "A" Wing, Ph: 022-67099000 Suren Road, Chakala, Fax: 022-67099066 Andheri (East), Mumbai-400 093 M/s. Internet ExchangeNext.com Ltd. 10th Floor, West Wing, Tulsiani Chambers, Nariman Point, Mumbai 400 021 M/s. NSE.IT Ltd. Trade Globe, Ground Floor, Andheri-Kurla Ph: 022-2826 8841-48 Road, Andheri(E), Fax : 022-2826 8855 Mumbai-400 059. M/s. Omnesys Technologies Pvt. Ltd. “Omnesys House”, No. 55/B,1st Main Road, Electronic City,Housur Road, Bangalore-561 229 M/s. SDG Software Technologies 162/A, Gunrock  Ph: 040-2772 0969 / 70 Enclave, Hyderabad Fax : 040 - 2772 0968 500 009 M/s. Tata Consultancy Air India Building, Ph: 022-22847698 Fax : 022 - 22847696 Ph: 080-28521464/68 Fax: 080 - 28523413/14 Ph: 022 - 67503515, 67506859 Services Nariman Point, Mumbai - 4000 21 Fax: 022 - 67506855 The following ASP is empanelled with NSE for providing Internet trading services to its trading members. ASP Name M/s. Net Equity Technologies Ltd. Address Contact Nos. No 55/B I Main Road, Electronic City, Houser Road, Bangalore, Karnataka – 560 100 Ph - 080 2226 7454 Ph - 080 28521464 - 68 Fax - 080 2653 2927 Members granted permission for Internet Trading The following are the trading members who have been granted permission by the Exchange for providing Internet based trading services: Sr. Member No. Code Member Name Website 1 08257 A. G. SHARES & SECURITIES LTD www.agsslagra.com 2 09929 A.C.Choksi Share Brokers Pvt. Ltd www.etrade.acchoksi.com 3 12544 AADINATH SECURITIES PVT. LTD. www.aspl786.com 4 08150 ABHIPRA CAPITAL LTD. www.abhipra.com 5 06080 ABN AMRO ASIA EQUITIES (i) LTD www.ebroking.abnamro.co.in 6 08538 ADROIT FINANCIAL www.adroitfinancial.com SERVICES PVT LTD 7 06919 AGROY FINANCE & www.agroy.com INVESTMENT LTD 8 06127 AISHWARYA & CO. www.aishwaryaandco.com PVT LTD 9 10585 AJAY NATAVARLAL SECURITIES PVT. www.ansplshares.com LTD. 10 08812 ALANKIT www.alankittrade.com ASSIGNMENTS LTD. 11 06292 ALKA SECURITIES LIMITED 12 07588 AMRAPALI CAPITAL & www.amrapali.com FINANCE SERVICES LTD 13 05976 ANAGRAM SECURITIES LTD. www.moneypore.com 14 06002 ANGEL CAPITAL AND DEBT MARKET LIMITED www.angelbolt.com 15 07838 ANKIT SECURITIES & FINANCE CO PVT www.etrading.ankitindia.in LTD 16 08171 ANUSH SHARES & SECURITIES www.anushshares.com 17 08529 APEEJAY SECURITIES PVT. LTD. www.stockmarkit.com 18 08255 APOLLO SINDHOORI CAPITAL INVESTMENTS www.apollosindhoori.com 19 07782 ARCADIA SHARE AND STOCK BROKERS PVT LTD www.arcadiastock.com 20 07839 ARIHANT FINCAP LIMITED www.arihantitrade.com 21 12485 ARPAN SECURITIES www.tradeswift.net PVT LTD. 22 08055 ARYAN SHARE & STOCK BROKERS LTD. www.assbl.com 23 08334 ASHIKA STOCK BROKING LIMITED www.ashikaonline.co.in 24 06072 ASIT C MEHTA INVESTMENT INTERMEDIATES LTD www.investmentz.com 25 09215 ASL CAPITAL www.aslcapital.com www.alkasecurities.com HOLDINGS PVT LTD. 26 12227 ASTHA CREDIT & SECURITIES www.asthacreditandsecurities.com 27 07141 B N RATHI SECURITIES LTD www.bnrsecurities.com 28 10703 BAKLIWAL FINANCIAL SERVICES (INDIA) P. LTD. www.investindiaonline.com 29 11097 BALANCE EQUITY BROKING (I) PVT LTD www.balance-equity.com 30 09391 BAMA SECURITIES LIMITED www.trade.nirmalbang.com 31 08157 BEST BULL STOCK TRADING www.bestbull.in 32 10741 BgSE FINANCIAL LTD. www.inettrade.bfsl.co.in 33 07724 Bharat Bhushan Equity www.bharatbhushan.com Traders Ltd. 34 12331 BMA STOCK BROKING PVT LTD www.wealth-creators.in 35 06378 BONANZA PORTFOLIO LTD. www.bonanzaonline.com 36 12057 BRICS SECURITIES LTD. secure.bricssecurities.com 37 10942 C D INTEGRATED SERVICES LTD www.cdintegrated.com 38 08046 CAPMAN CAPITAL www.capman-capital.com MARKETS LIMITED 39 11674 CAPSTOCKS & SECURITIES (INDIA) www.capstocksindia.com PVT. LTD. 40 07811 CD EQUISEARCH (P) www.cdequisearch.com LTD 41 12511 Centrum Broking Pvt. Ltd. 42 09304 CENTURY FINVEST www.centuryfinvest.com PVT LTD 43 07599 CHOLAMANDALAM www.chola-sec.com SECURITIES LTD www.centrumbroking.com 44 07543 CHONA FINANCIAL www.chona.com SERVICES PVT LTD. 45 06430 CIL SECURITIES LTD. www.cilsecurities.com 46 12697 Citigroup Wealth Advisors www.brokerage.citigroupwealthadvisors.co.in 47 07529 COIMBATORE www.coimbatorecapital.com CAPITAL PVT. LTD. 48 11300 COMPETENT FINMAN PVT. LTD 49 07520 COMPOSITE INVESTMENTS PVT www.compositeinvestments.com LTD 50 08772 CONSORTIUM SECURITIES PVT LIMITED www.netashare.com 51 08865 CRIMSON FINANCIAL SERVICES LTD www.crimson.net.in 52 12295 CROSSEAS www.crosscap.co.in CAPITAL SERVICES 53 08076 CROWN CONSULTANTS (P) LTD www.crownsec.com 54 09806 DALAL & BROACHA STOCK BROKING www.dalalbroachatrade.com 55 06453 DALMIA SECURITIES LTD www.vriddhi.co.in 56 11416 DANI SHARES & STOCKS PVT LTD www.danisecurities.com 57 07007 DAYCO SECURITIES PVT. LTD. www.daycoatlyonsrange.com 58 06432 DB (INTERNATIONAL) STOCK BROKERS LIMITED www.indiacommstock.com 59 12517 DDAV SECURITIES PVT.LTD. www.ddavsecurities.com 60 05980 Dimensional Securities www.dimensional.co.in Pvt. Ltd. www.competentindia.net 61 08268 DURGA PRASAD & CO. 62 10718 DYNAMIC www.dynamiccares.com EQUITIES PVT. LTD. 63 08051 ELITE STOCK MANAGEMENT LTD. www.elitestock.com 64 09018 EMKAY SHARE & STOCK BROKERS P LTD. www.emkayshare.com 65 00684 EUREKA STOCK & SHARE BROKING SERVICES LTD www.eurekasecurities.com 66 07775 EXCLUSIVE SECURITIES LTD. www.shareshoppee.com 67 08535 EXPONENTIAL FINANCIAL SERVICES PVT. LTD. www.ezeetrade.com 68 12098 FAIR INTERMEDIATE INVESTMENT PVT LTD www.fairinvest.co.in 69 12723 FAIRWEALTH SECURITIES PVT.LTD. www.fairwealth.co.in 70 08537 FARSIGHT SECURITIES LTD www.farsightshares.com 71 07596 FE SECURITIES PVT www.fesecurties.in LTD 72 12365 FINQUEST SECURITIES PVT LTD. www.trade.finquestonline.com 73 06813 FIRST FINANCIAL HOLDINGS LTD www.firstfinancialholdingltd.com 74 07221 FIRST GLOBAL STOCKBROKING PVT LTD www.firstglobal.in 75 07696 GANGA YAMUNA FINVEST PVT.LTD. www.gangatrade.com 76 07934 GCM SECURITIES LTD. www.gcmonline.com 77 08067 GEOJIT SECURITIES www.geojitonline.com www.trade.dpsec.com LTD. 78 06637 GLOBE CAPITAL MARKET LTD www.globecapital.com 79 07929 GOGIA CAPITAL SERVICES LTD. www.gogiacap.com 80 08846 GOLDMINE STOCKS www.goldmine.co.in PRIVATE LTD 81 11866 GRD SECURITIES LTD www.grdgroupz.com 82 11271 GRISHMA SECURITIES PVT.LTD. www.grishma.com 83 11460 GUINESS SECURITIES LIMITED www.guinessonline.net 84 09939 GUPTA EQUITIES PVT. LTD. www.guptaequities.com 85 07235 H NYALCHAND FINANCIAL SERVICES LTD www.hnyalchand.com 86 06382 HAVEN FINANCIAL SERVICES PVT. www.havenfin.com LTD. 87 11094 HDFC SECURITIES LTD. 88 11100 HEM FINLEASE PVT www.hemonline.com LTD 89 12548 HIGH SIGHT CAPITAL MKT www.highsight.in SERVICES PVT LTD. 90 08052 HORIZON PORTFOLIO LTD. www.shriamonline.com 91 07637 ICDS SECURITIES LTD www.icdssecurities.com 92 11476 ICICI WEB TRADE LTD www.icicidirect.com 93 07066 IDBI CAPITAL MARKET SERVICES www.idbicapital.com LTD. 94 05968 Indbank Merchant Banking Services Lts www.indbankonline.com 95 11634 INDIA CEMENTS www.iccaps.com www.hdfcsec.com INVESTMENT SERVICES LTD 96 10975 INDIA INFOLINE SECURITIES PVT. LTD. www.5paisa.com 97 08756 INDIABULLS FINANCIAL SERVICES. www.indiabulls.com 98 07844 INDIRA SECURITIES www.indiratrade.com 99 07767 INDO THAI SECURITIES LTD www.indothainse.com 100 07762 INDUS PORTFOLIO (P) LTD. www.indusinvest.com 101 07002 INNOVATE SECURITIES PVT LTD. www.innovatesec.com 102 09470 INSIGHT SHARE www.shiramshare.com BROKERS PVT. LTD. 103 08383 INTEGRATED MASTER SECURITIES PVT. LTD. www.integratedmaster.com 104 06770 INTERFACE BROKERAGE & RESEARCH LTD www.interfaceonline.in 105 09017 INVENTURE GROWTH & SECURITIES LTD. www.inventuregrowth.com 106 07825 INVESTMENTOR SECURITIES LTD www.investmentoronline.com 107 10208 INVESTSMART INDIA LTD www.investsmartindia.com 108 07095 INVESTWELL www.trade.investwell.biz 109 10777 ISE SECURITIES & www.iseindia.com SERVICES LIMITED 110 12028 ITI FINANCIAL SERVICES LTD. www.itifsl.co.in 111 09815 J G SHAH FINANCIAL CONSULTANTS PVT. LTD. www.jgsfinancial.com 112 10548 J M MORGAN www.jmmorganstanley.com STANLEY RETAIL SERVICES PVT LIMITED 113 09075 J V CAPITAL SERVICES (P) LTD. www.jvfinancial.com 114 08139 JAYPEE CAPITAL SERVICES LTD. www.jaypeeindia.com 115 07840 JBS SECURITIES LTD www.jbsindia.in 116 08232 JHAVERI SECURITIES PVT LTD www.jhaverisec.com 117 08239 JK SECURITIES PVT www.jksecurities.com LTD 118 07088 JRG SECURITIES LTD www.jrg.co.in 119 07827 JYOTI JAIN INVESTMENT & FINANCE CO. (P) LTD www.jyotinettrading.com 120 09758 K R CHOKSEY www.krctrades.com 121 07536 K&A SECURITIES (P) LTD www.trade.kasecurities.com 122 07701 KARVY STOCK BROKING www.karvy.com 123 07546 KASAT SECURITIES www.kasatsecurities.com PRIVATE LIMITED 124 08050 KASS SECURITIES PVT. LTD. www.kassgroup.biz 125 07702 KASSA FINVEST PVT LTD www.kassa.in 126 09301 KAYCEE FINANCIAL SERVICES LTD www.onlinetrading.kayceeonline.com 127 06738 KAYNET FINANCE LIMITED www.kaynetgroup.com 128 00565 KEDAR NATH AGARWAL www.knasharebroker.com 129 12107 KHAJANCHI & GANDHI STOCK BROKING PVT LTD www.khajanchiandgandhi.com 130 09775 KHAMBATTA www.khambattasecurities.com SECURITIES LTD. 131 07760 KHANDWALA INTEGRATED FINANCIAL SERVICES P LTD 132 08081 KOTAK SECURITIES www.kotakstreet.com LIMITED 133 10195 KUNVARJI www.kunvarji.com FINSTOCK PVT LTD 134 12221 KUSHAL SHARE www.kushalbroking.com BROKING PVT. LTD. 135 09228 LABDHI FINANCE CORPORATION www.labdhi.in 136 10720 LATIN MANHARLAL SECURITIES PVT. LTD. www.latinmanharlal.com 137 07200 LKP SECURITIES LTD www.lkponline.com 138 10870 LSE SECURITIES LIMITED www.lse.co.in 139 07012 M G CAPITAL SERVICES LTD. www.mgcaps.com 140 09300 MAHIPAT RAICHAND SHARE BROKING PVT LTD www.mrsbpl.com 141 10756 MALIRAM MAKHARIA www.tradedirect.in FINSTOCK PVT LTD 142 12503 MAN FINANCIALSIFY SECURITIES INDIA PVT LTD www.manfinancial.in 143 09774 MANGAL KESHAV SECURITIES LTD www.mangalkeshavonline.com 144 06529 MANIPUT INVESTMENTS PVT www.magnumebroking.com LTD 145 07814 MANSUKH SECURITIES & FINANCE LTD www.mansukh.net 146 11604 MANTRI SHARE BROKERS P. LTD www.mantrishare.com www.khandwalagroup.com 147 09837 MANUBHAI MANGALDAS SECURITIES PVT. LTD. www.mmsplonline.com 148 11071 MARCK SECURITIES PVT LTD www.marcksecurities.com 149 11925 MARFATIA STOCK www.marfatia.net BROKING PVT. LTD 150 06962 MARKET CREATORS LIMITED 151 08760 MARWADI SHARES & FINANCE PVT www.mfspl.com LTD 152 06436 MASTER CAPITAL SERVICES LTD www.online.mastermarts.com 153 08768 MEGHVARSHA SECURITIES PVT. LTD. www.meghvarsha.com 154 12692 MESH STOCK www.mesh.co.in BROKERS PVT.LTD. 155 11159 MICROSEC INDIA LIMITED www.microsec.co.in 156 08775 MODEX INTERNATIONAL SECURITIES LTD www.modexindia.com 157 06470 MONARCH PROJECT AND FINMARKETS LTD www.monarchproject.com 158 08117 MOONGIPA www.moongipainvestments.com INVESTMENTS LTD 159 10412 MOTILAL OSWAL SECURITIES LTD. www.motilaloswal.com 160 12007 MSB SECURITIES P LTD www.msbindia.com 161 09354 NARAYAN SECURITIES PVT LTD www.narayanonline.com 162 07708 NAVIA MARKETS LTD. www.naviamarkets.com 163 06769 NAVRATAN CAPITAL & www.anandrathi.com www.marketcreators.net SECURITIES PVT. LTD. 164 06438 NDA SECURITIES LTD 165 06386 NETWORTH STOCK www.clicknetworthstock.com BROKING LTD 166 11088 NEW MILLENIUM SECURITIES PVT.LTD. 167 09701 NORTHEAST BROKING www.northeastltd.com SERVICES LIMITED 168 11365 OMNESYS TRADENET PVT. LTD. www.otndirect.com 169 07711 P.C.S Securities Ltd www.pcssecurities.com 170 07727 PACE FINANCIAL SERVICES www.pacefin.com 171 09140 PADMAKSHI FINANCIAL SERVICES PVT. LTD. www.padmakshi.com 172 08388 PATCO INVESTMENTS AND www.indianstocks.com CONSULTANCY SERVICES PVT LTD 173 09028 PEE AAR SECURITIES LIMITED www.peeaarsecurities.com 174 08814 PENINSULAR CAPITAL MARKET LTD. www.peninsularonline.com 175 08127 PKJ SHARE BROKERS LTD. www.pkjsharebroker.com 176 05977 PRABHUDAS LILLADHER PVT LTD. www.plindia.com 177 06498 PRASHANT JAYANTILAL PATEL www.jhpsec.com 178 06455 PRATIBHUTI VINIYOG LTD. www.pratibhuti.com 179 07589 PRAVIN RATILAL www.itrade.prssb.com www.ndaindia.com www.kediashares.com SHARE AND STOCK BROKERS LTD 180 11938 PRAYAS SECURITIES PVT LTD www.prayasexchange.com 181 08561 PROGRESSIVE SHARE BROKERS PVT. LTD. www.psbppl.com 182 07096 PRP FINANCIAL CONSULTANTS www.dealdepot.in 183 09068 PSJ SECURITIES PVT. LTD. www.psjsecurities.com 184 08250 R K GLOBAL SHARES & SECURITIES LTD www.rkglobal.net 185 12310 R K Stockholding Pvt. www.rkfml.com Ltd 186 12196 R R EQUITY BROKERS PVT LTD www.rrfinance.com 187 12219 R WADIWALA SECURITIES PVT LTD www.rwsec.com 188 12170 RAJVI STOCK BROKING LIMITED www.rajvistockbroking.com 189 07780 RATNAKAR SECURITIES LTD www.ratnakarsecurites.com 190 07790 REFLECTION INVESTMENTS www.reflectioninvestments.com 191 07544 RELIABLE STOCKS & SHARES (INDIA) LTD www.reliableshares.com 192 12348 RELIANCE SECURITIES LTD. www.instatrade.reliancemoney.com 193 06537 RELIGARE SECURITIES LTD. www.nat.religaresecurities.com 194 07948 S G SECURITIES www.sgsecurities.com 195 10229 S S KANTILAL ISHWARLAL SECURITIES LTD. www.sharekhan.com 196 07549 SAJAG SECURITIES www.sajagonline.com PVT. LTD. 197 07526 SALASAR STOCK www.salasaronline.net BROKING LTD 198 08039 SANCHIT FINANCIAL & MANAGEMENT SERVICES LTD. www.sanchitshares.com 199 12171 SAS BROKING PRIVATE LIMITED www.sasbro.info 200 06422 SATCO SECURITIES & FINANCIAL www.satco.co.in SERVICES LTD. 201 11686 SEETA PORTFOLIO MANAGEMENT PVT. LTD. www.seetaportfolio.com 202 08063 SELECT STOCK BROKERS www.selectsecurities.net 203 07590 SHAH INVESTORS' HOME www.shahinvestors.com 204 10733 SHAREKHAN LTD. www.sharekhan.com 205 10574 SHILPA STOCK www.ssbpl.net BROKERS PVT. LTD. 206 08135 SHIVMANGAL SECURITIES PVT LTD www.shivmangal.com 207 07818 SHREE BAHUBALI INTERNATIONLA LTD. www.shreebahubali.com 208 06390 SHREEPATI HOLDINGS & www.shreepatiholdings.com FINANCE PVT. LTD. 209 12240 SHREYAS STOCKS PVT. LTD. www.shreyasindia.com 210 08140 SHRI PARASRAM HOLDINGS PVT. LTD. www.sphstock.com 211 08153 SKI CAPITAL SERVICES LTD. www.skitrade.net 212 07075 SKP SECURITIES LTD www.skpmoneywise.com 213 07714 SMC GLOBAL SECURITIES LTD. www.smcindiaonline.com 214 05999 SMIFS SECURITIES LTD www.smifs.com 215 06293 SOMAYAJULU & www.etrade.somyajulu.com COMPANY LIMITED 216 08544 SOVEREIGN NV SECURITIES PVT. LIMITED www.uniconindia.in 217 10419 SPAN CAPLEASE PVT LTD www.spancaplease.com 218 08125 SPFL SECURITIES LTD www.spfl.co.in 219 09202 SRI MAHALAKSHMI www.srimahalakshmishares.com SHARES PVT LTD 220 10639 STAR FINVEST PVT. www.trading.starfinvest.in LTD. 221 08061 STEEL CITY SECURITIES LTD www.trade.steelcitytrade.com 222 08062 SUGAL & DAMANI SHARE & STOCK BROKERS LTD. www.sugalshare.com 223 06764 SUNIDHI CONSULTANCY SERVICES LTD. www.sunidhi.com 224 09763 SURESH RATHI SECURITIES PVT. LTD. www.srspltrade.com 225 06074 SUSHIL STOCKBROKER PVT LTD. www.sushilfinance.com 226 09957 SVS SECURITIES PVT. LTD www.svssec.com 227 11297 SWASTIKA FIN LEASE LIMITED www.swastika.co.in 228 07277 SYKES & RAY EQUITIES (I) LTD. www.sre.co.in 229 10336 Techno Shares & Stocks Ltd. www.trade.technoworld.in 230 12213 TRANSPARENT SHARES & SECURITIES PVT LTD www.transparent.co.in 231 08244 TRANSWORLD SECURITIES LTD. www.transworldsecurities.net 232 11225 TWIN EARTH www.twinearthsecurities.com SECURITIES PVT. LTD. 233 06558 UAE EXCHANGE & FINANCE LTD. www.uaeexchange-etrade.com 234 06392 UTI SECURITIES LTD www.utisel.com 235 07604 VENTURA SECURITIES LTD. www.ventura1.com 236 07259 VERTEX SECURITIES www.trade.vertexindia.net 237 08752 VINIT ENTERPRISES www.vinitenterprises.com 238 09643 VNS FINANCE & CAPITALS SERVICES LTD www.vnsfin.com 239 08820 VOGUE COMMERCIAL COMPANY LTD. www.voguestock.com 240 10557 WELLWORTH SHARE AND STOCK www.wellworthshares.com BROKING LTD 241 08532 YOHA SECURITIES LTD. www.yohasecurities.com 242 06849 ZEN SECURITIES LTD www.zensec.in ORGANIZAIONAL STUCTURE SERVICES PROVIDED BY SHAREKHAN Online Services Offline Services Depository Services Equity and Derivatives Trading Fundamental Research Technical Research Portfolio Management Commodities Trading Dial-n-trade Share shops 1. Online Services:       Mutual Funds Commodity Futures PMS Technical PMS Demat Services Share shops 2. Offline Services:        Trading with the help of Dealer Trading without credit By calling to the Share shops Credit facility (Only in Delivery-based) T+2 facility Special website for Offline Clients: www. sharekhan.com Physical contract notes Types of Account Classic A/c Speed-trade Classic A/c: Features of Classic A/c:         Online trading account for investing in Equities and Derivatives via sharekhan.com. Integration of: Online trading + Bank + Demat account. Instant cash transfer facility against purchase & sale of shares Make IPO bookings. You get Instant order and trade confirmations by e- mail Streaming Quotes. Personalized Market Scan with your own customized stock ticker. Single screen interface for cash and derivatives. Speed-trade: Features of Speed-trade:         Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other relevant statistics) Hot keys similar to a brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives Dial-n-trade: Features of Dial-n-trade:  Two dedicated numbers for placing your orders with your cell phone or landline. Toll free number: 1-800-22-7050. For people with difficulty in accessing the toll-free number, we also have a Reliance number 30307600 which is charged at Rs. 1.50 per minute for STD calls.  Automatic funds transfer with phone banking (for Citibank and HDFC bank  customers).  Simple and Secure Interactive Voice Response based system for authentication.  No waiting time. Enter your TPIN to be transferred to our tele-brokers.  You also get the trusted, professional advice of our tele-brokers.  After hours order placement facility between 8.00 am and 9.30 am (timings to be extended soon) INDUSTRY ANANLYSIS Indian industry has now really taken off and this fact has been acknowledged globally. Liberalization has eased restrictions and foreign companies are freely gaining access to India. Indian bourses (stock exchanges) are now dealing with big numbers and big buyers. The capital markets are undergoing transformation. Today's progressive brokers deal in billions rather than in millions. Instead of being stuck in tiny booth-like offices with a telephone, brokers today have all their operations computerized and employ qualified industry specialists to advise on buying and selling of stocks Erstwhile brokers sat back waiting for business to come to their offices. Now brokers or stock market professionals are either playing host to foreign investment bankers, who are looking for opportunities on the Indian stock market, or visiting fund managers abroad seeking investment here. Stock market houses are redefining themselves. They try to provide all attendant functions of financial management at one place. The business of stock broking is highly visible today. Communication links between the dealing room and the trading ring are being improved. The National Stock Exchange or NSE (inaugurated on 23 July 1994) provides nationwide trading facilities with access to investors all over the country. The automated, screen-based trading system using state-of-the-art technology makes market operations transparent. The evolution of India's broking business is mirroring the developments in the US markets from the 1970s through the 1990s, when the top five brokers - Charles Schwab, E*Trade, Merrill Lynch, Dean Witter and Smith Barney - rapidly expanded market shares and gained control of almost half the retail trading volumes. In 2003, Schwab's trading volume was equivalent to more than a quarter of the total NASDAQ volume. In India too, this sort of consolidation is well on its way. As stockbrokers are venturing into other territories, other financial service providers are moving into the broking business. The broker-franchiser faces his biggest challenge yet from banks, which can get into broking using their network of branches. The latest breed to wake up to opportunity is the PSU bank. Banking houses like ICICI, HDFC and Kotak have already become entrenched players in this market. It wouldn’t be long before others spot the opportunity. Watch out for more tie-ups, mergers and acquisitions in this industry. The shakeout is just beginning. The Securities and Exchange Board of India (SEBI) has been empowered by an Act of Parliament to protect the rights of investors and ensure the promotion and regulation of the capital markets. It is the regulatory body in charge of the country's capital markets. In every way possible, professionalism has come into the stock  market business. The best stock broking houses (such as Brisk Capital Market Services, New Delhi and SSKI, Bombay) have already redefined themselves and have introduced the compilation of a database to identify avenues for investments in industries. Some of the Indian finance service companies have already made some progress in setting up equity research for identifying growth scripts for portfolio investment and have taken up stock broking earnestly. The best firms today provide a blend of three functions: pre- sales, sales and after-sales. In this charged, vibrant and challenging atmosphere, work many specialists economists, accountants, financial analysts, industry specialists, financial specialists and so on. INDIA'S COMPETITIVE ADVANTAGES All this interest from global players is due to several inherent advantages that India offers apart from its large size and a consumer base lager than several European countries put together. 1. A stable democratic political system and an institutionalized legal and regulatory framework. 2. A wide and diversified industrial base with a long and successful tradition of  business and industry. 3. A strong banking and financial network with necessary regulatory institutionsOver 60,000 bank branches, 2 national and 20 regional stock exchanges with over 9000 listings. 4. A strong Private sector (Accounting for over 75% of GDP). 5. A large pool of highly skilled and English speaking manpower across all branches of humanities, science and technology. 6. A wide agricultural base with self-sufficiency in food production. COMPANY ANALYSIS 1. CAPITAL STRUCTURE OF THE ORGANIZAION 2. FINANCIAL POSITION OF THE ORGANIZATION 3. FUNDS FLOW STATEMENT 4. CASH FLOW STATEMENT 5. RATIO ANALYSIS SWOT ANALYSIS STRENGTHS • Online Trading Facility • Largest Chain of Retail Share Shops in India • 80 years of Experience in securities market • Dedicated and responsive workforce/staff  • Value added service for HNI client • Research Center • Membership of NSE & BSE • Trading option like Future & Option and Commodities • Volume based differentiated product. WEAKNESSES Less informative website • • Does not have slab rate brokerage which is provided by competitors • Problems due to network crash • Unawareness Among Investors OPPORTUNITIES • Collaboration with international financial institution • To tap the Untapped market • To Capture the market lost to its Competitors. • To focus on developing a superior and powerful portal • To spread awareness of its Brand Name. THREATS • Follow government laws • Severe Competition • Competitors develops • Prolonged depression and high volatility in the market • New Entrants. COMPETITIVE POSITION IN THE INDUSTRY Comparative Charges COMPAN Y SERVICE Sharek han UTI ICICI INDIA INFOLI NE ANAN DRAT HI KOTA K HDFC S Cash BTST Spot Futures Options IPO's Online On-line Contract Notes Bills and Statements Commodit y DP Transactio n Charges A/c Opening Brokerage Brokerage Slabs Delivery Charges Min Brokerage Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes NO Yes Yes Yes Yes no No yes yes Yes Yes No yes yes Yes No No yes yes Yes Yes Yes Yes yes yes yes Yes Yes Yes NO No No No Yes Yes Yes Yes Yes No No Yes Yes Yes NO No No No No ACTUA L Yes 0/500/75 499 /749 0  / 1499 <25 lakh = 0.50% 25-50 lakh =0.40% 50 lakh 1Cr=0.3 5% 1Cr 2Cr = 0.30% Included in the brokerag e 750 YES <10 lakh =0.40% 10-20 lakh = 0.35% YES <10 lakh =0.75% 10-25 lakh =0.70% 20- 50 lakh = 0.30% 50lakh2Cr =0.25% > 2 Cr = 0.20% >2cr = 0.15% 20- 50 lakh =0.55% 50lakh1Cr=0.4 5% 2Cr5Cr = 0.25% - Rs 15 Rs 25 No 0.02% of  RS. 999 transacti LIFETI on / rs. ME 500 for FREE HNI 750/100 500 0 0.50% - 500 NO YES 0.50% flat < 1lakh = 0.59% 1-5 lakh =0.55% Rs 20 5 - 10 lakh = 0.45% 10 - 20 lakh = 0.36% 20 - 60 lakh = 0.27% 60 lakh - 2 Cr = 0.23% > 2 Cr = 0.18% NO <25 lakh =0.50% 25-40 lakh =0.45% 40 -75 lakh = 0.40% Above 2Cr = 0.25% Rs 20 Square Off  - Call N Trade FREE - - RS. 25 AFTER 20CAL LS NIL 0.10% NIL 0.10% nil GATE WAY20 VALUE 15 RESEARCH REPORT A. PROBLEM STATEMENT “Market Behavior Towards Investment of Equity” B. RESEARCH OBJECTIVES To know the portfolio of an individual. It indicates the investment scenario going on in different segment e.g. Equity, Mutual funds, Postal Savings, and Insurance. C. TYPES OF RESEARCH a. EXPLORATORY b. DESCRIPTIVE D. SOURCES OF DATA a. PRIMARY b. SECONDARY E. DATA COLLECTION a. SAMPLING PLAN i. SAMPLING PROCEDURE ii. SAMPLING UNIT iii. SAMPLE SIZE The sample size of research was 100. b. RESEARCH INSTRUMENTS i. QUESTIONNAIRE: I used questionnaire for my project regarding investment in equity. ii. OBSERVATION iii. SCHEDULE Mode of contact c. i. Personal interviews. F. DATA PROCESSING AND ANALYSIS a. CLASIFICATION, TABULATION b. UNIVARIATE, BIVAIATE AND MULTIVARIATE c. ANANLYSIS d. FINDINGS QUESIONNAIRE I have prepared questionnaire and taking personal interviews of customers to get information for my project regarding Stock Market. 1. Is there any savings at the end of the month? Yes No 2. Where do you save/invest your money? • • • • • • • Post and Savings PPF Mutual Funds Pure Gold Stock Market Real Estate Insurance 3. Have you got high returns/profit from it? Yes No 4. Are you aware about the working of the Share and Stock Market? Yes No 5. Are you aware about Sharekhan Securities? Yes No 6. Do you have your Demat A/C? Yes No 7. Which type of a/c do you have? Offline Online 8. Which type of trading do you do? Intraday Delivery-based 9. How much are you satisfied with the services provided by Trading Member? Satisfied Highly Satisfied Avg. satisfied 10. At which position would you like to put Sharekhan Securities in the market (on the basis of its services) 1 2 3 4 5 11. Have you ever heard any complaints regarding Sharekhan Securities? Or its services? Yes No 12. According to you, how Sharekhan Securities does differs from the other share Broking firms? _________________________________ __________________________________ 13. Suggestions, if any __________________________________ __________________________________ 14. Name: ___________________ 15. Address:__________________ 16. Age: ____ RESULTS AND FINDINGS In the results I can say that many people in the Bardoli region are interested in opening of Offline account rather then opening of online account. India is basically an agricultural country where 70% of people rely on agriculture but though the growing world and increasing markets and penetration of them in the commercial and financial markets gave birth to the share market. Before this period the industries which required more and huge investments were tend to put out there shares as IPO to the general public and the invests were brought into the business there after. Due to this it gave again birth to the trading of shares where the people having shares would sell their shares to the ones who required it for this a particular space was allotted to them and it was called the share market. Then the GDP and the NNP were also been calculated on the basis of Stocks and shares. This made it more interesting and also attracted more investors to the share market and due to this it gave birth to those firms, which played the role of mediator between the investor and the share holding company and also gave the space and all the necessary requirements, which were needed to the share-trading event. Graphical Presentation Type of Trading Offline 65% Online Offline Online 35% On the basis of Type of Trading: • • • Most of the clients preferred Offline Trading 35%- Online Trading 65%- Offline Trading Level of Satisfaction 70% 60% 50% 40% Paercentage 30% 20% 10% 0% Satisfied Highly Sati. Avg. Sati. Sati. Level On the basis of Satisfaction Level: • • • Around 70% of the clients are Highly Satisfied. Around 19% of the clients are satisfied. Around 11% of the clients are average satisfied. T yp e o f Tr a n s a c t i o n 45% Intraday DeliveryBased 55% On the basis of Type of Transaction: • • Delivery-based- 55% Intraday- 45% Vi e w o f Cu s t o m e r s fo r S e r v i ce 50 1 40 Percentage 2 30 3 20 4 5 10 0 Ranking On the basis of Ranking for Services of Sharekhan: • • • • • st Rank 1 – 48% Rank 2nd – 33% rd Rank 3 – 10% th Rank 4 – 05 % th Rank 5 – 04% RECOMMENDATIONS 1) It should be like that young executives should be given chance to sit at office and the experience candidates are to be send into the market to sale the demat accounts. So that they can make used of their experience and can bring new business easily. 2) The targeted clients should be qualitative rather then the Quantitative one. 3) The strategies of the Tele-calling should be changed according to the Indian culture. OBSEVATIONS SUGGESIONS / RECOMMENDATIONS Following are the recommendation, which helps to the Investors, Brokers and SEBI. Investors  Long term Investors should not invest into panic market, which led investors to erode their wealth.  Long-term investors should go for frontline stocks, which helps to keep their income regular and steady.  Investors should take into consideration various things before investing into scripts such as: 1. Long term growth prospect in company 2. Financial positions of company 3. Liquidity position 4. Dividend policy 5. Past performance of company Brokers  Brokers should separate their portfolio from High Net worth Individuals (HNI).  Brokers should not exceed their trading limit in terms of upper and lower limit.  Brokers should not go for margin trading which results into defalcation to the investors. Brokers should go for margin trading where HNIs are major clients because of  reputation working with them to some extent. STRATEGIES: To achieve a goal successfully, one needs to sketch a perfect roadmap or adopt a strategy to the destination and also need to follow the path strictly. The strategies applied to achieve the above-mentioned targets are as follows:   Door-to-Door selling. Tele-calling.  Canopy  Through friends, relatives and the references given by the Company. In OJT I have to learn the different methods of convincing people to open up Demat Account by the company. In India We all are known that we are investing our money in the market where we are not getting sufficient return on our money because we don’t know how we will get more return. After Joining Sharekhan I come to know how we can get more return and secured our life. Now I will suggest my customer that to purchase company’s products which will gives you investment plan where you will get higher return on your investment. LIMITATIONS 1. I was facing many problems like Customers were asking me why we should invest our Money in Share Market when I was trying to sell them Demat Accounts. 2. When I had conducted one survey of the Customers that why they don’t want to invest their money in the equity market then I come to know that they are Scared of getting their money in loss. 3. I had also faced one surprising problem is that because of barred market from last 20 days or so, the customers are not ready to listen a single word for also opening up of the demat accounts of the company. 4. Sometimes we cannot clarify the doubts of customers satisfactorily 5. The customers are not ready to invest their money in share market frequent fluctuations. 6. Some customers find the charges are higher of India Infoline. because of  BIBLIOGRAPHY  www.google.com  www.businesschambers.com  www.best4sites.com  www.sharekhan.com BIBLIOGRAPHY/ REFERENCES  Magazines 1. Business week  2. Frontline 3. Business world  News papers 1. 2. 3. 4. 5. Business standard Business line Financial express Economic times Times of India  Websites 1. www.capitalmarket.com 2. www.wikipedia.org 3. www.google.com 4. www.yahoo.com 5. www.moneycontrol.com 6. www.yahoofinance.com 7. www.indiaseekingalpha.com 8. www.webindia.com 9. www.nseindia.com 10. www.bseindia.com 11. www.sebi.org CONCLUSION In the Conclusion, I would like to say that I have successfully completed 6 weeks of  SIP in Sharekhan Limited. I have also found that most of the people in the market are confused for whether to open up Demat Account or to invest their money in any other Investment Schemes. In the market I have observed that people are required to get Convince more and more to the extent of their satisfaction. India has been witness to a four-year up and down cycle in the stock markets. Since 1992, the Indian markets have peaked every fourth year and then dropped 35-45% during the next three years. What is surprising though is that the Dalal Street has bucked the trend this time around. To give some background, the markets peaked in 1992 with Big Bull Harshad Mehta as a key operator. Incidentally, Man Mohan Singh, who was finance minister, then, had liberalized the capital market for easier entry of foreign institutional investors. After the scam broke out, the markets plunged and it took over three years till 1996 for the market to touch another lifetime high. After this, the markets dropped again significantly, before we saw the technology boom of 2000, which swept markets across the globe. The technology bubble burst and the crash followed. Since the Black Monday crash, the markets have only seen a sustained upswing. But for one major correction in October 2005, when the Sensex dropped about 1,200 points, the market has only risen, except for occasional blips. Many thought the fouryear cycle was in play in October 2005, but were proven wrong. The markets gained steam; despite finance minister P Chidambaram himself saying he would be worried if  the market touched 8,000. The markets touched 8k, crossed 10k and are close to 14k  now. Major factors, which have contributed to fall & rise of SENSEX & NIFTY, are as follows1. US economic growth 2. Crude oil prices 3. Emerging market valuations 4. Foreign direct investment (FDI) 5. Capital spending 6. Equity supply 7. Government policy toward foreign firms 8. Politics 9. Domestic risk  10. Foreign institutional investors (FII) withdrawals 11. US Fed interest rates 12. Indian industry growth 13. Budget and finance bill 14. Tax circular regarding transaction tax to FII. 15. Inflation data Predictions for next 6 to 12 months • • • • • • • • • • Outstanding financial performance is anticipated from cement, IT sectors. Quarters 1 result is expected to be strong. Rising interest rates and raw material prices will slow down earning’s growth Progress of monsoon, a well-distributed rainfall will boost agro growth, which in turn will help sustain the economic growth momentum. Strong manufacturing output growth may be there Sensex may trade between 13000-17000 levels. It will take cues from global and Asian markets. Rising crude oil may erode oil companies. Steel sectors may emerge as profitable sector for investment FMCG sectors will be most benefited with in few months, which may lead stock markets up. Capital goods industry may be benefited due to high future demand of  machinery and construction equipment demand from real estate sector. FII may erode market capitalization due to high expectations of global interest rates.