Transcript
A SUMMER INTERNSHIP PROJECT REPORT ON “INVESTORS PREFERENCE ON DEMAT AT MARWADI” MARWADI SHARES & FINANCE LTD
PREPARED BY VERONICA .K. VAGHELA M.B.A SEMESTER III
Academic year 2010-2011 Roll No : 43
Enrollment No : 107730592027
SHRI SUNSHINE EDUCATION TRUST DEPARTMENT OF MANAGEMENT
(Shri Sunshine Education Trust, Rajkot)
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(Shri Sunshine Education Trust, Rajkot)
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CONTENTS Topics
Declaration Preface Acknowledgement 1. Industry Overview 2. Company Overview 3. RESEARCH TOPIC 4. RESEARCH PROBLEM 5. RESEARCH OBJECTIVES 6. HYPOTHESIS/HYPOTHESES 7. RESEARCH METHODOLOGY 8. DATA ANALYSIS & INTERPRETATION 9. STATISTICAL ANALYSIS/HYPOTHESIS TESTING 10. RECOMMENDATION & SUGGESTIONS 11. RESEARCH FINDINGS & CONCLUSION 12. LIMITATIONS OF THE STUDY 13. IMPLICATION OF THE STUDY 14. SCOPE FOR THE FUTURE STUDY 15. BIBLIOGRAPHY/REFERENCES
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DECLARATION I undersigned Ms.Veronica .K. Vaghela student of Department of Management, IIIrd Semester hereby declare that the report for “ Summer Training Project” entitled from 1st June, 2011 to 15 July, 2011 is my own work and has been carried out under the guidance of Prof Khushbu Dave of DEPARTMENT OF MANAGEMENT, SHRI SUNSHINE EDUCATION TRUST, Rajkot (INGujarat).
This has not been submitted to any other university for securing in any examination [Veronica .K. Vaghela]
Veronica .K. Vaghela
Place : Rajkot Date :
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PREFACE
The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about share market. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me.
The research provides an opportunity to the student to devote their skills knowledge and competencies required during the technical session.
The research is on the topic “ Investors preference on demat account of marwadi shares and finance ltd”.
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Acknowledgement It was a great opportunity for me to work with Marwadi shares & Finance Ltd., pioneers in the field of Finance Industry. I am extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I would like to thank our college Guide Ms.Khushbu Dave , who has been a constant source of inspiration for me during the completion of this project. He gave me invaluable inputs during my endeavor to complete this project I am also extremely grateful to Mr. Mihir Bhimani, Training Manager, who have given me this opportunity to work with him and gain valuable insights. I am indebted to all staff of Marwadi Shares & Finance Ltd for their valuable support and cooperation during the entire tenure of this project. Not to forget, all those who have kept my spirits surging and helped delivering my best
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EXECUTIVE SUMMARY
Training and development is the essential job of human resources department of every organization. It is necessary to help employees in dealing with the changes caused by the changing business environment.
The training design included departments, and their training needs, month of training, sequence of training and methods of training. A proper matrix was formed differently for each level highlighting the requirements to be trained.
It also includes different skills workshop including the contents, objectives of the skills imparted to the employees. Most important in training process are the ice breakers and games which help the trainees in feeling relaxed and refreshed.
Each level in organization was considered as separate entity and training procedure for them was also different.
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General Information & Company Profile :
Marwadi Group is a widely renowned financial services group in Saurashtra.
It had its genesis in the year 1992 with the incorporation of Marwadi Shares & Finance Pvt. Ltd. (MSFPL).
In the year 1996, it became a corporate member of National Stock Exchange of India Ltd. (popularly known as NSE), which was then an untested platform for securities trading. MSFPL‟s perspicacity had it that in future this new
platform – which was highly leveraged on technology – would be the main liquidity purveyor in securities business. Marwadi Group‟s Vision now stands
proven with NSE now at the commanding heights of Indian securities market.
Marwadi Group has built up customer trust and reliability, speed of execution, research advice, personalized services through qualitative service and prompt redressal of queries.
Marwadi Group has more than 338000 customers, whose various investment needs Marwadi Group are servicing, indicates their index of customer credibility. The company has always been driven by a desire to create values for its customers by ethical and transparent business practices, reverence for professionalism and implementation of cutting-edge technology.
Marwadi Group is driven by its three founder directors Shri Ketan Marwadi, a Civil Engineer by profession and the major brain behind Marwadi Group, Shri Deven Marwadi an expert at risk management systems and Shri Sandeep Marwadi who is guiding the technology and systems in the Company.
At present 30% of the Company owned by Caledonia Investments plc and the India Capital Growth Fund – highly respected UK listed institutions.
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Marwadi Group has immersed growth with a team of more than 800 dedicated employees serving more than 3117 pin codes, 1,66,000 Broking clients and 1,71,000 DP clients.
With a Network of more than 83 branches and more than 700 Franchisee/Sub-brokers, having above 6247 Concurrent Trading Terminals its turnover on exchange reaches 1.51% and in Retail Segments 3.02%.
A convincing index of its customer loyalty is that nearly 75% of its customers have been with Marwadi Group for many years. Marwadi group strength lies in its team of confident, young, talented, qualified & experienced professionals to carry out different functions under the capable leadership of its management.
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Company Profile NAME OF FIRM :-
Marwadi Shares and Finance Pvt. Ltd.
YEAR OF ESTABLISHMENT :-
1991
ADDRESS:-
Marwadi Shares and Finance Pvt Ltd.,Near Kathiawar Gymkhana, Dr. Radha Krishnan Road.RAJKOT –360 001.
REGISTERED OFFICE: -
12, AvantikaComplex, Secondfloor, LimbdaLane JAMNAGAR.
PHONE NO.:-
(0281) 2481313, 2468131
E-MAIL WEB SITE:-
www.marwadionline.com.
AWARDS AND CERTIFICATE: -
ISO 9002 (For demat services)
FORM OF ORGANISATION :-
Pvt. Ltd.
WEEKLY OFF:-
Sunday
BRANCHES:-
Mumbai, Jamnagar,Junagdh, Bhavnagar,Porbandar Keshod,Manavadar, Gondal,Surendranagar
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History & Development History
Marwadi Shares And Finance Pvt. Ltd. was in corporated in the year 1992. In the year 1996, it became a corporate member of National Stock Exchange of India Ltd. (popularly known as NSE), which was then an untested platform for securities trading. Soon it became a member of SKSE and also started its depository services.
Marwadi Sales and Finance P. Ltd. when acquired membership of National Stock Exchange of India Ltd., it was the time when Govt. had just started liberalization. Capital market being at the base of every thing else was among the first few sectors taken up for liberalization and alignment with global benchmarks. NSE was therefore a result of Government‟s policy to modernize stock market and give our investors a
cost - effective trading and settlement system.
They enter into the stock market coincided with Government's initiative to give a modern Stock exchange. Marwadi had then very presciently felt that this development would change the very structure and content of the market. Then, when Depository system was introduced to automate the settlement system, we became the first Corporate DP in 1998 to bring this concept to investor's doorstep in Saurashtra. Marwadi had very early on seen that the future lay in the ability to network and use technology to its fullest possible extent. Relying on your judgment, we used technology extensively which resulted in efficient client servicing.
It also saw the synergy that lay in providing a bouquet of services under one roof. It is this realization that led us in the year 2003 to go for membership of National Level Commodity Exchanges, which were set
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up as part of Govt's policy to bring commodity market on par with the capital market in terms of integrity and practices.
Development
In the last 15 years Marwadi group has grown into a network of more than 83 branches with an 800+ committed professional people and around 700+ channel partners across India. Marwadi has kept the faith of over 2.99 lakh investors and it's growing.
After establishing supremacy in Gujarat, now expanding nationwide and to fuel growth plans they recently raised capital from UK-based investment companies. Marwadi got 5 th rank in best broking houses also.
Its bold initiatives starting with the journey from capital market up to commodities market has given them synergies in operations, enabling it to pass on the advantage to customers.
As and organization, have
achieved a leader's position by ensuring total satisfaction of customers through world class services.
Utilize ultra modern technology for timely, seamless and accurate data processing. Proactively seek customer‟s feedback in improving upon
our service delivery modes. Promptly respond to customer issues in order to maximize client‟s satisfaction.
Caledonia Investments plc. , and Marwadi Shares and Finance Limited has announced that Caledonia has acquired 19.67% equity stake in Marwadi.
Caledonia is an investment trust listed on the London Stock Exchange with net assets in excess of £1.2 billion.
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Commenting on the investment, Mr. Tim Ingram, Chief Executive of Caledonia, said, “We are very pleased to have made this investment
which we believe will assist Marwadi in realizing the great potential this business has for further growth in India.”
Ketan Marwadi, Chairman of Marwadi, said, “We are delighted to welcome Caledonia as a shareholder. We look forward to a long-term association with them and are confident that with their valuable support, we can realize our vision to make Marwadi one of India‟s leading retail
brokerage house s.”
Ketan Marwadi further states that earlier in the month of December 2006,India Capital Growth Fund Limited, a Guernsey (UK) registered investment Company listed on AIM in London had subscribed for 15.66% stake Equity in Marwadi through its Mauritius subsidiary, ICGU Limited.
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View of manager
We have dedicated research team churning out projection and prediction about micro and macro fundamentals. We at MSFPL, strive to make investments a pleasurable excise for all investors. We at MSFPL are committed to world-class financial services. At last, in order to sharpen our retail focus and for that they are planning out to expand their network a n d i t s long term goal is to become a financi al super market with o u r financial chain-stores, spread throughout the length and breadth of our co untry. We at MSFPL are trying to use wealth to customers or clients‟ maximum advantage
we are committed to delivering value to our clients at the least cost.
The product enhancement in the marketing place has now led to a greater need on the part of all of us. To know the dynamics of market place more than ever before, we, at MSFPL are engaged in that effort.
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A BRIEF HISTORY OF STOCK EXCHANGES:-
Do you know that the world's foremost market place ³New York Stock Exchange´ (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to as far as 125 years when it started as a voluntary non-profit making association. You hear about it any time it reaches a new high or a new low, and you also hear about it daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important. Stocks of public limited companies are bought and sold at a stock exchange. But what really are stock exchanges? Known also as News on the stock market appears in different media every day. The stock market or bourse, a stock exchange is an organized market place for securities(like stocks, bonds, options) featured by the centralization of supply and demand for the transaction of orders by member brokers, for institutional and individual investors. The exchange makes buying and selling easy. For example, you don't have to actually go to a stock exchange, say, BSE - you can contact a broker, who does business with the BSE, and he or she will buy or sell your stock on your behalf. All stock exchanges perform similar functions with respect to the listing, trading, and clearing of securities, differing only in their administrative machinery for handling these functions. Most stock exchanges are auction markets, in which prices are determined by competitive bidding. Trading may occur on a continuous auction basis, may involve brokers buying from and selling to dealers .In certain types of stock or it may be conducted through specialists dealing in a particular stock. But where did it all start? The need for stock exchanges developed out of early trading activities in agricultural and other commodities.
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During the middle Ages, traders found it easier to use credit that required supporting documentation of drafts, notes and bills of exchange. The history of the earliest stock exchange, the French stock exchange, may be traced back to 12th century when transactions occurred in commercial bills of exchange. The first stock exchange in India, Bombay Stock Exchange was established in 1875 as 'The Native Share and Stockbrokers Association' and has evolved over the years into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the Tokyo Stock Exchange, which was founded in 1878. The country's second stock exchange was established in Ahmedabad in 1894,followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19thcentury. From a get together under a 'Neem Tree' way back in the 1830s, the CSE was formally established in May 1908.India's other major stock exchange National Stock Exchange(NSE), promoted by leading financial institutions, was established in April 1993. Over the years, several stock exchanges have been established in the major cities of India. There are now 23 recognized stock exchanges ² Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of the global stock exchanges have become highly efficient, computerized organizations .Computerized networks also made it possible to connect to each other and have fostered the growth of an open, global securities market.
Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. Online Trading is a service offered on the Internet for purchase and sale of shares. In the real world, you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds.
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There are 2 types of online trading service:
1.] Discount brokers and 2.] Full service online broker.
Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other don‟t.
Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher.
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ONLINE TRADING PROCESS :-
The various transactions involved in online trading can be shown from the point of view of the:
Client Broker Stock Exchange.
OBJECTIVE AND SCOPE OF THE PROJECT
To analyze the view of commodity traders.
To make understand the process of future commodity trading in India.
To know the investment pattern of commodity traders and people.
For analyze the trading pattern and investment pattern of commodity traders and government servants, I have taken data from the local area of the Rajkot city.
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Mr. Ketan Marwadi
Managing Director
Mr. Deven Marwadi
Director
Mr. Sandeep Marwadi
Director
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Profile of Marwadi Shares & Finance Ltd.
Marwadi is a Gujarat based financial service group dealing in equities / commodities broking and portfolio management services. Marwadi Shares and Finance Limited is a huge and very reputed organization in the world of securities and finance. The organization enjoys a large market share with highly loyal customers, who in-turn provides a huge business to them.
The company has been famous for its various services in different sectors viz. Cash market, derivatives and commodities.
From a decade, all financial service groups are offering stock -broking and Commodity - broking through NSE, BSE, NCDEX and MCX. Marwadi also offer depository services as DP of NSDL and CDSL
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MSFL’S Philosophy
The Group has its basic philosophy, “YOUR MONEY IN SAFE HANDS”, Which proves the transparency of Marwadi Group in business
Marwadi Group
your money in safe hands 1
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National & International Image
The Marwadi Group has emerged as one of the top 20 stock broking houses in India.
Received Approval from FMC to open commodity business at Chicago, London, Dubai and Singapore.
In the year 2007, raised capital from a UK-based investment companies.
At present 30% of the Company owned by Caledonia Investments plc and the India Capital Growth Fund – highly respected UK listed institutions.
Among BSE‟s top ten volume Drivers in the equity segment during the
year 2007-08.
Ranked 5th leading Brokerage House of India by Dun & Bradstreet
Among BSE‟s top ten Volume drivers in F&O segment in the year 2006-
07.
Ranked 23rd among the most trusted companies of Gujarat by SARA in association with Zee Business.
Among BSE‟s top ten Volume drivers in F&O segment in the year 2006 -
07.
Ranked 23rd among the most trusted companies of Gujarat by SARA in association with Zee Business.
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Mission & Vision
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Management Team
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Management Team
MANAGING DIRECTOR
: Mr. Ketan Marwadi
WHOLE TIME DIRECTORS
: Mr. Deven Marwadi Mr. Sandeep Marwadi
CTO
: Mr. Lakhan Bambhania
SR. VP-Business Dev. & HR
: Mr. Haresh Maniar
VP-Accounts & Finance
: Mr. Sanjay Thakrar
Joint VP – DP
: Mr. Arvind Gamot
Joint VP –System
: Mr. Laxman Sonagara
Joint VP –Compliance
: Mr. Tushit Mangukiya
Joint VP-Finance & Accounts
: Mr.Suresh Vinchhi
Joint VP-Finance & Accounts
: Mr.Jayant Vithlani
ASST. V.P.
: Mr.Bharatbhushan Arora
ASST. V.P.
: Mr. Hasmukh Pipalia
ASST. V.P.
: Mr. Bhargav Pathak
ASST. V.P.
: Mr. Raj Jivrajani
SR. Manager-Admin. /General & HR SR. Manager-Audit & Compliance Asst. Manager-Commodity SR. Manager-DP Front/Back Office
: Mr. Akshay Goswami : Mr. Jatin Vora : Mr. Rushi Vasu : Mr. Rajiv Bhatt
SR. Manager-Branding
: Mr. Mihir Bhimani
SR. Manager-Pay-In-Collection
: Mr. Jayantilal Sardhara
SR. Manager-Operation
: Mr. Hasmukh Pipaliya
SR. Manager-Marketing
: Mr. Manoj Mankad Mr. Digant Patel
SR. Manager-Training
: Mr. Mihir Bhimani
SR. Manager- Risk Management
: Mr. Vinod Rathod
Manager-IPO & MF
: Mrs. Leena Purohit
Manager-I BT
: Mrs. Reena Raval
Asst. Manager-EDP
: Mr. Dushyant Raval
Asst. Manager- MF
: Mr. Parag Changels
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Organization Structure
BOARD OF DIRECTOR
GENERAL MANAGER
DP FRONT
ACCOUNT TRADING
DP BACK
TECHNOLOGY
AUDIT & COMPLIANCE
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SOFTWARE
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Milestones
1992
Became a corporate member of National Stock Exchange of India (NSE)
Marwadi Shares And Finance Pvt. Ltd. was incorporated.
1996
1998
Became a member of Saurashtra Kutch Stock Exchange (SKSE)
Launched Depository services of Depository
1999
Participant under (NSDL)
2000
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Commenced Derivative trading after obtaining registration as Clearing and Trading Member in NSE.
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Became a corporate member of BSE
2004
Launched Depository Services of Depository Participant under CDSL
Launched Portfolio Management Services
2005
2006
MSFPL converted to Public Limited (Marwadi Shares And Finance Limited).
The Company raised private equity from ICGU Limited, a wholly owned subsidiary of India Capital Growth Fund.
2007
Ranked 5th largest stock broking company by D&B
The Company raised further private equity from Caledonia Investments Plc.
2008
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SWOT ANALYSIS
STRENGTHS :
Lies in our ability to network and create a critical mass for any class of product / service. Our huge customer-base of 75,000 or so clients bespeaks this ability to create a critical mass. This customer-base is a handy reservoir for clients for any new service that we may introduce. Our success in commodities broking (Where we have about 1000 clients and about 150 sub-intermediaries) bears ample testimony that our customers are willing takers for the additional services that we have introduced from time to time. Saurashtra no. 1 Security Company. Largest distributor network. Wide range of schemes & investment plane offer. Expertise in funds & portfolio management.
WEAKNESS:
There are some complaints from customer‟s side regarding irregular cus tomer
service in some cases, can‟ t convince their clients about the helpfulness of the services provided by the company.
OPPORTUNITY:
MARWADI can utilize the dominant position it has and optimally use the huge network of its partners and clients. So company can diversify their business in other financial services in Debt Market and Insurance Market.
THREATS:
MARWADI is facing competition with new entrant like Karvey Security and old players like Sharekhan, Motilal Oswal, SKSE, Angle Broking and many new and local players
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Overview of Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, secure and convenient.
In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.
This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.
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Why demat?
The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt public issue allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
Benefits of Demat Account • A safe and convenient way to hold securities; • Immediate transfer of securities; • No stamp duty on transfer of securities; • Elimination of risks associated with physical certificates such as bad
delivery, fake
securities, delays, thefts etc.;
• Reduction in paperwork involved in transfer of securities; • Reduction in transaction cost; • No odd lot problem, even one share can be sold; • Nomination facility; • Change in address recorded with DP gets registered with all
companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; • Transmission of securities is do ne by DP eliminating
Correspondence with companies; • Automatic credit into demat account of shares, arising out of (Shri Sunshine Education Trust, Rajkot)
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Bonus /split /consolidation /merger etc. • Holding investments in equity and debt instruments in a single
account.
Benefit For Investors
Demat account has become a necessity for all categories of investors for the following reasons/ benefits:
• SEBI has made it compulsory for trades in almost all scrip‟s to be
settled in Demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on
• Account of mismatch of signatures, forgery of signatures, fake
Certificates, etc.
• It is a safe and convenient way to hold securities compared to
holding securities in physical form..
• No stamp duty is levied on transfer of securities held in Demat
form.
• Instantaneous transfer of securities enhances liquidity.
• It eliminates delays, thefts, interceptions and subsequent misuse
of certificates.
• Change of name, address, registration of power of attorney,
Deletion of deceased's name, etc. - can be affected across Companies by one single instruction to the DP.
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Points To Remember 1. You may choose your DP based on your evaluation of their reputation, service standards, charges, other conveniences, etc.
2. Open depository account with the same holding pattern as there on Existing physical securities you will need to open separate accounts for every different combination of holding pattern E.g.: If 100 securities of company ABC & 200 securities of company PQR are registered in the name of X as first holder & Y as second holder, one account in name of X as first holder & Y as second holder is sufficient. Whereas, if 100 securities of company ABC are registered in the name of X as first holder & Y as second holder & 200 securities of company PQR are registered in the name of Y as first holder & X as second holder, you will need to open two accounts one in the name of X as first holder & Y as second holder and the second in the name of Y as first holder and X as second holder.
3. Account opening procedure should typically take 2-5 days.
4 .In cases of holdings of a partnership firm, the account should be opened in the name of the partner(s).
5. In case of holdings of a HUF, the account should be opened in the name of the Karta
6 .In case of a minor, the depository account should be opened in the name of the minor and the guardian‟s name should be mentioned. The guardian will
sign as signatory on behalf of the minor. For selling the securities of the minor, a court order should be obtained.
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7. In case of any difficulties, contact your DP.
8 .Only securities admitted by NSDL can be dematerialized. The list is available with your DP.
9 .Only securities registered in the name of the account holder can be dematerialized.
10. Dematerialization is normally completed within 15 days after the share certificates have reached the issuer/their R&T Agent. Thus it may take you a month from the date you hand over shares, to receive demat credit.
11. Dematerialization would be done only when the issuer / their R&T Agent is
satisfied
of
genuineness
of
securities
&
ownership
status
12. ALL the joint holders sign their DRF
13. The pattern of holding in the DRF should match the pattern of holding on the share certificate & the pattern in which account is opened.
14. Demat requests with name(s) not matching exactly with the name(s) appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, would be processed, provided the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the issuer/ their R & T agent.
15 .If the signature in the DRF does not match with the signature available with the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of demat confirmation, ask for additional documentation (like bank attestation/notarization, etc.) to prove that the certificate belongs to the person whoforwarded the DRF.
16. In case there is any problem in processing the DRF, contact your DP and if he cannot resolve the problem you may contact NSDL. (Shri Sunshine Education Trust, Rajkot)
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Is demat account a must? Dematerialization? Dematerialization, called 'demat‟ in short, is the process by which an investor can get his physical share certificates converted into electronic form maintained in an account with a depository participant. You can dematerialize only those share certificates that are already registered in your name and belong to the list of securities admitted for dematerialization at the depositories.
Now a days, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.
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Who is a depository ? The organization responsible for maintaining an investor's securities in the electronic form is called a depository. In other words, a depository can therefore be conceived of as a bank for securities. In India there are two such organizations viz. National Securities Depository Limited and Central Depository Securities Ltd. The depository concept is similar to the banking system with the exception that banks handle funds whereas a depository handles securities of the investors. An investor wishing to utilize the services offered by a depository has to open an account with the depository through a depository participant.
Who is a Depository Participant ? The market intermediary through whom depository services can be availed of by investors is called a Depository Participant (DP). As per SEBI regulations, a DP could be an organization involved in the business of providing financial services like banks, brokers, custodians and financial institutions. This system of using the prevailing distribution channel (mainly constituting DPs) helps the depository to reach a wide cross-section of investors spread across a large geographical area at a minimum cost.
What are the advantages of depository services ? Trading in the demat segment completely eliminates the risk of bad deliveries. In the case of transfer of electronic shares, you save 0.5% in stamp duty. It also avoids the cost of courier and notarization simultaneously obviating the need for further followup with your broker for shares returned for company objection. There is no loss of certificates in transit and it saves substantial expenses involved in obtaining duplicate certificates, as and when the original share certificates become mutilated or are misplaced. It increases liquidity of securities due to immediate transfer and reduces registration in brokerage for trading in dematerialized shares. Also, the investor receives bonuses and rights into the depository account as direct credit, thus eliminating the risk of loss in transit.
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Steps involved in opening a demat account
First an investor has to approach a DP and fill up an account opening form.
The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006.
All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature.
Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number).
The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.
Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects.
In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.
(Shri Sunshine Education Trust, Rajkot)
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(Shri Sunshine Education Trust, Rajkot)
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Rights 1. You can open more than one depository account in the same name with single DP/ multiple DPs.
2. No minimum balance is required to be maintained in a depository account.
3. You can give a onetime standing instruction to your DP to receive all the credits coming to your depository account automatically.
Procedure
1. Fill account opening form (available with your DP).
2. Give your DP the duly filled account opening form with introduction documents as may be required.
3. Sign agreement with DP (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of your DP. Your DP would give you a copy of this signed agreement for your record.
4. DP would give you Client Id no. (Account no.) Once your depository account is opened. This Client Id no. along with your DP Id no. Forms a unique combination. Both these nos. should be quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar & transfer (R&T) agent.
5. Your DP would give you pre-printed instruction slips for depository services viz., dematerialization, delivery instruction for trades, etc..Preserve these carefully.
6. Your DP would give you a list of deadlines for giving instructions for various depository activities viz., transfer for effecting sale, purchase etc.. If not, check with the DP. (Shri Sunshine Education Trust, Rajkot)
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Required Documents
The extent of documentation required to open a demat Account may vary according to your relationship with the institution. If you plan to open a demat account with a bank, a savings account holder has an edge over the nonaccount holder. In fact, banks usually offer additional incentives to customers who open a demat account with them.
Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-judicial stamp paper. Here is a broad list (you won‟t need all of them though):
Documentary Requirements ----- Demat Account For Individual Client
(A) Proof of Identity
PAN Card (Compulsory) – account will be opened as per PAN name Passport Voter ID card Driving license MAPIN card Identity card/document with applicant‟s Photo, issued by
a. b.
Central/State Government and its Departments, Statutory/Regulatory Authorities,
(Shri Sunshine Education Trust, Rajkot)
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c.
Public Sector Undertakings,
d.
Scheduled Commercial Banks,
e.
Public Financial Institutions,
f.
Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is a student),
g.
Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members;
h.
Credit cards/Debit cards issued by Banks.
(B) Proof of Address
Ration card Passport Voter ID card Driving license Bank passbook / Bank Statement Verified copies of a.
Electricity bills (not more than two months old),
b.
Residence Telephone bills (not more than two months old) and
c.
Leave and License agreement / Agreement for sale. i)
Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts.
ii)
Identity card/document with address, issued by a.
Central/State Government and its Departments,
(Shri Sunshine Education Trust, Rajkot)
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b.
Statutory/Regulatory Authorities,
c.
Public Sector Undertakings,
d.
Scheduled Commercial Banks,
e.
Public Financial Institutions,
f.
Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is a student)
g.
Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members.
(Shri Sunshine Education Trust, Rajkot)
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1Know Your Client Related Activities (KYC Department)
KYC At A GLANCE 1. Pre Audit of KYC forms 2. Account Opening 3. Post Audit 4. Documentary Requirements ----- Trading Account 5. Stamping Requirement for Trading Account 6. Verification of Signature of Client 7. Execution of Agreement 8. Verification of PAN 9. Separate Proof 10. Pre-Requisite Before Starting Trading 11. Contact Details 12. Documentary Requirements ----- Demat Account 13. Stamping Requirement for Demat Account 14. Contact Details for Demat Segment 15. Trading KYC entry on marwadionline.com
(Shri Sunshine Education Trust, Rajkot)
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Pre-Audit of Account Opening Forms, inter alia verification of completeness of the Forms with respect to its Proofs, Signatures, Bank & DP details and Agreements etc.
1. Opening/Releasing of Client Account for trading in Capital, Commodity and Currency Derivative Market and Allotment of Unique Client Code and forwarding the same for mapping thereto.
2. DP Account Opening activation takes place in DP Back Office Department.
3 Post Audit of Forms with the Entry made in the System Documentary Requirements ----- Trading Account
Notes:
@ Proprietary account is treated as Individual account. A proof in
the name of
proprietor is to be submitted.
@ Proprietor of the proprietary firm cannot open trading account once account in the name of proprietorship firm is opened.
@ As per recent circulars following, details are compulsory - Phone no. with STD codes or Mobile no. - Date of Birth or date of incorporation - In person verification - For Partnership Firm, HUF, Public & Private Company, Trust, Societies at list one contact details are required * Contact Person‟s Name, Designation, Address, contact
Number.
(Shri Sunshine Education Trust, Rajkot)
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For Individual NRI Client
Copy of PAN card is compulsory
Copy of complete passport (date of expiry should be beyond 6 months)
Copy of address proof of residence in India and abroad
POA in favor of person resident in India
Copy of PAN card of POA holder
Copy of Address proof of POA holder
RBI permission/PIS Account proof
PAN Card copy in the name of HUF
Address Proof in the name of HUF
Bank A/c Proof in the name of HUF
Demat A/c Proof in the name of HUF
ID Proof in the name of Karta (preferably PAN)
Address Proof in the name of Karta
List of family members in HUF
For HUF:
For Partnership Firm:
PAN Card copy in the name of Firm
Photo ID proof of all partners (preferably PAN)
Certified copy of the partnership deed
Address Proof in the name of the Firm
Address Proof of all the partners
Authorized Partners‟ Demat A/c proof.
Declaration letter signed by all partners (specimen given in KYC)
(Shri Sunshine Education Trust, Rajkot)
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For Company:
Copy of PAN card in the name of Company
Address proof in the name of Company
Demat A/c proof in the name of Company
Bank A/c proof in the name of Company
Certified copy of Memorandum and Articles of Association of the Company
Certified copy of last 2 years Annual Report
Certified copy of last 2 years IT return
Certified List of present directors
Certified List of present shareholding pattern
Copy of photo id proof of all present directors (preferably PAN)
Copy of Address proof of all directors Certified copy of Board Resolution for
5
opening Trading Account (specimen given in KYC)
Stamping Requirement for Trading Account
On the Cover Page of the KYC Form, the details in the following stamp must be filled in completely and correctly by Employee of the MSFL only
(Shri Sunshine Education Trust, Rajkot)
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All the proofs must be stamped and signed as under:
For Branch Office:
VERIFIED WITH ORIGINAL
Sign: ______________________ ___________________________________ _____________
MARWADI SHARES AND FINANCE LTD.
For Sub-brokers:
VERIFIED WITH ORIGINAL Sign: ________________________ ____________________________________ ____________
7
Execution of Agreement Agreement Franking charges of Rs. 100/- per Exchange are charged to Client.
(Shri Sunshine Education Trust, Rajkot)
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8
Verification of PAN
As per SEBI guideline, PAN card of the client needs to t o be checked on the Income Tax site.
9
Separate Proof
In case of client opening DP and Trading Account simultaneously, provide separate proofs for both the accounts.
10
Pre-Requisite Before Starting Trading
As per SEBI circular an UCC (Unique Client Code) detail needs to be uploaded to the respective exchanges before start trading, otherwise penalty of Rs. 1000/- per day is charged.
After UCC details is uploaded to the Exchange successfully, trading code will be mapped in the ODIN ID to commence trade
Notes: 1)
All the joint account holders has to submit proof of
identity
(preferably PAN) and proof of address 2)
If the client is specifying a correspondence correspondence address which is different from the permanent permanent address, a proof for such such address is also required to be submitted.
(Shri Sunshine Education Trust, Rajkot)
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For Minor
PAN card of minor.
Birth date certificate.
Proof of address and identity of guardian.
One passport size photograph of the th e minor and guardian.
Guardian to sign across photograph of the minor.
Account shall be opened in the name of Karta only.
PAN card of HUF
Address and identity proof (preferably PAN) of Karta. (in
For HUF
accordance with
point „A‟ referred above)
Karta should sign the account opening form under the stamp of HUF.
For Corporate Entity
PAN card of the corporate entity.
Certified true copy of the resolution authorizing opening and operating of the account.
Memorandum and Articles of Association.
One passport size photograph of each authorized signatories.
Introduction by an existing account holder or by the applicant's bank
Address proof of the corporate entity.
Passport copy all pages
PAN
NRE Bank account details in case of NRI – Repatriable account
NRO Bank account details in case of NRO – Non Repatriable
For NRIs
account
Foreign address proof
If local address is provided and proof of local address
(Shri Sunshine Education Trust, Rajkot)
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RBI permission
POA if any
For FIIs and OCBs
PAN of FII/OCB
Copy of certificate of registration from SEBI.
In case of FII, RBI registration.
Certified true copy of the resolution authorizing opening and operating of the account.
Memorandum and Articles of Association.
Introduction by an existing account holder or by the applicant's bank
One passport size photograph of each authorized signatories.
Address proof of the corporate entity.
PAN card details of the society.
Copy
For Societies
of
certificate
of
registration
under
the
Societies
Registration Act, 1980.
List of managing committee members.
Certified true copy of the resolution authorizing opening and operating of the account.
Memorandum and Articles of Association.
Introduction by an existing account holder or by the applicant's bank
One passport size photograph of each authorized signatories.
PAN card details of trust.
Trust deed and rules, if any.
List of Members on the board of trustees.
Certificate of registration of trust under the societies registration
For Trust
act/public trust act.
Certified true copy of the resolution authorizing opening and operating of the account.
(Shri Sunshine Education Trust, Rajkot)
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Names of authorized signatories, designations and specimen signatures.
One passport size photograph of all authorized signatories.
Stamping Requirement for Demat Account
Front page ALL THE ACCOUNT OPENING FORMS must be stamped
with
the
following details:
All the Client Signature must be taken on the stamp
ALL THE PROOFS must be stamped with the following details:
(Shri Sunshine Education Trust, Rajkot)
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Contact Details for Demat Segment
Activity
Employee Name
Contact No.
E-Mail
Pre-Audit of DP Account
Chetan Vaghela
0281-3011127
[email protected]
Vimal Dave
Cell 99798 62137
et
Form
Trading KYC online entry on marwadionline.com marwadionline.com
->BackOffice -> security broking broking -> kyc form
(Shri Sunshine Education Trust, Rajkot)
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Products & Services offers: Equity & Derivatives:
Can look for an easy and convenient way to invest in equity and take positions in the futures and options market using their research and tools. To start trading in Equity, all you need to do is open an online trading account. You can call them and they will have their representative meet you. You can get help opening the account and get guidance on how to trade in Equity.
Commodity:
You can enter the whole new world of commodity futures. Investors looking for a fast-paced dynamic market with excellent liquidity can NOW trade in Commodity Futures Market. The Commodity Exchange is a Public Market forum and anyone can play in these vital Commodity Markets. Marwadi Commodity Broker (P) Ltd can certainly be your point of entry to the Commodity Markets. Marwadi is a registered trading-cum-clearing member of NCDEX and MCX.
Internet Trading:
Making the right trade at the right time! E-Broking service, which brings you experience of online buying and selling of shares with just a click.
A detail resource like live quotes, charts, research
and advice helps you take proper decisions. Their robust risk management system and 128 bit encryption gives you a complete security about money, shares, and transaction documents.
(Shri Sunshine Education Trust, Rajkot)
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IPO:
An active player in the primary market with waste customer base and reaching
distribution
lands. Then
breathe
network
spread through
Saurashtra peninsula.
out the
Marwadi
offer
bidding for all booked bills IPOs being floated through NSE network. Marwadi offer services to customer such as advises on the minimum lot to applied in case of refer and details and data to be furnished into IPO form. Marwadi scripts even fill up the form for related clients. Marwadi offer bidding services at all major location in Saurashtra and Kutch there by enabled the interline investors to subscribes qualitative IPOs.
Mutual Funds:
Transact in a wide range of Mutual Funds. Mutual Funds are an attractive means of saving taxes and diversifying your investment portfolio. So if you are looking to invest in mutual funds, Marwadi offers you a host of mutual fund choices under one roof; backed by in-depth. information and research to help you invest smartly.
(Shri Sunshine Education Trust, Rajkot)
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HYPOTHESIS TESTING
Step - 1
H0- People like to convert their share electronically Ha – People do not like to convert their share electronically
Step - 2 Here chi- square test is used to test the hypothesis. 2 = (fo-fe) 2/fe Step – 3 The appropriative type 1 error rate is 0.05 Step – 4
(Shri Sunshine Education Trust, Rajkot)
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Step – 5 Gather the data Fo
Fe
(fo-fe)2/fe
51
51.04
0.0000313
37
36.96
0.00145
7
6.96
0.000043
5
5.04
0.00032
Step – 6 Null hypothesis is accepted. People like to convert their share electronically.
(Shri Sunshine Education Trust, Rajkot)
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RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY :-
The objective of my Project is to gain knowledge about how an organization works and in particular setup of a stock broking house.
It includes 4 steps :- 1. Data collection design 2. Sampling design 3. Measurement of data 4. Analysis of data
1. Data collection designSource of primary data is Questionnaire Source of secondary data is Company details, Websites.
2. Sample designProbablistic sampling design is done through Simple random sampling.
3. Measurement of dataCategorical data
4. Analysis of dataSecondary data – SWOT analysis Primary data – Graph, Charts, Hypothesis testing.
(Shri Sunshine Education Trust, Rajkot)
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PRIMARY OBJECTIVES OF THE PROJECT ARE :-
To learn about company routine working
. To learn the marketing techniques that is used to acquire a client.
SECONDARY OBJECTIVE :-
To study the competitors strengths and weaknesses
INTRODUCTION
Research Methodology refers to search of knowledge .one can also define research methodology as a scientific and systematic search for required information on a specific topic.
The word research methodology comes from the word “advance learner „s dictionary meaning of research as a careful investigation or inquiry especially through research for new facts in my branch of knowledge for example some author have define research methodology as systematized effort to gain new knowledge.
TYPE OF RESEARCH
ANALYTICAL RESEARCH:-
It has to used facts or information already available and analyze these to make a critical evaluation of material.
(Shri Sunshine Education Trust, Rajkot)
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METHODS OF DATA COLLECTION
In the project work Primary data secondary data (both)sources of data has been used.
DATA SOURCES:-
PrimaryData,
SecondaryData
Primary data collection:
In dealing with real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that is appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher.
Primary data can be collected either through experiment or through survey.
(Shri Sunshine Education Trust, Rajkot)
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The data collection for this study was done in the following manner:
Through personal interviews:
Rigid procedure was followed and we were seeking answers to many preConceived questions through personal interviews.
Through questionnaire:
Information to find out the investment potential and goal was found out through questionnaires. .
Secondary sources of data:
In the secondary sources of data is used.(Internet , magazine ,books, journals)
Sample size – 100
(Shri Sunshine Education Trust, Rajkot)
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DATA ANALYSIS (1) Gender Ratio Male
Female
88
12
(2) Age 20-30
30-40
Above 40
25
45
30
(3) Occupation
Professionals
6
Businessmen‟s
55
(Shri Sunshine Education Trust, Rajkot)
Employee at
Employee at govt
private sector
sector
11
28
Page 64
Q.1
Are you aware of stock market? a) Yes
b) No
Yes
100%
No
0%
120%
100%
80%
60%
40%
20% 100%
0%
Yes
No
0%
Interpretation Through above study it can be said that all people included in the sample Are aware of stock market.
(Shri Sunshine Education Trust, Rajkot)
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Q.2
Do you deal in share? a) Yes
b) No
Yes
72%
No
28%
80% 70% 60% 50% 40%
72%
30% 20%
28%
10% 0% Yes
No
Interpretation :By asking this question we can know that how many people deal in shares. It is concluded that 72% of them deal in shares and 28% of them do not deal in shares, though all of them are aware of stock market.
(Shri Sunshine Education Trust, Rajkot)
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Q.3
Are you aware of DEMAT? a) Yes
b) No
Yes
94%
No
6%
100%
94%
90% 80% 70% 60% 50% 40% 30% 20% 6%
10% 0% Yes
No
Interpretation – Here more number of people are aware of demat account.
(Shri Sunshine Education Trust, Rajkot)
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Q.4
Duration for which has been investors has been transacting in stock
exchange? a) Less than 1 year
b) 1 year
c) 2 year
d) More than 2 year
Less than 1 year
5%
1 year
8%
2 year
9%
More than 2 year
78%
90% 80%
78%
70% 60% 50% 40% 30% 20% 10%
8%
5%
9%
0% Less than 1 year
1 Year
2Year
More than 2 year
Interpretation:-
After asking about the duration of attachment I know that most of investor is connect with commodity about more than 2 Years but not satisfied change in present figure. So first of all Try to aware investors about demat account.
(Shri Sunshine Education Trust, Rajkot)
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Q.5
Do invest frequently or occasionally? a) Frequently
b) Occasionally
Frequently
20%
Occasionally
80%
Can‟t say/ No answer
15%
15%
20%
65%
Interpretation – 85% of them are investing occasionally it may be because they might be investing where they are giving their service and only 20% of them are investing frequently. And 15% of them did not prefer to answer.
(Shri Sunshine Education Trust, Rajkot)
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Q.6
Which type of script you have? a) Physical
b) Dematerialized
Physical
12%
Dematerialized
88%
90% 80% 70% 60% 50%
88%
40% 30% 20% 10%
12%
0% Physical
Dematerialzed
Interpretation –
There are less number of people having physical script may be due to lack of awareness. And people with dematerialized script are more.
(Shri Sunshine Education Trust, Rajkot)
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.7
Why have you not dematerialized your script? a) Lack of awareness b) Liability of changes
Lack of awareness
85%
Liability of changes
15%
Sales
85%
100%
50% 15% 0% Lack of awareness
Liability of change
Sal
Interpretation :85% of them said that it was lack of awareness about the demat account and 15% of them thought that its liability costs is more.
(Shri Sunshine Education Trust, Rajkot)
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Q.8
Do you like to convert your share electronically? a) Yes
b) No
Yes
58%
No
42%
No
42%
Yes
58% 0%
10%
20%
30%
40%
50%
60%
Interpretation :As per the data majority of the individuals like to convert their share electronically because it is consuming less time and 42% of them do not like it may be due to lack of knowledge.
(Shri Sunshine Education Trust, Rajkot)
Page 72
Q.9 In which securities do you invest? a) Equity
b) Bonds
c) Debenture
d) Can‟t say/No answer
Equity
42%
Bonds
22%
Debenture
30%
Can’t say/No answer
12%
45% 41%
40% 35% 30%
30%
25% 22%
20% 15%
12%
10% 5% 0% Equity
Bonds
Debenture
Can’t say / No answer
Interpretation :-
When ask the people about investment in stock market most of people gave their first preference in Equity and second preference in Debenture and last preference in bonds and 12% of them didn‟t gave any answer.
(Shri Sunshine Education Trust, Rajkot)
Page 73
Q.10 On what basis you have taken your decision of opening demat account? a) Service
b) Convenience
Service
47%
Convenience
53%
60% 50% 40% 30%
53% 43%
20% 10% 0% Service
Convenience
Interpretation:Here 23% of them are those investors who are investing where they are working it may be their jobs and majority of them are investing as per their convenience.
(Shri Sunshine Education Trust, Rajkot)
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Q.11
Are you satisfied with your demat service provider? a) Yes
b) No
Yes
100%
No
0%
100% 90% 80% 70% 60% 50%
100%
40% 30% 20% 10% 0%
0% Yes
No
(Shri Sunshine Education Trust, Rajkot)
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Q.12
What problems do you centrally face when you trade in securities? a) Non transfer of shares b) No problem
Non transfer of shares
23%
No problem
57%
Can‟t say/No answer
20%
57%
60% 50% 40% 23%
30%
20%
20% 10% 0% Non transfer No problem of shares
Can't say/No answer
Interpretation :-
Here 23% of them face the problem of non transfer of shares and majority of them do not face any problem, And 20% of them did not prefer to give answer.
(Shri Sunshine Education Trust, Rajkot)
Page 76
Q.13
Which exchange do you prefer to deal with? a) Nse
b) Bse
Nse
46%
Bse
54%
60%
50%
40%
30% 54% 46% 20%
10%
0%
0 Nse
Bse
Interpretation :When asked to individual about the exchange, majority of them prefer Bse i.e.,54% and 46% of them invest in Nse.
(Shri Sunshine Education Trust, Rajkot)
Page 77
Q.14
How do you view yourself? a) Arbitrage
b) Hazel
c) Short term investor
Arbitrage
21%
Hazel
36%
Short term investor
40%
40%
36%
40%
35% 30% 25%
21%
20% 15% 10% 5% 0% Arbitrage
hegel Speculator
Interpretation :After getting response from respondent It can see that most of investor view their selves as “Short Term Investor” and also some view their selves as “Hazel” and there are very few they view themselves as “Arbitrage” .
(Shri Sunshine Education Trust, Rajkot)
Page 78
Q.15
In which company you would like to deal? a) Marwadi c) India Bulls
b) Kotak street (online) d) Motilal Oswal
e) ICICI direct.com Others Specify __________ Marwadi
22%
India bulls
6%
Motilal oswal
4%
ICICIDirect.com
6%
Others
60%
Kotak street online
2%
Sales 22% 2%
Marwadi Kotak street online
6%
India bulls
60%
Motilal oswal
6% 4%
ICICIDirect.com Others
Interpretation :As per the above data share of marwadi is 22% while others like kotak, India bulls,oswal, icici direct.while others include HDFC, Angel broking are having 60%.
(Shri Sunshine Education Trust, Rajkot)
Page 79
RECOMMENDATIONS
Company should more focus on the promotion of its online offering. 1. Company should find out its existing customer, who are doing offline trades and make them aware about the ease and benefits of online trade, and trained them if required. 2. Company has to provide online trading software at the minimum or free charges. 3. Online trading should provide online a/c. to every customer with trading & DMAT account. 4. Company has to facilitate its online services with solid research and advices which help the investors to do the various investments.
SUGGESTION 1. The Brand image of Marwadi Ltd. is good in market but according to customer satisfaction the company has to provide the better service. And also change the Market strategy.
2.They should focus on print and electronic media advertisements to make more people aware about them.
3.They should provide proper guidance to their customers about demat.
4. They should provide should offers and facilities to their customers to increase their attractiveness about demat.
5. For opening an account they require lots of signatures in a kit, this should be avoided.
(Shri Sunshine Education Trust, Rajkot)
Page 80
Research Findings & Conclusion
The future of demat is very bright, because of its rapid growth & development and huge acceptance.
People are moving towards demat account than physical script.
More investors are consider demat as a better, but because of lack of knowledge about using it they still stuck to the physical script.
Still there are many people who have do not computer or internet connection or they do not invest through demat account
.
Demat account in near future will become so popular that everyone Should start investing through demat account.
Conclusion
To get initial success in this field is very difficult. Although the business generation becomes easier with time as we serve more people who then get added up in the loyal client age. Thus time and service are two most factors to get in this field.
Also the corporate remains a very important segment which gets business in bulk but retail cannot be ignored which makes your business ticking.
Customer remains in the pivotal position.
(Shri Sunshine Education Trust, Rajkot)
Page 81
LIMITATION
The time constraint was one of the major problems.
The study is limited to the different schemes available Under the Demat account selected.
The lack of information sources for the analysis part. Geographical locations
This survey was restricted to Rajkot city.
The sample size for the survey of people was limited to 100 respondents, which might not be representing the whole country.
The results are totally derived from the respondent‟s answers.
There might be a difference between the actual and projected results.
Research also depends on surveyors‟ bias & his/her ability to analyze
the data & draw conclusion.
The time duration to carry out the survey of all the areas of Rajkot was very short
(Shri Sunshine Education Trust, Rajkot)
Page 82
SIGNIFICANCE OF THE STUDY :-
Every research is conducted to fulfill certain objective and these objectives in turn fulfil some purpose.
I sincerely believe that road to improvement is never- ending and one always learns from a new experience. This project is a step towards gaining knowledge about real world and putting the theory of practice. I shall look forward to and gratefully acknowledge all suggestion on this small step I have taken. The report consists of a step-wise effort towards meeting the objectives of the study. It covers the step-wise collection of data collection and the representation of the data together with the analysis. It also includes some suggestions put forward hoping it would help the company achieve its vision.
(Shri Sunshine Education Trust, Rajkot)
Page 83
LIMITATIONS OF THE PROJECT :Services of competitors:
We cannot give proper comment o n competitor‟s service still we use it. But I try to collect as accurate information as possible. As we all know services are intangible and we cannot predict its quality, it is a thing to feel not to see.
No proper assurance of right information:
The main data sources are websites, telephonic information and offices visit.
The data on websites might be possible, not get updated.
Sometimes, they try to hide information.
Lack of awareness of Stock market :Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPO.
Mostly people comfortable with traditional brokers :As people are doing trading from their respective brokers, they are quite comfortable to trade via phone.
Lack of Techno Savvy people and poor Internet penetration :Since most of the people are quite experienced and also they are not techno savvy. Also Internet penetration is poor in India.
Some respondents are unwilling to talk:Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.
Misleading concepts:Some people think that Shares are too risky and just another name of gamble but they don‟t know it‟s not at all that risky for long investors.
(Shri Sunshine Education Trust, Rajkot)
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SCOPE OF THE STUDY:- These are some of the following scope of the study:1. The present study can be extended to assess the present marketing condition of stock market.
2. The study can be used to design a proper product, price, place & promotional strategy for stock market.
3. From the present study we can know the market share of different by-products and accordingly formulated strategy to enhance it
.4.The result of marketing success of different by-product can be interpreted to assess the rate of employee‟ s satisfaction in that department (marketing).
5.This study can be applied to find out an effective distribution channel to enhance the sale of by-product of MARWADI SHARES & FINANCE LTD. .
(Shri Sunshine Education Trust, Rajkot)
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(Shri Sunshine Education Trust, Rajkot)
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CONCLUSION
Marwadi Demat Account is better than other Demat account. Marwadi shares and finance Ltd. have good return of investment. A good brand is always welcomed over here people are aware of quality so they go for ready to spend bucks of money.
Marwadi shares and finance is still growing industry in India. conclusion
D u r i n g m y p r o j e c t r e p o r t , a l l t h e s t a f f m e m b e r s o f MSFPL found to be goods and co-operative.
Working environment of MSFPL is also good and every executive officer has its own identity in the firm.
MSFPL has clear vision and working system. MSFPL knows what are thei r objective and how will they reach there?
MSFPL is having good research team which constantly in tou ch wi th current market situation and consumers preferences.
MSFPL has advance technologies in the field of finance and they are also using it at its optimum level.
According to me MSFPL will definitely achieve their objectives in near future due to their team spirit and consumer oriented working environment
Hence, I concluded that whatever efforts have been putted by MSFPL is the subject to recommendation and I wish them to achieve their targets in near future.
(Shri Sunshine Education Trust, Rajkot)
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Questionnaire On Investors Preference on DEMAT at MARWADI
Name
:- __________________
Contact Number
:- __________________
Occupation
:- __________________
Age
:- ___________________
Male/Female
:- ____________________
Q.1
Are you aware of stock market? a) Yes
Q.2
Do you deal in share? a) Yes
Q.3
b) No
Are you aware of DEMAT? a) Yes
Q.4
b) No
b) No
Duration for which has been investors has been transacting in stock
exchange? a) Less than 1 year c) 2 year
(Shri Sunshine Education Trust, Rajkot)
b) 1 year d) More than 2 year
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Q.5
Do you trade frequently or occasionally? a) Frequently
b) Occasionally
c) Can‟t say/No answer
Q.6
Which type of script you have? a) Physical
Q.7
b) Dematerialized
Why have you not dematerialized your script? a) Lack of awareness
Q.8
b) Liability of changes
Do you like to convert your share electronically? a) Yes
b) No
Q.9 In which securities do you invest? a) Equity c) Debenture
b) Bonds d) Can‟t say/No answer
Q.10 On what basis you have taken your decision of opening demat account? a) Service Q.11
Are you satisfied with your demat service provider? a) Yes
Q.12
b) Convenience
b) No
What problems do you centrally face when you trade in securities? a) Non transfer of shares b) No problem c) Can‟t say/No answer
(Shri Sunshine Education Trust, Rajkot)
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Q.13
Which exchange do you prefer to deal with? a) Nse
Q.14
b) Bse
How do you view yourself? a) Arbitrage
b) Hazel
c) Short term investor Q.15
In which company you would like to deal? a) Marwadi c) India Bulls
b) Kotak street (online) d) Motilal Oswal
e) ICICI direct.com Others Specify __________
(Shri Sunshine Education Trust, Rajkot)
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