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A STUDY OF INVESTORS OPINION
ABOUT ON LINE TRADING:CASE OF
         M-SOLL LTD.

                             A
                      DISSERTATION
           SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE’S
       OF MASTER OF BUSINESS ADMINISTRATION
                           Of
        Uttrakhand Technical University, Dehradun




Under the guidance of:                    Submitted by:
                                        RANA
RATNAKAR Mrs. INDU GAUTAM
  (Asst. Professor)                     (MBA) MARKETING




       OMKARANANADA INSTITUTE OF MANAGEMENT
                 & TECHNOLOGY

                     RISHIKESH-249201
Batch 2009-2011


                CANDIDATE’S DECLARATION


I hereby certify that work which is being presented in the dissertation report,
entitled “A Study of Investors Opinion About On Line Trading: Case of
M-SOLL Ltd.” for partial fulfillment of the requirement for the award of the
degree of “Master Of Business Administration” in “Finance” Submitted in
Omkarananda Institute Of Management And Technology (OIMT), of
Uttrakhand Technical University is record of my own work, under the
guidance of Mrs. Indu Gautam , Asst. Professor in OIMT, RISHIKESH.


DATE:
                                                           MBA (Finance)


This is to certify that the above statement made by the candidate is
correct to the best of our knowledge.



Dr. ADITYA GAUTAM                                     Mrs. Indu Gautam

Director,                                             Asst. Professor

OIMT, Rishikesh                                       OIMT, Rishikesh




                          RANA RATNAKAR
CONTENTS

1. Acknowledgement

2. Objective of the study

3. Research methodology

4. Company Profile

5. Indian Stock Market Overview

6. About NSE

7. About BSE

8. Indian Scenario

    (a) SWOT
    (b) Hurdles for Online Share Trading

    (c)   Effect of Technology
9. Marketing Strategies of Company

10. Competitive Analysis

      a) 5paisa
      b) Kotakstreet
      c) Indiabulls
      d) ICICI Direct

     e) HDFC Securities

11. Findings of Competitive Analysis

12. Limitations of Competitive Analysis

13. Market Research Analysis

14. Learnings

15. Findings

16. Conclusion

17. Bibliography
18. Annexure
ACKNOWLEDGEMENT
Behind every study there stands a myriad of people whose helps and
contributions make it successful. I would like to express my sincere
gratitude towards Omkarananda Institute of Management and
Technology (OIMT) for having provided me an opportunity to work
and learn through this report.



I am extremely grateful to my project guide Mrs. Indu Gautam,
Assistant Professor, Omkaranada Institute of Management and
Technology, Rishikesh, for guiding me in preparing my dissertation
report a memorable learning experience. Her constant support as well as
the confidence which she showed in me helped me tide over the
difficulties.




                                            RANA RATNAKAR

                                              M.B.A.{MARKETING}
OBJECTIVE OF THE STUDY

It is said that the well defined objective is half attained. In order to
make sure that a proper research has been taken ensures defining
clear cut objectives and outlines is a prerequisite. The research
objectives of the study are:
   • To understand about online trading.
   • To know about the stock market.
   • To know the prevalence of on line trading and its significant
      impacts on the trading patterns of investors, trading volume,
      transaction costs, securities service industry and overall
      market operation.
      The speed and lower transaction costs of online trading
      encouraged investors to trade frequently in pursuit of short
      swing profits making a day trading prevalent on the market.
RESEARCH METHODOLOGY

An exploratory research has been carried out to study the behavior
of customers. To meet the research objective a research formats, to
collect information from the respondents was made & the
information was collected through individual interaction with the
researcher. The data was collected using scientific method as per
the questionnaire sample elements have been chosen by
observation techniques.

Research Design

Research was conducted to know the scope of on line trading, so it
was designed as Analytical.

1.   Sample Design: Data for this study has been collected from
primary sources. For the collection of data CONVENIENCE
SAMPLING has been used.

2.   Sample Size: Sample size for the study was 100 for the
universe of the urban area, Haridwar.

Primary data: Primary data was collected with the help of:

1.   Questionnaire

2.   Personal Interviews
COMPANY PROFILE
M-SOLL is driven by ethical and dynamic process for wealth
creation. Based on this, the company started its endeavor in the
financial market.
M-SOLL enterprises limited (a Ranbaxy promoter group company)
through M-SOLL securities limited, M-SOLL finvest limited, M-SOLL
commodities limited and M-SOLL insurance broking limited provides
integrated financial solutions to its corporate, retail and wealth
management clients. Today, we provide various financial
services which include investment banking, corporate finance,
portfolio management services, equity & commodity broking,
insurance and mutual funds. Plus, there’s a lot more to come
your way.
M-SOLL is proud of being a truly professional financial service
provider managed by a highly skilled team, who have proven track
record in their respective domains. M-SOLL operations are managed
by more than 3000 highly skilled professionals who subscribe to M-
SOLL philosophy and are spread across its country wide branches.
Today, we have a growing network of more than 300 branches and
more than 580 business partners spread across more than 300
cities/towns in India and a fully operational international office at
London.

Unlike a traditional broking firm, M-SOLL group works on the
philosophy of partnering for wealth creation. We not only execute
trades for our clients but also provide them critical and timely
investment advice. The growing list of financial institutions with
which M-SOLL are empanelled as an approved broker is a reflection
of the high level service standard maintained by the company.




M-SOLL Enterprises Limited group comprises of M-SOLL Securities
Limited, M-SOLL Commodities Limited, M-SOLL Finvest Limited and
M-SOLL Insurance Broking Limited which deal in equity, commodity
and financial services business.

M-SOLL SECURITIES LIMITED
RSL is one of the leading broking houses of India and are dealing
into Equity Broking, Depository Services, Portfolio Management
Services, Internet Trading, Institutional Equity Brokerage & Research,
Investment Banking, Merchant Banking and Corporate Finance.
To facilitate free and fare trading process M-SOLL is a member of
major financial institutions like, National Stock Exchange of India,
Bombay Stock Exchange of India, Depository Participant with
National Securities Depository Limited and Central Depository
Services (I) Limited, and a SEBI approved Portfolio Manager.
RSL serves a platform to all segments of investors to avail the
opportunities offered by investing in Indian equities either on their
own or through managed funds in Portfolio Management.
M-SOLL COMMODITIES LIMITED



M-SOLL is a member of NCDEX and MCX and provides platform for
trading in commodities, which is an online facility also.
RCL provides platform to both agro and non-agro commodity traders
to derive the actual price of the commodity and also to trade and
hedge actively in the growing commodity trading market in India.
With this realisation, M-SOLL Commodities is coming up with its
branches at mandi locations. It is a flagship effort from our team
which would be helpful in facilitating trade and speculating price of
commodities in future.

M-SOLL FINVEST LIMITED


M-SOLL Finvest Limited (RFL), a Non Banking Finance Company
(NBFC) is aggressively making a name in the financial services arena
in India. In a fast paced, constantly changing dynamic business
environment, RFL has delivered the most competitive products and
services.


RFL is primarily engaged in the business of providing finance
against securities in the secondary market. It also provides finance
for application in Initial Public Offers to non-retail clients in the
primary market
M-SOLL INSURANCE BROKING LTD.
M-SOLL has been taking care of financial services for long but there was a
missing link. Financial planning is incomplete without protective measure i.e.
structured products to take care of event of things that may go wrong.

M-SOLL Insurance Broking Limited. As composite insurance broker, deals in
both insurance and reinsurance, providing our clients risk transfer solutions on
life and non-life sides.
M-SOLL Today

An ISO 9001:2000 Company
Member of National Stock Exchange (NSE) since November 1994, first deposit
based member of BSE.


Depository Participant with
   - National Securities Depository Limited (NSDL) since July 2000
   - Central Depository Services (India) Limited (CDSL) since Feb 2003.
- SEBI Approved Portfolio Manager
Working on the Philosophy of being “Financial Care Partner”
Among the leading service provider in Capital Market In a span of less than five
years of its retail operations, RSL recorded a healthy growth rate both in
business volumes and profitability.
M-SOLL is among the very few stock market intermediaries to having very
sound based capital and healthy net worth.
M-SOLL aims to have its footprint all across the country by the end of year so
that it may add value to the investing community in the country.

Management
M-SOLL team is led by a very eminent Board of Directors who provide
policy guidance and work under the active leadership of its CEO &
Managing Director and support of its Central Guidance Team.
Mission and Vision

Mission
To be India's first Multinational providing complete financial services
solution across the globe.




Vision
Providing integrated financial care driven by the relationship of trust
and confidence.
Products
The main products which are dealing by M-SOLL securities Ltd are
as follows:-


1. Equity(Shares)


2. Mutual Funds


3. Derivatives(F&O)


4. Commodities


5. Portfolio Management Services(PMS)
Indian Stock Market Overview


The Bombay stock exchanges (BSE) and the National Stock Exchange of India
Ltd (NSE) are the two primary exchange in India. In addition, there are
22Regional Stock Exchanges However, the BSE and NSE have established
themselves as the two leading exchanges and account for about 80% of the
equity volume traded in India.

The average daily turnover at the exchanges has increased from Rs. 851 crore
in 1997-98 to Rs. 1,284 crore in 1998-99 and further to Re. 2273 crore in 1999-
2000 (April- August 1999). NSE has around 1500 shares listed with a total
market capitalization of around Rs. 921500 crore (Rs. 9215 Bln). The BSE has
over 6000 stocks listed and has a market capitalization of around Rs. 968000
crore (9680 Bln). Most key stocks are traded on both the exchanges and hence
the investor could buy them on either exchange. Both exchanges have a
different settlement cycle, which allows investors to shift their positions on the
bourse. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE
has the S&P NSE 50 index (Nifty) which consists of fifty stocks.


The BSE Sensex is the older and more widely followed index. Both these
indices are calculated on the basis of market capitalization and contain the
heavily traded shares from key sectors. The markets are closed on Saturdays
and Sundays. Both the exchanges have switched over from the open outcry
trading system to a fully automated computerized mode of trading known as
BOLT (BSE On Line Trading) and NEAT (National Exchange Automated
Trading) System. It facilitates more efficient processing, automatic order
matching, faster execution of trades and transparency.

The Scripts traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’
and ‘Z’ groups. The ‘A’ group shares represent those, which are in the carry
forward system (Badla). The ‘F’ group represents the debt market (fixed income
securities) segment. The ‘Z’ group scripts are the blacklisted companies. The ‘C’
group covers the odd lot secutities in ‘A’, ‘B1’& ‘B2’ groups and Rights
renunciations. The key regulator governing Stock Exchanges, Brokers,
Depositories, Depository participants, Mutual Funds, FIIs and other participants
in Indian secondary and primary market is the Securities and Exchange Board
of India (SEBI) Ltd.


                            About NSE
The Organization
The National Stock Exchange of India Limited has genesis in the
report of the High Powered Study Group on Establishment of New
Stock Exchanges, which recommended promotion of a National
Stock Exchange by financial institutions (FIs) to provide access to
investors from all across the country on an equal footing. Based on
the recommendations, NSE was promoted by Leading Financial
Institutions at the behest of the Government of India and was
incorporated in November 1992 as a tax-paying company unlike
other       stock     exchanges       in     the      country.

On its recognition as a stock exchange under the Securities
Contracts (Regulation) Act, 1956 in April 1993, NSE commenced
operations in the Wholesale Debt Market (WDM) segment in June
1994. The Capital Market (Equities) segment commenced
operations in November 1994 and operations in Derivatives
segment commenced in June 2000.




                 NSE Group




                          NSCCL


              IISL                         NSE.IT



                                       DotEx Intl.
               NSDL                    Ltd.
NSE Mission
NSE's mission is setting the agenda for change in the securities
markets in India. The NSE was set-up with the main objectives of:

  •   establishing a nation-wide trading facility for equities, debt
      instruments and hybrids,
  •   ensuring equal access to investors all over the country
      through an appropriate communication network,
  •   providing a fair, efficient and transparent securities market to
      investors using electronic trading systems,
  •   enabling shorter settlement cycles and book entry settlements
      systems, and
  •   meeting the current international standards of securities
      markets.

The standards set by NSE in terms of market practices and
technology have become industry benchmarks and are being
emulated by other market participants. NSE is more than a mere
market facilitator. It's that force which is guiding the industry
towards new horizons and greater opportunities.




                         Promoters
NSE has been promoted by leading financial institutions, banks,
insurance companies and other financial intermediaries:



•   Industrial Development Bank of India Limited


•   Industrial Finance Corporation of India Limited


•   Life Insurance Corporation of India


•   State Bank of India


•   ICICI Bank Limited


•   IL & FS Trust Company Limited


•   Stock Holding Corporation of India Limited


•   SBI Capital Markets Limited


•   Bank of Baroda


•   Canara Bank


•   General Insurance Corporation of India


•   National Insurance Company Limited


•   The New India Assurance Company Limited
Corporate Structure
NSE is one of the first de-modularized stock exchanges in the
country, where the ownership and management of the Exchange is
completely divorced from the right to trade on it. Though the
impetus for its establishment came from policy makers in the
country, it has been set up as a public limited company, owned by
the leading institutional investors in the country.


From day one, NSE has adopted the form of a demutualised
exchange - the ownership, management and trading is in the hands
of three different sets of people. NSE is owned by a set of leading
financial institutions, banks, insurance companies and other
financial intermediaries and is managed by professionals, who do
not directly or indirectly trade on the Exchange. This has
completely eliminated any conflict of interest and helped NSE in
aggressively pursuing policies and practices within a public interest
framework.

The NSE model however, does not preclude, but in fact
accommodates involvement, support and contribution of trading
members in a variety of ways. Its Board comprises of senior
executives from promoter institutions, eminent professionals in the
fields of law, economics, accountancy, finance, taxation, etc, public
representatives, nominees of SEBI and one full time executive of
the Exchange.

While the Board deals with broad policy issues, decisions relating
to market operations are delegated by the Board to various
committees    constituted  by   it.  Such    committees    include
representatives from trading members, professionals, the public
and the management. The day-to-day management of the Exchange
is delegated to the Managing Director who is supported by a team
of professional staff .
ABOUT BSE
The Stock Exchange, Mumbai, popularly known as "BSE" was
established in 1875 as "The Native Share and Stock Brokers
Association". It is the oldest one in Asia, even older than the
Tokyo Stock Exchange, which was established in 1878. It is a
voluntary non-profit making Association of Persons (AOP) and is
currently engaged in the process of converting itself into
demutualised and corporate entity. It has evolved over the years
into its present status as the premier Stock Exchange in the
country. It is the first Stock Exchange in the Country to have
obtained permanent recognition in 1956 from the Govt. of India
under    the   Securities  Contracts   (Regulation) Act,   1956.

The Exchange, while providing an efficient and transparent market
for trading in securities, debt and derivatives upholds the interests
of the investors and ensures redressal of their grievances whether
against the companies or its own member-brokers. It also strives to
educate and enlighten the investors by conducting investor
education programmes and making available to them necessary
informative inputs.

A Governing Board having 20 directors is the apex body, which
decides the policies and regulates the affairs of the Exchange. The
Governing Board consists of 9 elected directors, who are from the
broking community (one third of them retire ever year by rotation),
three SEBI nominees, six public representatives and an Executive
Director & Chief Executive Officer and a Chief Operating Officer.

The Executive Director as the Chief Executive Officer is
responsible for the day-to-day administration of the Exchange and
he is assisted by the Chief Operating Officer and other Heads of
Departments.

The Exchange has inserted new Rule No.126 A in its Rules, Bye-
laws & Regulations pertaining to constitution of the Executive
Committee of the Exchange. Accordingly, an Executive Committee,
consisting of three elected directors, three SEBI nominees or public
representatives, Executive Director & CEO and Chief Operating
Officer has been constituted.
Turnover on the Exchange
  •   The average daily turnover of the Exchange during the
      financial year 2008-2009 and 2009-10 (April-March), was Rs.
      2978.81 crores and Rs. 3150.26 cores respectively.


  •   The average number of daily trades recorded during the
      above period was 8.98 lakhs and 10.38 lakhs respectively.
The ban on all deferral products like Borrowing & Lending of
Securities Scheme (BLESS) and Automated Lending & Borrowing
Mechanism (ALBM) in the Indian capital markets by SEBI w.e.f.
July 2, 2009, abolition of account period settlements, introduction
of Compulsory Rolling Settlements in all scrips traded on the
Exchanges w.e.f. December 31, 2009, etc. have adversely impacted
the liquidity in the market and consequently there is a considerable
decline in the average daily turnover at the Exchange as reflected
in above statistics.



                 Safety of the market

One of the objectives of the Exchange is to promote and inculcate
honorable and just practices of trade in securities transactions and
to discourage malpractices.
The surveillance function at the Exchange has assumed greater
importance in the last few years. The Securities and Exchange
Board of India (SEBI) had directed the Stock Exchanges in August
1995 to set up a separate Surveillance Department with staff
exclusively assigned to surveillance functions. The Exchange has
accordingly set up a separate Surveillance Department to keep a
close watch on price movement of scripts, detect market
manipulations like price rigging, etc., monitor abnormal prices and
volumes which are not consistent with normal trading pattern and
monitor the member-brokers' position to ensure that defaults do not
occur. This Department, which is headed by a General Manager,
reports directly to the Executive Director.
The Surveillance Department monitors exposure of the members on
a daily basis. It also scrutinizes the prices and volumes of the
scripts on a daily basis.



As per the guidelines issued by SEBI, the Exchanges are required
to apply a daily Circuit Filter of 20% on all the scripts except on the
scripts on which derivative products are available or are included in
the indices on which derivative products are available. On these
scripts Exchange has imposed dummy circuit filters to avoid
punching error by members, if any. The imposition of circuit filters
on scripts ensures that the price of the scrip cannot move upward
or downward beyond the limit set for a day.


The large variations in the prices as well as the volumes of the
scripts are scrutinized and appropriate actions are taken. The
scripts which reach new high or new low and companies which have
high turnover are watched. Also the prices and volumes in the
newly listed scripts are monitored. In case certain abnormalities are
noticed, then circuit filters are reduced to make it difficult for the
price manipulators to increase or push down the prices of a scrip
within a short period of time. The Exchange imposes special margin
in the scripts where it is suspected that there is an attempt to ramp
up the prices by creating artificial volumes.


Brokerage and other transaction costs

Brokerage is negotiable. The Exchange has not prescribed any
minimum brokerage. The maximum brokerage is subject to a ceiling
of 2.5 percent of the contract value. However, the average
brokerage charged by the members to the clients is much lower.
Typically there are different scales of brokerages for delivery
transaction, trading transaction, etc.
The Stamp Duty on transfer of securities in physical form is to be
paid by the seller but in practice it is paid by the buyer while
registering the shares in his name. In case of transfer of shares,
the rate is 50 paise for every Rs.100/- or part thereof on the basis
of the amount of consideration and that for transfer of debentures
the rate of stamp duty varies from State to State, where the
registered office of a Company issuing the debentures is located.
Inspection of the broker’s books
In terms of the instructions issued by the Ministr y of Finance,
Government of India, Stock Exchanges are required to inspect the books
of accounts of at least 10% of their active members in a financial year.
T he Inspection Department of the Exchange has been entrusted with this
responsibility. Notably, ever y year, the number of inspections carried out
by the Exchange, far exceeds the level prescribed in this regard by the
Ministr y of Finance.
T he Exchange has also constituted a panel of Chartered Accountants to
conduct inspection of the book and accounts of the members. The
purpose of involving independent Chartered Accountants in this work is
to inspect the books of accounts of ever y members at least once in
ever y three years.
T he Exchange has also prepared a detailed "Guidance Manual for
inspection of member-brokers" to assist the Chartered Accountants in
the inspection of the books of accounts of members.
T he purpose of the inspection is to verif y whether the member has
maintained the required books of accounts as per the Securities
Contracts (Regulation) Rules, 1957, whether the member has issued
contract notes in the proper format prescribed by the Exchange, whether
brokerage has been indicated separately therein, whether the member
has adhered to the Rules, Regulations and By- laws of the Exchange and
guidelines issued by the Exchange and SEBI from time to time, etc.


T he findings of the inspection are conveyed to the members and follow-
up action is taken based on the responses/clarifications provided by the
members. If the violations are of serious nature, the matter is referred to
the Disciplinary Action Committee of the Exchange.
T he members are required to get their annual accounts audited from a
Chartered Accountant and submit an Audit Certificate as well as the
Profit & Loss Account and Balance Sheet to the Exchange. T he members
are also required to submit net worth certificates as at the end of March
and September ever y year. Filing of these documents by the members is
also monitored by the Inspection Department.
Indian Scenario
Strengths
The `do-it-yourself' framework of online share trading offers retail
investors the three benefits of transparency, access and efficiency.
Paperwork diminishes significantly, and no more painful trips to
your broker to check if everything's in order. Online trading has
made it possible to universalize access to retail investors. This was
earlier very difficult, as the cost of servicing often-outweighed
transaction volumes. Online brokerage ranges between 0.05-0.20
per cent of the value of transactions for non-delivery-based trades,
and between 0.25-0.95 per cent for delivery-based trades. Once
major investments in online infrastructure are over and done with -
and with the economies of scale coming into play - it is expected
that brokerage rates would head further downwards.
Access to online trading and latest financial happenings, apart from
quotes and unbiased investment analyses, all consolidate into a
value-added product mix in tandem with evolving markets that are
freer and fairer. The Net result: An inquisitive, informed and
demanding investor.
Today's investor is more involved in managing his or her assets
and Sanalyzing a vast array of investment options. Technology and
today's enabled investor have, in turn, driven competition, resulting
in reduced costs of trading, transparency in dealings, and pricing
info that is accurate and real-time. More and more investors now
want to know how their trades are executed, and whether they have
received the best possible price.

Weaknesses
Every thing in the world has a flip side to it - Transaction velocity is
crucial. And more often than not, connections are lousy. There's
also a degree of investor skepticism about online payment and
settlement mechanisms in spite of all the encryption and fire
walling brought into play. Time and technology will soon assuage
these concerns, which hark back to the `physical' days.

“The three main technology obstacles          which   have   prevented
Internet broking from taking off are:
•   Lack of Internet penetration
  •   Bandwidth infrastructure
  •   Poor quality of ISP infrastructure.”




Opportunities
You have some money to dabble with. Trading shares on BSE/NSE
has always been your dream. When will you ever find the time? And
besides, the hassle of finding a broker is not easy. This is your
main opportunity.
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.
There are 2 types of online trading service: discount brokers and
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. 5Paisa.com, ICICIDirect.com,
IndiaBulls.com, M-SOLL.in, Geojit securities.com, HDFCsec.com,
Tatatdw.com, Kotaksecurities.com are some of the online broking
sites in India.

And daily trading turnover is estimated in the vicinity of 0.75 per
cent of the combined BSE and NSE daily turnover of about RS
11,000 crore!!! The point is, there's tremendous scope for growth.
Especially when you consider the US, where trading over the Net
accounts for about 55 per cent of the total volumes. And, I believe,
in some Asian markets the figures as high as 70 per cent.

Threats
On to some threat perception - Domestic funds, foreign institutional
investors and operators comprise the three main market
constituents. And all three include term investors as well as
opportunists in their pecking order. Some, for instance, hitch their
fate with what the FIIs are up to. All this spells spurting volumes.
But nobody gives a damn about the resultant volatility. And some,
not all, offer free investment advice over the Net to lure rookie
investors with misleading information. Prices of scripts can also be
influenced to the advantage of vested interests, courtesy the Net.
Unlike in the US, stockbrokers out here willingly (or under the force
of circumstance) assume the role of `advisors', sans the neutral,
non-vested stance. So, how does all this impinge on the ordinary
guy's ordinary dreams




         Hurdles for online share trading

Internet fraud

In India, we see this kind of frauds happening in different way due
to nature of our society. Here when you talk to broker's staff while
buying or selling, he will usually advise you to buy share which he
has bought and plans to dump when price goes up.
We have seen enough of PUMP and DUMP even without help of
internet in cases of Harshad Mehta boom of 1992 and Ketan Parekh
boom of 2000 (he even had cult following with Index of 10 shares
called K-10).
Today lot of     investor’s   depending   on    TV channel     for
recommendation about stocks to sell, or buy or hold. Channels like
CNBS offer array of experts from economist to brokers to analyst.
Most of these people have vested interest in stocks they
recommend and promote.
One of the most common forms of securities fraud on the Internet
involves an imposter who attempts to manipulate the price of a
stock by disseminating phony press releases or information, or
creating phony websites. A recent example of this scheme is the
hoax perpetrated against US based, PairGain Technologies.
Volatility of India’s Stock Markets

Recent market developments have once more focused attention on
the volatility that has come to characterise India’s stock markets.

Movements in the Sensex during the two years have clearly been
driven by the behaviour of foreign institutional investors (FIIs), who
were responsible for net equity purchases of as much as $6.6 and
$8.5 billion respectively in 2008 and 2009. These figures compare
with a peak level of net purchases of $3.1 billion as far back as
1996 and net investments by FIIs of just $753 million in 2009. In
sum, the sudden FII interest in Indian markets in the last two years
account for the two bouts of medium-term buoyancy that the
Sensex recently displayed.

Given the presence of foreign institutional investors in Sensex
companies    and   their   active   trading   behaviour,   their   role   in
determining share price movements must be considerable. Indian
stock markets are known to be narrow and shallow in the sense that
there are few companies whose shares are actively traded. Thus,
although there are more than 4700 companies listed on the stock
exchange, the BSE Sensex incorporates just 30 companies, trading
in whose shares is seen as indicative of market activity. This
shallowness would also mean that the effects of FII activity would
be exaggerated by the influence their behaviour has on other retail
investors, who, in herd-like fashion tend to follow the FIIs when
making their investment decisions.




Rampant Speculation
The Indian stock markets are perhaps the only place in the world
where you can buy shares without having to put money on the table
and sell shares you do not own. This extraordinary situation has
facilitated rampant speculation by all sorts of operators – the
indigenous variety, FIIs and even our own native financial
institutions (FIs) as the massive UTI scandal of recent years has
demonstrated. So, when the stock markets were made to collapse
by a record 800-plus points on May 17 under the pretext that the
Left is opposed to divestment, the profits reaped by short sellers
were astronomical and incalculable.

Could this situation have been avoided? As aforesaid, the answer
is yes. The electronic monitoring system in both the Bombay Stock
Exchange and the bigger National Stock Exchange automatically
stopped trading for half-an-hour when the two markets respectively
collapsed by 10 percentage points. Thereafter when trading
resumed and the markets fell further to another stipulated lower
level, the electronic system automatically stopped all trading again
for another two hours.

A similar situation had occurred on Tuesday, September 11, 2009,
the day of the terrorist attacks in New York City. At the end of the
day the stock exchange authorities of both the New York Stock
Exchange and the heavily- weighted software exchange called
NASDAQ suspended all trading for the remainder three working
days during that fateful week to safeguard investor interests. So,
advanced capitalism does know how to intervene "politically" in the
markets when fundamental interests are in danger of violation by
short sellers.
Effect of technology

The growth in technology and communications has impacted every
aspect of business in some or the other form. These effects are
enduring and have changed the very way in which business is
carried out.
The stock market, is one such institution whose very existence has
been challenged by the growth in information technology. IT has
turned the very idea of a stock market on its head.
Technology has impacted the working of stock markets in every
sense. However, a useful starting point for this study would be the
study of dematerialization, or demat as it is popularly known as.
This is simply because demat has changed the way stocks are held
and traded and therefore has effect on every other function of the
market.
Dematerialization in simple terms means the conversion of shares
from physical to electronic form.


Demat, enabled by the use of technology is probably is single most
important factor which has repercussions on every aspect of the
stock markets.
Demat in India started with the creation of NSDL (National stock
depository limited) in 1996. UTI, was one of the first institutions to
use demat when it decided to dematerialize 50% of its holdings in
1997. SEBI gave a boost to demat, with compulsory trading on
shares in demat form in specified scrips by institutional investors
from Jan 15, 1998.
Consequently, an increasing percentage of the share trading is done in demat
form.
The exhibit below shows the percentage of demat shares in the total value of
shares traded at NSE over a period of 6 years.

Dematerialization has benefited the market and the market players
in more than one way.




Demat is instrumental in
      Abolition of market lots
      Introduction of rolling settlements
      Enhancing liquidity
      Bringing stamp duty to zero
      Reducing chances of bad delivery
      Increased lending by banks and other FIs
SEBI extended demat to IPOs during capital reforms in capital
markets in 2002. The premise being elimination of problems due to
loss of allotment letters, share certificates etc., encouraging
shareholders to opt for demat credit of allotments, trading
compulsorily in demat form with an option of holding shares in
physical form for retail investors.
BSE, the first exchange to be set up in India, started as a floor-
based exchange. However, NSE, setup as an alternative to BSE,
was an electronic (computerized) exchange. With advancements in
technology, both these exchanges moved to SBTS (Screen Based
Trading System) in 1997.
While NSE introduced NEAT (NSE’s Online Trading System) in May
1997, BSE introduced BOLT (BSE’s Online Trading System) in
September 1997 in Mumbai.
The outcome has phenomenal with respect to the number of trades
taking place on these two exchanges.


Further, trading in stocks has reached retail investors’ home via the
Internet. In 1999-2000, SEBI proposed Internet based trading under
ORS (Order Routing System)
Trading via Internet was an instant hit, with 18 members being
granted licenses and trades touching 767 Cr.
Although security concerns still exist regarding the safety of data
transfer over the Internet, companies like VERISIGN and RSA, who
specialize in security algorithms and data encryption ensure high
degree of authenticity and trust in trades.




Information Flow

Any trading system disseminates data to market constituents, in
other words, information is freely available. This has two
disadvantages -
   •   It makes easier for off-exchange transactions         to   occur
       because of availability of information.
   •   It makes off-exchange transactions attractive due to absence
       of trading costs.
On the other hand rapid flow of information has also meant
increased volatility in the markets. In financial terms, volatility is:
The degree to which the price of a security, commodity, or market
rises or falls within a short-term period. An obvious reason for
market volatility is technology.      This includes more timely
information dissemination, improved technology to make trades and
more kinds of financial instruments. The faster information is
disseminated, the quicker markets can react to both negative and
positive news. Improved trading technology makes it easier to take
advantage of arbitrage opportunities, and the resulting price
alignment arbitrage causes. Finally, more kinds of financial
instruments allow investors more opportunity to move their money
to more kinds of investment positions when conditions change.
Adverse impacts of IT on stock markets
Some other interesting observations about impact of technology on
stock markets –
The vintage capital model teaches us that technological change
destroys old capital. We have gone further and argued that major
technological change—like the IT revolution— destroys old firms. It
does so by making machines, workers, and managers obsolete.
Product-market entry of new firms and new capital takes time, and
their stock-market entry takes even longer. In the meantime, the
stock market declines. We have argued that aggregate valuation
can fall below the present value of dividends because capital may
"disappear" right after a major technological shift, as new capital
forms in small, private companies. Later, these companies are
IPO’d, and only then does their value become a part of stock-
market capitalization.
Indeed, the innovation may, at first, reduce the market’s value
because some firms, usually large or old, will cling to old
technologies that have lost their momentum. (a) the market
declined in the late 1960’s because it felt that the old technologies
either had lost their momentum or would give way to IT, and that
(b) IT innovators boosted the stock market’s value only in the
1980’s.
      To sum up, we can say that computerization and automation
are not to be avoided. Technology has been able to make the stock
markets accessible to every individual. It has also led to positive
developments in terms of reduced costs and fewer errors. But, as
some experiences have indicated, IT cannot be applied as a
panacea for all problems. Regulation and knowledge dissemination
are still important. The use of technology should be preceded by a
detailed study and assessment of all other alternatives. The key to
successful use to technology is the appreciation of its constraints.
Broking….personalized
If you prefer the assurance and reliability of trading through a
broker, you can use our network of 250 branches and 157 business
partner outlets in over 123 cities to trade in equities as well as
derivatives. We will help you with the investment process, give you
advice based on extensive research and provide you with relevant
and updated information to help you make informed investment
decisions.


       MARKETING STRATEGIES OF COMPANY
Marketing Strategy:

A strategy that focuses on developing a unique long-run competitive position in
the market by assessing consumer needs and the firm's potential for gaining a
competitive advantage.
   •   A business’ approach to marketing its products/ services expresses in
       broad terms, which forms the basis for developing a marketing plan.
   •   Marketing starts with market research, in which needs and attitudes and
       competitors' products are assessed, and continue through into
       advertising, promotion, distribution, and, where applicable, customer
       servicing and repair, packaging, and sales and distribution.
   •   The broad marketing thinking that will enable an organization to develop
       its products and marketing mixes in the right direction, consistent with
       overall corporate objectives.

   •                 :
       Tele Calling The company uses the tele calling/ phone
       calling to reach the customer, which are interested. This is
       the most important technique to save time and giving demo of
       the companies product through making call in order to know
       the customer interest towards the product. This is the
       strategy with which one can motivate customer to go for the
       product and etc.

   •   LMS :It is Leads Management System Which means leads
       are generated by the customers who want to purchase                 the
       product of the company? Company provides facility to                the
       customer online to fill the registration form through which         the
       company’s executives can provide more information to                the
       customer.
•   Yellow Pages
     Yellow pages are used to gather data for making calls so that
    customer who did not fine time and are unaware of the
    product can know about the product. Customers are given
    freedom to ask question related to the products this is the
    technique used to increase the awareness of the company.

•   Canopy’s:       This is the most important technique used by
    M-SOLL securities to market its product in different areas of
    the city, company put their canopies and customer who are
    willing to know about the product come forward and provide
    best of their knowledge. Besides these companies executives
    ask customer to fill the questionnaire that tells the company
    about the levels of brand awareness. It also increases the
    product awareness because it is generally put at the crowdies
    places like near main markets, cinema s, hotels, ATM or etc
    where people come in good numbers.

•   Direct Marketing:        M-SOLL executive’s reaches to the
    does of the customer by fixing appointments with the
    interested customer, they describe the details of the product.
    Executive give demonstration of the products so that
    customer can understand better.

      •   Advertising:- Advertising  is the most important tool
         of increasing awareness of the product and this is the
         most widely used technique by the company to tell
         about the new features and new lunch by giving briefing
         of the product.
    M-SOLL uses banners, distribution of pamphlets, and
    advertisement in newspapers, magazines.

•   References
                    M-SOLL strategy is to satisfy the customer in
    terms of their need by providing them timely services and
    knowledge about the trade in equities, mutual funds by giving
    tips for investment advises through e-mails or toll free calls
    for this purpose customers are provided relationship manager
    who give investment advise and also make transaction on
    their behalf on demand. B satisfying customer executives ask
    their references that not only increase the awareness but also
    increase the good will of the company.
•     Competitiveness:- The company is innovative and
       uses the latest technology to improve the product to fulfill the
       demands of the customers. M-SOLL make it easy for the
       customer to make online transaction of shares. The company
       is competitive in terms of the product price and facilities it
       offers to the customer.


   •   Internet:- Company      has provided detailed information
       about the products on Internet so that customer can know
       about the product easily and completely.



  How M-SOLL deals with equity trading and the
     services provided to the customers?
M-SOLL Securities Ltd Provides best services to its customers for equity trading
in comparison to other Financial Securities Companies.

These services are as follows-

Online trading facilities with Odin terminal.
Odin terminal is wave based software. Client can easily download the terminal
through M-SOLL web site. No extra charges are taken for the use of this
terminal. Through this terminal/software you execute your order within 2
seconds. In this terminal we get both NSE&BSE On-line at same time. And the
clients can do trading in both NSE&BSE at the same time.


Individual Client:
        Demat A/c opening charges: Rs 500/- (maintenance Charges Rs 250/-)
        Trading A/c free for life time
        Trading through offline or website. (www.M-SOLL.in)
        NSE & BSE both are online.
       Live applet for watching prices & trading purposes.
Brokerage
      Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable)
      Exposure: -4 to10 times (For Intraday)
                    2 times (For Delivery)
      F&O Brokerage: - Buy & Sell 0.05% (Negotiable)




Other features
For the fund transfer and withdraw, we have tie up with two banks         ICICI
Bank and HDFC Bank.
If you are having bank account in one of them, you can transfer the   funds and
withdraw the funds online same day.
Settlement of trades follows T+2 transaction cycle.
Freedom from paperwork, trading facilities is completely online.
SMS alerts on your mobile phones.
Apart of that we have our dedicated team to look after your Portfolio,   Mutual
Funds, and Commodities.




Document Photocopies Required


                      (A) Two coloured Photographs (self signed).
                      (B)    For identification Proof- Voter ID Card/ Driving
                            License/ Passport/ PAN Card (Compulsory) any one.
(C) For residential proof:- Bank statement/ Voter ID Card/
                     Ration Card/ Driving License/ Passport/ Telephone or
                     Electricity Bill statement (any one)
               (D) One cancelled cheque leaf (For MICR No. record)
               (E) Later Bank Statement/ Front page of passbook
                     (Showing Name, Address, A/c No.)
               (F)You can also deposit the initial margin money at the
               time of opening of account.




                Competitive Analysis


The Major competitors are:


• 5paisa.com


• Kotak Securities.com


• IndiaBulls.com


• ICICI Direct.com


• HDFC sec.com
5paisa.com

Company Background


Indiainfoline was founded in 1995 and was positioned as a research firm. In
2000 e-broking was started under the brand name of 5 paisa.com. Apart from
offering online trading in stock market the company offers mutual funds online.


It also acts as a distributor of various financial services i.e. GOI securities,
Company Fixed Deposits, Insurance.
Limited ground network, present in 20 Cities



Online Account Types


•   Investor Terminal : Investors / Students
•   Trader Terminal : Day Traders / HNI’s




                  PRICING FOR RETAIL CLIENTS
                               Investor Terminal


•Account Opening: Rs 500

•Demat 1st Yr: Rs 250

•Initial Margin: Rs 2500(Compulsory)

•Min Margin Retainable: Rs 1000

•Brokerage:
           Trading 0.10% each side + ST+ STT
           Delivery 0.50% each side + ST+ STT


                     PRICING FOR HNI CLIENTS
                          Trader Terminal
•Account Opening: Rs 500

•Demat 1st Yr: Rs 250

•Initial Margin: Rs 5000(Compulsory)

•Min Margin Retainable: Rs 1000

•Brokerage:

             Trading 0.10% each side + STT+ST
             Delivery 0.50% each side + STT+ST
          ( Negotiable to 0.05% each side & 0.25%)

•Account Access Charges

        Monthly Rs 800, adjustable against Brokerage
        Yearly Rs 8000, adjustable against brokerage




             Deal Clinchers v/s 5 Paisa

•Company Background
Not having a very positive image, relatively new in the broking arena, limited
network


•Downtime
Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency
downtime between 3 – 3:30 p.m due to server load ( as their T.T is feature
heavy compared to Speetrade charting)


•Manual Accounting
The 5 paisa accounting system is manual, Online fund transfer through bank is
not credited instantly.
Limit is provided EOD for shares sold from DP, or call
Similarly limit released for shares sold under BTST is manual




Delay in receiving pay-out of clear funds from trading to Bank Account


•Min Account Balance
Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep
account active. This can be withdrawn only on closure of account.




                       Kotak securities
Company Background

A Kotak security is the retail arm of Kotak securities. Kotak Securities limited is
a joint venture between Kotak Mahindra Bank and Goldman Sachs


Online Account Types

•Twin Advantage / Green Channel: 2 DP’s, Limit against shares
•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction
•High Trade: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
•Cash Expressway: Spot payment, additional 0.5% charges

For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces. Keat
Desktop with advanced tools comes at a charge of Rs 500 p.m, Non-refundable

PRICING OF KOTAK
•Account Opening: Rs 500

•Demat: Rs 22.5 p.m

•Initial Margin: Rs 5000(Compulsory)

•Min Margin Retainable: Rs 1000

•Brokerage Slab wise: Higher the volume, lower the brokerage. Even older
customers (on 0.25% & 0.40%) have been moved to the slab wise structure.

   For intraday trading-        .05%

   For Delivery trading-           .50%

   (Brokerage is negotiable and it based on the volume of client)




Exposure:-

For intraday trading -   5 – 10 times
For delivery trading -        2 times

Funding:-

Interest rate is 19% per month for funding

Services:-
   1. No SMS alert provide
   2. A trader can find out the information about share market only by to call
       dealers
   3. Account opening time- One Weak
   4. Online & offline trading facilities are different.


               Deal Clinchers v/s Kotak securities

•Rigid Account Opening Terms
No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/-
Account opening free with Rs 10,000 Margin OR competitor Contract Note.

•No Customization of commercial Terms
No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)
No flexibility in Brokerage, driven by slab structure

•Many Other Charges
Rs 22.5 p.m towards DP AMC charges
DP incoming charges extra, 0.02%
Rs 1,000 as retainable Margin to keep account active
Rs 25 per call after 20 calls for the month

•Restricted Access to Terminal Like product
KEAT Desktop restricted distribution on payment of Rs 500, Non refundable
INDIABULLS

Company Background


IndiaBulls is a retail financial services company present in 70 locations
covering 62 cities. It offers a full range of financial services and Products
ranging from Equities to Insurance. 450 + Relationship Managers who act as
personal financial advisors



Online Account Type


•Signature Account: Plain Vanilla Account with focus on Equity Analysis. The
equity analysis is a paid service even for A/c holders.


•Power Indiabulls: Account with sophisticated trading tools, low commissions
and priority access to R.M


Pricing of IB Accounts


Signature Account


•Account Opening: Rs 250
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage:Negotiable
Power IndiaBulls

•Account Opening: Rs 750
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable

                                PAID Research

SCHEME                                          FACILITY
WebBased-1-Month-500:             View & Print on website
WebBased-1-Year-6000              View & Print on website
PrintReport-1-Month-750:          View & Print on website + 10 Reports
Delivered
PrintReport-1-Year-9000:            View & Print on website + 10 Reports
Delivered


                Deal Clinchers v/s India Bulls

•POA for Clients DMAT
All shares held by client trading with IB are moved to IB Pool Account and the
same is shown as a reflection in client DP account. Charges are levied to move
shares from IB pool Account to client DP account

•Paid Research Services
Access to an research even for an IB trading account holder is charged a min of
Rs 500 a month

•Margin Funding hoax
The interest on funding starts on leveraged delivery trades from T+1 day itself
@21% p.a, on a daily basis

•The role of Relationship Manager
Each RM is looked upon as a revenue generator and he gets a % on business
generated from client. This can lead to over leveraged (Interest) & high
frequency(Brokerage) trading, which may not be in the best interest of the client.
ICICI Direct.com
Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an
Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank
Limited

Account Types

•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1
advantage. Differentiated in services within the account


1. Cash on spot
2. Margin Plus

Premium Trading interface of ICICI Direct Link is given to DBC partners and
HNI’s


•Account Opening: Rs 750


•Schemes: For short periods Rs 750 is refundable against brokerage generated
in a qtr. These schemes are introduced 3-4 times a year.


•Demat: NIL, 1st year charges included in Account Opening Plus a facility to
open additional 4 DP’s without 1st yr AMC


•Initial Margin: Nil
•Brokerage: All brokerage is inclusive of stamp duty and exclusive of other
taxes.


            Deal Clinchers v/s ICICIDirect




•Poor online Interface


Slow website interface with no real-time quotes creates dissatisfaction among
high frequency traders


•Margin trading restriction


The margin trading system is available up to 2:45 p.m, with outstanding net
positions under margin segment automatically squared off at any time between
2:45 – 3:30 p.m. Thus no control of square off price.
HDFC Securities


Company Background
HDFC Securities Ltd, is promoted by the HDFC Bank, HDFC and Chase Capital
Partners and their associates. Pioneers in setting up Dial-a-share services with
the largest team of Tele-brokers.


Online Account Type


HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1
advantage


Pricing of HDFC Account


•Account Opening: Rs 750


•Demat: NIL, 1st year charges included in Account Opening


•Initial Margin: Rs 5000/- for non HDFC Bank customers (AQB)


•Brokerage:


Trading 0.15%* each side + ST
Delivery 0.50%** each side + ST
* Rs 25 Min Brokerage per transaction
** Rs 8 Min Brokerage per transaction
Deal Clinchers v/s HDFC Securities


•Poor online Interface


Apart from having no product to cater to Day-Traders, the hdfcsec.com website
is plagued with downtime. The same is currently being revamped.


•Lack of focus on Broking


The core business of HDFC is Housing Finance and that of HDFC Bank is
Banking. Broking as a business is a small part of the portfolio of financial
services and hence the commitment to resources is limited.


•No Leverage


No leverage is available to clients even for Intra-Day trades, effectively all
clients are on cash and carry system.
FINDINGS OF COMPETITIVE ANALYSIS

• M-SOLL has the unique product in the market related to the
  expectations desired by the customers.


• The company is innovative and uses the latest
  technology to improve the product to fulfill the
  demands of the customers


• M-SOLL strategy is to satisfy the customer in terms of
  their need by providing them timely services and
  knowledge about the trade in equities, mutual funds
  by giving tips for investment advises


• Brokerage charged by the company is less and competitively
  better according to the services provided to the customers.
LIMITATIONS OF COMPETITIVE ANALYSIS

Services of competitors:
We cannot give proper comment on competitor’s services till 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.
   •    The marketing person might be possible, is not through with
       all concepts to which I contacted.
   •   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’s.

 Mostly people comfortable with traditional brokers:
 As people are doing trading from there respective brokers, they are
quite comfortable to trade via phone.

 Inaccurate Leads:
  Sometimes leads are provided which had error in it which varies
from only 5 digit phone number to wrong phone number

Misleading concepts:
  Some people think that Shares are too risky and just another name
of gamble but they don’t know its not at all that risky for long
investors.
MARKET RESEARCH ANALYSIS


1.    Tick the age category to which you belong ?

                   Age                              Percentage
                  20-29                                10%
                  30-39                                15%
                  40-49                                50%
                  50-59                                10%
                 Above 60                              15%




Data Interpretation :-

As the graph shows that most of the respondents belong upto the age group
of 40-49 with 50% of the total share whereas other respondensts belonging
to the other age groups constitue of merely 20%.
2. Please tick the gender to which you belong ?

               (A)Male                   (B)Female




           Female, 18


                                                                   Male
                                                                   Female


                                      Male, 82




Data Interpretation:- As the graph shows that most of the respondents
belong to the male category i.e. 82% male ; 18% female.
3. Tick the occupation to which you belong ?

               Occupation                    Percentage
               Serviceman                        70
                 Business                        20
               Professional                       2
                 Student                          5
                Housewife                         3
                  Others                          0




Data Interpretation:-The table and graph indicates that most of

respondents are serviceman constituing 70%       share whereas business

people and students are next in the cadre with low percentage such as 20%

and 5% respectively, which means that regular income holder are more

prone towards faster and easy trading.
4. Please tick your monthly income ?


            Monthly Income              Percentage
             Up to 10000                     2
             10000-15000                     5
             15000-20000                    13
             20000-25000                    20
             Above 25000                    60




Data Interpretation:- In this graph we can see that most of the people

belong to income category of above 25000 with 60% share where as the

lowest percantage (2%) of people belong to the income group upto 10000.
5. Please tick your preference for trading ?

                 (A) Broking Firm          (B) Sub Broker




                                          Broking
                                                                Broking Firm
        Sub Broker,                       Firm, 45
            55                                                  Sub Broker




Data Interpretation:-

In this graph we can see that most of the people preferences are 45% for Broking

Firm ; 55% for Sub Broker.
6. Please tick where do you invest ?


                   Area of Invest                     Percentage
              Fixed Deposit with banks                    35
                   Mutual Funds                            7
                       Stocks                             27
                     Insurance                             8
                     Real State                           18
                    Govt. Bonds                            5




Interpretation
      Above chart shows that most of the people are interested to invest
their money in fixed deposits due to low risk and whereas very few people
are interested in Govt. Bonds due to its low rate of return.
7:- Please rank the factors that influences your decisions to open a DMAT
    Account ?

           Factor influencing for opening DMAT A/c         Percentage
          Proximity to Trading Firm                            12
          Facility Provided by the trading firm                48
          Relationship with manager                            14
          Advertisement                                         6
          Recommendation by friend                             10
          Brand Name                                            8
          Branch Timing                                         2




Data Interpretation:-

With the help of this graph we came to understand that facility provided by
the trading firm is the very crucial aspect which influences the customer’s
attitude towards opening DEMAT A/C with the highest percentage
constituting almost 48% share. In spite of this we can observe that
relationship with manager get IInd higher priority factor which influence
opening of DMAT A/C is 14%.


      7. Pick tick the importance of the following trading firm Facility for

         the customer’s?

    Importance of trading firm           Most            Less             Un
              facility                 Important       Important       Important
   Products                               48              11              41
   Brokerage Charge                       58              24              18
   Annual Maintenances                    51              37              12
   DMAT opening Charges                   29              54              17
   Relationship with Manager               62              15              23
8. In which of these financial instruments do you invest in to?
        (A) Shares                              (B) Mutual Funds
        (C) Bonds                                (D) Others




                              6

  24                                                                   38
                                                                             Shares
                                                                             Mutual Funds
                                                                             Bonds
                                                                             Others


                         32




Data Interpretation:-
As the pie chart above shows that 38% of investor invest in shares , 32% in mutual
funds , 24% in bonds and 6% in others.
Awareness of online share trading




                                                       yes--40%

                                                       No-- 60%




Interpretation:
This shows that although the mutual funds market is on the rise
yet; the most favored investment continues to be in the Share
Market. So, with a more transparent system, investment in the
Stock Market can definitely be increased.
Awareness of Religare as a Brand


                                                           Yes-- 63%

                                                          No-- 37%




Interpretation:        This pie chart shows that M-SOLL has a
reasonable amount of Brand awareness in terms of a premier Retail
stock broking company. The company to increase its market share
over its competitors should further leverage this brand image.
Demat account market
          Share


                                                Religare
                  15%             20%           Icici direct
            10%
                                                kotak
                                        18%     india bulls
              25%                               share khan
                                12%
                                                others




Interpretation:         This shows that even with sufficiently high
Brand Equity, M-SOLL ranks only 3 rd amongst the Demat account
providers. This is probably because of two main reasons:


  1. Lack of promotion and unfocussed approach towards Product
     awareness
  2. Non – transparent marketing policies of the company


Hence, the company should crystallize its products and should
indulge in aggressive marketing and promotion
LEARNINGS

1. I learned to apply a lot of theoretical knowledge into practical
   use.


2. As my work included the sales, I learnt some of the ground
   rules of selling my product.


3. I also learnt to handle the month end stress when it is time to
   complete the targets.


4. I also came to know the various work culture rules and ethics
   that are required to be followed in the organization.


5. I also found that it is very important to build a relationship with
   a client as it brings more business.
FINDINGS
1. People prefer more trading through sub brokers as they are
   personally attached with them.

2. The most of the people are interested to invest their money in
   fixed deposits due to low risk and but behind 27% people are
   interested to take risk and earn high returns.


3. Facility provided by the trading firm is the very crucial aspect
   which influences the customer’s attitude towards opening
   DEMAT A/C with the highest percentage constituting almost
   48% share. In spite of this we can observe that relationship
   with manager get IInd higher priority factor which influence
   opening of DMAT A/C is 14%.

4. People really concerned with product in which they are going
   to invest keeping amount of brokerage to be charged.


5. People are unaware about the online trading practice and
   pattern

6. M-SOLL is not strategically planning for its promotion.
CONCLUSION
In spite of these optimistic numbers, online trading in India is at a
very nascent stage (about 2 percent of total traded volumes)
compared to countries like South Korea (60 percent), US (40
percent) and UK (20 percent). Online trading in the year 2000-2001
accounted for only Rs. 50,170 crore out of total traded volume of
Rs. 25,08,445 crore.

      Brand building, assurances of security, developing multiple
delivery channels with anytime telephonic grievance redressal
options is some directions which may be of use for the immediate
future.   Online   trading   firms   can   also   market   themselves
aggressively to students who are entering the professional arena,
ensuring that their entry into equity happens online. One of the
major issues governing trading is the prevailing uncertainty in the
market.   Hence,   notwithstanding   the   current   sentiment   in   the
market, potential for online trading is still immense in India. With a
more transparent system, increased awareness, and a sustained
bullish market we would surely be heading to become the largest
online stock trading country by the turn of the next decade.
BIBLIOGRAPHY
Newspaper and magazines

The Economic Times

Business World

Books:

* Stock exchange & investments - V Raghunathan
* Security analysis - Punithavathy Pandian
* Management of financial Institution,
      By: Khan & Jain
* Security Analysis
      By: Fisher & Jordan
   • Securities Market (Basic) Module :--NCFM
   • “Security Analysis and Portfolio Management”, Fischer and
      Jorden
   • “Investment Management: Security Analysis and Portfolio
      Management”, V. K. Bhalla
   • Economic Times.
   • Training Kit Provided by the M-SOLL.
• Websites:
 www.investmartindia.com
 www.indiabulls.com
 www.bseindia.com
 www.nseindia.com
 www.equityresearch.com
 www.incrediblecharts.com
 www.indiainfoline.com
 www.google.com
 www.investopedia.com
 www.sharekhan.com
 www.5paisa.com
 www.equitymaster.com
 www.icicidirect.com
 www.ncfm.com
 www.investopedia.com
 www.valuenotes.com

 www.M-SOLL.in
ANNEXURE

QUESTIONNAIRE

1. Please tick the age category to which you belong.

  A) 20-29   B) 30-39    C) 40-49    D) 50-60

2. Please tick the gender to which you belong.

  A) Male    B) Female

3. Please tick the occupation to which you belong.

 A) Serviceman                B) Business

 C) Professional              D) Student

  E) Housewife

  4. Please tick your monthly income.

 A) 10000-15000               B) 15000-20000

 C) 20000-25000               D) ABOVE 25000

5. Please tick your preference for trading

 A) Broking Firm              B) Sub- broker

6. Please tick where do you invest.

A) Fixed deposit with Banks          B) Mutual Fund

C) Stocks / Shares                   D) Insurance

E) Real Estates                        F) Govt. Bonds
7. Please Rank, The factor that influences your decision to open a

DMAT Account.

   1 = Most Preferable     7 = Least Preferable

 A) Proximity to Trading Firm

 B) Facility Provided by the Trading Firm

 C) Relationship Manager

 D) Advertisement

 E) Recommendation by Friend

  F) Brand Name

  G) Branch Timing

 8. Please tick the importance of the following Trading Firm

facility for customer ‘s.

   SERVICES                           Not Important             Important       Very

   Important

   Products                   ------------        ------------         -------------

   Brokerage                      ------------       ------------           -----------

   Annual Maintenance           -----------       -----------          -----------

   DEMAT opening charges -----------             ------------           ------------

   Exposure Money               -----------      ------------          ------------

   Relationship Manager         -----------      -------------         ------------


9. In which of these Financial Instruments do you invest into?

 (i) Shares          (ii) Mutual Funds            (iii)Bonds         (iv) Others
10. Which type of trading you prefer?

 (i) Online     (ii) Offline       (iii) Not Applicable

11. If you prefer Online Trading then the reasons for it?

  (i) Privacy                          (ii) User friendly & Time Saving
 (iii) Convenience                     (iv) All The Above

12. What factors motivates you to invest in securities?

 (i) New IPO's                          (ii) Entry of FII's
 (iii) More returns in less time       (iv) Others


13. Does online trading system motivate you to deal in securities?

   (i) Yes                                 (ii) No

14. Have you heard about M-SOLL?

    (i) Yes                               (ii) No


15. Which Brokerage Firm do you prefer for Online Trading?

   (i) ICICI Direct     (ii) M-SOLL       (iii) India bulls
   (iv) Kotak Securities (v) 5paisa       (vi) Any other

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A study of investors opinion about on line tradingcase of m soll ltd.

  • 1. A STUDY OF INVESTORS OPINION ABOUT ON LINE TRADING:CASE OF M-SOLL LTD. A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE’S OF MASTER OF BUSINESS ADMINISTRATION Of Uttrakhand Technical University, Dehradun Under the guidance of: Submitted by: RANA RATNAKAR Mrs. INDU GAUTAM (Asst. Professor) (MBA) MARKETING OMKARANANADA INSTITUTE OF MANAGEMENT & TECHNOLOGY RISHIKESH-249201
  • 2. Batch 2009-2011 CANDIDATE’S DECLARATION I hereby certify that work which is being presented in the dissertation report, entitled “A Study of Investors Opinion About On Line Trading: Case of M-SOLL Ltd.” for partial fulfillment of the requirement for the award of the degree of “Master Of Business Administration” in “Finance” Submitted in Omkarananda Institute Of Management And Technology (OIMT), of Uttrakhand Technical University is record of my own work, under the guidance of Mrs. Indu Gautam , Asst. Professor in OIMT, RISHIKESH. DATE: MBA (Finance) This is to certify that the above statement made by the candidate is correct to the best of our knowledge. Dr. ADITYA GAUTAM Mrs. Indu Gautam Director, Asst. Professor OIMT, Rishikesh OIMT, Rishikesh RANA RATNAKAR
  • 3. CONTENTS 1. Acknowledgement 2. Objective of the study 3. Research methodology 4. Company Profile 5. Indian Stock Market Overview 6. About NSE 7. About BSE 8. Indian Scenario (a) SWOT (b) Hurdles for Online Share Trading (c) Effect of Technology
  • 4. 9. Marketing Strategies of Company 10. Competitive Analysis a) 5paisa b) Kotakstreet c) Indiabulls d) ICICI Direct e) HDFC Securities 11. Findings of Competitive Analysis 12. Limitations of Competitive Analysis 13. Market Research Analysis 14. Learnings 15. Findings 16. Conclusion 17. Bibliography 18. Annexure
  • 5. ACKNOWLEDGEMENT Behind every study there stands a myriad of people whose helps and contributions make it successful. I would like to express my sincere gratitude towards Omkarananda Institute of Management and Technology (OIMT) for having provided me an opportunity to work and learn through this report. I am extremely grateful to my project guide Mrs. Indu Gautam, Assistant Professor, Omkaranada Institute of Management and Technology, Rishikesh, for guiding me in preparing my dissertation report a memorable learning experience. Her constant support as well as the confidence which she showed in me helped me tide over the difficulties. RANA RATNAKAR M.B.A.{MARKETING}
  • 6. OBJECTIVE OF THE STUDY It is said that the well defined objective is half attained. In order to make sure that a proper research has been taken ensures defining clear cut objectives and outlines is a prerequisite. The research objectives of the study are: • To understand about online trading. • To know about the stock market. • To know the prevalence of on line trading and its significant impacts on the trading patterns of investors, trading volume, transaction costs, securities service industry and overall market operation. The speed and lower transaction costs of online trading encouraged investors to trade frequently in pursuit of short swing profits making a day trading prevalent on the market.
  • 7. RESEARCH METHODOLOGY An exploratory research has been carried out to study the behavior of customers. To meet the research objective a research formats, to collect information from the respondents was made & the information was collected through individual interaction with the researcher. The data was collected using scientific method as per the questionnaire sample elements have been chosen by observation techniques. Research Design Research was conducted to know the scope of on line trading, so it was designed as Analytical. 1. Sample Design: Data for this study has been collected from primary sources. For the collection of data CONVENIENCE SAMPLING has been used. 2. Sample Size: Sample size for the study was 100 for the universe of the urban area, Haridwar. Primary data: Primary data was collected with the help of: 1. Questionnaire 2. Personal Interviews
  • 8. COMPANY PROFILE M-SOLL is driven by ethical and dynamic process for wealth creation. Based on this, the company started its endeavor in the financial market. M-SOLL enterprises limited (a Ranbaxy promoter group company) through M-SOLL securities limited, M-SOLL finvest limited, M-SOLL commodities limited and M-SOLL insurance broking limited provides integrated financial solutions to its corporate, retail and wealth management clients. Today, we provide various financial services which include investment banking, corporate finance, portfolio management services, equity & commodity broking, insurance and mutual funds. Plus, there’s a lot more to come your way. M-SOLL is proud of being a truly professional financial service provider managed by a highly skilled team, who have proven track record in their respective domains. M-SOLL operations are managed by more than 3000 highly skilled professionals who subscribe to M- SOLL philosophy and are spread across its country wide branches. Today, we have a growing network of more than 300 branches and more than 580 business partners spread across more than 300 cities/towns in India and a fully operational international office at London. Unlike a traditional broking firm, M-SOLL group works on the philosophy of partnering for wealth creation. We not only execute trades for our clients but also provide them critical and timely investment advice. The growing list of financial institutions with
  • 9. which M-SOLL are empanelled as an approved broker is a reflection of the high level service standard maintained by the company. M-SOLL Enterprises Limited group comprises of M-SOLL Securities Limited, M-SOLL Commodities Limited, M-SOLL Finvest Limited and M-SOLL Insurance Broking Limited which deal in equity, commodity and financial services business. M-SOLL SECURITIES LIMITED RSL is one of the leading broking houses of India and are dealing into Equity Broking, Depository Services, Portfolio Management Services, Internet Trading, Institutional Equity Brokerage & Research, Investment Banking, Merchant Banking and Corporate Finance. To facilitate free and fare trading process M-SOLL is a member of major financial institutions like, National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and a SEBI approved Portfolio Manager. RSL serves a platform to all segments of investors to avail the opportunities offered by investing in Indian equities either on their own or through managed funds in Portfolio Management.
  • 10. M-SOLL COMMODITIES LIMITED M-SOLL is a member of NCDEX and MCX and provides platform for trading in commodities, which is an online facility also. RCL provides platform to both agro and non-agro commodity traders to derive the actual price of the commodity and also to trade and hedge actively in the growing commodity trading market in India. With this realisation, M-SOLL Commodities is coming up with its branches at mandi locations. It is a flagship effort from our team which would be helpful in facilitating trade and speculating price of commodities in future. M-SOLL FINVEST LIMITED M-SOLL Finvest Limited (RFL), a Non Banking Finance Company (NBFC) is aggressively making a name in the financial services arena in India. In a fast paced, constantly changing dynamic business environment, RFL has delivered the most competitive products and services. RFL is primarily engaged in the business of providing finance against securities in the secondary market. It also provides finance for application in Initial Public Offers to non-retail clients in the primary market
  • 11. M-SOLL INSURANCE BROKING LTD. M-SOLL has been taking care of financial services for long but there was a missing link. Financial planning is incomplete without protective measure i.e. structured products to take care of event of things that may go wrong. M-SOLL Insurance Broking Limited. As composite insurance broker, deals in both insurance and reinsurance, providing our clients risk transfer solutions on life and non-life sides.
  • 12. M-SOLL Today An ISO 9001:2000 Company Member of National Stock Exchange (NSE) since November 1994, first deposit based member of BSE. Depository Participant with - National Securities Depository Limited (NSDL) since July 2000 - Central Depository Services (India) Limited (CDSL) since Feb 2003. - SEBI Approved Portfolio Manager Working on the Philosophy of being “Financial Care Partner” Among the leading service provider in Capital Market In a span of less than five years of its retail operations, RSL recorded a healthy growth rate both in business volumes and profitability. M-SOLL is among the very few stock market intermediaries to having very sound based capital and healthy net worth. M-SOLL aims to have its footprint all across the country by the end of year so that it may add value to the investing community in the country. Management M-SOLL team is led by a very eminent Board of Directors who provide policy guidance and work under the active leadership of its CEO & Managing Director and support of its Central Guidance Team.
  • 13. Mission and Vision Mission To be India's first Multinational providing complete financial services solution across the globe. Vision Providing integrated financial care driven by the relationship of trust and confidence.
  • 14. Products The main products which are dealing by M-SOLL securities Ltd are as follows:- 1. Equity(Shares) 2. Mutual Funds 3. Derivatives(F&O) 4. Commodities 5. Portfolio Management Services(PMS)
  • 15. Indian Stock Market Overview The Bombay stock exchanges (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchange in India. In addition, there are 22Regional Stock Exchanges However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80% of the equity volume traded in India. The average daily turnover at the exchanges has increased from Rs. 851 crore in 1997-98 to Rs. 1,284 crore in 1998-99 and further to Re. 2273 crore in 1999- 2000 (April- August 1999). NSE has around 1500 shares listed with a total market capitalization of around Rs. 921500 crore (Rs. 9215 Bln). The BSE has over 6000 stocks listed and has a market capitalization of around Rs. 968000 crore (9680 Bln). Most key stocks are traded on both the exchanges and hence the investor could buy them on either exchange. Both exchanges have a different settlement cycle, which allows investors to shift their positions on the bourse. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 index (Nifty) which consists of fifty stocks. The BSE Sensex is the older and more widely followed index. Both these indices are calculated on the basis of market capitalization and contain the heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The Scripts traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’ and ‘Z’ groups. The ‘A’ group shares represent those, which are in the carry forward system (Badla). The ‘F’ group represents the debt market (fixed income securities) segment. The ‘Z’ group scripts are the blacklisted companies. The ‘C’ group covers the odd lot secutities in ‘A’, ‘B1’& ‘B2’ groups and Rights renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd. About NSE
  • 16. The Organization The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by Leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE Group NSCCL IISL NSE.IT DotEx Intl. NSDL Ltd.
  • 17. NSE Mission NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: • establishing a nation-wide trading facility for equities, debt instruments and hybrids, • ensuring equal access to investors all over the country through an appropriate communication network, • providing a fair, efficient and transparent securities market to investors using electronic trading systems, • enabling shorter settlement cycles and book entry settlements systems, and • meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technology have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities. Promoters
  • 18. NSE has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries: • Industrial Development Bank of India Limited • Industrial Finance Corporation of India Limited • Life Insurance Corporation of India • State Bank of India • ICICI Bank Limited • IL & FS Trust Company Limited • Stock Holding Corporation of India Limited • SBI Capital Markets Limited • Bank of Baroda • Canara Bank • General Insurance Corporation of India • National Insurance Company Limited • The New India Assurance Company Limited
  • 19. Corporate Structure NSE is one of the first de-modularized stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policy makers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country. From day one, NSE has adopted the form of a demutualised exchange - the ownership, management and trading is in the hands of three different sets of people. NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework. The NSE model however, does not preclude, but in fact accommodates involvement, support and contribution of trading members in a variety of ways. Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full time executive of the Exchange. While the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to various committees constituted by it. Such committees include representatives from trading members, professionals, the public and the management. The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff .
  • 20. ABOUT BSE The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956. The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programmes and making available to them necessary informative inputs. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads of Departments. The Exchange has inserted new Rule No.126 A in its Rules, Bye- laws & Regulations pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief Operating Officer has been constituted.
  • 21. Turnover on the Exchange • The average daily turnover of the Exchange during the financial year 2008-2009 and 2009-10 (April-March), was Rs. 2978.81 crores and Rs. 3150.26 cores respectively. • The average number of daily trades recorded during the above period was 8.98 lakhs and 10.38 lakhs respectively. The ban on all deferral products like Borrowing & Lending of Securities Scheme (BLESS) and Automated Lending & Borrowing Mechanism (ALBM) in the Indian capital markets by SEBI w.e.f. July 2, 2009, abolition of account period settlements, introduction of Compulsory Rolling Settlements in all scrips traded on the Exchanges w.e.f. December 31, 2009, etc. have adversely impacted the liquidity in the market and consequently there is a considerable decline in the average daily turnover at the Exchange as reflected in above statistics. Safety of the market One of the objectives of the Exchange is to promote and inculcate honorable and just practices of trade in securities transactions and to discourage malpractices. The surveillance function at the Exchange has assumed greater importance in the last few years. The Securities and Exchange Board of India (SEBI) had directed the Stock Exchanges in August 1995 to set up a separate Surveillance Department with staff exclusively assigned to surveillance functions. The Exchange has accordingly set up a separate Surveillance Department to keep a close watch on price movement of scripts, detect market manipulations like price rigging, etc., monitor abnormal prices and volumes which are not consistent with normal trading pattern and monitor the member-brokers' position to ensure that defaults do not occur. This Department, which is headed by a General Manager, reports directly to the Executive Director.
  • 22. The Surveillance Department monitors exposure of the members on a daily basis. It also scrutinizes the prices and volumes of the scripts on a daily basis. As per the guidelines issued by SEBI, the Exchanges are required to apply a daily Circuit Filter of 20% on all the scripts except on the scripts on which derivative products are available or are included in the indices on which derivative products are available. On these scripts Exchange has imposed dummy circuit filters to avoid punching error by members, if any. The imposition of circuit filters on scripts ensures that the price of the scrip cannot move upward or downward beyond the limit set for a day. The large variations in the prices as well as the volumes of the scripts are scrutinized and appropriate actions are taken. The scripts which reach new high or new low and companies which have high turnover are watched. Also the prices and volumes in the newly listed scripts are monitored. In case certain abnormalities are noticed, then circuit filters are reduced to make it difficult for the price manipulators to increase or push down the prices of a scrip within a short period of time. The Exchange imposes special margin in the scripts where it is suspected that there is an attempt to ramp up the prices by creating artificial volumes. Brokerage and other transaction costs Brokerage is negotiable. The Exchange has not prescribed any minimum brokerage. The maximum brokerage is subject to a ceiling of 2.5 percent of the contract value. However, the average brokerage charged by the members to the clients is much lower. Typically there are different scales of brokerages for delivery transaction, trading transaction, etc. The Stamp Duty on transfer of securities in physical form is to be paid by the seller but in practice it is paid by the buyer while registering the shares in his name. In case of transfer of shares, the rate is 50 paise for every Rs.100/- or part thereof on the basis of the amount of consideration and that for transfer of debentures the rate of stamp duty varies from State to State, where the registered office of a Company issuing the debentures is located.
  • 23. Inspection of the broker’s books In terms of the instructions issued by the Ministr y of Finance, Government of India, Stock Exchanges are required to inspect the books of accounts of at least 10% of their active members in a financial year. T he Inspection Department of the Exchange has been entrusted with this responsibility. Notably, ever y year, the number of inspections carried out by the Exchange, far exceeds the level prescribed in this regard by the Ministr y of Finance. T he Exchange has also constituted a panel of Chartered Accountants to conduct inspection of the book and accounts of the members. The purpose of involving independent Chartered Accountants in this work is to inspect the books of accounts of ever y members at least once in ever y three years. T he Exchange has also prepared a detailed "Guidance Manual for inspection of member-brokers" to assist the Chartered Accountants in the inspection of the books of accounts of members. T he purpose of the inspection is to verif y whether the member has maintained the required books of accounts as per the Securities Contracts (Regulation) Rules, 1957, whether the member has issued contract notes in the proper format prescribed by the Exchange, whether brokerage has been indicated separately therein, whether the member has adhered to the Rules, Regulations and By- laws of the Exchange and guidelines issued by the Exchange and SEBI from time to time, etc. T he findings of the inspection are conveyed to the members and follow- up action is taken based on the responses/clarifications provided by the members. If the violations are of serious nature, the matter is referred to the Disciplinary Action Committee of the Exchange. T he members are required to get their annual accounts audited from a Chartered Accountant and submit an Audit Certificate as well as the Profit & Loss Account and Balance Sheet to the Exchange. T he members are also required to submit net worth certificates as at the end of March and September ever y year. Filing of these documents by the members is also monitored by the Inspection Department.
  • 24. Indian Scenario Strengths The `do-it-yourself' framework of online share trading offers retail investors the three benefits of transparency, access and efficiency. Paperwork diminishes significantly, and no more painful trips to your broker to check if everything's in order. Online trading has made it possible to universalize access to retail investors. This was earlier very difficult, as the cost of servicing often-outweighed transaction volumes. Online brokerage ranges between 0.05-0.20 per cent of the value of transactions for non-delivery-based trades, and between 0.25-0.95 per cent for delivery-based trades. Once major investments in online infrastructure are over and done with - and with the economies of scale coming into play - it is expected that brokerage rates would head further downwards. Access to online trading and latest financial happenings, apart from quotes and unbiased investment analyses, all consolidate into a value-added product mix in tandem with evolving markets that are freer and fairer. The Net result: An inquisitive, informed and demanding investor. Today's investor is more involved in managing his or her assets and Sanalyzing a vast array of investment options. Technology and today's enabled investor have, in turn, driven competition, resulting in reduced costs of trading, transparency in dealings, and pricing info that is accurate and real-time. More and more investors now want to know how their trades are executed, and whether they have received the best possible price. Weaknesses Every thing in the world has a flip side to it - Transaction velocity is crucial. And more often than not, connections are lousy. There's also a degree of investor skepticism about online payment and settlement mechanisms in spite of all the encryption and fire walling brought into play. Time and technology will soon assuage these concerns, which hark back to the `physical' days. “The three main technology obstacles which have prevented Internet broking from taking off are:
  • 25. Lack of Internet penetration • Bandwidth infrastructure • Poor quality of ISP infrastructure.” Opportunities You have some money to dabble with. Trading shares on BSE/NSE has always been your dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is your main opportunity. 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. There are 2 types of online trading service: discount brokers and 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. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, M-SOLL.in, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotaksecurities.com are some of the online broking sites in India. And daily trading turnover is estimated in the vicinity of 0.75 per cent of the combined BSE and NSE daily turnover of about RS 11,000 crore!!! The point is, there's tremendous scope for growth. Especially when you consider the US, where trading over the Net accounts for about 55 per cent of the total volumes. And, I believe, in some Asian markets the figures as high as 70 per cent. Threats On to some threat perception - Domestic funds, foreign institutional investors and operators comprise the three main market constituents. And all three include term investors as well as opportunists in their pecking order. Some, for instance, hitch their fate with what the FIIs are up to. All this spells spurting volumes. But nobody gives a damn about the resultant volatility. And some, not all, offer free investment advice over the Net to lure rookie
  • 26. investors with misleading information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy the Net. Unlike in the US, stockbrokers out here willingly (or under the force of circumstance) assume the role of `advisors', sans the neutral, non-vested stance. So, how does all this impinge on the ordinary guy's ordinary dreams Hurdles for online share trading Internet fraud In India, we see this kind of frauds happening in different way due to nature of our society. Here when you talk to broker's staff while buying or selling, he will usually advise you to buy share which he has bought and plans to dump when price goes up. We have seen enough of PUMP and DUMP even without help of internet in cases of Harshad Mehta boom of 1992 and Ketan Parekh boom of 2000 (he even had cult following with Index of 10 shares called K-10). Today lot of investor’s depending on TV channel for recommendation about stocks to sell, or buy or hold. Channels like CNBS offer array of experts from economist to brokers to analyst. Most of these people have vested interest in stocks they recommend and promote. One of the most common forms of securities fraud on the Internet involves an imposter who attempts to manipulate the price of a stock by disseminating phony press releases or information, or creating phony websites. A recent example of this scheme is the hoax perpetrated against US based, PairGain Technologies.
  • 27. Volatility of India’s Stock Markets Recent market developments have once more focused attention on the volatility that has come to characterise India’s stock markets. Movements in the Sensex during the two years have clearly been driven by the behaviour of foreign institutional investors (FIIs), who were responsible for net equity purchases of as much as $6.6 and $8.5 billion respectively in 2008 and 2009. These figures compare with a peak level of net purchases of $3.1 billion as far back as 1996 and net investments by FIIs of just $753 million in 2009. In sum, the sudden FII interest in Indian markets in the last two years account for the two bouts of medium-term buoyancy that the Sensex recently displayed. Given the presence of foreign institutional investors in Sensex companies and their active trading behaviour, their role in determining share price movements must be considerable. Indian stock markets are known to be narrow and shallow in the sense that there are few companies whose shares are actively traded. Thus, although there are more than 4700 companies listed on the stock exchange, the BSE Sensex incorporates just 30 companies, trading in whose shares is seen as indicative of market activity. This shallowness would also mean that the effects of FII activity would be exaggerated by the influence their behaviour has on other retail
  • 28. investors, who, in herd-like fashion tend to follow the FIIs when making their investment decisions. Rampant Speculation The Indian stock markets are perhaps the only place in the world where you can buy shares without having to put money on the table and sell shares you do not own. This extraordinary situation has facilitated rampant speculation by all sorts of operators – the indigenous variety, FIIs and even our own native financial institutions (FIs) as the massive UTI scandal of recent years has demonstrated. So, when the stock markets were made to collapse by a record 800-plus points on May 17 under the pretext that the Left is opposed to divestment, the profits reaped by short sellers were astronomical and incalculable. Could this situation have been avoided? As aforesaid, the answer is yes. The electronic monitoring system in both the Bombay Stock Exchange and the bigger National Stock Exchange automatically stopped trading for half-an-hour when the two markets respectively collapsed by 10 percentage points. Thereafter when trading resumed and the markets fell further to another stipulated lower level, the electronic system automatically stopped all trading again for another two hours. A similar situation had occurred on Tuesday, September 11, 2009, the day of the terrorist attacks in New York City. At the end of the day the stock exchange authorities of both the New York Stock Exchange and the heavily- weighted software exchange called NASDAQ suspended all trading for the remainder three working days during that fateful week to safeguard investor interests. So, advanced capitalism does know how to intervene "politically" in the markets when fundamental interests are in danger of violation by short sellers.
  • 29. Effect of technology The growth in technology and communications has impacted every aspect of business in some or the other form. These effects are enduring and have changed the very way in which business is carried out. The stock market, is one such institution whose very existence has been challenged by the growth in information technology. IT has turned the very idea of a stock market on its head. Technology has impacted the working of stock markets in every sense. However, a useful starting point for this study would be the study of dematerialization, or demat as it is popularly known as. This is simply because demat has changed the way stocks are held and traded and therefore has effect on every other function of the market. Dematerialization in simple terms means the conversion of shares from physical to electronic form. Demat, enabled by the use of technology is probably is single most important factor which has repercussions on every aspect of the stock markets. Demat in India started with the creation of NSDL (National stock depository limited) in 1996. UTI, was one of the first institutions to use demat when it decided to dematerialize 50% of its holdings in 1997. SEBI gave a boost to demat, with compulsory trading on shares in demat form in specified scrips by institutional investors from Jan 15, 1998. Consequently, an increasing percentage of the share trading is done in demat form.
  • 30. The exhibit below shows the percentage of demat shares in the total value of shares traded at NSE over a period of 6 years. Dematerialization has benefited the market and the market players in more than one way. Demat is instrumental in  Abolition of market lots  Introduction of rolling settlements  Enhancing liquidity  Bringing stamp duty to zero  Reducing chances of bad delivery  Increased lending by banks and other FIs SEBI extended demat to IPOs during capital reforms in capital markets in 2002. The premise being elimination of problems due to loss of allotment letters, share certificates etc., encouraging shareholders to opt for demat credit of allotments, trading compulsorily in demat form with an option of holding shares in physical form for retail investors. BSE, the first exchange to be set up in India, started as a floor- based exchange. However, NSE, setup as an alternative to BSE, was an electronic (computerized) exchange. With advancements in technology, both these exchanges moved to SBTS (Screen Based Trading System) in 1997. While NSE introduced NEAT (NSE’s Online Trading System) in May 1997, BSE introduced BOLT (BSE’s Online Trading System) in September 1997 in Mumbai. The outcome has phenomenal with respect to the number of trades taking place on these two exchanges. Further, trading in stocks has reached retail investors’ home via the Internet. In 1999-2000, SEBI proposed Internet based trading under ORS (Order Routing System)
  • 31. Trading via Internet was an instant hit, with 18 members being granted licenses and trades touching 767 Cr. Although security concerns still exist regarding the safety of data transfer over the Internet, companies like VERISIGN and RSA, who specialize in security algorithms and data encryption ensure high degree of authenticity and trust in trades. Information Flow Any trading system disseminates data to market constituents, in other words, information is freely available. This has two disadvantages - • It makes easier for off-exchange transactions to occur because of availability of information. • It makes off-exchange transactions attractive due to absence of trading costs. On the other hand rapid flow of information has also meant increased volatility in the markets. In financial terms, volatility is: The degree to which the price of a security, commodity, or market rises or falls within a short-term period. An obvious reason for market volatility is technology. This includes more timely information dissemination, improved technology to make trades and more kinds of financial instruments. The faster information is disseminated, the quicker markets can react to both negative and positive news. Improved trading technology makes it easier to take advantage of arbitrage opportunities, and the resulting price alignment arbitrage causes. Finally, more kinds of financial instruments allow investors more opportunity to move their money to more kinds of investment positions when conditions change.
  • 32. Adverse impacts of IT on stock markets Some other interesting observations about impact of technology on stock markets – The vintage capital model teaches us that technological change destroys old capital. We have gone further and argued that major technological change—like the IT revolution— destroys old firms. It does so by making machines, workers, and managers obsolete. Product-market entry of new firms and new capital takes time, and their stock-market entry takes even longer. In the meantime, the stock market declines. We have argued that aggregate valuation can fall below the present value of dividends because capital may "disappear" right after a major technological shift, as new capital forms in small, private companies. Later, these companies are IPO’d, and only then does their value become a part of stock- market capitalization. Indeed, the innovation may, at first, reduce the market’s value because some firms, usually large or old, will cling to old technologies that have lost their momentum. (a) the market declined in the late 1960’s because it felt that the old technologies either had lost their momentum or would give way to IT, and that (b) IT innovators boosted the stock market’s value only in the 1980’s. To sum up, we can say that computerization and automation are not to be avoided. Technology has been able to make the stock markets accessible to every individual. It has also led to positive developments in terms of reduced costs and fewer errors. But, as some experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation and knowledge dissemination are still important. The use of technology should be preceded by a detailed study and assessment of all other alternatives. The key to successful use to technology is the appreciation of its constraints.
  • 33. Broking….personalized If you prefer the assurance and reliability of trading through a broker, you can use our network of 250 branches and 157 business partner outlets in over 123 cities to trade in equities as well as derivatives. We will help you with the investment process, give you advice based on extensive research and provide you with relevant and updated information to help you make informed investment decisions. MARKETING STRATEGIES OF COMPANY Marketing Strategy: A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm's potential for gaining a competitive advantage. • A business’ approach to marketing its products/ services expresses in broad terms, which forms the basis for developing a marketing plan. • Marketing starts with market research, in which needs and attitudes and competitors' products are assessed, and continue through into advertising, promotion, distribution, and, where applicable, customer servicing and repair, packaging, and sales and distribution. • The broad marketing thinking that will enable an organization to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives. • : Tele Calling The company uses the tele calling/ phone calling to reach the customer, which are interested. This is the most important technique to save time and giving demo of the companies product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc. • LMS :It is Leads Management System Which means leads are generated by the customers who want to purchase the product of the company? Company provides facility to the customer online to fill the registration form through which the company’s executives can provide more information to the customer.
  • 34. Yellow Pages Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company. • Canopy’s: This is the most important technique used by M-SOLL securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides these companies executives ask customer to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main markets, cinema s, hotels, ATM or etc where people come in good numbers. • Direct Marketing: M-SOLL executive’s reaches to the does of the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better. • Advertising:- Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. M-SOLL uses banners, distribution of pamphlets, and advertisement in newspapers, magazines. • References M-SOLL strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funds by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advise and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company.
  • 35. Competitiveness:- The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. M-SOLL make it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer. • Internet:- Company has provided detailed information about the products on Internet so that customer can know about the product easily and completely. How M-SOLL deals with equity trading and the services provided to the customers? M-SOLL Securities Ltd Provides best services to its customers for equity trading in comparison to other Financial Securities Companies. These services are as follows- Online trading facilities with Odin terminal. Odin terminal is wave based software. Client can easily download the terminal through M-SOLL web site. No extra charges are taken for the use of this terminal. Through this terminal/software you execute your order within 2 seconds. In this terminal we get both NSE&BSE On-line at same time. And the clients can do trading in both NSE&BSE at the same time. Individual Client: Demat A/c opening charges: Rs 500/- (maintenance Charges Rs 250/-) Trading A/c free for life time Trading through offline or website. (www.M-SOLL.in) NSE & BSE both are online. Live applet for watching prices & trading purposes.
  • 36. Brokerage Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable) Exposure: -4 to10 times (For Intraday) 2 times (For Delivery) F&O Brokerage: - Buy & Sell 0.05% (Negotiable) Other features For the fund transfer and withdraw, we have tie up with two banks ICICI Bank and HDFC Bank. If you are having bank account in one of them, you can transfer the funds and withdraw the funds online same day. Settlement of trades follows T+2 transaction cycle. Freedom from paperwork, trading facilities is completely online. SMS alerts on your mobile phones. Apart of that we have our dedicated team to look after your Portfolio, Mutual Funds, and Commodities. Document Photocopies Required (A) Two coloured Photographs (self signed). (B) For identification Proof- Voter ID Card/ Driving License/ Passport/ PAN Card (Compulsory) any one.
  • 37. (C) For residential proof:- Bank statement/ Voter ID Card/ Ration Card/ Driving License/ Passport/ Telephone or Electricity Bill statement (any one) (D) One cancelled cheque leaf (For MICR No. record) (E) Later Bank Statement/ Front page of passbook (Showing Name, Address, A/c No.) (F)You can also deposit the initial margin money at the time of opening of account. Competitive Analysis The Major competitors are: • 5paisa.com • Kotak Securities.com • IndiaBulls.com • ICICI Direct.com • HDFC sec.com
  • 38. 5paisa.com Company Background Indiainfoline was founded in 1995 and was positioned as a research firm. In 2000 e-broking was started under the brand name of 5 paisa.com. Apart from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance.
  • 39. Limited ground network, present in 20 Cities Online Account Types • Investor Terminal : Investors / Students • Trader Terminal : Day Traders / HNI’s PRICING FOR RETAIL CLIENTS Investor Terminal •Account Opening: Rs 500 •Demat 1st Yr: Rs 250 •Initial Margin: Rs 2500(Compulsory) •Min Margin Retainable: Rs 1000 •Brokerage: Trading 0.10% each side + ST+ STT Delivery 0.50% each side + ST+ STT PRICING FOR HNI CLIENTS Trader Terminal
  • 40. •Account Opening: Rs 500 •Demat 1st Yr: Rs 250 •Initial Margin: Rs 5000(Compulsory) •Min Margin Retainable: Rs 1000 •Brokerage: Trading 0.10% each side + STT+ST Delivery 0.50% each side + STT+ST ( Negotiable to 0.05% each side & 0.25%) •Account Access Charges Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage Deal Clinchers v/s 5 Paisa •Company Background Not having a very positive image, relatively new in the broking arena, limited network •Downtime Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime between 3 – 3:30 p.m due to server load ( as their T.T is feature heavy compared to Speetrade charting) •Manual Accounting The 5 paisa accounting system is manual, Online fund transfer through bank is not credited instantly. Limit is provided EOD for shares sold from DP, or call
  • 41. Similarly limit released for shares sold under BTST is manual Delay in receiving pay-out of clear funds from trading to Bank Account •Min Account Balance Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active. This can be withdrawn only on closure of account. Kotak securities Company Background A Kotak security is the retail arm of Kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs Online Account Types •Twin Advantage / Green Channel: 2 DP’s, Limit against shares •Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction •High Trade: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55 •Cash Expressway: Spot payment, additional 0.5% charges For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces. Keat Desktop with advanced tools comes at a charge of Rs 500 p.m, Non-refundable PRICING OF KOTAK
  • 42. •Account Opening: Rs 500 •Demat: Rs 22.5 p.m •Initial Margin: Rs 5000(Compulsory) •Min Margin Retainable: Rs 1000 •Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure. For intraday trading- .05% For Delivery trading- .50% (Brokerage is negotiable and it based on the volume of client) Exposure:- For intraday trading - 5 – 10 times For delivery trading - 2 times Funding:- Interest rate is 19% per month for funding Services:- 1. No SMS alert provide 2. A trader can find out the information about share market only by to call dealers 3. Account opening time- One Weak 4. Online & offline trading facilities are different. Deal Clinchers v/s Kotak securities •Rigid Account Opening Terms No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/- Account opening free with Rs 10,000 Margin OR competitor Contract Note. •No Customization of commercial Terms
  • 43. No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only) No flexibility in Brokerage, driven by slab structure •Many Other Charges Rs 22.5 p.m towards DP AMC charges DP incoming charges extra, 0.02% Rs 1,000 as retainable Margin to keep account active Rs 25 per call after 20 calls for the month •Restricted Access to Terminal Like product KEAT Desktop restricted distribution on payment of Rs 500, Non refundable
  • 44. INDIABULLS Company Background IndiaBulls is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and Products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors Online Account Type •Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid service even for A/c holders. •Power Indiabulls: Account with sophisticated trading tools, low commissions and priority access to R.M Pricing of IB Accounts Signature Account •Account Opening: Rs 250 •Demat: Rs 200 if POA is signed, No AMC for this DP •Initial Margin: NIL •Brokerage:Negotiable
  • 45. Power IndiaBulls •Account Opening: Rs 750 •Demat: Rs 200 if POA is signed, No AMC for this DP •Initial Margin: NIL •Brokerage: Negotiable PAID Research SCHEME FACILITY WebBased-1-Month-500: View & Print on website WebBased-1-Year-6000 View & Print on website PrintReport-1-Month-750: View & Print on website + 10 Reports Delivered PrintReport-1-Year-9000: View & Print on website + 10 Reports Delivered Deal Clinchers v/s India Bulls •POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account •Paid Research Services Access to an research even for an IB trading account holder is charged a min of Rs 500 a month •Margin Funding hoax The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a, on a daily basis •The role of Relationship Manager Each RM is looked upon as a revenue generator and he gets a % on business generated from client. This can lead to over leveraged (Interest) & high frequency(Brokerage) trading, which may not be in the best interest of the client.
  • 46. ICICI Direct.com Company Background ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited Account Types •ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage. Differentiated in services within the account 1. Cash on spot 2. Margin Plus Premium Trading interface of ICICI Direct Link is given to DBC partners and HNI’s •Account Opening: Rs 750 •Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These schemes are introduced 3-4 times a year. •Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4 DP’s without 1st yr AMC •Initial Margin: Nil
  • 47. •Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes. Deal Clinchers v/s ICICIDirect •Poor online Interface Slow website interface with no real-time quotes creates dissatisfaction among high frequency traders •Margin trading restriction The margin trading system is available up to 2:45 p.m, with outstanding net positions under margin segment automatically squared off at any time between 2:45 – 3:30 p.m. Thus no control of square off price.
  • 48. HDFC Securities Company Background HDFC Securities Ltd, is promoted by the HDFC Bank, HDFC and Chase Capital Partners and their associates. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers. Online Account Type HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage Pricing of HDFC Account •Account Opening: Rs 750 •Demat: NIL, 1st year charges included in Account Opening •Initial Margin: Rs 5000/- for non HDFC Bank customers (AQB) •Brokerage: Trading 0.15%* each side + ST Delivery 0.50%** each side + ST * Rs 25 Min Brokerage per transaction ** Rs 8 Min Brokerage per transaction
  • 49. Deal Clinchers v/s HDFC Securities •Poor online Interface Apart from having no product to cater to Day-Traders, the hdfcsec.com website is plagued with downtime. The same is currently being revamped. •Lack of focus on Broking The core business of HDFC is Housing Finance and that of HDFC Bank is Banking. Broking as a business is a small part of the portfolio of financial services and hence the commitment to resources is limited. •No Leverage No leverage is available to clients even for Intra-Day trades, effectively all clients are on cash and carry system.
  • 50. FINDINGS OF COMPETITIVE ANALYSIS • M-SOLL has the unique product in the market related to the expectations desired by the customers. • The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers • M-SOLL strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funds by giving tips for investment advises • Brokerage charged by the company is less and competitively better according to the services provided to the customers.
  • 51. LIMITATIONS OF COMPETITIVE ANALYSIS Services of competitors: We cannot give proper comment on competitor’s services till 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. • The marketing person might be possible, is not through with all concepts to which I contacted. • 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’s. Mostly people comfortable with traditional brokers: As people are doing trading from there respective brokers, they are quite comfortable to trade via phone. Inaccurate Leads: Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number Misleading concepts: Some people think that Shares are too risky and just another name of gamble but they don’t know its not at all that risky for long investors.
  • 52. MARKET RESEARCH ANALYSIS 1. Tick the age category to which you belong ? Age Percentage 20-29 10% 30-39 15% 40-49 50% 50-59 10% Above 60 15% Data Interpretation :- As the graph shows that most of the respondents belong upto the age group of 40-49 with 50% of the total share whereas other respondensts belonging to the other age groups constitue of merely 20%.
  • 53. 2. Please tick the gender to which you belong ? (A)Male (B)Female Female, 18 Male Female Male, 82 Data Interpretation:- As the graph shows that most of the respondents belong to the male category i.e. 82% male ; 18% female.
  • 54. 3. Tick the occupation to which you belong ? Occupation Percentage Serviceman 70 Business 20 Professional 2 Student 5 Housewife 3 Others 0 Data Interpretation:-The table and graph indicates that most of respondents are serviceman constituing 70% share whereas business people and students are next in the cadre with low percentage such as 20% and 5% respectively, which means that regular income holder are more prone towards faster and easy trading.
  • 55. 4. Please tick your monthly income ? Monthly Income Percentage Up to 10000 2 10000-15000 5 15000-20000 13 20000-25000 20 Above 25000 60 Data Interpretation:- In this graph we can see that most of the people belong to income category of above 25000 with 60% share where as the lowest percantage (2%) of people belong to the income group upto 10000.
  • 56. 5. Please tick your preference for trading ? (A) Broking Firm (B) Sub Broker Broking Broking Firm Sub Broker, Firm, 45 55 Sub Broker Data Interpretation:- In this graph we can see that most of the people preferences are 45% for Broking Firm ; 55% for Sub Broker.
  • 57. 6. Please tick where do you invest ? Area of Invest Percentage Fixed Deposit with banks 35 Mutual Funds 7 Stocks 27 Insurance 8 Real State 18 Govt. Bonds 5 Interpretation Above chart shows that most of the people are interested to invest their money in fixed deposits due to low risk and whereas very few people are interested in Govt. Bonds due to its low rate of return.
  • 58. 7:- Please rank the factors that influences your decisions to open a DMAT Account ? Factor influencing for opening DMAT A/c Percentage Proximity to Trading Firm 12 Facility Provided by the trading firm 48 Relationship with manager 14 Advertisement 6 Recommendation by friend 10 Brand Name 8 Branch Timing 2 Data Interpretation:- With the help of this graph we came to understand that facility provided by the trading firm is the very crucial aspect which influences the customer’s attitude towards opening DEMAT A/C with the highest percentage constituting almost 48% share. In spite of this we can observe that
  • 59. relationship with manager get IInd higher priority factor which influence opening of DMAT A/C is 14%. 7. Pick tick the importance of the following trading firm Facility for the customer’s? Importance of trading firm Most Less Un facility Important Important Important Products 48 11 41 Brokerage Charge 58 24 18 Annual Maintenances 51 37 12 DMAT opening Charges 29 54 17 Relationship with Manager 62 15 23
  • 60. 8. In which of these financial instruments do you invest in to? (A) Shares (B) Mutual Funds (C) Bonds (D) Others 6 24 38 Shares Mutual Funds Bonds Others 32 Data Interpretation:- As the pie chart above shows that 38% of investor invest in shares , 32% in mutual funds , 24% in bonds and 6% in others.
  • 61. Awareness of online share trading yes--40% No-- 60% Interpretation: This shows that although the mutual funds market is on the rise yet; the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.
  • 62. Awareness of Religare as a Brand Yes-- 63% No-- 37% Interpretation: This pie chart shows that M-SOLL has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. The company to increase its market share over its competitors should further leverage this brand image.
  • 63. Demat account market Share Religare 15% 20% Icici direct 10% kotak 18% india bulls 25% share khan 12% others Interpretation: This shows that even with sufficiently high Brand Equity, M-SOLL ranks only 3 rd amongst the Demat account providers. This is probably because of two main reasons: 1. Lack of promotion and unfocussed approach towards Product awareness 2. Non – transparent marketing policies of the company Hence, the company should crystallize its products and should indulge in aggressive marketing and promotion
  • 64. LEARNINGS 1. I learned to apply a lot of theoretical knowledge into practical use. 2. As my work included the sales, I learnt some of the ground rules of selling my product. 3. I also learnt to handle the month end stress when it is time to complete the targets. 4. I also came to know the various work culture rules and ethics that are required to be followed in the organization. 5. I also found that it is very important to build a relationship with a client as it brings more business.
  • 65. FINDINGS 1. People prefer more trading through sub brokers as they are personally attached with them. 2. The most of the people are interested to invest their money in fixed deposits due to low risk and but behind 27% people are interested to take risk and earn high returns. 3. Facility provided by the trading firm is the very crucial aspect which influences the customer’s attitude towards opening DEMAT A/C with the highest percentage constituting almost 48% share. In spite of this we can observe that relationship with manager get IInd higher priority factor which influence opening of DMAT A/C is 14%. 4. People really concerned with product in which they are going to invest keeping amount of brokerage to be charged. 5. People are unaware about the online trading practice and pattern 6. M-SOLL is not strategically planning for its promotion.
  • 66. CONCLUSION In spite of these optimistic numbers, online trading in India is at a very nascent stage (about 2 percent of total traded volumes) compared to countries like South Korea (60 percent), US (40 percent) and UK (20 percent). Online trading in the year 2000-2001 accounted for only Rs. 50,170 crore out of total traded volume of Rs. 25,08,445 crore. Brand building, assurances of security, developing multiple delivery channels with anytime telephonic grievance redressal options is some directions which may be of use for the immediate future. Online trading firms can also market themselves aggressively to students who are entering the professional arena, ensuring that their entry into equity happens online. One of the major issues governing trading is the prevailing uncertainty in the market. Hence, notwithstanding the current sentiment in the market, potential for online trading is still immense in India. With a more transparent system, increased awareness, and a sustained bullish market we would surely be heading to become the largest online stock trading country by the turn of the next decade.
  • 67. BIBLIOGRAPHY Newspaper and magazines The Economic Times Business World Books: * Stock exchange & investments - V Raghunathan * Security analysis - Punithavathy Pandian * Management of financial Institution, By: Khan & Jain * Security Analysis By: Fisher & Jordan • Securities Market (Basic) Module :--NCFM • “Security Analysis and Portfolio Management”, Fischer and Jorden • “Investment Management: Security Analysis and Portfolio Management”, V. K. Bhalla • Economic Times. • Training Kit Provided by the M-SOLL.
  • 68. • Websites:  www.investmartindia.com  www.indiabulls.com  www.bseindia.com  www.nseindia.com  www.equityresearch.com  www.incrediblecharts.com  www.indiainfoline.com  www.google.com  www.investopedia.com  www.sharekhan.com  www.5paisa.com  www.equitymaster.com  www.icicidirect.com  www.ncfm.com  www.investopedia.com  www.valuenotes.com  www.M-SOLL.in
  • 69. ANNEXURE QUESTIONNAIRE 1. Please tick the age category to which you belong. A) 20-29 B) 30-39 C) 40-49 D) 50-60 2. Please tick the gender to which you belong. A) Male B) Female 3. Please tick the occupation to which you belong. A) Serviceman B) Business C) Professional D) Student E) Housewife 4. Please tick your monthly income. A) 10000-15000 B) 15000-20000 C) 20000-25000 D) ABOVE 25000 5. Please tick your preference for trading A) Broking Firm B) Sub- broker 6. Please tick where do you invest. A) Fixed deposit with Banks B) Mutual Fund C) Stocks / Shares D) Insurance E) Real Estates F) Govt. Bonds
  • 70. 7. Please Rank, The factor that influences your decision to open a DMAT Account. 1 = Most Preferable 7 = Least Preferable A) Proximity to Trading Firm B) Facility Provided by the Trading Firm C) Relationship Manager D) Advertisement E) Recommendation by Friend F) Brand Name G) Branch Timing 8. Please tick the importance of the following Trading Firm facility for customer ‘s. SERVICES Not Important Important Very Important Products ------------ ------------ ------------- Brokerage ------------ ------------ ----------- Annual Maintenance ----------- ----------- ----------- DEMAT opening charges ----------- ------------ ------------ Exposure Money ----------- ------------ ------------ Relationship Manager ----------- ------------- ------------ 9. In which of these Financial Instruments do you invest into? (i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others
  • 71. 10. Which type of trading you prefer? (i) Online (ii) Offline (iii) Not Applicable 11. If you prefer Online Trading then the reasons for it? (i) Privacy (ii) User friendly & Time Saving (iii) Convenience (iv) All The Above 12. What factors motivates you to invest in securities? (i) New IPO's (ii) Entry of FII's (iii) More returns in less time (iv) Others 13. Does online trading system motivate you to deal in securities? (i) Yes (ii) No 14. Have you heard about M-SOLL? (i) Yes (ii) No 15. Which Brokerage Firm do you prefer for Online Trading? (i) ICICI Direct (ii) M-SOLL (iii) India bulls (iv) Kotak Securities (v) 5paisa (vi) Any other