1

CHAPTER I

INTRODUCTION

OVERVIEW
All stock exchanges perform similar functions with respect to the listing, trading, and clearing of
securities, differing only in their administrative machinery for handling these functions. Most
stock exchanges are auction markets, in which prices are determined by competitive bidding.
Trading may occur on a continuous auction basis, may involve brokers buying from and selling
to dealers in certain types of stock, or it may be conducted through specialists dealing in a
particular stock
Stock Market
With the backing of the World Bank group, many developing countries started giving
prominence to stock markets for financing enterprises and allocation of savings. In India too, the
process started in the early eighties. In the wake of increased pace of economic liberalization
initiated in 1991, the Capital Issues Control Act, 1947, which till then regulated the issue and
pricing of new capital, was done away with and even greater emphasis was placed on the stock
market
Parties Involved In Share Trading
1.

BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.
Popularly known as "BSE", it was established as "The Native Share & Stock Brokers
Association" in 1875. It is the first stock exchange in the country to obtain permanent
recognition in 1956 from the Government of India under the Securities Contracts (Regulation)
Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital
market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an
Association of Persons (AOP), the Exchange is now a demutualised and corporative entity
incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE
(Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange
Board of India (SEBI).

2.

NATIONAL STOCK EXCHANGE

A Committee recommended the creation of a 2nd stock exchange in Mumbai called the
"National Stock Exchange. NSE has set up its trading system as a nation-wide, fully automated
screen based trading system. It has written for itself the mandate to create a world-class exchange
and use it as an instrument of change for the industry as a whole through competitive pressure.
NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It
started operations in June 1994, with trading on the Wholesale Debt Market Segment.
Subsequently it launched the Capital Market Segment in November 1994 as a trading platform
for equities and the Futures and Options Segment in June 2000 for various derivative
instruments.
NSE was set up with the objectives of:
(a) Establishing a nationwide trading facility for all types of securities;
(b) Ensuring equal access to investors all over the country through an appropriate
communication network;
(c) Providing a fair, efficient and transparent securities market using electronic trading
system;

PROFILE OF THE ORGANIZATION

The IIFL (India Infoline) group, founded by Mr. Nirmal jain(chairman) in 1995 comprising the
holding company, India Infoline Ltd (NSE: 532636) and its subsidiaries, is one of Indias
premier providers of financial services.
IIFL offers advice and execution platform for the entire range of financial services covering
products ranging from Equities and Derivatives, com-modifies, Wealth Management, Asset
Management, Insurance, Fixed Deposits, Loans, Investment Banking, Gold, Bonds, Other
small saving instruments.
IIFL has received membership of the Colombo Stock Exchange become- nag the first foreign
broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is
one of the Indias leady- nag online destinations for personal finance, stock market, economy and
business.
IIFL has awarded the Best Broker, Indias by Finance Asia and the Most improved brokerage,
India in the Asia Money Polls. India Info-line was also adjudged as Fastest Grow Equity
Broking House Large firm by Dun & Bradstreet. A forerunner in the field of equity research is
acknowledged by none other than forbs as Best of the web and a must read for investors in
Asia
Our research is available not just over the internet but also on international wire se rice like
Bloomberg, Thomson First call and internet securities besides others where it is amongst one of
the most read Indian brokers.
IIFL is a listed company with a consulted group net worth of about RS - 1,800 cores. The income
and net profit during FY2010-2011 were RS 14.7bn and RS 2.1bn respectively.
The group has a consistent and uninterrupted thick record of profits and dividends sin-cue its
listing in 2005. The company is listed on both Exchange and also trades in the derivatives
segment.

Mission & Vision

Its vision is to be the most respected company in the financial services space India Infoline Ltd.
India Infoline Ltd is listed on both the leading stock exchanges in India, viz, the Stock Exchange,
Mumbai (BSE) and the National Stock exchange (NSE). The Infoline group, comprising the
holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services
space with offerings ranging from Equity research, Equities and derivatives trading,
Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed
deposits GoI bonds and other small savings instruments to loan products and Investment banking
India Infoline also owns and manages the websites, www.indiainfoline.com and www.5paisa
.com

Company Structure
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both
the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and
Portfolio Management Services. It offers broking services in the Cash and Derivatives segments
of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the equities
market. It has recently launched its Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These
services are offered to clients as different schemes, which are based on differing investment
strategies made to reflect the varied risk-return preferences of clients.
India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange
Board of India). It undertakes equities research which is acknowledge by none other than Forbes
as Best of the Web and a must read for investors in Asia.

7
India Infolines research is available not just over the internet but also on international
wire services like Bloomberg (Code: IILL).Thomson First Call and Internet Securities where it is
amongst the most read Indian brokers.
Its various subsidiaries are in different of business and hence are governed by different
regulator. The subsidiaries of India Infoline Ltd are India Infoline Securities Pvt Ltd is a 100%
subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking and
Portfolio Management Services
It holds memberships of both the leading stock exchanges of India viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in
the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A SEBI
Authorized Portfolio Management Services to clients.
These services are offered to clients as different schemes, which are based on differing
investment strategies made to reflect the varied risk-return preferences of client.
India Infoline Commodities Pvt Ltd
INDIA Infoline Commodities Pvt Ltd is a 100%subsidiary of India Infoline Ltd, Which is
engaged in the business of commodities broking.
Our experience in securities broking us with the requisite skills and technologies to allow
us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy
memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and
recently acquired memberships of DGCX. We have a multi-channel delivery model, making it
among the select few to online as well as offline trading facilities.
India Infoline Distribution Co Ltd (IILD)
India Infoline.com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is
engaged in the business of distribution of Mutual funds, IPOs, Fixed Deposits and other small
savings products. It is one of the largest vendor-independent distribution houses and has a wide
pan-India footprint of over 232 branches coupled with a huge number of feet-on-street, which
helps source and service customers across the length and breadth of India .Its unique value
proposition of free doorstep expert advice coupled with free pick-up and delivery of cheque has
been met with an enthusiastic response from customers and fund houses alike.

8
Our business has expanded to include the online distribution of mutual funds, wherein
users can view and compare different product offerings and download application forms which
they can later submit to the product provider Mortgage & Loans IILD has also entered the
business on distribution of mortgages and loan products during the year 2005-2006. The business
is still in the investing phase and we plan to roll the business out across its pan-Indian network to
provide it with a truly national scale in operations.
India Infoline Insurance Services Ltd
India Infoline Insurance Ltd is also a 100% subsidiary of India Infoline Ltd and is a
registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA).
It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which is Indias
largest private Life Insurance Company
India Infoline Investment Sevices Ltd
India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It
has an NBFC license from the Reserve Bank of India (RBI) and offers margin-funding facility to
the broking customers.
India Infoline Insurance Brokers Ltd
India Infoline Insurance brokers Ltd is a 100% subsidiary of India Infoline Ltd and is a
newly formed subsidiary which will carry out the business of Insurance broking. We have
applied to IRDA for the insurance broking license and the clearance for the same is awaited.

Products and Services

Indian Infoline is a one-stop financial services shop, most respected for quality of its advice,
personalized service and cutting-edge expertise. It provides a bouquet of products:
EQUITIES
India Infoline provided the prospect of researched investing to its clients, which was hitherto
restricted only to the institutions. Research for the retail investor did not exist prior to India
Infoline leveraged technology to bring the convenience of trading to the investors location of
preference (residence or office) through computerized access. India Infoline made it possible for
clients to view transaction costs and ledger updates in real time. Over the last five years, India
Infoline sharpened its competitive edge through the following initiatives:
INTEGRATED MIDDLE AND BACK OFFICE
The customer can trade on the BSE and NSE, in the cash as well as the derivatives segment all
through the available multiple options of Internet, phone or branch presence.
MULTIPLE-TRADING OPTIONS
The Company harnessed technology to offer services at among the lowest rates in the business
membership: The Company widened client reach in trading on the domestic and international
exchanges.
TECHNOLOGY
The Company provides a prudent mix of proprietary and outsourced technologies, which
facilitate business growth without a corresponding increase in costs.
SERVICE
Clients can access the customer service team through various media like toll-free lines, emails
and Internet- messenger chat for instant query resolution. The Companys customer service
executives proactively contact customers to inform them of key changes and initiatives taken by
the Company. Business World rated the Companys customer service as Best in their survey of
online trading sites carried out in December 2003.

10
PMS (PORTFOLIO MANAGEMENT SERVICE)
India Infoline Ltd. offers PMS to address varying investment preferences. As a focused service,
PMS pays attention to details, and portfolios are customized to suit the unique requirements of
investors.
Portfolio Management Service is a product wherein an equity investment portfolio is created to
suit the investment objectives of a client. India Infoline invest your resources into stocks from
different sectors, depending on your risk-return profile. This service is particularly advisable for
investors who cannot afford to give time or don't have that expertise for day-to-day management
of their equity portfolio.
RESEARCH
Sound investment decisions depend upon reliable fundamental data and stock selection
techniques. India Infoline Equity Research is proud of its reputation for, and we want you to find
the facts that you need. Equity investment professionals routinely use our research and models as
integral tools in their work. They choose Ford Equity Research when they can clear your doubts.
COMMODITIES
India Infolines extension into commodities trading reconciles its strategic intent to emerge as a
one-stop solutions financial intermediary. The Companys commodities business provides a
contra-cyclical alternative to equities broking. The Company was among the first to offer the
facility of commodities trading in Indias young commodities market. Average monthly turnover
on the commodity exchanges increased from Rs 0.34 to Rs 20.02 billion. The commodities
market has several products with different and non-correlated cycles. On the whole, the business
is

fairly

insulated

against

cyclical

gyrations

in

the

business.

MORTGAGES
During the year under review, India Infoline acquired a 75% stake in Moneytree Consultancy
Services to mark its foray into the business of mortgages and other loan products distribution.
The Company brings on board expertise in the loans business coupled with existing relationships
across a number of principals in the mortgage and personal loans businesses. India Infoline now

11
has plans to roll the business out across its pan-Indian network to provide it with a truly national
scale in operations.
HOME LOANS AND PERSONAL LOANS
India Infoline Ltd provides finance services in the form of loans against residential and
commercial property. The company also provides personal loans as per the requirement, with
tremendous

features

like

easy

documentation,

quick

processing

and

disbursal.

ONLINE INVESTMENT
India Infoline has made investing in Mutual funds and primary market so effortless. All have to
do is register with us and thats all. No paperwork no queues and No registration charges.
INVEST IN MUTUAL FUNDS
India Infoline offers a host of mutual fund choices under one roof, backed by in-depth research
and advice from research house and tools configured as investor friendly.
ONLINE APPLICATION IN INITIAL PUBLIC OFFERS (IPO)
Client could also invest in Initial Public Offers (IPOs) online without going through the hassles
of filling ANY application form/ paperwork.
STOCK MESSAGING SERVICE (SMS)
Stay connected to the market remotely. The trader of today, you are constantly on the move. But
how to stay connected to the market while on the move? Simple, subscribe to India Infoline's
Stock Messaging Service and get Market on the Mobile of client! There are three products under
SMS Service
INSURANCE
An entry into this segment helped complete the clients product basket; concurrently, it graduated
the Company into a one-stop retail financial solutions provider. To ensure maximum reach to
customers across India, we have employed a multi pronged approach and reach out to customers
via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-

12
2000, a number of private sector insurance service providers commenced operations aggressively
and

helped

grow

the

market.

The Companys entry into the insurance sector derisked the Company from a predominant
dependence on broking and equity-linked revenues. The annuity based income generated from
insurance intermediation result in solid core revenues across the tenure of the policy.
WEALTH MANGEMENT SERVICE
Imagine a financial firm with the heart and soul of a two-person organization. A world-leading
wealth management company that sits down with you to understand your needs and goals. We
offer you a dedicated group for giving you the most personal attention at every level.
NEWSLETTERS
The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day
ideas, unless the markets are really choppy coupled with a brief on the global markets and any
other cues, which could impact the market. Occasionally an investment idea from the research
team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the
Daily Market Strategy, you even get research reports of India Infoline research team on a priority
basis. The India Infoline Weekly Newsletter is your flashback for the week gone by. A weekly
outlook coupled with the best of the web stories from India Infoline and links to important
investment ideas, Leader Speak and features is delivered in your inbox every Friday evening.

13

PROBLEMS OF THE INDIA INFOLINE LIMITED

There is a lack of understanding amongst employees & HODs regarding the process of
appraisal system. Hence the employees and their HODs should be given proper training
to understand the importance of performance appraisal.

There is a lack of interest in employees for attending the training program .In order to
overcome this, efforts should be made to make the training program interesting.

Records including the candidate information sheet and references are assembled
manually on papers. Efforts should be made to handle this process electronically right
from the commencement to the final step.

Sometimes the interviewees are left waiting for a lot of time, which hampers their image
about the company & its functioning. Hence, the waiting time should be reduced by
increasing the number of HR personnel at the time of interview.

14

SWOT ANALYSIS
STRENGTHS:
Provides most important resource i.e. finance: To start any business and to make the idea to be
actually implemented it needs finance. The FIIs brings the inflow of money into the country.
Many projects that require funding is done with the help of FIIs. Today in this world, the Finance
is the only resource, which has the capability to be easily transferred from one place to another,
and hence providing as a base for business opportunities .Free flow of capital is conducive to
both the total world welfare and to the welfare of each individual.
Contributes to the economic growth of the country : When FIIs enters the domestic country
they bring in the money and acts as the facilitator of the business development. As money comes
into the country, it provides various benefits to the leading sectors and ultimately results into the
development of various sectors. E.g. in India I.T sector is the most booming sector and has
shown the signs of improvement thus attracting the FIIs.
Balances the balance of payments: In the initial phase of economic development, the under
developing countries need much larger imports. As a result, the balance of payment position
generally turns adverse. This creates gap between earnings and foreign exchange. The foreign
capital presents short run solution to the problem. So in order to balance the Balance of Payment
Foreign Investment is needed.
Provides more returns than in domestic countries: FIIs provide more returns to the investors
as compared to the domestic country. This is one of the most important strength of FIIs. The
main reason is that the countries in which th Foreign Institutional Investors invest their money,
provides more opportunities and many benefits. So investors invest in foreign countries rather
than in the domestic countries.

15
WEAKNESSES:
Focuses more on developing countries:

The main weakness of foreign institutional

investments is that they provide opportunities to only the developing and developed countries.
The Foreign institutional investors focuses on the developing countries rather than on the
underdeveloped countries and because of this the under developed countries remain
underdeveloped. So this drawback of the FIIs should be improved upon by making their
investments in the under developed countries.
Hampering the progress due to anytime withdrawal: The FIIs do not provide any guarantee
i.e. the foreign institutional investors can anytime withdraw their money when they want to so
this makes the nature of the FIIs unpredictable and ultimately hampering the progress of the
economy of that country. The very good example of this is the mass withdrawal of the FIIs in the
far eastern countries like Malaysia, Indonesia etc in 1996-97.
Provides only the short term opportunities: FIIs provide only the short term opportunities i.e.
they do not provide the long term opportunities as they are very much supple in nature and
thereby limiting its scope to short term opportunities. As far as the market seems to be good the
FIIs are attracted and after that they are not predictable. So FIIs are bound to provide only the
short term opportunities.

16
OPPORTUNITIES:
Better infrastructure: Better infrastructure is available only when there is adequate finance
available and this comes with the help of FIIs. Infrastructure covers many dimensions, ranging
from roads, ports, railways and telecommunication systems to institutional development (e.g.
accounting, legal services, etc.) studies in china reveal the extent of transport facilities and the
proximity to major ports as having a positive significant effect on the location of FII within the
country. Poor infrastructure can be developed with the help of the foreign investment. Foreign
investors also point potential for attracting significant FII if host country government permits
more substantial foreign participation in the infrastructure sector.
Exploitation of resources to the maximum: The major resources i.e. manpower, material and
machines can be utilized to its fullest so as to get the maximum benefit out of it. Through FIIs,
the reserves or the resources that are untapped because of the lack of funds can be exploited.
Potential areas for exploration ventures include gold, diamonds, copper, lead zinc, cobalt silver,
tin etc. There is also scope for setting up manufacturing units for value added products.
Better technology available: Technology is the main aspect on which the growth of the country
is determined. Developing countries has a very low level of technology. Their technology is not
up to the standards and they lack in modern technology. Developing countries possess a strong
urge for industrialization to develop their economies and to wriggle out of the low-level
equilibrium trap in which they are caught. This raises the necessity for importing technologies
from advanced countries. Such technology usually comes with foreign capital.

17
THREATS:
Anytime withdrawal of investments: The FIIs are more flexible in nature i.e. unlike FDI they
are not guaranteed. Foreign Institutional Investors can withdraw at any time they want. Foreign
Direct Investment is for a fixed period and the investments could not be withdrawn until a
specified period. The recent example was the net outflows of the money from the stock market
that affected the whole economy and its consequences are very much appalling resulting into
posing threats to the economy.
Investments made in Foreign Companies poses threat to Indian companies : Many MNCs
have their set up in India and these MNCs provide a stiff competition to the domestic industries.
The Foreign Institutional Investors invest their money in these MNCs and they are equipped with
the latest technology to provide products at cheaper rates. Moreover, the Indian laborers are
opposing the use of modern technology as the company downsizes the number of workers that
substitutes the modern technology.

Increased returns results in outflow of money : Increased returns can pose a threat to the
domestic country as the money flows out of the country and this may affect the economy of the
domestic country. The returns that the Foreign Institutional Investors are getting are very much
high and this returns they take to their home country and this leads to the outflow of money from
domestic country to the foreign country.

18

COMPETITION INFORMATION
ICICIDIRECT.COM

A product for every need: ICICIdirect.com is the most comprehensive website, which allows you
to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial
products. Simply put we offer you a product for every investment need of yours.
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
Product & Services:
1. Trading In Shares
2. Trade In Derivatives
3. Mutual Funds:
4. IPOs And Bonds Online:

19

INDIA BULLS

Indiabulls Group is one of the top business houses in the country with business interests in Real
Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group
companies are listed in Indian and overseas markets and have a market capitalization of over
USD 7 billion. The Networth of the Group exceeds USD 2.5 billion. Indiabulls Group companies
enjoy highest ratings from CRISIL, a subsidiary of Standard and Poors. Indiabulls has been
conferred the status of a Business Superbrand by The Brand Council, Superbrands India.
Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer
Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory
services. Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan
Stanley India Index. Indiabulls Financial is also part of CLSAs model portfolio of 30 Best
Companies in Asia. Indiabulls Financial Services signed a joint venture agreement with Sogecap,
the insurance arm of Societ Generale (SocGen) for its upcoming life insurance venture.
Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading
company in India, is setting up Indias 4th Multi-Commodities Exchange.
Indiabulls Real Estate Limited is Indias third largest property company with development
projects spread across residential projects, commercial offices, hotels, malls, and Special
Economic Zones (SEZs) infrastructure development. Indiabulls Real Estate partnered with
Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real
Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial,
residential and retail spaces. Indiabulls Real Estate has diversified significantly in the following
three business verticals within the real estate space: Real Estate Development, Project
Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ
Development. Power: Thermal and Hydro Power Generation. Retail: Departmental Stores,
Hypermarket Stores, Daily Needs Neighborhood Stores.

20
Indiabulls Securities Limited is Indias leading capital markets company with All-India Presence
and an extensive client base. Indiabulls Securities possesses state of the art trading platform, best
broking practices and is the pioneer in trading product innovations.

ABHIPRA

Beginning as a Broking House, we grew into Business House. We broadened our horizons and
stepped into the field of Depository, Stock Broking, Full-Fledged Money Changing Services,
Category I Registrar & Transfer Agent, Commodity Trading, Online Trading (Equity, F&O &
Commodity), e-Return Intermediary. Abhipra today commands the status of being one of the
leading Depository Participant of Northern India in Private Sector. Moreover, Abhipra has
Trading Terminal Outlets for NSE & BSE spread to almost every nook & corner of Northern
India.
Abhipra Capital Limited is also empanelled as a Depository Participant with one of the premier
Commodity bourse, National Commodities and Derivatives Exchange Limited (NCDEX). So a
client now can open Commodity Demat Account with us
At Abhipra, we offer our clients far more than merely a comprehensive range of financial
services. We offer them ideas, innovations, and solutions with extra-ordinary results. We feel that
quality is an essential ingredient in building successful businesses. Not only do products and
services need to be of high quality, but potential customers also need to have assurance that the
products will be of high quality. This is evidenced from the fact that Abhipra is a ISO 9001
(Quality Assurance Systems) Registered Company.
Abhipra group has been promoted and governed by the high entrepreneurial and charismatic
endeavors of its Chairman Mr. V.D. Aggarwal, Chartered Accountant, with a standing of 27
years. His acumen backed by his foresight and vision has made Abhipra as one of the leading
groups among the competitors in the Capital Market. Mr. V.D. Aggarwal enjoys the honor of
being The President of Depository Participants Association of India (DPAI) and also President of
Chamber of Chartered Accountants of India (CCA). He is also former President of Association
NSSE Members of India.

21
Abhipra is a progressive, computerized and professionally managed organization which takes
pride in offering value-added services to its clients. Abhipra's range of professional financial
services cover

KOTAK SECURITIES

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and
distribution arm of the Kotak Mahindra Group. Kotak Mahindra is one of India's leading
financial institutions, offering complete financial solutions that encompass every sphere of life.
From commercial banking, to stock broking, to mutual funds, to life insurance, to investment
banking, the group caters to the financial needs of individuals and corporate.
Kotak Securities was set up in 1994. Kotak Securities is a corporate member of both The
Bombay Stock Exchange and the National Stock Exchange of India Limited.
The company has four main areas of business:

Institutional Equities,

Retail (equities and other financial products),

Portfolio Management and

Depository Services.

22

MOTILAL OSWAL

Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with just two
people running the show. It has established itself as the Best Local Brokerage House in India
(Asia Money Brokers Poll 2005). Their Institutional Equity Division combines the efforts of the
Research and Sales & Trading departments to best serve clients' needs. Consistent delivery of
high quality advice on individual stocks, sector trends and investment strategy has established
them as a reliable research unit amongst leading Indian as well as international investors.
.

23

CHAPTER II

OBJECTIVES AND
METHODOLOGY

24

SCOPE
Customer satisfaction matters. It matters not only to the customer, but even more so to the
business because it directly impacts a company's bottom line profits. Furthermore, it is one of the
most important components of a company's positive brand image.
The reason why customer satisfaction directly affects bottom line profitability is quite simple: it
costs far less to retain a happy client than it does to find a new client. Businesses that have
been successful retaining the business of their loyal clients have shown over time to consistently
increase profits from their installed client base. The impact of customer loyalty is impossible to
overlook. This white paper will examine not only the significance of customer satisfaction, but
also some of the factors that businesses need to consider in order to accurately define, measure,
and integrate this concept into practice.

25

OBJECTIVES
:
Primary Objective
1. To do analysis of information about customer satisfaction.
Secondary Objective
1. To know the stability and potentiality of customer towards bank.
2. To know the customer attraction towards services.

26

SIGNIFICANCE OF THE STUDY

The purpose of the study is to know the expectations of those customers who trading in INDIA
INFOLINE LTD and the satisfaction levels of customers with the services provided by the
INDIA INFOLINE LTD.
Here the main purpose of the survey is to know the various factors that are very important in
satisfying the customers needs and to know how INDIA INFOLINE LTD is ensuring its
customers satisfaction.
The expectations of customers are vary from one customer to the other customer. It is very
difficult to any business firm to satisfy all the expectations of all customers but there are some
common factors that are essential to fulfill.

27

RESEARCH METHODOLOGY
Meaning of Research
Research is defined as "a scientific & systematic search for pertinent information on a specific
topic". Research is an art of scientific investigation; Research is systemized effort to gain new
knowledge. the research for knowledge through objective and systematic method of solution to a
problem is a research.
Research Design
Research design is the conceptual structure within. Which research is conducted, it constitutes
The blueprint for the collection, measurement and analysis of data. As research the design
includes an outline what the researcher will do from writing hypothesis Its operational
implication to the final analysis of data. The Research objectives, questionnaire was design.
Data collection
Two types of data collection primary and secondary
Primary Data
Primary data refer to the first and fresh data collection from the field it was collected trough the
Questionnaire method. Questionnaire will include MCQ, ranking, and rating type of equation.
Secondary Data
Secondary data refer to already published information. Secondary data collected from various
Sources magazines, newspapers, internet, government and industry. Research has been done by
primary data collection and primary data has been collected by with various people in Rajkot city.
The secondary data has been collected from various Journals and websites.
The questionnaire focus on investment like insurance, share-market, post-office, real estate,

28
fixed-deposit etc and loan products like gold loan, home loan, mortgage loan, loans against
property.
Data sampling
The target audient for this research includes city people. It was also collected through personal
visits to persons, by formal and informal talks and through filling up the questionnaire prepared.
The data has been analyzed by using mathematical/statistical tools.
Sample units:
A decision has to take concerning sampling units before select sample. Here have my sample unit
includes the people of city.

Sample size :
The sample size of my project is limited to 50 people only.
Sampling technique:
The selection of respondents was done on the basis of convenience Sampling. In convincing
sampling the samples are being elected on the basis of ease or convenience. The respondents who
are easily

29

Limitations Of Study

The market survey was limited to area of Rajkot

Sample size is only 100, which may not represent the overall population.
Lacks of advance scientific techniques for analysis and interpretation.
In such cases respondents were not able to give all information in such cases as much as

possible information was taken.

I can't meet each and every user because of human limitations and other problems so I

have selected some sample.

Time constraint.

30

CHAPTER III

CONCEPTUAL
DISCUSSION

31

In this 21st century the digital revolution has transformed the economy in to a new
economy which empowered the customer with new set of capabilities such as; 1.Access to
greater amount of information, 2.Wider variety of available good and services 3.Greater ease of
interacting with the service provider.
This new capability in the new economy led the customer to market the marketing and
plays a very vital role in the growth of the market. It is essential in the service industry in
particular, place greater emphasis on the enablers leading to customer satisfaction and customer
retention. It is in this context is very important to understand the customer requirements to
provide value-(QSP - Quality, Service and Price) and track and manage the customer satisfaction
for retention and creation of new customers.
In Service industry it is not enough if the product meets the functional requirements of
the customer, it should also meet certain other customer expectations like the behaviors/attitude
of the person who provides service. The customer satisfaction is the combination of both
technical features & human behavioural aspects. The quality management only addresses the
systems and processes; service addresses the customer service independently. In todays new
economy, it is essential to address the enablers for customer satisfaction for business growth with
utmost importance as they are interdependent in nature.
Customer satisfaction
Customer satisfaction can be represented as follows.
Customer satisfaction=Performance Features + Behavioural Features + Price.
Performance features address the issues on Conformance to the standards and Variability
and the behavioural aspects of service provider deals with the following components of service
which is a major enabler for the growth of the business as indicated in the research publications.

32
If customer experience matches customer expectations, leads to customer satisfaction and
if customer experience doesnt match Customer Expectation, leads to Customer dissatisfaction.
On similar lines if it exceeds expectation leads to Customer Delight.
The title of Article is Does customer satisfaction lead to profitability?
Author(s): Timothy L. Keiningham, Tiffany Perkins-Munn, Lerzan Aksoy.
Publisher: Emerald Group Publishing Limited
Purpose Many researchers have proposed a virtuous chain of effects from improved customer
satisfaction to profits. In particular, satisfaction is thought to improve share-of-spending, which
in turn leads to higher customer revenue and customer profitability. This paper aims to examine
these proposed linkages using data from the institutional securities industry.

33

CHAPTER IV

DATA ANALYSIS

34

1. Are you aware about the Loan products of the IIFL?

7%

Yes
No

93%

Interpretation
From the above graph we can easily understand that most of the people are aware about the loan
products of IIFL. In the graph we can see that 93% people knows the and only 7% out of 50
people are not aware about the loan product of IIFL.

35

2. Have you taken any loan from IIFL?

45%
55%

Yes
No

Interpretation
In this graph, how many people have taken any loan from IIFL is been shown.
55 % of the people out of 50 have not taken any kind of loan from IIFL and 45% of the people
have taken loan from IIFl.

36
3. If yes then which loan you taken from the IIFL?

11%

Gold Loan
57%

32%

Home Loan
Mortgage

Interpretation
In this graph which types of loan are provided by the IIFL is been shown.57 types loan provided
by the been person have taken gold loan, 32 person have taken home loan and 11 person have
person have have taken mortgage loan is been shown in the graph shown graph

37
4. Are you satisfied with the interest rate of the loan of the IIFL?

27%
Yes
No
73%

Interpretation
In this graph customers satisfaction level is been shown that how many are satisfied with the
interest rate of the loan provided by IIFL. Out of 50 people 73% people are not satisfied with the
interest rate only 27% are satisfied with the interest given by IIFL.

38
5. Are you satisfied with the service or facility of the IIFL?

28%
No
Yes
72%

Interpretation
In this graph satisfaction level for the facility or services has been shown that how many out of
50 people 72% are not satisfied with IIFL's facility and only 28% people are satisfied

39
6. If yes, then give rank as per your satisfaction?

5%
28%

17%

Strongly satisfy
Satisfy
Dissatisfy
Strongly dissatisfy

26%

Neutral

24%

Interpretation
In this graphs who are satisfied they have to give rank according to the given data

40
7. If no then why?

9%
10%
Interest rate is high
Less amount is provided
23%

59%

Duration is not convenient

Service is not proper

Interpretation
In this graph who so aver is not satisfied they have to give reason why they are not satisfied with
the products of IIFL

41
8. Are you satisfied with the documentation process for the loan products of IIFL?

28%
Yes
No
72%

Interpretation
In this graph who many people are not satisfied with the documentation process has
been shown out of 50 people 72% are not satisfied and 28% are satisfied with

42
9. Timing of disburse of the loan is proper?

30%
Yes
No
70%

Interpretation
In this graph how many people are satisfied with the timing of disbursement of loan has been
shown that 70% of the people are not satisfied with that and 30% are satisfied with it.

43
10. Are you getting the loan statement regularly?

45%
55%

Yes
No

Interpretation
In this graph how many people are getting loan statement regularly that has been shown that 55%
of the people are not getting and 45% are getting

44

11. Are you getting proper answer/response from the employees of IIFL?

40%

60%

Interpretation
In this graph how many people are getting proper answer/response that has been
shown that 60% of the people are not getting and 40% are getting

Yes
No

45

12. Will you refer any loan from IIFL to your relatives?

25%
Yes
No
75%

Interpretation
In this graph its has been shown that 75% of the people will not refer and 25% might refer IIFL to
there relatives.

46

CHAPTER V

FINDINGS AND
RECOMMENDATIONS

47

FINDINGS

The strong point of IIFL is its financial strength, amount of gold loan and good services.

In some of the area like loan, firm is very rigid so, flexibility is needed.

One of the important point is that new client comes through the recommendation of
existing investors and reputation of the company.

The new client must be member of IIFL

In the area of loans & advances, IIFL having a high rate of interest among nationalize
as well as co-operative sector.

The tendency to donate generously to institutions by the board of directors of IIFL is

commendable. Some of institutions to whom huge contributions are given to V.V.P.
engineering college, Satya Sai Seart Hospital, Ashok Gandhi Memorial Hospital, etc.

Practice of easy availability of office bearers of the Rajkot Nagarik Sahakari Bank Ltd.
For the members, a investor or loans is well adopted. This also serves as the intelligent
agency to keep a watch on the ways and means how the bank advances are utilized.

48

RECOMMENDATIONS

The company should be increases advertisements regarding loans products and

investments products in television.

The company should be provide top to bottom information about IIFL products to
existing customers.

The company should be provide motivational training to all the IIFL employees.

The company should be arranging workshop and seminars. So that they can provide
information to the people and give answers to queries. \

The company should be arranging quarterly get to gather for employees.

49

CONCLUSION
Most of the companies are offering loans products and investment products in India still
at growth stage. And there are enough of opportunities for all the financial
Companies which are offering loan products and investment products .According to my Survey
majority peoples are believe in government sector for investment. Like LIC (life Insurance
company), post office .Few peoples believe in private sector for investments Like ICICI
prudential, Birla life insurance, Bajaj insurance etc. And some people believe in nationalize
banks for taking home Loan mortgage loan etc .because in banks interest rate is low but
documents process is very Long but some also believe that finance companies for taking loan
because in these companies interest rate is very high but document process is short according to
my Survey.

50

BIBLIOGRAPHY

51

BIBLIOGRAPHY:

Websites:

www.indiainfoline.com
www.5paisa.com
http://www.corporateinformation.com/Company-S
http://www.iiflfinance.com/AboutUs/Overview.aspx
http://www.askkuber.com/IndianStock/BalanceSheet/India+Infoline+Ltd
http://www.moneycontrol.com/company-facts/indiainfoline/history/II15

52

ANNEXURE

53

QUESTIONNAIRE
Name
: ____________________
Date of Birth:______________________
Marital Status: Married Single
Occupation : Business Sararied
Contact

: ________________________

Residence Location: ________________________________________________________

No of Dependent: ___________________ No.Of Earning Member: _____________
Your Income p.a.: ______________

Family Income: ________________

Q.1 How many times in a year you have emergency requirement of money?
0

Q.2 Are you aware about loan products of IIFL?

yes

no

Q.3 Have you taken any loan from IIFL?

yes

no

Q.4 If yes then which loan you taken from the IIFL.?
Gold loan
Home loan
Mortgage loan
Q.5 Are you satisfied with the interest rate of the loan of the IIFL?
yes

no

54

Q.6 Are you satisfied with the service or facility of the IIFL?
yes

no

Q.7 If yes, Then give rank as per your satisfaction?

Strongly satisfy

Satisfy

Neutral

Dissatisfy

Strongly dissatisfy

Q.8 If no then why?

Interest rate is high
Less

amount is provided

Duration is not convenient

Service is not proper
9) Are you satisfied with the documentation process for the loan products of
IIFL?
yes

no

55

10) Are you getting the loan statement regularly?

yes

no

11) Are you getting proper answer/response from the employees of

IIFL?
yes

no

12) Will you refer any loan from IIFL to your relatives?
yes

no