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INTRODUCTION
Stock exchanges to some extent play an important role as indicators,
reflecting the performance of the country’s economic state of health. Stock market
is a place where securities are bought and sold. It is exposed to a high degree of
volatility; prices fluctuate within minutes and are determined by the demand and
supply of stocks at a given time. Stockbrokers are the ones who buys and sells
securities on behalf of individuals and institutions for some commission.
The Securities and Exchange Board of India (SEBI) is the authorized body,
which regulates the operations of stock exchanges, banks and other financial
institutions. The past performances in the capital markets especially the securities
scam by ‘Hasrshad Mehta’ has led to tightening of the operations by SEBI. In
addition the international trading and investment exposure has made it imperative
to better operational efficiency. With the view to improve, discipline and bring
greater transparency in this sector, constant efforts are being made and to a certain
extent improvements have been made.
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HISTORY
Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest records of security dealings in India are meager
and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton
presses took place in Bombay. Though the trading list was broader in 1839, there
were only half a dozen brokers recognized by banks and merchants during 1840
and 1850. The 1850's witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number of
brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from
United States of Europe was stopped; thus, the 'Share Mania' in India begun. The
number of brokers increased to about 200 to 250. However, at the end of the
American Civil War, in 1865, a disastrous slump began (for example, Bank of
Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the
end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they
would conveniently assemble and transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as "The Stock Exchange"). In
1895, the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of
exchanges were increased and at currently it reached to the figure of 24 stock
exchanges.
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DEVELOPMENT
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BSE(BOMBAY STOCK EXCHANGE)
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.
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NSE(NATIONAL STOCK EXCHANGE)
NSE has been able to take the stock market to the doorsteps of the
investors. The technology has been harnessed to deliver the services to the
investors across the country at the cheapest possible cost. It provides a nation-
wide, screen-based, automated trading system, with a high degree of transparency
and equal access to investors irrespective of geographical location. The high level
of information dissemination through on-line system has helped in integrating
retail investors on a nation-wide basis. The standards set by the exchange in terms
of market practices, Products , technology and service standards have become
industry benchmarks and are being replicated by other market participants. Within
a very short span of time, NSE has been able to achieve all the objectives for
which it was set up. It has been playing a leading role as a change agent in
transforming the Indian Capital Markets to its present form. The Indian Capital
Markets are a far cry from what they used to be a decade ago in terms of market
practices, infrastructure, technology, risk management, clearing and settlement and
investor service.
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NCDEX
NATIONAL COMMODITIES AND DERIVATIVES
EXCHANGE
WHY NCDEX?
NCDEX is nationalized screen based system which is providing transparent,
private and easy services.
NCDEX is one of the traditional media which gives online information
NCDEX is one of the Indian commodity exchange, constructed on the basis
of the current national institutes the exchange has been established with the
coloration of leading institutes like NABARD, LIC, NSI etc….
In India NCDEX has maximum settlement guarantee fund.
NCDEX has appointed two exports for checking quality at the time of
delivery.
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FACILITIES PROVIDED BY NCDEX
NCDEX has developed facility for checking of commodity and also
provides a wear house facility
By collaborating with industrial partners, industrial companies, news
agencies, banks and developers of kiosk network NCDEX is able to provide
current rates and contracts rate.
To prepare guidelines related to special products of securitization NCDEX
works with bank.
To avail farmers from risk of fluctuation in prices NCDEX provides special
services for agricultural.
NCDEX is working with tax officer to make clear different types of sales
and service taxes.
NCDEX is providing attractive products like “weather derivatives”
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MCX
0.LTI COMMODITY EXCHANGE
‘MULTI COMMODITY EXCHANGE’ of India limited is a new order
exchange with a mandate for setting up a nationwide, online multi-commodity
marketplace, offering unlimited growth opportunities to commodities market
participants. As a true neutral market, MCX has taken several initiatives for users
In a new generation commodities futures market in the process, become the
country’s premier exchange.
MCX, an independent and a de-mutualized exchange since inception, is all set up
to introduce a state of the art, online digital exchange for commodities futures
trading in the country and has accordingly initiated several steps to translate this
vision into reality.
Market Watch:
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The market watch window is used to view the market details for a particular
or group of contracts and for a particular instrument type. This window displays
the following details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell
price, sell qty, last traded price, D.P.R, volume (in 000’s), value (in lac),% change,
average trade price, high, low, open, close & open interest.
Corporations are not allowed to sell shares of stock on the open stock market
without the approval of the Securities and Exchange Commission (SEC). This
transition from a privately held corporation to a publicly traded one is called going
public, and this first sale of stock to the public is called an initial public offering, or
IPO.
When you buy stock in a corporation, you own part of that company. This
gives you a vote at annual shareholder meetings, and a right to a share of future
profits.
When a company pays out profits to the shareholder, the money received is
called a "Dividend". The corporation's board of directors choose when to declare a
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dividend and how much to pay. Most older and larger companies pay a regular
dividend, most newer and smaller companies do not.
The average investor buys stock hoping that the stock's price will rise, so the
shares can be sold at a profit. This will happen if more investors want to buy stock
in a company than wish to sell. The potential of a small dividend check is of little
concern.
A company who is a leader in a hot industry will usually see its share
price rise dramatically.
Investors take the risk of the price falling because they hope to make more
money in the market than they can with safe investments such as bank CD's or
government bonds.
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How does one buy stocks?
Some brokers will allow you to open an account with very little money. The
firm will then hold this money in an interest earning cash account, awaiting your
orders to buy or sell stock, or other securities such as bonds or mutual funds. When
you buy or sell, you pay a commission, which is deducted, from your account. When a
stock is purchased, the ownership of the shares may be listed in one of two ways.
"Listed" means how the corporation tracks the ownership of their stock.
If you choose to have the stock listed in your name, you will receive the actual
stock certificates. Most investors choose to have the ownership listed in the broker's
name, called "held in street name", with the broker keeping track of whose trading
account the stock actually belongs to. The benefits are reduced paperwork,
consolidated portfolio statements, no concerns about storing and processing the
paper certificates, and the ability to instantly sell and transfer the shares. Either way,
any dividends are credited to your account. Stocks held in street name are insured up
to $500,000 by the federal government against fraud or financial failure of the
brokerage company.
The reasons people sell their stock are more complex. A person may just need
the money. He or she may have watched the price go up, and have a hunch this is a
good time to lock in their profit and sell some or all their shares.
An investor may see better opportunities in another company, and so sell his
stocks that aren't moving up. But usually, investors sell because they've watched the
price fall, and just want to get out before they lose even more.
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Secondary Market Intermediaries
Stock brokers, sub-brokers, portfolio managers, custodians, share transfer
agents constitute the important intermediaries in the Secondary Market.
A stock broker plays a very important role in the secondary market helping both
the seller and the buyer of the securities to enter into a transaction. The buyer and
seller may be either a broker or a client. The transaction entered cannot be annulled
except in the case of fraud, willful misrepresentation or upon prima-facie evidence of
a material mistake in the transaction, in the judgment of the existing authorities. If a
member of the stock exchange (broker) has orders to buy and to sell the same kind
of securities, he may complete the transaction between his clients concerned.
When executing an order the stock may on behalf of his client buy or sell
securities from his own account i.e. as principal or act as an agent. For each
transaction he has to issue necessary contract note indicating whether he as principal
or as an agent for another has entered into the transaction. While buying pr selling
securities as a principal, the stock broker has to obtain the consent of his client and the
prices charged should be fair and justified by the conditions of the market.
A sub-broker is one who works along with the main broker and is not directly
registered with the stock exchange as a member. He acts on behalf of the stockbroker
as an agent or otherwise for assisting the investors in buying, selling or dealing in
securities through such stockbrokers.
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Ten Golden rules for Investing
Warren Buffet has suggested ten golden rules for investing which proves to be
immense use to the investors who want a better investment in stock markets,
ShareKhan follows these rules which are as described below:
3. Stop trying to predict the direction of the stock market, the economy, interest
rates, or elections.
5. Be fearful when others are greedy and greedy when others are fearful.
6. Unless you can watch your stock holding decline by 50% without becoming panic-
stricken, you should not be in the stock market.
7. Do not take yearly results too seriously. Instead, focus on four or five year
averages.
9. Calculate "owner earnings" to get a true reflection of value. Look for companies
with high profit margins.
10. Always invest for the long term. Does the business have favorable long-term
prospects?
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INTERNET TRADING IN INDIA:
In the past, investors had no option but to contact their broker to get real
time access to market data. The Net brings data to the investor on line and net
broking enables him to trade on a click. Now information has become easily
accessible to both retail as well as big investors.
1. Stock brokers offering on their sites features such as live portfolio manager,
live quotes, market research and news to attract more investors.
In the US, 82 per cent of the deals are done on line. The European on line
broking market is expected to be of $8 billions and is likely to raise five fold by
2002. In India, presently Internet trading can take place through the order routing
system, which will route client orders to exchanges trading systems for execution
of trades on stock exchanges (NSE and BSE). This will also require interface with
banks to facilitate instant cash debit or credit and the depository system for debit or
credit of securities.
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OBJECTIVES OF INTERNET TRADING:
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• Step-5: After the review has been satisfactory; the order has to be sent by
clicking on the send option.
• Step-6: The investor will receive an ``Order Confirmation'' message along
with the order number and the value of the order.
• Step-7: In case the order is rejected by the Broker or the Stock Exchange
for certain reasons such as invalid price limit, an appropriate message will
appear at the bottom of the screen. At present, a time lag of about ten
seconds is there in executing the trade.
• Step-8: It is regarding charging payment, for which there are different
modes. Some brokers will take some advance payment from the investors
and will fix their trading limits. When the trade is executed, the broker will
ask the investor for transfer of funds by the investor to his account.
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Brief Introduction to SHAREKHAN
Sharekhan is 80 years old company which is started online in the year 2000
& it is the first company who started online in 1984 they ventured into institutional
broking& corporate finance. They having more then 80 branches, 400 franchises
and also having 588 shops in 213 cities. In Rajkot branch daily dealing Rs.16 crore
& 400 crore daily dealing all over India. Almost 4000 employees and 100000
trading customers.
If you experience our language, presentation style, content or for that matter
the online trading facility, you'll find a common thread; one that helps you make
informed decisions and simplifies investing in stocks. The common thread of
empowerment is what Sharekhan's all about!
Sharekhan is also about focus. Sharekhan does not claim expertise in too many
things. Sharekhan's expertise lies in stocks and that's what he talks about with
authority. So when he says that investing in stocks should not be confused with
trading in stocks or a portfolio-based strategy is better than betting on a single horse,
it is something that is spoken with years of focused learning and experience in the
stock markets. And these beliefs are reflected in everything Sharekhan does for you!
To sum up, Sharekhan brings to you a user- friendly online trading facility,
coupled with a wealth of content that will help you stalk the right shares.
Those of you who feel comfortable dealing with a human being and would
rather visit a brick-and-mortar outlet than talk to a PC, you'd be glad to know that
Sharekhan offers you the facility to visit (or talk to) any of our share shops across
the country. In fact Sharekhan runs India's largest chain of share shops with over
hundred outlets in more than 80 cities! What's a share shop? How do you locate a
share shop in your city?
To find the answers of these questions, you must visit Sharekhan. hi other
words Sharekhan is a company that provides you an outstanding trading facility with a
wide variety of products and acts as an investment consultant to manage your
portfolio and secure a high rate of return on your investments in the securities market.
SSKI has been voted the best domestic brokerage in India by Asiamoney
Polls’ 2004. Also SSKI is being rated as No. 1 Financial Researcher by Business
Today, in the Survey conducted on Lead Managers of all the Mutual Funds.
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Basically, the company is a market leader in providing brokering services and
has a top turnover in trading and the high turnover makes it the no.l in the market.
The main difference is the services that they provide to the investors who really
need it. The services are discussed in more detail in the marketing activities. The
clients are managed with a friendly corporate culture to give him more benefited
investment ideas and motivate him whenever he needs. The company is providing as
many tips to the clients (pre-market, online and post-market) for more and more
trading ideas and the manager helps each client to concentrate on a few scripts so that
he can manage the profit/loss.
In short, Sharekhan is currently having a good position in the market with the
highest no of transactions and also the highest turnover (buying & selling) in India
and a leader in providing better services to the investors. Sharekhan, India's leading
stock broker is the retail arm of SSKI, and offers you depository services and trade
execution facilities for equities, derivatives and commodities backed with
investment advice tempered by decades of broking experience. A research and
analysis team is constantly working to track performance and trends. That's why
Sharekhan has the trading products, which are having one of the highest success rates
in the industry the largest chain of retail share shops in India is of Sharekhan. In
future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking
sector to expand beyond the market currently covered by it. And it has started MFs on
priority basis but wants to grow in it.
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What is all about Sharekhan?
GENERAL INFORMATION
E-MAIL : shrinivasb@branch.sharekhan.com
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SSKI Group - Corporate Structure
• Depository Services
• Derivatives
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• Best research team in the world
About Sharekhan
• SSKI named its online division as SHARE KHAN and it is into retail
Broking
• It has specialized research product for the small investors and day
traders
• Largest chain of share shops which is 588 share shop in 213 city , 103
Franchisees & over 80 Branches across India.
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• It offers its customers with the trade execution facilities on the NSE, for
cash as well as derivatives, depository services
VISION
To empower the investor with quality advice and superior service to help him take
better investment decisions. We believe that our growth depends on client
satisfaction.
MISSION
To provide the best customer service and product innovation tuned to
diverse needs of clientele
CORE VALUE
Customer satisfaction through
Providing quality service effectively and efficiently
“Smile, it enhances your face value ” is a service quality stressed on
periodic customer service Audits
Maximization of stakeholder value
Success through Teamwork, integrity and People
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SWOT Analysis
Strengths:
Well-maintained infrastructure.
Dedicated, Intelligent and Loyal staff.
On-line Trading products.
Lowest brokerage and other charges w.r.t. Competitors.
The best investment advice correct up to 70-90 % through dedicated
research and reports.
Wide product range to enable the clients to choose the best alternative.
One of the best DPs in India.
A positive image in the existing clients.
Weaknesses:
Less awareness in the market.
Time consuming process for account opening, resolving the problems of the
customers, etc.
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Service quality is not maintained accordingly how they are promoted.
Opportunities:
Large primary market to sit as a book runner for the other companies just
like Kotak securities ltd. that runs the books of share holdings for many
companies
Slope of stock market towards delivery based transactions.
Large potential market for delivery and intra-day transactions.
Open interest of the people to enter in stock market for investing.
Attract the customers who are dissatisfied with other brokers & DPs.
An indirect opportunity generated by the market from its bullishness.
Threats:
Decreasing rates of brokerage in the market.
Increasing competition against other brokers & DPs.
Poor marketing activities for making the company known among the
customers.
A threat of loosing clients for any kind of weakness of the company.
Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s
clients would lead them to go for other broker/DP.
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MARKET COVERAGE
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MAJOR PLAYERS OF THE INDUSTRY
5Paisa.com:
5paisa is the trade name of India Infoline Securities Private Limited
(5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai.
5paisa is a wholly owned subsidiary of India Infoline Ltd, India’s leading and most
popular finance and investment portal. 5paisa has emerged as one of leading
players in e-broking space in India.
Kotak Securities Limited manages assets over 1700 crores under Portfolio
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Management Services (PMS) which is mainly to the high end of the market. Kotak
Securities Limited has newly launched “Kotak Infinity” as a distinct discretionary
Portfolio Management Service which looks into the middle end of the market.
India Bulls:
Indiabulls is India's leading retail financial services company with 77
locations spread across 64 cities. Its size and strong balance sheet allows providing
varied products and services at very attractive prices, our over 750 Client
Relationship Managers are dedicated to serving your unique needs.
The institutional business unit has relationships with several leading foreign
institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent
media report MOSt was rated as one of the top-10 brokers in terms of business
transacted for FIIs.
The retail business unit provides equity investment solutions to more than
50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt
provides Advice-Based Broking, Portfolio Management Services (PMS), E-
Broking Services, Depository Services, Commodities Trading, and IPO and
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Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-
tax return for the year ended March 2004.
In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best
Domestic Research House- Mega Funds ,while in 2000 and 2002 it has been rated
as the Best Domestic Equity Research House and Second best amongst Indian
Brokerage firms respectively.
HDFC SECURITIES LTD (HDFCsec):
They are also planning to include buying and selling of Mutual Funds, IPO
subscriptions, Right issues, purchase of Insurance policies and asset financing.
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5 Paisa 600 NIL 0.20 0.05 ICICI Bank, UTI,
OBC, HDFC,
City Bank
Kotak Street 500 0.59 0.06 Kotak Bank, City
Bank
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SHAREKHAN IN ONLINE TRADING
Trading in stock markets through the Internet, which took a dip due to
investor apathy because of prolonged bearishness in recent years, is witnessing a
revival of interest and is expected to record growth in the coming years.
The retail investors in the capital market are the most neglected lot with no
access to research and Sharekhan, one of the oldest members of the BSE, seeks to
fill this vacuum felt by retail investors. The company had invested about Rs 13
crore in the last two years in creating the requisite infrastructure by way of
branches and for Internet trading. With presence in about 110 cities across the
country now, it will seek to consolidate its presence in the current year and focus
on expanding its membership.
While his company has about 10,000 plus customers, ICICI Securities
claimed to have 1.20 lakh customers and there were other players like HDFC too.
But the number of active Web traders would be in the 30,000-50,000 region. This
number is growing at 5 to 10% a month and this was a segment that could not be
ignored. In Sharekhan, Web trading constituted about 1 per cent to 2 per cent of
the revenue in 2001-02.
But in 2002-03, when the overall revenue trebled, the share of Web trading
constituted 22% of the revenue. As Sharekhan's daily trading volume was over Rs
300 crore, the share of Web trading at about Rs 40 crore a day was substantial and
a larger part of the volume was coming from day traders.
The pricing for Web trading are expected to come down and once the
investment was made on technology, the scalability would be high and there is
minimum involvement of staff in dealing with customers. The crediting of the
sale/purchase orders would be fast with no physical handling as the system does
every work.
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SHAREKHAN DEPOSITORY SERVICES
Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution
offers freedom from delays, thefts, forgeries, settlement risks and paper work. This
system works through depository participants (DPs) who offer demat services and
the securities are held in the electronic form for the investor directly by the
Depository.
Every investor’s needs and goals are different. To meet these needs,
Sharekhan provides a comprehensive set of research reports, so that one can
take the right investment decisions regardless of their investing preferences! The
Research and Development at Sharekhan is done at its Head office Mumbai.
The R&D department Head Mr. Hemang Jani forwards all the details
regarding all stocks and scripts to all the branches through Internet. At the end of
each trading day there is a Teleconference, through which the R&D department
Head MR. Hemang Jani talks with each Branch heads and discusses about each
day’s closing position and shows their predictions about next day’s opening
position. The quarries regarding stock positions and other relevant matter of the
branch heads of each branch is being solved through teleconference.
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STOCK IDEAS
Stock Ideas is aimed at Sharekhan's trading clients. It presents our
best stock picks in today's market. We categorize these companies into six clusters
to help you identify the stocks that fit your time horizons and return objectives the
best. Each cluster represents a certain profile in terms of business fundamentals as
well as the kind of returns you can expect of it over a certain time horizon.
STOCK CLUSTERS
Sharekhan categorise all the scripts that are under coverage into 6 clusters.
Each cluster represents a certain profile in terms of business fundamentals as well
as the kind of returns you can expect over a certain time horizon. This help in
identifying the stocks that fit your time horizons and return objectives best. The
six clusters are: Evergreen, Apple Green, Emerging Star, Ugly Duckling,
Vulture's Pick and Cannonball.
EVERGREEN
These stocks are steady compounders, churning out steady growth rates
year on year. They are typically significant players in their markets, with sound
strategies that will help them achieve and sustain market dominance in the long
run. They have strong brands, management credentials and a consistent track
record of achieving super normal shareholder returns. We expect stocks in this
category to compound at between 18-20% per annum for the next five to ten years.
Also called ownership stocks, Evergreen stocks are the brightest jewels in any
portfolio.
APPLE GREEN
These are stocks that have the potential to be steady compounders and are
attempting to move upwards, to turn Evergreen. They rank a shade below the
Evergreen companies, only because their potential in the five to ten years' time is
still not very clear, although they might grow at rates faster than that of the
Evergreen stocks in the next year or two. They could grow at 25-30% per annum
over the next two to three years.
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EMERGING STAR
These are typically young companies, often in niche businesses, that have
the potential to grow and dominate their niches. Even better, they might turn out to
be real giants, if their niches explode into full-blown markets in their own rights.
These stocks are potential ten-baggers but you need to be patient.
UGLY DUCKLING
These are companies that are trading below their fair value or at values
which are at a significant discount to that of their peer group, due to a combination
of circumstances. But things are now starting to happen in these companies or in
their markets that are likely to cause a re-evaluation of their prospects. These
stocks could double in two to three years' time.
VULTURE'S PICK
These are companies with valuable assets or brands that have been trashed
to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds
its assets undervalued to come along. This could be a long wait but the returns
could be startlingly high.
CANNONBALL
Season's favourites! Typically they are fast gainers in a rising market, which
could give returns of 20-40% within three months. These are based on a
combination of sound market information, technical charts and available
fundamentals for investors which are having an appetite for high risk and high
reward.
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Ensures convenience in trading experience:
Share Khan’s trading services are designed to offer an easy, hassle free
trading experience, whether trading is done daily or occasionally. The customer
will be entitled to a host of value added services, in the investment process
depending on his investing style and frequency. and offers a suite of products and
services, providing the customer with a multi-channel access to the stock markets.
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Organization structure
Head
Office
Branch
Head
Executives
Land…………………………………….. 40,00,000
Building………………………………… 5,00,000
Furniture………………………………... 2,00,000
Machinery and equipment……………… 4,50,000
Material………………………………… 50,000
Inventory……………………………….. 1,00,000
TOTAL………………………………… 53,00,000
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PRODUCTS of SHAREKHAN
Sharekhan’s products are basically divided into online and offline products.
Sharekhan
Off-Line On line
Other Services:
Dial-n-Trade
Depository Services
Commodity Trading
Derivative Trading
Mutual fund
Portfolio Management Services
Online IPO
Research Based Information Provided
OFFLINE
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Offline A/c is the A/c for the investors who are not familiar with the use of
computer.
The A/C opening charges Rs.500(One time)
For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.
The various benefits the client gets from the online trading are:
ONLINE
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A/C Opening Charges Rs.750(onetime Charge).
For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.
Type with 7 banks through which one can transfer or withdraw his fund
online. Which are as follows
1. HDFC Bank
2. IDBI Bank
3. UTI Bank
4. OBC Bank
5. CITY Bank
6. Indusind Bank
7. Union Bank of India
Any one who have A/C either of above banks they can use this facility.Otherwise
one has to make fund transfer or withdraw by cheque.
This account enables you to buy and sell shares through our website.
SPEEDTRADE
Type with 7 banks through which one can transfer or withdraw his fund
online. Which are as follows
HDFC Bank
IDBI Bank
UTI Bank
OBC Bank
CITY Bank
Indusind Bank
Union Bank of India
Any one who have A/C either of above banks they can use this facility.
Otherwise one has to make fund transfer or withdraw by cheque.
Features of SpeedTrade
that enable you to trade effortlessly
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Instant order Execution & Confirmation
Single screen trading terminal
Real-time streaming quotes, tic-by-tic charts
Market summary (most traded scrip, highest value and lots of other relevant
statistics)
Hot keys similar to a brokers terminal
Alerts and reminders
Back-up facility to place trades on Direct Phone lines
Single screen interface for cash and derivatives
OTHER SERVICES
1.Dial-n-Trade
All you have to do is dial any one of our two dedicated numbers (1-800-22-
7050 or 30307600), enter your TPIN number (which is provided at the time of
opening your account) and on authentication you'll be directed to a telebroker
who will buy and sell shares for you.
Features of Dial-n-Trade
that enable you to trade effortlessly.
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TWO dedicated numbers for placing your orders with your cellphone or
landline. Toll free number: 1-800-22-7050. For people with difficulty in
accessing the toll-free number, we also have a Reliance number 30307600
which is charged at Rs. 1.50 per minute for STD calls.
Automtic funds tranfer with phone banking. (for Citibank and HDFC bank
customers)
After hours order placement facility between 8.00 am and 9.30 am. (timings
to be extended soon)
With the Sharekhan Team Managing Your Portfolio, you can be assured
that your investments are in safe hands!
Right from choosing the combination of stocks most suitable for you based
on your risk appetite to monitoring their movements and discussing them with you
at special events.
3.MUTUAL FUND
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Introduction
Everybody talks about mutual funds, but what exactly are they? Are they
like shares in a company, or are they like bonds and fixed deposits? Will I lose all
my money in funds or will I become an overnight millionaire? Big questions that
get answered in just five minutes.
Meaning
Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution
offers freedom from delays, thefts, forgeries, settlement risks and paper work. This
system works through depository participants (DPs) who offer demat services and
hold the securities in the electronic form for the investor Sharekhan Depository
services offers dematerialisation services to individual and corporate investors.We
have a team of professionals and the latest technological expertise dedicated
exclusively to our demat department, apart from a national network of franchisee,
making our services quick, convenient and efficient. At Sharekhan, our
commitment is to provide a complete demat solution which is simple, safe and
secure.
5.RESEARCH BASED ADVICE
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Every investor’s needs and goals are different. To meet these needs,
Sharekhan provides a comprehensive set of research reports, so that one can
take the right investment decisions regardless of their investing preferences! The
Research and Development at Sharekhan is done at its Head office Mumbai.
The R&D department Head Mr. Hemang Jani forwards all the details
regarding all stocks and scripts to all the branches through Internet. At the end of
each trading day there is a Teleconference, through which the R&D department
Head MR. Hemang Jani talks with each Branch heads and discusses about each
day’s closing position and shows their predictions about next day’s opening
position. The quarries regarding stock positions and other relevant matter of the
branch heads of each branch is being solved through teleconference.
6.ONLINE IPO
7.COMMADITY TRADING
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Organized futures market evolved
in India by the setting up of "Bombay
Cotton Trade Association Ltd." in
1875. In 1893, following widespread
discontent amongst leading cotton
mill owners and merchants over the
functioning of the Bombay Cotton
Trade Association, a separate
association by the name "Bombay
Cotton Exchange Ltd." was
constituted. Futures trading in oilseeds was organized in India for the first
time with the setting up of Gujarati Vyapari Mandali in 1900, which carried on
futures trading in groundnut , castor seed and cotton. Before the Second World
War broke out in 1939 several futures markets in oilseeds were functioning in
Gujarat and Punjab.
There were booming activities in this market and at one time as many as
110 exchanges were conducting forward trade in various commodities in the
country. The securities market was a poor cousin of this market as there were not
many papers to be traded at that time.
The year 2003 marked the real turning point in the policy framework for
commodity market when the government issued notifications for withdrawing all
prohibitions and opening up forward trading in all the commodities. This period
also witnessed other reforms, such as, amendments to the Essential Commodities
Act, Securities (Contract) Rules, which have reduced bottlenecks in the
development and growth of commodity markets. Of the country's total GDP,
commodities related (and dependent) industries constitute about roughly 50-60 %,
which itself cannot be ignored.
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8.DERIVATE TRADING
The emergence of the market for derivative products, most notably forwards,
futures and options, can be traced back to the willingness of risk-averse economic
agents to guard themselves against uncertainties arising out of fluctuations in asset
prices. By their very nature, the financial markets are marked by a very high degree of
volatility. Through the use of derivative products, it is possible to partially or fully
transfer price risks by locking-in asset prices. As instruments of risk management,
these generally do not influence the fluctuations in the underlying asset prices.
However, by locking-in asset prices, derivative products minimize the impact of
fluctuations in asset prices on the profitability and cash flow situation of risk-averse
investors.
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MARKETING DEPARTMENT
There are many services those are designed such that the specific target
segments of the customers are covered and the products are positioned in the
minds of customers as the best one in India. The services are as given below:
2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and
NEAT, i.e. National Exchange Automated Trading)
3. Free access to investment advice from Sharekhan's Research team.
4. Depository services: Demat and Remat transactions (Sharekhan is registered
with
NSDL, i.e. National Securities Depository Ltd., as a Depository Participant)
5. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
6. Internet based online trading.
7. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc.
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Online BSE and NSE Trading
Sharekhan is a registered Stock Broker with the Bombay Stock Exchange and
National Stock Exchange to trade on behalf of clients. The screen-based trading
is done on BOLT-BSE Online Trading and NEAT- National Exchange
Automated Trading, terminals. There are two types of transactions executed on
these terminals viz. intra-day and delivery based transactions. Intraday
transactions are those, in which the squaring up of deal is done on the same
day, while in delivery based transaction the squaring up is not done on the
same day, but the stock is to be traded on the basis of rolling settlement i.e.
T+2. The Brokerage of Intraday transaction is 0.10% single side, while
brokerage on delivery based transactions is 0.50% on both side, i.e. while
purchasing as well as selling.
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Comparison of Online Trading Products with
various company
Onlin A/c
Onlin Online
Cos. / e Online Onlin Openin
Products Offered e Commo Deposits
Features BSE/ F&O e IPO g
MF dity
NSE Charges
Ground A/c, E-
Classic
Share Broking,
Yes Yes Yes No No 750/-ST 10000
khan Commodity, DP, 1000/-
PMS
Ground A/c, Online
Kotakstre
A/c, Commodity, Yes Yes Yes Yes No 500 50000
et.com DP
ICICI Online A/c, Mutual
Yes Yes No Yes No 750 -----
Direct.com Fund
HDFC E-Broking Yes Yes No No No 600 -----
Ground A/c, Online
Motilal
A/c, Commodity, Yes Yes Yes Yes Yes Upto 400 -----
Oswal DP, PMS
Ground A/c, Online
Indiabulls A/c, Commodity, Yes Yes Yes No No 250 -----
DP,MF
5- E-Broking,
Yes Yes No No Yes 500 5000
Paisa.com Insurance
Angel Ground A/c, E-
Yes No Yes No No 500 50000
Broking Broking
Insurance, MF,
IL&FS E-Broking, Ground Yes Yes Yes Yes Yes 500 ------
A/c
Ground A/c, E-
Anagram Broking, Mutual Yes Yes Yes Yes Yes 780 10000
Fund
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Depository Participation
• Records of all the transactions entered into with a depository and with a beneficial
owner;
• Details of security dematerialized, rematerialized on behalf of
beneficial owners with whom it has entered into an agreement;
• Records of instructions received from beneficial owners and
statements of account provided to beneficial owners; and
• Record of approval, notice, entry and cancellation of pledge or
hypothecation as the case may be.
Publications of sharekhan
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Sharekhan’s Valueline
Derivatives Digest
Eagle Eye
High Noon
Investor’s Eye
Commodities Buzz
Commodities Beat
Sharekhan Xclusive
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Marketing Mix
The marketing is done based on leads generated through the web contact, tele-
contact and personal contact with the customer and is a planned procedure to find out
new customers. The marketing management is carried out in an excellent way at
Sharekhan.
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SEVEN P’S OF SHAREKHAN
PRODUCT
Product Variety
Share khan offers 3 types of online trading accounts for its customers specially
designed according to their volume in share trading. Those 3 varieties are:
• Classic- for retail investors
• Speed Trade: for high net worth investors with large and active equity
portfolio who need to monitor and action swiftly
• Speed trade Plus- for high net worth investors dealing in derivative market.
Quality
User Friendly, attractive & colorful Website.
Design
The website of Share khan namely www.sharekhan.com has been specially
designed to facilitate its users to buy and sell shares in an instant at anytime and from
anywhere they like. The site is user friendly allowing even a layman to easily operate
without any hassles.
Brand Name
The company as a whole in its offline business has named itself as SSKI
Securities Pvt. Ltd . shripal Sevantilal Kantilal and Ishwarlal Securities Pvt. Ltd. The
company has preferred to name themselves under a Blanket Family Name.
But in its online division started since 1997, the company preferred to name
itself as “SHARE KHAN”. The Brand Name “SHARE KHAN” itself suggests the
business in which the company is dealing so that the consumer could easily identify
the product or service category.
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Services
Share khan offers its customers, depository services and trade execution facilities for
equities, derivatives and commodities backed with investment advice tempered by
decades of broking experience. The teams of its dedicated analysts are constantly at
work to track performance and trends.
PRICE
List Price
CLASSIC SPEED TRADE SPEED TRADE
PLUS
One time 750 1000 1500
Registration fee
Minimum brokerage Nil 1000 1500
Charges –Quarterly
Brokerage
Share khan in its online business charges brokerage as follows:
- In equity Market:
On Trading: 0.1% On Delivery: 0.5%
- In Derivative Market
On Trading: 0.12% (Total brokerage) On Delivery: 0.1%
Service Tax
8% on Brokerage.
Discounts
For investors with High Net worth, there are slabs in brokerage rates.
Payment Period
The transaction settlement date in the securities market is T+ 2 days i.e. the
payment of the transaction taken place has to be made within two days of its
occurrence.
Credit terms
Share khan allows its customers to trade up to 4 times i.e. by keeping 1/4th margin
with them.
PROMOTION
Advertising
Sales Promotion
The Company offers Rs.500 instead of Rs.750 for corporate accounts (more
than 20 accounts).
Also, it provides online trading accounts for just Rs.300 for IIM students.
Sales Force
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The Company has an aggressive sales force, which is given incentives, based
on their sales. The sales force is given intensive training continuously.
Seminar
The Company also arranges seminar in corporate world for creating awareness
about the product. Recently, it had organized for a seminar in ONGC, IIM.
Direct Marketing
Company emphasizes more on direct marketing, as many people are still not
aware of this new way of smart trading. For this, the company recruits and trains
sales representatives so as to explain the product and solve customer queries related
to the product. This is the most effective way to communicate the three-in-one
concept which company offers.
Telemarketing
This is another promotional tool company is using to boost up its sales. For
this, the company collects the database of the people belonging to different
professional segments.
Dematerialization charges
Re. 3 per certificate or Rs.15 per requests whichever is higher.
PLACE
Channels
Share khan uses various channel alternatives to reach to its customers through
Internet
Tele Marketing
Retail Share Shops
Franchisee Owners
Power Brokers
Sales Force
Coverage
Access to the website from any part of the globe.
Locations
Share khan has the largest chain of retail share shops in India. It has
180 share shops located in 90 cities all over India like Pune, Thane, Chennai,
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Kolkata, Banglore, Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat,
Delhi, Gaziabad, Hydrabad, Allahbad, etc.
PEOPLE
Employees
⇒ Selection: Employees are selected on the basis of their
experience and qualification as applicable to the job.
⇒ Training: Intensive training is provided to the employees till a
week once they join and even at times required after that.
⇒ Motivation: The employees are motivated through incentives
they are provided.
Research Team
Share khan has a team of dedicated analysts who have years of working
experience in the industries that they track, and a proven track record in using
their knowledge of the investment science to deliver results.
Customers
The heart of sharekhan are really treated loyally like the kings. The
customer care, which comprises of highly trained executives operating from
9:30 to 8:00 p.m.
PHYSICAL EVIDENCE
Office Environment:
The ambience within the office is what can make the customer feel
comfortable in trading. The cordial and friendly atmosphere at office is like a
full time motivation for the employees.
PROCESS
In this service organization, the ways in which the customers receive delivery
of the service constitutes the process. Here, the process involves adding
‘value’ or ‘utility’ so that the customers get full satisfaction for the money
spent by them.
Here the process begins from the step when customer wants to open e-invest
account and ends when his account is actually activated.
All Indian residents and NRI are eligible to avail this service.
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SERVICE (Product)
Service is an act or performance that one party offers to another for sell and it
is not a physical product that you can touch but it is that one can feel. It is not likely
to result into the ownership of anything. A service can be a fully service or a mixture
of service and physical product.
Therefore, the two types of accounts offered by Sharekhan i.e., Offline and
Online are the two main product lines in the product mix of the company. The
offline a/c with Sharekhan is defined as the account having which you can trade
anywhere in the share shop of Sharekhan and the online a/c is that you can trade
on your PC through the software provided by Sharekhan and it also offers tele-
trading in both the cases but the major difference is of the service and prices for
opening an account. The product mix is as shown below:
The product mix is showing the products offered by Sharekhan to its customers
and it is one type of a tree structure diagram that shows the products of a company. The
products are actually services and are at the completion of the second stage of
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Product-Life-Cycle, i.e., Growth and are entering into maturity stage. So there should be
some changes in the marketing strategies of the company.
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SEVEN ‘S’ MODEL
Structure
System
Strategy
Super s
ordinate
Goals
goals
Style
Skills
Staff
STRUCTURE:
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Share khan is flexible in terms of making temporary structural changes to
cope up with specific strategic tasks without any hassles. If need arises, the
top management can assign the role to any of its employees which it
considers capable and skillful.
STRATEGY:
Share khan believes not only in developing the strategies but also in its
successful execution.
SYSTEMS:
This constitutes of all the training and development systems, estimating
budgets and the accounting system of Share khan.
STYLE:
Style refers to all the symbolic actions undertaken by top managers of
Share khan and its influence on the subordinates.
STAFF:
Share khan values its employees as its assets and therefore carefully trains
and motivates them by giving them incentives at regular intervals. Talented
employees are assigned as mentors and given real responsibility and
moved into higher positions.
SKILLS:
The term skills refer to those activities organizations do best and for which
they are known. Share khan is known for its timely advice
(suggestions/tips), which it caters to its customers and it boasts of 70-90%
strike rates in booking recommendations.
SUPERORDINATE GOALS:
This refers to guiding concepts, values and aspirations that unite an
organization in some common purpose. It provides the customers the best
service as it believes in customer satisfaction and retention.
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Conversion process
The main aim of it is to make profit with customer satisfaction. The
conversion of Inputs works as the Sharekhan earn brokerage from the
customers. The profits are generated from getting a higher return on the invested
amount of money than the amount payable to the customers. The process is
facilitated by a centralized computer system in which the data is stored and
recovered for the whole INDIA and it is having the CPU at the H/O in Mumbai.
Sharekhan is regulating the brokerage rates all over India by keep watch on each
transaction done from the branch office. The data of a customer will be stored in
the central computer and all facilities such as bills, credit/debit reports etc. are
provided by that computer to all customers on-line on the Internet.
Outputs
Outputs are those services generated by Sharekhan with the help of the inputs
and using the conversion process. These services are as listed in the figure above.
Table Sharekhan.2
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Operations Strategy at Sharekhan
Quality
Reliability
Flexibility
Creditability
Dependability
Efficiency
Facility Mission
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Operations strategies are implemented in Sharekhan as shown in the chart
given above and the main points of consideration are Efficiency,
Dependability, Quality and Flexibility.
organization and high level of it is desired outputs with low costs, i.e.,
productivity with effectiveness. Quality should be high and consistent in delivering
services; Flexibility is related with fast introduction of new services and providing a
wide range to select an option to the customer. The process of operations,
capacity/ability of the organization, competitive advantages, vertical integration and
the infrastructure created by the firm facilitate this.
Sharekhan plans the strategies to get a working plan from it and the
planning is done from top-to-bottom level, i.e., national level, regional level,
divisional level and the branch level planning is carried out by the managers.
In this way, the Operations are managed with the best efforts in a direction that
is to facilitate future plans by achieving success in time and create milestones in the
industry by making the company driven by values and excellence.
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TRANSACTION CYCLE:
Funds or
Securities Transaction Trade
Execution
Cycle
Settlement of
trades Clearing of
Trades
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FINANCE DEPARTMENT
Like Blood is the most important in our body, in business Finance is the
blood of any business. Finance is needed for all the activities like production or
services as well as their distribution. The finance department directly influences
all the functions of the other departments. Also finance has to give equal
importance to all departments. Finance is that administrative area or set of
administrative function in an organization, which relate with the arrangements of
cash & credit so that they organization may have the means to carry out its
objective as satisfactorily as possible. Sharekhan has special accounts
department for separate calculation of pay-in and pay-out of funds according to the
client's Profit/Loss. Finance management is done at Sharekhan is done by
managing the stocks in the Demat accounts and funds in the margin & trading
accounts
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9:30 and 3:00 as a deadline for the client and he must provide the stock for giving a
delivery to the buyer. The chart shows the total transaction between two clients:c
The chart shows the process that the request for selling and buying passes
through the DPs of the respective clients and finally the exchanges like SKSE
(Saurashtra Kutch Stock Exchange) becomes the controlling intermediary for
the delivery of stocks and this process is done in two days. Nowadays, as banks are
becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more
popularity, SEBI is thinking to make the financial market of India to have a
maximum speed of transactions just like the other nations in the world and
proposing for T+l settlement scheme but the system is not enough competent for
that thing. But soon or later we will have such a settlement system in India, as said
by Mr. J. N. Bajpai, chairman of SEBI.
The client, if not capable of providing the delivery of say, 1000 shares of
SAIL then the Auctions are initiated by the exchanges and the client has to pay
for the price prevailing in the market with 4-5% penalty. The penalty can go on
maximum to 20% more than the market price of the sold stock. Generally, it is
known as a buying auction and a same kind of auction is for selling the stock for
which the buyer was proved unable to pay the price is carried out by exchange,
known as the selling auction. And a debit or credit note is provided in the
respective case of auction to the clients, i.e., for buying auction debit note is
given on the T+4 basis and in case of selling auction the credit note is given on
T+5 basis. There are two types of auctions called as Internal auctions &
Market auctions, the internal auctions are defined as the auctions carried out
between the other shops of Sharekhan and market auctions are those as explained
earlier, the auction carried out in the market.
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is done and Pay-in is as explained that amounts to be taken from the clients. In this
way, accounts are managed but in case if the client is unable to pay, the deposit from
the margin a/c is cut down to the payments and in case if a client is having a credit
balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a
JV request is sent to H/O for totaling the three balances. The main aim for accounts
management is that the clients must have a credit or no debit on the next day.
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MAN POWER AND EMPLOYMENT
Employee 31
Trainee 5
TOTAL 36
Detail of employee
Taretary manager 1
Branch head 1
Ass.Manager 2
Dealer: - On line 3
Off line 3
Commodity 1
F&O 2
BSE& NSE 4
Back office 3
Executives 7
Peon 4
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HUMAN RESOURCE DEPARTMENT
Human resource is the crucial resource that a company can use to grow with
the work or the employees. HRM activities at Sharekhan start from induction to
the specific job training and are done by H/O at Mumbai. H/O takes a written test
and selection interview for filling up vacancies in branches but the recruitment is
done by the branch itself and the selection is performed by H/O from the screened
applicants.
Any new recruit is firstly inducted to the company and sent to T & D
department that is covered under HRD and T & D programmers makes employees
aware about all the activities/jobs within the department he/she is to be recruited.
Suppose if, I would be recruited for finance department then the finance related
employees are known to me with their work profiles, that is, what they really do?
Then the specific job training is provided at H/O and the person has to keep in
touch with the concerned department at H/O on internet because he/she has to solve
many conflicts arising in the investor's mind and to have an up-to-date
information regarding the procedures and any new facilities or policies to resolve
the problems of the clients. It is a must for each employee because the employee is
the people by whom the company gets its customers and retains them.
In the end we can say that the human resource of Sharekhan is a best
managed and used for the continuous growth and development of the company for
its future plans to be achieved time-to-time.
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Joining Formalities
In this regard we request all new employees to please furnish HR with the
following information. The documentation needed falls into three primary
categories: personal information, joining report and other forms.
Personal Information
For the personal record of the employee the following documents should be
submitted to the HR team on the day of joining:
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Joining report
In addition the employee is required to fill out a Joining Report as per the format
attached in the annexure.
Other forms
The following forms/agreements also need to be completed:
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Confidentiality Agreement
On joining Sharekhan it is imperative for all employees
to sign and abide by a confidentialit
agreement, which is
legally binding.
This agreement also binds employees to uphold all ethical practices espoused by the
company.
• Will regard and preserve all trade and proprietary information of the
company as highly confidential.
• Will not disclose, nor permit to be disclosed, any information to any person
or entity, without written consent and approval from the company.
• Will not reproduce or duplicate, and will not permit any person to reproduce
or duplicate any information without the company's written consent and
approval.
• Will not make any use of information for their own benefit or the benefit of
any person or entity other than the company.
• Will return all information and data to the company immediately upon the
request for the same.
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Induction
Induction forms an integral part of Sharekhan's culture.
The induction programme is designed with the
following objectives:
Induction process
The function heads along with the HR team designs the induction
programme. The duration of the induction programme varies from two days to a
week depending upon the role on the new joiner. The induction programme in the
company covers three broad areas:
I. About Sharekhan
• Sharekhan values
• Overview of HR policies, systems and practices
• Overview of risk & compliance practices
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SHAREKHAN’S massage to all member
We welcome you to the Sharekhan family and hope your association with us
is mutually EXCITING, FUN FILLING and CHALLENGING!!
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SHAREKHAN’S Belief and Expectations
• Builds a sense of ownership across the organisation for adherence to risk and
compliance procedures amongst all employees and channel partners.
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What Sharekhan Expect from there team?
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maintain a work-life balance.
Leaves at SSKI
SSKI provides the following types of leaves/holidays:
• Holidays
• Privilege leave
• Maternity leave
• Paternity leave
Pro rata adjustments will be made to bring entitlements in line with this.
The current leave policy will be valid upto 31st March 2005 and the revised
policy that is listed below will be effective 1st April 2005.
Detailed guidelines
A. Holidays
The company will declare a list of 12 holidays every year based on the
holidays declared by the exchanges, bank holidays and regional festivals. Please
contact your function head or branch head for the current list.
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month. On confirmation, the leave balance will be updated on a
prorated basis.
Accumulation 15 days per year, up to maximum 45 days
Scope For all male employees. Leave taken for the birth of first two
children.
Eligibility Two working days
Accumulation Not applicable
Encashment Not applicable
Leave of all types availed in the month must be updated on the leave card.
Till leave cards are provided, an e-mail with the approval of leave by the immediate
manager must be sent to HR and Payroll for easy tracking and updation in monthly
payroll.
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The company does not permit its employees to take leave prefixed and
suffixed to the holidays.
For instance if a holiday is on Friday and a weekly off on Sunday, then the
employee is not supposed to take leave on Saturday. In case the employee takes
leave on Saturday, then all three days, ie Friday, Saturday and Sunday, will be
considered as leave.
Leave extensions
The company does not encourage extensions of leave. They will be granted
only if the employee communicates such an intention in writing only in unforeseen
circumstances at the discretion of the management.
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Other Benefit and Sharekhan Policy
We at Sharekhan would like to contribute towards enhancing our
employees' and their families' life by extending benefits that are
of relevance and importance to our employees. In this chapter,
we have summarised the benefits that are available to our
employees.
Applicability
Process
The process and administration of the policy is detailed below:
• The manager on receipt of the invitation card will forward the same to the
Accounts department for necessary action.
• In case the marriage is between two employees, both will receive the gift
individually.
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Coverage and limits
The Company bears the cost of insurance premium for all employees as per
following limits:
Employees have the option of covering their dependents under this policy
for any amount not exceeding the limit for the employee; however the cost of the
same will have to be borne by individual employees.
Term of Employee
Probation
All regular full-time employees will undergo a six-month probation period
as specified in the appointment letter. The probation period helps the organization to
assess the employee's on-the-job performance and his cultural fit with the
organization.
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Confirmation
Completion of the probationary period should not be construed as
confirmation till such time that the confirmation review process is completed.
Transfer Policy
Transfers become essential in the spate of growing business requirements. To
meet them appropriately, the Company may decide to transfer any employee to any
location based on the business requirements. With the purpose to facilitate the same,
it is essential to have a transfer policy in place. It is necessary for the company to
assist employees in this process.
All employees of the organization will be covered under this policy. The
employee will be communicated in writing regarding his / her transfer and other
relevant information i.e. reporting authority, work responsibilities etc
Pre-transfer expenses
The company will reimburse 1 pre-transfer trip for self and spouse, not
exceeding 5 days in total, to the transferred city for the employee on account of
housing, schooling etc. Travel and Hotel expenses will be as per the Travel policy.
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Post-transfer expenses
The employee and his / her family will be eligible for Hotel stay at the new
location as per eligibility under the Travel policy. The total period of hotel stay post
transfer with family will not exceed 5 days.
Transport of Goods
The employee will be eligible for reimbursement of cost of one truckload of
personal belonging on actual from his current location to the transferred location.
However, the employee is required to submit quotations from minimum two
transporters and needs to have pre-sanction for the expense. Transport allowance
will include packing, loading and unloading charges and insurance premium. The
insurance premium should not exceed Rs.10,000.
Temporary Transfer
If an employee is deputed to any other location/ office for a minimum period
of one month and not exceeding six months, it will be considered a temporary
transfer.
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Personal Conduct
Sharekhan’s business is dependent on there reputation and the level of trust
that is reposed in us by our customers. However this calls for a very high inclination
towards adherence to regulations and being ethical in all our dealings. They believe
each and every employee's behaviour needs to reflect our philosophy. The onus is
on each and every member to refrain from any illegal, dishonest or unethical
conduct and report to the management any incidents of malicious nature occurring
around him.
Employee responsibilities
The job performance and personal conduct of each employee directly affect
the image and reputation of Sharekhan. Employees are required to observe the
following guidelines to maintain ethical standards:
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WHY THIS STUDY IS CONDUCTED??
In the Rajkot City, Finding for the Sharekhan that where they are invest there
Surplus money. For know the how the people are invest there money in Stock
Market. Which medium they are Use, they are trading through On line, Off line,
Dial n Trade and how much time period they are invest in the market.
There are very few people in Rajkot who are trading in Share Market. So
provide them Knowledge about the Share Market and Sharekhan. So Sharekhan can
improve his income. While there are immense opportunities for the development of
these segments.
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RESEARCH OBJECTIVE
The main objective of the study is to check the Investment pattern in Rajkot
city. Their potential market among the people of Rajkot City.
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• SAMPLING DESIGN
RESEARCH DESIGN:
No of Questions : 11
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• Data Collection
The research is conducted with the help of questionnaire therefore the main
source of information is the response of the respondents and fill up the structured
questionnaire. This can be considered as a primary method of collecting the data.
• Limitations
Personal Bias:
Sample Size:
The last limitation is Sample Size, which is of 1000 only; due to which we
may not get the proper results.
SOURCES OF DATA
Primary Data:
The data, which is collected directly from the respondents to the base of
knowledge and belief of the research, are called primary data.
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SAMPLING PROCESS
It is very true that it’s very difficult to do the research with the whole
universe. As we know that it is not feasible to go for population survey because of
the numerous customers and their scattered location. So for this purpose sample size
has to be determined well in advance and selection of sample also must be scientific
so that it represents the whole universe.
All the respondents are stratified on the basis of their profession and savings.
We have selected the samples as per our convenience.
Professional = convenience
Sampling Unit:
Busi Business Man = convenience
Government Employees = convenience
Employees working in private fir = convenience
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General information
Gender
Male Female
164 36
18%
MALE
FEMALE
82%
Findings:
From the total 200 surveyed, there are 164 male and the remaining 36 are
female. So this means there are more male people who do invest in wither share
market or in any other place.
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Age Group
120
100
Respondents
80
60 Series1
97
40
70
20 33
0
BELOW 30 30 to 50 Above 50
Age Group
Findings:
The result of the question reveals that there more younger people who
believe that investment should be done and they doing it also regularly.
Because there are around 50% people below the 30 years age who are
doing investment. Between 30 – 50years, 35% i.e. 70 out of 200 are there so
ultimately this means that there are more younger people who do investment.
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Education
16%
28%
Under Graduate
Graduate
Post Graduate
56%
Findings:
The result shows that more Graduate people as well as Post graduate
people interested in the investment in share market. If we see in the total of 200, out
of them 178 are graduate or post graduate. So this means that there is a wide scope
to increase their market share.
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Occupation
Non Govt.
Govt. Employee Employee Business man Professional
42 62 68 28
80
no of Candidate
70
60
50
40
30 62 68
Series1
20 28
10 22
0
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an
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on
oy
m
oy
si
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pl
es
es
Em
m
of
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s in
pr
t.
t
Bu
ov
ov
G
G
n
Occupation
No
Findings:
Almost 20% people are Govt. Employee and then comes Non Govt.
Employee and there ratio is 30%. Out of the total while 35% people are doing their
own business and remaining are Professional people.
From the result we can say that same number of people are working with Pvt
firm or doing their own business. If we look at Pvt firms, there are giving higher pay
scale to their employee so overall picture gives the idea that there are enough people
ho can be convinced if given proper information about the stock market. In addition
to that Govt employee are having fixed income so their surplus amount will be
invested somewhere else so for sharekhan, this is a great chance to grab this
opportunity and make them convince.
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Q.1 Do you invest Your surplus money in saving Instrument ?
Yes No
165 35
18%
Yes
No
82%
Findings:
There are nearly 80% people i.e. 165 out of 200 are regularly investing
in various investment options while remaining are not investing.
Recommendation:
As per the result we can say that company has a whole bunch of
people who believe that if they invest there money in any of the investment pattern,
it is going to grow so to these people if proper information is given to them about
the company product and also about share market they may invest in share market.
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Q.2 If Yes, Where do you invest your savings?
Derivative Commodity
Bank F D P.O Insurance M.F Gold Equity s
118 92 69 60 41 86 29 35
Bank F.D.
35
29 118 Post office
schemes
86 Insurance
Mutual Fund
92
41
Gold
60 69
Equity
Derivative
Findings:
Comodity
There are various investment options available where most of the people are
investing in Bank FD and their number is 118 and next is 92 in post office. Bu there
may be people who may be investing in more than one place. There are less number
of people who invest their money in Gold, Derivative and Commodity and their
number is respectively 41,29 and 35.
Recommendation:
So from the results we can say there are people who invest their money in
fixed return instruments like FD and P.O savings and less in Equity or Mutual
Funds. But we all know that there is more return in equity as compared to other
investment instruments but the risk will be a little high. But overall if we see they
are the emerging markets and therefore there is a great scope of returns.
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Q.3 With which company do you trade?
80 74 Sharekhan
Motilal Auswal
Marvadi
31 49 5 Paisa
Anand Rathi
Kotak Securituy
69 HDFC
62
22 36 ICICI Direct
Findings:
This question was put in the questionnaire to know whether people are
knowing Sharekhan or not? The resulted figure showed that more people know
ICICI very well and than comes is the Sharekhan where 74 people know about it.
Kotak security is the next well-known company with 69 people knowing it out of
the total. While remaining companies in this – 5 Paisa, Motilal Oswal, HDFC and
Anand rathi.
Recommendation:
The recommendation can be given to the company is that although people are
knowing the company very well there are competitors of it who are also famous and
well known. So the company must continuously carry out activities which leads to
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more awareness about the company as well as its products and also provide its
existing customer good services so that they remain with the company only.
Q.4 Which medium do you use to invest?
90
80
70
Respondents
60
50
Series1
40 81
71
30
48
20
10
0
Broker Internet Dial n Trade
Mediums
Findings:
There are many ways to carry out your transactions like through Broker,
Internet or Dial n Trade. But when asked to the respondents most of them are
interesting to do it with the broker i.e. 81 and 71 people opting for Internet and
remaining are with dial n trade.
Recommendation:
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Q.5 Which type of time period you like to invest?
70
60
Respondents
50 Series1
40
30 62
50 52
20 36
10
0
Daily Delevary Short Long
Basis Basis Term Term
Type of time period
Findings:
Recommendation:
Everybody has their own choice and they follow it regularly. Someone
do not believe in long term and some believe only in that and therefore it depends
upon the company that how they approach their clients as well as potential
customers. If the proper guidance is given about the benefits of trading in different
horizons than one may change but overall as the company is providing its customers
the daily trading facility as well as for long term it does not make much difference.
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Q.6 Which stock exchange would you prefer to carry out your transactions?
BSE NSE
121 79
40%
BSE
NSE
60%
Findings:
There is not much choice for the investor as there are mainly two main stock
exchanges where most of the trading happens. BSE is the most preferred exchange
with almost 60% is preferring it and remaining are with NSE.
Recommendation:
For the company who is providing facility to trade with any of the exchanges
it does not make any difference except some minor ones. So for Sharekhan it is an
advantage.
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Q.7 Which factor plays crucial role when you make decision to invest your
money?
16%
25%
Findings:
There are many factors, which comes to the mind whenever one wants to
invest like Risk, Returns or speculation. People are having the mentality of risk
reduction and it is around 40% and some are doing for speculative motive i.e. 20%.
Recommendation:
If one has to expand its business it is prime necessity for the company to
make their client understand the envt and various angels which helps to make the
decision much more easy. So some wants to have safety and some wants to have
return on within a shorter time period i.e with the help of speculation. But the
company must guide them in a proper manner so that their hard earned money grow
fast.
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Q.8 According to you, which medium is the most reliable for trading in stock
market?
100
Respondents
80
60
86 Series1
40
61 53
20
0
Stock Franchises Broker
Broking
Company
Opening Account
Findings:
There are various ways to incest in stock market but which is the reliable one
and also people prefers can be known from this question. Where most of the people
rely on Well known stock broking company i.e. 63 people and 61 people rely on
local but known broking companies.
Recommendation:
Once again it depends on the company how it handles various people because
everybody has different mentality and different viewpoints and they are also correct
on their side. But it is always advisable to trade with well known companies because
there are other millions of people who are with them so this the company should
always tell to its clients.
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Q.9 How do you take decision if you want to invest in stock market?
Independently
1
6 Broker
5
News Channels
4 News papers
8 Advice of Friends
Findings:
Recommendation:
It should also use news channel, newspaper and Internet medium for
their product marketing so that they have more scope of expanding their business.
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Q.10 When you invest in commodity, which type of industry do you prefer?
80
respondents
60
40 71 Series1
59
48
20
22
0
Oil Metal Gold Other
Induatry
Findings:
Most of the people prefer to trade in Gold i.e. 71 out of 200. While 59
people prefer oil and 48 metal, remaining prefer other than these options.
Recommendation:
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Q.11 In which type of market do you prefer to invest?
100
Re
sp 80
on 60
97
de 40 61
nt 20 42 Series1
s 0
When it When it When it
Go Up Go Stable
Down
Market Situation
Findings:
This question was put in order to know the mentality of the people and
it shows that whenever the market goes up, they will invest at that time and when it
is stable, 62 people believe that it is the correct time to invest. While 61 believe
whenever it is down, we will invest.
Recommendation:
One can’t change the mentality of the people but if properly facts as
well as figures are shown to them they might change from its previous decision.
Because here the deep study is required and it is not possible for the client to do this
study so good advice can changer customers mindset.
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LIMITATION
Rajkot is a big city and timing has been allotted is very less.
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Conclusion
From the above finding and recommendation, the following are the
concluding points:
There are sufficient numbers of people aware about share khan so this
is a good for the company that at least people are aware about the
company.
Share khan is also providing all the services as well as facilities to trade
in almost all the exchanges, therefore the company has nothing to worry
in that matter.
Share khan also has good network all over India and franchise offices
are also in good number, therefore it is also an advantage for the
company because customer can access their accounts from anywhere.
Share khan has a good research team at its Head Office and the fact is
that the almost 75 to 80% advices of the total given is true and has
benefited the clint in achieving the profit.
Last but not the least is the existing customer base of the company and
their level of faith in the company. So with the help of this customer
base, the company can expand its scope of the their businrss.
One of the limitation is there that the company has lengthy process of
opening the account, so it should concentrate and make some corrective
measures to make that process easy and fast.
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Investment pattern in Rajkot city
RESPONDENT’S PROFILE:
NAME:____________________________________________
GENDER: MALE: FEMALE: :
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Q.5 Which type of time period you like to investment?
Daily basis short term
Delevary basis long term
Q.6 which stock exchange would you prefer to carry out your transaction?
BSE: NSE:
Q.7 Which factor plays crucial role when you make a decision to invest
money?
Q.8 According to You, Which medium is the most reliable for trading in
stock market ?
Stock Broking Company:
Franchises:
broker
Q.9 How do you take decisions if you want to trade in stock market?
(Give Rank according to you)
If other specify__________________________
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BIBLIOGRAPHY
BOOK
Marketing Management Phillip Kotler
Research Methodology Kooper
Human Resource Aswathapa
Production and Operation Adam & Abert
Magazine
Value Line
Eagle Eye
Business World
NSDL
Web Site
www.sharekhan.com
www.sski.com
www.bseindia.com
www.nseindia.com
www.moneybhai.com
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