final project shubhi
TRANSCRIPT
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Sales and Distribution strategy of Edelweiss Broking Ltd
-- Special preferences to De-mat Account
At
Submitted in partial fulfilment of the requirements for the award of the
degree of
Master of Business Administration
Submitted to:
Punjab Technical University
Jalandhar
By:
Subhi Shukla
9212400199
Under the guidance of
Name, Qualifications and Designation of the Guide
#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,
BANGALORE 560 032
2009 11
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Date:
CERTIFICATE
This is to certify that the Project titled Sales and Distribution strategy of Edelweiss
Broking Ltd - Special preferences to De-mat Account carried out by Ms. Subhi
Shukla ( REG No. 9212400199) is a bonafide student of International Institute of Business
Studies, Bangalore. This Project Work has been carried out in partial fulfilment for the award
of Degree ofMaster of Business Administration under Punjab Technical University, duringthe year 2009-11.
It is hereby certified that she has completed the project satisfactorily.
Asst. Dean Director
Date:
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GUIDE CERTIFICATE
This is to certify that the Project titled Sales and Distribution strategy of Edelweiss
Broking Ltd - Special preferences to De-mat Account is a bonafide work carried out
by Ms. Subhi Shukla in partial fulfilment for the award of Degree ofMaster of Business
Administration under Punjab Technical University, during the year 2009-11.
This Project Report has been approved as it satisfies the academic requirements in respect of
project work prescribed for the award of MBA Degree.
Signature of the Guide:
Name of the Guide:
Signature of the Student:
Name of the Student: Subhi Shukla
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DECLARATION
I hereby declared that this project titled Sales and Distribution strategy of EdelweissBroking Ltd - Special preferences to De-mat Account, is submitted to the Punjab
Technical University as a partial requirement for the award of Degree ofMaster of Business
Administration, during the year 2009-11.
It is the record of an original & independent study carried out by me, under the able guidance
and supervision of Professor. ____________________ of International Institute of
Business Studies, Bangalore. This project report has not been submitted earlier by me or by
anybody else for the award of any other degree in any University in India or abroad.
Date : Signature of the Student
Place : ( Subhi Shukla)
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( Certificate by the Company of on Companys Letter Head )
Format
Ref. No. : Date :
CERTIFICATE
This is to certify that Mr. / Ms. _______________ of International
Institute of Business Studies, Bangalore, has completed the Project titled
__________________________________________ under the
guidance of Mr. / Ms. _______________ during the year ____ -___.
During the stay in our organization, Mr. / Ms. _______________was
very useful to our organization, with his / her Managerial knowledge &
has successfully completed the dissertation. We wish him / her the best
of luck in all future endeavors.
For __________________Ltd,
( Name & Designation of the Signatory )
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ACKNOWLEDGEMENT
I would like to express my sincere thanks to the Director & Management of International
Institute of Business Studies, Bangalore, for their valuable guidance & support. I am
extremely thankful & grateful to Prof.__________ for his constant guidance &
encouragement throughout the study.
I would like to express my sincere thanks & gratitude to Mr. _______ of ( Company Name
& Place ), for his / her support & guidance during my stay in their organization.
I would also like to express my devoted thanks to my beloved parents & my friends for their
relentless support & assistance to make this project a reality. Last but not the least; I would
like to thank all my respondents for their co-operation & participation in data collection,
which has enabled me to complete the project successfully.
Date : Signature of the Student
Place : ( Subhi Shukla)
.
P REFACE
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The successful completion of this project was a unique experience for me because by visiting
many place and interacting various person, I achieved a better knowledge about sales. The
experience which I gained by doing this project was essential at this turning point of my
career this project is being submitted which content detailed analysis of the research
undertaken by me.
The research provides an opportunity to the student to devote his/her skills knowledge and
Competencies required during the technical session.
The research is on the topic Edelweiss Broking Demat Account
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EXECUTIVE SUMMARY
Edelweiss Capital Limited is a Mumbai based company which started its operation in
the year 1995. The mission statement of the company is Ideas create, values protect.
It provides services like investment banking, institutional equities, private client
broking, asset management, wealth management, investment advisory services,
treasury, Insurance broking, wholesale financing, and mutual funds. The major
clients are corporations, institutional investors, and high net-worth individuals. This
Project is a comprehensive study ofSales and Distribution strategy of Edelweiss
Broking Ltd - Special preferences to De-mat Account. It talks about studying the
method of identifying customers investment needs and suggesting them suitable
financial products, thus the sales of various financial products of the company and
analyze the various distribution strategies exploited by the firm. The project also
deals with customer relationship management; it gives a picture about how to build
a good relationship with the clients who bring business for the company (existing,
prospective and dormant clients). This project will explore the various distribution
channels used by Edelweiss to sell its products. The project will focus on the
strength areas of the company while at the same time tries to identify the weak areas
so that it can be overcome. The strategy followed by Edelweiss in relation with Sales
and Distribution is unique and acts as a (USP) unique selling proposition in favor
of the company. The strength of Edelweiss is its market image and well equipped
research team, which it uses as a potential selling tool.
As an intern, I have carried out research to track acceptability for different
distribution channels. I went for the field work, talked to customers and tracked their
investment pattern to help them suggest the kind of financial product they should
use according to their risk appetite.Adding to this, I have been communicating with
different types of customers through various media, including client visits, who fall
under the sample space for this project. My job here is to advice them to take the
suitable products offered by the company, depending on certain criteria, in order to
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make investing easier for them. I have also worked as a part of sales force of the
company and sold De-mat account. Some of the data has been collected from the
customers regarding their views about Edelweiss. Having said that, a comparative
study has carried out to see where Edelweiss stands in the race for offering Products
and services. I have been talking to existing clients of the company over the phone,
asking for an appointment following which there will be client visit.
In the visit the main focus would be to convince the clients to do more business
with the company and telling them about the benefits provided by the company. So
tracking the transformation is really interesting and worth appreciating. I have
concentrated on existing and dormant clients trying to know their opinion about their
association with Edelweiss. Interaction with the clients helped to know the image of
the company in the minds of the customers and it helped me to come up with
suggestions to further improve the services of the company. I hope my findings are
useful for the company.
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TABLE OF CONTENTS FORPROJECT REPORT
Introduction 9
SWOT Analysis 14
Discussion on Training 16
Demat Account of Edelweiss 20
Need for the study 30
Competitors 31
Objective 36
Research Methodology 37
Data Analysis and Interpretation 40
Observation and Finding 50
Limitation 51
Suggestion 51
Summary and Conclusion 52
Bibliography 53
ANNEXURE (containsquestionnaire) 54
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1. (a) INTRODUCTION TO THE TOPIC
STOCK EXCHANGES
Stock exchanges constitute the primary institution of the secondary market .The stock
exchange is a key institution facilitating the issue and sale of various types of securities. It
is a pivot around which every activity of the capital market revolves. In the
absence of the stock exchange, the people with savings would hardly invest in
corpora te s e c u r i t ie s f o r w h i c h t h e r e w o u l d b e n o l i q u i d it y ( b u y i n g a n d
s e l l i n g f a c i l i t y) . Co r po r a t e investments from the general public would have been
thus lower.
Stock Exchange i a common pla tform where buyers and sellers come togethe r to
transact in stocks and shares. It may be a physical entity where brokers trade on
a physical trading floor via an "open outcry" system or a virtual environment. Stock
exchanges thus represent the market place for buying and selling of securities
a nd e n su ri n g l iq ui di t y t o t he m i n t h e i nt e re s t o f t he i nv es t or s. T he
s t oc k e x c ha n ge s a r e v i r tu a l ly t h e n e r ve C e n tr e o f t h e c a p it a l m a r ke t
an d re fl ec t th e he al th of t he co un tr y's economy as a whole. Stock Exchange
means anybody of individuals, whether incorporated or no ,constituted for the
purpose of assisting, regulating or controlling the business of buying, selling or
dealing in securities.
Evolution of stock markets
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200years
ago. The earliest records of security dealings in India are meagre and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used
to be transacted towards the close of the eighteenth century. 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 commercia l enterpris e and brokerage business attracted many men
into the field and by 1860 the number of brokers increased into60.In 1860-61 the American
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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 Amer ican Civil War , in 186 5, a disastrous slump began
(for example, Bank of Bombay Share which had touched 2850 could only besold at Rs.
87).At the end of the American Civil War, the brokers who thrived out of Civil
War in1874 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 "Nat ive Share and Stock Brokers' Association" (whic h is
al ternat ively known as. The Stock Exchange "). In 1895, the Stock Exchange acquired
a premise in the same street and it was inaugurated in 1899.
BSE (Bombay Stock Exchange)
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich
h er i t ag e . Po p u la r l y kn o wn a s " BSE" , i t w as es t ab l i s h ed a s
" Th eN at iv eS ha re &s to ck B r o k e r s A s s o c i a t i o n " i n 1 8 7 5 . I t i s t h e f i r
s t s t o c k e x c h a n g e i n t h e c o u n t r y t o o b t a i n 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 (an index of stocks of 30 companies
is t r a c k e d w o r l d w i d e . E a r l i e r a n A s s o c i a t i o n o f P e r s o n s ( A O P ) , t
h e Exchange is now a demutualised and corporatized entity incorporated under the
provisions the Com pan ies Act , 19 56, pur sua nt t o th e BS E (C orp ora t iz at i on
and Demutualization)Scheme, 2005 notified by the Securities and Exchange
Board of India (SEBI).
The Stock Exchange, Mumbai (BSE)
The BSE is the oldest stock exchange in India, with the largest number of quoted
securities. Today it has over 6,000 stocks traded, with a total market capitalisation of around
10,000 billion. The average daily turnover on the BSE varies between 25 billion and
40billion.The number of trades executed on the Exchange increased from 80,000 in 1997-
1998to 295,000 in 1999-2000. The Exchange is p rofession ally managed under the
overall direction of the Board of Directors .The Board comprises eminent
professionals, represen tat ives of Trading Members and the Managing Director of the
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Exchange. The Board is inclusive and is designed to benefit from the participation of market
intermediaries.
National Stock Exchange (NSE)
W i t h t h e l i b e r a l i z a t i o n o f t h e I n d i a n e c o n o m y , i t w a s f o u n d i n e v i t a b l e
to li ft th e Indian stock market trading system on par with the international
standards. On the basis of the recommendations of high-powered Pherwani
Committee, the National Stock Exchange was incorporated in 1992 by Industrial
Development Bank of India, Industrial Credit and Investment corporation of
India, Ind ust r ia l Fin anc e Cor por at i on of India , al l Insu ran ce Corporations,
selected commercial banks and others. The Nat ion al S tock Exchange of India (NSE i s
o n e o f t h e l a r g e s t a n d m o s t a d v a n c e d s t o c k m a r k e t s i n I n d i a . I t s
i n d e x i s NIFTY wh ich c ompr ise s s toc ks of 50 companies. The NSE is the
world's third largest stock exchange in terms of transactions. It islocated in Mumbai, the
financial capital of India. The NSE VSAT terminals, 2799 in total(31stDecember
2005), cover 320 cities in India.The NSE was set up in 1992 by leading financial institutions
(IDBI, LIC, UTI, ICICI,SBI and others) and was the first one to offer screen based trading all
over India. Trading at NSE takes place through a fully automated screen-based trading
mechanism
Financial Market of India
The Financial market has been classified:
Cash Market: The spot market or cash market is apublicfinancial market, in
which financial instruments or commodities are traded forimmediate delivery. It contrasts
with a futures market in which delivery is due at a later date. A spot market can be:
Derivative Market: The derivatives market is the financial market forderivatives,financial
instruments like futures contracts or options, which are derived from other forms ofassets.
The market can be divided into two, that forexchange-traded derivatives and that forover-
the-counter derivatives. The legal nature of these products is very different as well as the way
they are traded, though many market participants are active in both
http://en.wikipedia.org/wiki/Public_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Financial_instrumentshttp://en.wikipedia.org/wiki/Spot_datehttp://en.wikipedia.org/wiki/Futures_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Underlying_assethttp://en.wikipedia.org/wiki/Derivative_(finance)#Exchange-traded_derivativeshttp://en.wikipedia.org/wiki/Derivative_(finance)#Over-the-counter_derivativeshttp://en.wikipedia.org/wiki/Derivative_(finance)#Over-the-counter_derivativeshttp://en.wikipedia.org/wiki/Public_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Financial_instrumentshttp://en.wikipedia.org/wiki/Spot_datehttp://en.wikipedia.org/wiki/Futures_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Underlying_assethttp://en.wikipedia.org/wiki/Derivative_(finance)#Exchange-traded_derivativeshttp://en.wikipedia.org/wiki/Derivative_(finance)#Over-the-counter_derivativeshttp://en.wikipedia.org/wiki/Derivative_(finance)#Over-the-counter_derivatives -
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Debt Market: The bond market (also known as the credit, orfixed income market) is
a financial market where participants buy and sell debtsecurities, usually in the form
ofbonds
Commodities market: Commodity markets are markets where raw or primary products are
exchanged. These raw commodities are traded on regulated commodities exchanges, in which
they are bought and sold in standardized contracts.
This article focuses on the history and current debates regarding global commodity markets.
It covers physical product (food, metals, electricity) markets but not the ways that services,
including those of governments, nor investment, nor debt, can be seen as a commodity.
Articles on reinsurance markets,stock markets, bond markets and currency markets coverthose concerns separately and in more depth. One focus of this article is the relationship
between simplecommodity money and the more complex instruments offered in the
commodity markets.
Stock Broking
A stock broker orstockbroker is a regulated professionalbrokerwho buys and
sells shares and othersecurities through market makers or Agency Only Firms on behalf
ofinvestors. A broker may be employed by abrokerage firm.
Stock broking companies in india
Apollo
1) Sindhoori Capital Investment
2) ICICIdirect
3) Sharekhan
4) Indiabulls
5) India Infoline
6) Geojit Securities
http://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Reinsurance_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Commodity_moneyhttp://en.wikipedia.org/wiki/Brokerhttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Investorhttp://en.wikipedia.org/wiki/Brokerage_firmhttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Reinsurance_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Commodity_moneyhttp://en.wikipedia.org/wiki/Brokerhttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Investorhttp://en.wikipedia.org/wiki/Brokerage_firm -
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7) HDFC
8) Reliance Money
9) Religare
10)Geojit
11) Angel Broking
Comparison with Competitor
Column1Edelweiss
Sharekhan
Religare
India
Infoli
ne
MotilalOswal
ICICIdirect
Indiabulls
BrokerageCompetitive
Competitive
nomnal High nomnal High nomnal
Services premium GoodAverage
Average Good
verygood Average
OnlineTrading
yes withexcellen
tsoftware
yes with
mostprefered yes yes yes
yes butno
streaming
Real
timeQuotas
ResearchExcellent Good
Average
Average Average
verygood Average
Brandiomage
NotGood
verygood
Average
Average Good
Excellent
Satisfactory
AMC
Free forthe firstyear Rs. 400
Rs.325
Rs.450 Rs. 325 RS.500 RS.500
De-mataccount
charges
Freeaccount
opening Rs. 725
Rs.
300
RS.50
0 Rs. 425 RS.500 RS.500
Exposure3-4times 5 times
5times
3-4times 6-7 times
3-5times
6-7times
My Project Work
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The project is about selling and distribution strategies of a financial service
providing company (Edelweiss Securities Ltd.) and its main focus of Demat account.
The project stresses on clients and strateg adopted by the company to handle
them.CRM is a part of the project. In todays context building relationships with
customers is a part of the strategy of the company because customer retention is vita l
for an organization. The customer relationship is aimed at creating strong long
lasting, fruitful relationships by developing long-term bonds. As a result the
customer starts identifying and associating him with the product, prefers and accepts
the companys products and services over competitors offerings and recommend others
to buy. Moreover it costs less to retain customers than to compete for new customers.
My job profile is interacting with the clients and the clients who are in a dormantstage and convincing them to start business with the company and maintain their
associat ion with the company. This involves calling the clients and client visits. This
will help me get an insight into the various aspects of customer relationship. The
project basically stresses on studying the method of identifying customers investment
needs and suggesting them suitable financial products, thus the sales of various
financial products of the company and analyze the various distribution strategies
exploited by the firm.
Sales are important from every companys point of view. Another most important thing is
the Distribution of its products in an effective way so that they reach the customers. Sales
refer to volumes, sales figure is a reflection of the companys acceptability in the market; a
good sales figure reflects high acceptability for the company through its products in the
market and vice-versa. A company builds up a distribution strategy with an endeavor to
reach out to maximum consumer pool in a minimum time frame and incurring least costs. A
good distribution ensures easy availability of a product in the market and helps thecompany penetrate further into it. This helps the company identify potential segments and
cater to its requirements. Selecting a sales and distribution approach is a key element of a
successful business model. The sales approach, or more broadly the overall process of
selling and delivering products to customers, at once encompasses both a companys
connection to its customers and a significant portion of its total costs.
Traditionally, companies selected from a defined, limited set of options (i.e. direct sales,
manufacturers representatives, distributors, dealers) and most firms in an industry madesimilar choices. Recently, the number of options has expanded greatly and the breadth of
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choices by competitors has proliferated in parallel, creating potential instability in
competitive positions for current leaders and areas of opportunity for others. To make
matters more uncertain, some of the traditional options no longer offer the same balance of
services and costs and now cease to achieve the desired results. Therefore, many companies
are forced to rethink their approaches to sales and distribution.
Thus the project covers various areas and hope it is useful for the company.
(b) OBJECTIVES
To identify the distribution channels in the financial firm this project will
explore the various distribution channels of the company like brokers andsub- brokers
To study the distribution strategy of the company- Stress will be given on the
distribution strategy employed by the firm.
To understand the customer needs and accordingly sell them suitable
products for selling its important to understand the customer perception.
This project will help company to know the customer base in a better way so
that suitable selling strategy can be adopted.
To study how sales and distribution channel choices do fit into the overall
business model- the project will find the effectiveness of channels in the
company
How are the underlying characteristics of sales and distribution channels
changing in the new segment
The project will find out whether with Edelweiss coming in a new segment
the distribution channels are changing or not and how their sales strategy has
been affected creating competitive advantage with sales and distribution
strategy
The aim of the project is to explore how competitive advantage can be
gained by adopting the right strategies
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To identify the growth areas of the company- the project will also focus on
as to how can the company improve its sales further and what are the
segments where there is a growth potential
To study the importance of CRM- the project deals with the relationship
management with clients and its various aspects
(c) SCOPE
There is a wide scope of this project for the company as well as industry. As
the study is about the sales and distribution strategies that are the major
factors that decide companys success, so knowing a good deal about it is of
much importance. The company can trace the loopholes and take corrective
measures which will help it improve further. The project has covered various
marketing concepts and the models that fit into the business model. The
scope is just not limited to the company; it gives an idea of the industry.
(d) LIMITATIONS
Some aspects might not be covered due to time constraint.
The information by the people and customers regarding their investment may
be partially correct because they do not wish to disclose their asset
information.
Reliance on the secondary data means that some of the information may be
subject to verification.
Incorrect data given by the respondents might not justify the purpose.
Many customers dont wish to listen to us because of their busy schedule.
In a rapidly changing industry, analysis on one day or in one segment can
change very quickly.
The study is limited to some part of Bangalore.
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REVIEW OF LITRACTURE
According to SEBI, Professional Rating of market intermedia ries, as a concept,
i s a mat te r o f d eb a te a n d d i s cu s s io n s . Th e n ee d fo r r a t in g i s f e l t n o t o n ly
from the po in t o f v iew of g reater d isclosure requirement for inves to rs
interests, considering the important role such intermediaries play, being an
interface between investors and exchanges but also from the point of view of
measuring the adequacy of systems and controls to meet internal as well as
external compliance requirements. So that need for Intermediaries Rating services
(Brokers),I n v i e w o f t h e d e v e l o p m e n t s t h a t a r e t a k i n g p l a c e i n t h e
c a p i t a l m a r k e t s , t h e n e e d t o constantly upgrade and improve systems and
procedures in operation as well as skill sets has gained considerable importance.
Besides compliance with regulatory requirements both in letter and spirit has
assumed significance so as to mitigate risk and ensure adequate protection of investors
interest. And Rating objectives / benefits are rated entity would be in a position to brand it s
image and capitalize the same for generating more business. In a nutshell, the
product may accrue s ignificant benefits to all s takeholders including the
investors, stock brokers themselves, the regulator and others who will benefit from the
transparency and the consequential focus on efficiency. According to SEBI and
Intermediaries Regulation and Supervision Department, different factors are
consider for rating process Organization structure, Policy on Investors interest,
Risk Management Policy and System, Organization process and procedures,
Management policy on compliance, Financials, History/Background, Firms positioning.
According to Michal Parness, Founder & CEO Investors dont Make Money in the Stock
Market. One reason the institutions make so much money is tha t they are trading. They
make money every time you buy or sell. They make money whether you win or
lose. That means that when youre investing, youre basically just sitting there.
Youre not going anywhere . Youre not making money as an investor. Trading the
Trend: The Only Way to Make Money in the Market
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If you dont know this already, Trend Trading means trading trends based on
humanemotions. Not lagging indicators. Not complex statistical analysis and not
Ph.D. levelmathematical equations. With trend trading, you look for market
movement. That could mean stocks that are going to move up or down during the
course of a day (intraday). Youll play the gaps up and down, often several days
a week. The Trend trading means being aware and taking advantage
of trends like the run-ups that happen around earning sessions. These
are trends that have worked time and time again in the market. They
consistently yield results.
The Indian broking industry is one of the oldest trading industries that have been
around even before the establishment of BSE in 1875
Inception- The roots of a stock market in India began in the1860s during the
American Civil War that led to a sudden surge in the demand for cotton from
India resulting in setting up of a number of joint stock companies that issued
securities to raise finance.
Bubble burst- The early stock market saw a boom till 1865, and then in July
1865, what was then used to be called the share mania ended with burst of the
stock market bubble. In the aftermath of the crash, banks, on whose building
steps share brokers used to gather to seek stock tips and share news, disallowed
them to gather there, thus forcing them to find a place of their own, which later
turned into the Dalal Street. A group of about 300 brokers formed the stock
exchange in Jul 1875, which led to the formation of a trust in 1887 known as the
Native Share and Stock Brokers Association Beginning of a new phase- A new
phase in the Indian stock markets began in the 1970s, with the introduction of
Foreign Exchange Regulation Act (FERA) that led to divestment of foreign
equity by the multinational companies, which created a surge in retail investing.
Growth supporting factors-The early 1980s witnessed another surge in stock
markets when major companies such as Reliance accessed equity markets for
resource mobilization that evinced huge interest from retail investors. A new set of
economic and financial sector reforms that began in the early 1990s gave further
impetus to the growth of the stock markets in India.Setting up of SEBI- the
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Securities and Exchange Board of India (SEBI), which was set up in 1988 as an
administrative arrangement, was given statutory powers with the enactment of the
SEBI Act, 199. The broad objectives of the SEBI include- to protect the interests of
the investors in securities to promote the development of securities markets and to
regulate the securities markets.
Incorporation of NSE- NSE was incorporated in Nov 1992 as a tax paying
company, the first of such stock exchanges in India, since stock exchanges earlier
were trusts, being run on no-profit basis. NSE was recognized as a stock exchange
under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced
operations in wholesale debt segment in Jun 1994 and capital market segment
(equities) in Nov 1994. The setting up of the National Stock Exchange brought to
Indian capital markets several innovations and modern practices and procedures such
as nationwide trading network, electronic trading greater transparency in price
discovery and process driven operations that had significant bearing on further
growth of the company. To speed the securities
COMPANY PROFILE
EDELWEISSGROUP started its journey in Mumbai in the year 1995, by two IIM
graduates, Mr. Rashesh Shah and Mr. Venkat Ramaswami.
Our Reputation and Image is more important than any financial reward. Reputation is hard to
build and even harder to rebuild. Reputation will be impacted by our ability to think for our
clients, maintain confidentiality and by our adherence to our value system.
Mr. Rashesh Shah
Mr. Venkat Ramaswami
The Logo: Edelweiss, a rare flower found in Switzerland. A graphic flower that
represents ideas! Around it, the protective arms of the letter E:
Ideas create, values protect
is the slo an and de ict the mission statement of Edelweiss rou .
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Edelweiss believes ideas create wealth, but values protect it.
It is the practice of this core thought that has led to Edelweiss becoming one of the
leading financial services company in India.
Its current businesses include:
Investment Banking,
Securities Broking, and
Investment Management.
Edelweiss also provides a wide range of services to:
Corporations,
Institutional Investors and
High Net-Worth Individuals.
Headquarter based in Mumbai, India.
KEYPEOPLE: Chairman & Founder: Mr. Rashesh Shah (IIM Graduate 1995 batch) and
Venkat Ramaswami.
Designated director: Naresh Kothari.
Directors: Rashesh Shah, Venkat Ramaswami and Hiralal Chopra.
Type of industry: Investment banking, brokerage and asset management firm.
Total market capitalization: About Rs. 13,000 cr.
Total number of employees: 645
Edelweiss was previously into niche marketing only, dealing with the High Net Worth
Individuals (HNWI) clients only. Looking at the current market scenario, company is
targeting the Retail Segment with its new Online Trading Portal.
The company sights the need for entering into the retail segment by seeing the saturation of
the niche market and the exploration of the areas which was left untouched by the
organization. The idea behind this is to Reposition the company from niche marketer to mass
marketer. The brand repositioning of the company is done in order to withstand the current
market scenario (Global Economic Crisis).
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The product or the service that the company has come up with is the Prepaid Broking
Plan for both the retail as well as HNI customers. Basically every broking firm offers
dematerialization and the trading account with some charges associated to it and the main
source of income is the brokerage that is collected on every transaction made by the
customer, which is a continues source of income.
The prepaid account is like mobile cash card which has to be recharge first and then can be
used for a year. The client has to pay the brokerage in advance which will be deducted on
every transaction. The client can recharge the account as the balance gets over before the
validity expires.
(b) PRODUCTS ANDSERVICES
Investment Banking
Institutional investment
Asset management
Wealth management
Private client brokerage
Insurance brokerage
Wholesale financing
Investment Banking:
An Investment Bankis a financial institution that deals with raising capital, trading in
securities and managing corporate mergers and acquisitions. Investment banks profit from
companies and governments by raising money through issuing and selling securities in the
capital markets (both equity, bond) and insuring bonds (selling credit default swaps), as well
as providing advice on transactions such as mergers and acquisitions.
At Edelweiss Securities Ltd, Investment Banking business is dedicated to providing
corporations, entrepreneurs and investors, the highestquality independent financial advice and
transaction execution.
Institutional Investment:
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Institutional investors are organizations which pool large sums of money and invest those
sums in companies. They include banks, insurance companies, retirement or pension funds,
hedge funds and mutual funds. Their role in the economy is to act as highly specialized
investors on behalf of others.
Asset Management or Investment management:
Investment managementis the professional management of various securities (shares, bonds
etc.) and assets (e.g., real estate), to meet specified investment goals for the benefit of the
investors. Investors may be institutions (insurance companies, pension funds, corporations
etc.) or private investors (both directly via investment contracts and more commonly via
collective investment schemes e.g. mutual funds or Exchange Traded Funds)
(c) SWOT ANALYSIS
Strength:-
Co-operative and Experienced Branch Managers
Good Database
Reliance Brand
Low pricing
Weakness:-
Inexperienced Staff
Low awareness due to lack of advertisement.
Lack of loyal client age
Developing product.
Opportunity:-
Untapped Market
Increased spending power
Changing Mindset of Customers
Unpredictable Sensex
Threat:-
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Reach
Stiff competition from existing players in the market
Better products
(d) WHATDOES EDELWEISSBROKING LTD. OFFERS
1. Personalized Service
Company believes in providing personalized service and individual attention to each client to
ensure that we understand their goals and help them achieve it.
2. Professional Advice
Company offers expert advice on equity and debt portfolios with an objective to provide
consistent long-term return while taking calculated market risks. Companies approach helps
clients build a proper mix of products, and not concentrate on just one individual product.
Hence, serving long-term objectives in the best way.
3. Long-term Relationship
Company believes that long-term vision is the only means to steady wealth creation.
However to achieve this one also needs to take advantage of short-term market opportunities
while not losing sight of long-term objectives. Hence it partners all its clients in realizing
their long-term vision.
4. Access to Research Reports
Company provides the clients with access to the expert opinion of economists and analysts.
5. Transparency and Confidentiality
Companys clients receive regular portfolio statements from relationship managers via email.
Growth Strategy
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The
Companys growth areas are basically across three categories- Products, asset classes
and client segments. It basically focuses on HNWI clients, and now it has come into
the retail segment which is its source of growth. From the asset side it gets fixed
income and is also into real estate. The popular products are wholesale financing,
financial product distribution etc.
(e) DISCUSSION ON TRAINING
Students work profile (role and responsibilities)
I worked there with EDELWEISS BROKING LTD. with a profile of sales trainee. This
profile offers me to understand the need of customer and provide them the best deal possible
with maximization of the profit, both for the company as well as for the customer.
The most important aspect for the role of trainee is trust. So far fulfilment of the targets one
needs to:
Capitalize on the old and loyal clientele which can be building slowly by advising
people in the best possible way.
Generating new leads through various activities.
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Generation of leads
Since I was new in the field so I had to start from scratch and generate new leads to sustain in
the market.
Cold calling is one of the trusted ways of getting to the customers without meeting them.
Although the rate of conversion remained very less, for cold calling the quality and accent
remains a very important criterion. This activity gives me mixed result. I often got success
and generated many leads through it but it also landed me in awkward position where the
customer were in different mood and made us hear words for which a marketer should be
always prepared to hear. Corporate calls always remained more difficult to crack with respect
to retail sector.
The corporate were the most difficult and most temping to get the business from. It took me
one day to crack Hi-tech Gears.
At EDELWEISS BROKING LTD. after getting the product knowledge in the first week at
the branch I was also allotted distributor to work with. In the initial phase I was accompanied
by more experienced staff. After I became known to the market and procedure I started
attending calls alone only.
After the third week my performance also improved and I was able to get close to the targets,
though it looked difficult to achieve in the beginning. To get awareness of the every product I
attended diversified calls. This helped me to implement cross selling to get better results.
(f) LIMITATIONS:
1. Cold Calling
Voice and accent plays a major role.
The right time to call a customer cannot be decided, as the customer may in a
different mood at the time of calling.
Time consuming
Less success rate
2. Corporate
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Time consuming
Contacts with higher authorities play a major role
(g) Description of live experience
I was supposed to use the database provided by the company to make cold calls or by directly
meeting people to get new leads. While making cold calls, we need to have:
Good Communication Skills (Voice quality is clear and articulate)
Persistent and able to bounce back from rejection
Good organizational skills.
Ability to project a telephone personality (Enthusiasm, friendliness)
Flexibility: can adapt to different types of clients and new situations.
Using a good data base is very essential.
"Eighty percent of our business comes from 20 percent of our customers" is a frequent
statement at any sales convention. There's hardly a sales executive who is not aware
ofthe80/20 rule.
While talking to customers, I analyze their needs. Whether they want to go for investment
purpose or insurance or both. Suggest t h e m the plan that best suits them. If they agree to
it then either we send across the agents to close the deal or close it themselves.
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Problems faced while selling products:
Customer dissatisfied with the services.
People fear that Edelweiss Broking Being a Private company and a new entrant may
be able to sustain or not.
Past experience, word of mouth.
Misguidance by agents.
People do not want insurance products.
Lack of knowledge and less awareness about demat account.
People risk appetites very low, so they are afraid of mutual fund as well.
EDELWEISS DEMAT ACCOUNTS
Overview of Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork anddelays. It is also safe, secure and convenient.
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In India, a demat account, the abbreviation fordematerialized account, is a type of banking
account which dematerializes paper-based physical stock shares. The dematerialized account
is used to avoid holding physical shares: the shares are bought and sold through a
stock broker.
This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a Demat account for share trading above 500 shares. As of April 2006, it became
mandatory that any person holding a Demat account should possess a Permanent Account
Number (PAN), and the deadline for submission of PAN details to the depository lapsed on
January 2007.
Is a demat account a must?
Now a day, practically all trades have to be settled in dematerialized form. Although the
market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of
up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a
demat account is a must for trading and investing.
Why Demat?
The demat account reduces brokerage charges, makes pledging/hypothecation of shares
easier, enables quick ownership of securities on settlement resulting in increased liquidity,avoids confusion in the ownership title of securities, and provides easy receipt of public issue
allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of
certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and
loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as
against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain
quick receipt of such benefits as stock splits and bonuses.
Steps involved in opening a demat account
First an investor has to approach a DP and fill up an account opening form. The account
opening form must be supported by copies of any one of the approved documents to serve as
proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production
of PAN card in original at the time of opening of account has been made mandatory
effectivefromApril01, 2006. All applicants should carry original documents for verification
by an authorized official of the depository participant, under his signature.
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Further, the investor has to sign an agreement with DP in a depository prescribed standard
format, which details rights and duties of investor and DP. DP should provide the investor
with a copy of the agreement and schedule of charges for their future reference. The DP will
open the account in the system and give an account number, which is also called BO ID
(Beneficiary Owner Identification number).
The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized
the cost structure for dematerialization by removing account opening charges, transaction
charges for credit of securities, and custody charges vide circular dated January 28, 2005.
Further, SEBI has vide circular dated November 09, 2005 advised that with effect from
January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a
DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account
to another branch of the same DP or to another DP of the same depository or another
depository, provided the BO Account/s at transferee DP and at transferor DP are one and the
same, i.e. identical in all respects.
In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP
should also be a joint account in the same sequence of ownership.
Rights
1. You can open more than one depository account in the same name with single DP/
multiple DPs.
2. No minimum balance is required to be maintained in a depository account.
3. You can give a onetime standing instruction to your DP to receive all the credits
coming to your depository account automatically.
Procedure
1. Fill account opening form (available with your DP).
2. Give your DP the duly filled account opening form with introduction documents as
may be required.
3. Sign agreement with DP (agreement will state rights & obligations of both parties).
The agreement will contain the fee structure of your DP. Your DP would give you a
copy of this signed agreement for your record.
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4. DP would give you Client Id no. (Account no.) Once your depository account is
opened. This Client Id no. along with your DP Id no. Forms a unique combination.
Both these nos. should be quoted in all your future correspondence with DP/NSDL /
Issuing Company/their registrar & transfer (R&T) agent.
5. Your DP would give you pre-printed instruction slips for depository services viz.,
Dematerialization, delivery instruction for trades, etc..Preserve these carefully.
6. Your DP would give you a list of deadlines for giving instructions for various
depository activities viz., transfer for effecting sale, purchase etc.. If not, check with
the DP.
Required Documents
The extent of documentation required to open a demat Account may vary according to your
relationship with the institution. If you plan to open a demat account with a bank, a savings
account holder has an edge over the non-account holder. In fact, banks usually offer
additional incentives to customers who open a demat account with them. Along with the
application form, your photographs (with co-applicants) and proof of identity/residence/date
of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on
non-judicial stamp paper. Here is a broad list (you wont need all of them though):
1. PAN card
2. A cancelled check,
3. Voters ID
4. Passport
5. Ration card
6. Drivers license
7. Photo credit card
8. Employee ID card
9. Bank attestation
10. IT returns
11. Electricity/ Landline phone bill
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While they only ask for photocopies of the documents, they will need the originals for
verification. You will have to submit a passport size photograph on which you sign across.
Procedure
1. Fill account opening form (available with your DP).
2. Give your DP the duly filled account opening form with introduction documents as
may be required.
3. Sign agreement with DP (agreement will state rights & obligations of both parties).
The agreement will contain the fee structure of your DP. Your DP would give you a
copy of this signed agreement for your record.
4. DP would give you Client Id no. (Account no.) once your depository account is
opened. This Client Id no. along with your DP Id no. forms a unique combination.
Both these nos. should be quoted in all your future correspondence with DP/NSDL /
Issuing Company/their registrar & transfer (R&T) agent.
5. Your DP would give you pre-printed instruction slips for depository services viz.,
Dematerialization, delivery instruction for trades, etc..Preserve these carefully.
6. Your DP would give you a list of deadlines for giving instructions for various
depository activities viz., transfer for effecting sale, purchase etc.. If not, check with
the DP.
Edelweiss Demat Account Services
Edelweiss Broking -- Transacting and investing simplified. Get ready to change the way you
transact and invest in financial products and services. Whether you wish to transact in equity,
equity & derivatives, IPOs offshore investments or prefer to invest in mutual funds, life
&general insurance products or avail money transfer and money changing services, you can
do it all through Edelweiss. Simply open a Edelweiss account and enjoy the convenience of
handling all your key financial transactions through this one window.
Benefits of having Edelweiss account.
Its cost effective
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You pay comparatively lower transaction fees. As an Introductory offer, we invite you to pay
a flat fee of just Rs. 750/- and transact through Edelweiss.
Its offers single
Through Edelweiss associates, you can transact in equity, equity and derivatives, offshore
investments mutual funds, IPOs life insurance, general insurance, money transfer, money
changing and credit cards, amongst others.
Its convenient
You can access Edelweiss services through The internet Transaction kiosks The phone (call
& transact) Our all India network of associates on an assisted trade.
It provide you value- added services at www.edelweiss.in you get
Reliable research, including views of external experts with an enviable track record
Live news updates from Reuters and Dow Jones CEOs / expert views on the economy and
financial markets Tools that help you plan your investments, tax, retirement, etc. in the
personal finance section
Risk Analyzer for analysis of your risk profile
Asset allocators to build an appropriate investment portfolio
Innovative use of technology for facilitating
The benefits:-
Benefits of Demat Account
1. A safe and convenient way to hold securities;
2. Immediate transfer of securities;
3. No stamp duty on transfer of securities;
4. Elimination of risks associated with physical certificates such as bad delivery,
fake securities, delays, thefts etc.;
5. Reduction in paperwork involved in transfer of securities;
6. Reduction in transaction cost;
7. No odd lot problem, even one share can be sold;
8. Nomination facility;
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9. Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with
each of them separately;
10.Transmission of securities is done by DP eliminating Correspondence with
companies; Automatic credit into demat account of shares, arising out of bonus /
split /consolidation / merger etc.
11. Holding investments in equity and debt instruments in a single account.
Benefit for Investors
1. Demat account has become a necessity for all categories of investors for the
following reasons/ benefits:
2. SEBI has made it compulsory for trades in almost all script be settled in Demat
mode. Although, trades up to 500 shares can be settled in physical form, physical
settlement is virtually not taking place for the apprehension of bad delivery on
account of mismatch of signatures, forgery of signatures, fake certificates, etc.
3. It is a safe and convenient way to hold securities compared to holding securities in
physical form.
4. No stamp duty is levied on transfer of securities held in Demat form.
5. Instantaneous transfer of securities enhances liquidity.
6. It eliminates delays, thefts, interceptions and subsequent misuse of certificates.
7. Change of name, address, registration of power of attorney, deletion of deceased's
name, etc. - can be affected across companies by one single instruction to the DP.
8. Each share is a market lot for the purpose of transactions - so no odd lot problem.
9. Any number of securities can be transferred/ delivered with one delivery order.
Therefore, paperwork and signing of multiple transfer forms is done away with. It
facilitates taking advances against securities on low margin/low interest.
METHODOLOGY
RESEARCH METHODOLOGY
The word research methodology comes from the word advance learner s dictionary
meaning of research as a careful investigation or inquiry especially through research for new
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facts in my branch of knowledge for example some author have define research methodology
as systematized effort to gain new knowledge.
TYPES OF RESEARCH
ANALYTICAL RESEARCH:-
It has to used facts or information already available and analyze these to make a critical
evaluation of material.
SAMPLE SIZE:
Considering the constraints it was decided to conduct the study based on sample size of 100
people in specific age groups.
METHODS OF DATA COLLECTION
In the project work Primary data secondary data (both)sources of data has been used.
1. Primary data collection:
In dealing with real life problem it is often found that data at hand are inadequate, and hence,
it becomes necessary to collect data that is appropriate. There are several ways of collecting
the appropriate data which differ considerably in context of money costs, time and other
resources at the disposal of the researcher.
Primary data can be collected either through experiment or through survey.
The data collection for this study was done in the following manner:
Through personal interviews:-
A rigid procedure was followed and we were seeking answers to many pre-conceived
questions through personal interviews.
Through questionnaire:-
Information to find out the investment potential and goal was found out through
questionnaires.
Through Tele-Calling:-
Information was also taken through telephone calls.
2. Secondary sources of data:
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In the secondary sources of data is used.(Internet , mazazine ,books, journals)
TOOLS OF ANALYSIS
In the project work quantitative technique& percentage method are has been used.
RESEARCH DESIGN
For the proper analysis of data simple quantitative technique such as percentage were used. It
help in marketing more accurate generalization From the data available .The data which was
collected from a sample of population was assumed to be representing entire population was
interested .Demographic factor like age, income and educational background was used for the
classification purpose.
Market Survey
A Primary Data:
The market survey has conducting taking 50 people as sample size. Results are same as
follows:
1. Out of 50 responds 45 were male and 5 were female.
2. The following graph shows the age of responds and the target responds were only
those individuals whose age is above 25 years
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3. Following graphs shows the occupation of responds?
Q1. Do you know the investment options available?
Total 50 100%
Yes 45 90%
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No 5 10%
I t s h o w s t h a t 9 0 % o f t h e p e o p l e a r e a w a r e o f t h e i n v e s t m e n t o p t i o n s
a va i l ab le i n t he market. For other 10% investment means buying property or some lack
of awareness regarding various investment tools. But in law terms investing in property is notcalled investment as it does not yield constant or frequent profits to the owner.
Q.2: Knowledge related to the securities market?
Ans:
Total 45 100%
Complete 9 20.00%
Partial 30 66.67%
Nil 6 13.33%
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It shows that out of 45 people only 20% have complete knowledge about the securities
market. Maximum number i.e. 67% of the people is partially aware whereas 13% of
people do not know about securities market. This shows there is a need of promotional
activities regarding security markets so that people can diversify their investment portfolio.
Q3: Do you like to invest your money in Stock Market?
Ans:
Total 50 100%
Yes 15 30%
No 35 70%
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It shows that out of 50, only 15 people are interested to invest their money in Stock Market
and rest 35 people are not interested to invest their money in Stock Market.
Q4: Why are you not invested your money in Stock Market?
Ans:
Total 35 100%
Marker Instability 3 9%
Govt Policy 5 14%
Fraud Company Profile 8 23%
Inadequacy of information of
market 10 29%
Market Risk 7 20%
Others 2 6%
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It shows that 29% people are not invested their money due to lack of information of market,
23% people feel that there are numbers of fraud companies in market and rest people are not
interested due to market instability, Govt. policy, market risk and other reasons.
Q.5 What is your most preferable investment scenario?
Total 50 100%
Banking 15 30%
Insurance 15 30%
Derivative of securities 8 16%
Bonds 7 14%
Real estate 2 4%
Others 1 2%
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It shows that out 50 respondents, for30 % of the people Banking market is the most
preferable investment option. Followed by15%% who are inclined towards investment in
banking sector,2 % in real estate,14% in bonds,1 6 % in s e cu r i t i e s a n d De r iv a t iv e s
an d 2 % are o th e r s .
Q6 : Do you have a demat and trading account?
Ans:
Total 50
Yes 23
No 27
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It shows that out of 50 people 23 have demat account and rest 27 people dont have demat
account.
Q7: Are you aware of on line share trading?
Total 50
Yes 20
No 30
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It shows that out of 50 people only 20 people aware about online trading and rest 30 people
dont know about online share market trading.
Q8 What is the basic purpose of your investment?
Total 50 100%
Return 21 42
capital appreciation 19 38
Tax benefit 10 20
Risk covering None 0
others None 0
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According to the survey most investors i.e. around 42% like to make investments for returns,
while 38% of them are more interested in capital appreciation on investment followed by
20% those who invest their money in order to save taxes.
Q. Factors affecting the choice of a company?
Ans:
Total 50 100%
Brand 15 30%
Brokerage 10 20%
Services 13 26%
Dealer
Support 12 24%
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When it comes to the choice of the company the factor that affects the decision to
the largest extent is the Brand Image i.e. the reputation of the company. The best
example is ICICI. Service is the second most important factor. Rest factors are
service and Dealer Support.
Q9: Do you know about Edelweiss Broking Ltd?
Ans:
Total 50
Yes 10
No 40
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It shows that out of 50 people only 10 people are aware about EDELWEISS and rest 40
people know about other branded broking companies like ICICI, HDFC,MOTILAL
OSWAL,SHAREKHAN
Q10. How did you come to know about Edelweiss?
Ans:
Total 10 100%
Reference group 6 60%
Print media 2 20%
Internet 2 20%
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The above responses shows that most of the people came to know about Edelweiss
by through reference group. This shows that the company needs to work a lot
towards creat ing Brand Awareness . Reference group is a good source of
information about the company.
Q11. Are you aware of all the products offered by Edelweiss?
Ans:
Total 100%
Yes 30%
No 70%
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70% of the people are not aware of the products offered by the Edelweiss. In this
category few of the respondents knew about the equity share trading but were not
aware of all the products, while a large chunk of respondents had never heard of
Edelweiss.
Q12. Have you used any Edelweiss financial product?
Ans:
Total 100%
yes 35%
No 65%
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In response to the question 65% of the respondents said that they are not using any
Edelweiss product at present, so it gives a clear picture that there is a huge
untapped segment among which the product needs to be pitched.
Q13: Which Edelweiss product are Using You?
Ans:
Mutual Fund 40%
Demat 45%
Debenture 10%
Others 5%
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From the response it can be seen that De-mat (equity shares) is the highest selling
product of Edelweiss followed by mutual fund. Of the 21.56% of people using
Edelweiss products nearly 50% prefer equity shares.
Q: The best Company according to responds?
Ans:
Company Responds
ICICI 30%
Share khan 22%
Motilal oswal 15%
Indiabulls 10%
Edelweis 11%
Religare 4%
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HDFC 8%
30% of the respondents ranked ICICI Direct as the number one share trading
company. This is mainly because of its good Brand Image and linked bank account.
Sharekhan is preferred for its customer friendly approach and trading terminal. Still
Edelweiss stands in the competition and is preferred mainly because of its research
facility. The company needs to give attention to the Brand image building.
Analysis of Questionnaire of existing client
Associate with the company
Total 10 100%
6 month 6 60%
1 year 2 20%
2 year 1 10%
more than 2
year 1 10%
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It shows that majority is new like 60% client associate company 6 month,20% client
associate company 1 year, 10% client associate company2 year and 10%cient
associate company more than 2 years
Expectations of the customers
Most of the customers want the brokerage to be reduced and services to be
improved.
DISCUSSION
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To s tudy the sales and dis tr ibution management and improve the Customer
Acquis i tion Process by analyzing the consumer behav iour , response and
mindset towards the product and services the company offers.
I had asked my questionnaire from 50 interested people, out of that 45 were
male and 5 were female.
Out of 50 people, 50% were under 25 years age, 30% were under 30-40 years,
12% were under 40-50 years and 8% were under above 50%.
Out of 50 people, 54% were professional persons, 20% were businessman,
11% salaried person and 15% people were students.
Due to my research I found that 90% people are aware about investment
policy available in the market and rest 10% people are not aware about
investment policy in the market.
I found that 90% people who aware about the investment policy out of them20% people have complete knowledge about securities and derivatives
market, 66.67% people have partial knowledge about securities and
derivatives market, rest 13.33% people dont have any knowledge about
securities and derivatives market.
During my research I found that out of 50 responds, only 15 people i.e. 30%
people are like to invest their money in Stock Market and rest majority 35
people i.e. 70% people are not like to invest their money in Stock Market.
I found that out of 35 people, 29% people are not interested to invest their
money due to lack of information regarding Stock Market,23% people are not
interested to invest their money due to fraud company profile in market, 20%
people are not interested to invest their money due to heavy market risk, 14%
people are not interested to invest their money due to frequently changing of
Govt. policy, 9% & 6% people are not interested to invest their money due to
market instability and other reasons respectivel
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When I wanted to know their most preferable investment sector for
investment then I found that out 50 respondents, for30 % of the people
Banking market is the most preferable investment option. Followed by15%% who
are inclined towards investment in banking sector,2 % in real estate,14% in
bonds,16% in sec ur i t i es a nd De r iva t ives and 2% are o ther s .
When i asked 50 people that they have demat account or not then I found that
out of 50 people 23 have demat account and rest 27 people dont have demat account
I found that out of 50 people, only 40% people having a knowledge regarding
online share trading and rest 60% people dont have a knowledge regarding
online share trading.
When I wanted to know their basic purpose of their investment then I found
that out of 100% people, 42% people have their basic purpose of investment is
High Return, 38% people have their basic purpose of investment is Capital
Appreciation, 20% people have their basic purpose of investment is Tax
Saving Purpose and rest dont have any response regarding risk covering and
others.
I found that when it comes to the choice of the company the factor that affects
the decision to the largest extent is the Brand Image i.e. the reputation of the
company. The best example is ICICI. Service is the second most important
factor. Rest factors are service and Dealer Support.
When I asked that you have Edelweiss Demat Account then I found that that
out of 50 people only 10 people have EDELWEISS Demat Account and rest 40
people know about other branded broking companies like ICICI, HDFC, MOTILAL
OSWAL, SHAREKHAN, etc.
When I asked from 10 people those who have Edelweiss Demat Account that
how do you come to know about Edelweiss then I found that most of the
people came to know about Edelweiss by through reference group. This
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shows that the company needs to work a lot towards creating Brand
Awareness. Reference group is a good source of information about the
company.
When I asked from them that do you know about all product of Edelweiss is
providing then I found that only 30% of the people know about all services
and product provided by the Edelweiss Broking ltd and 70% of the people are
not aware of the products offered by the Edelweiss. In this category few of
the respondents knew about the equity share trading but were not aware of all
the products, while a large chunk of respondents had never heard of
Edelweiss.
I found that out of 10 people, from the response it can be seen that De-mat
(equity shares) is the highest selling product of Edelweiss followed by mutual
fund. Of the 21.56% of people using Edelweiss products nearly 50% prefer
equity shares.
During my survey I found that that majority is new like 60% client associate
company 6 month,20% client associate company 1 year, 10% client associate
company2 year and 10% client associate company more than 2 years
I asked expectation of the existing client then I found that Most of the
customers want the brokerage to be reduced and services to be improved
SUMMARY OF LEARNINGS EXPERIENCE
To get initial success in this field is very difficult. Although the business generation
becomes easier with time as we serve more people who then get added up in the loyal
clientele. Thus time and service are two most factors to get in this field.
Also the corporate remains a very important segment which gets business in bulk but
retail cannot be ignored which makes your business ticking.
Customer remains in the pivotal position.
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CONCLUSION
From the analysis of the questionnaires and above findings it can be concluded thatEdelweiss approach to sales and distribution strategies is right and its innovation in
the distribution channel by tie-up with retail shops will help it a lot. When it comes
to competitors ICICI is its biggest competitor and the company lags behind when it
comes to Brand Image.
At last all conclusions are concluded by that Edelweiss Broking Ltd. is still growing
industry in India. Edelweiss Broking Ltd. account has less brokerage rate.
It provides a security with the use of special type of key.
Recommendations
The company should work on building Brand image in Kolkata as it plays a
major role when it comes to taking decision about a company
The company needs to go for aggressive advertisement campaign
The company should leverage on its research and aggressively use it to
promote the product
Special training about company products to sales team so that they create
awareness among the people
The Brand image of Edelweiss Broking Ltd. is good in market but according
to customer satisfaction the company has to provide the better service. And
also change the Market strategy.
They should focus on print and electronic media advertisements to make more
people aware about the
.They should provide proper guidance to their customers about demat.
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They should provide should offers and facilities to their customers to
increase their attractiveness about demat.
For opening an account they require lots of signatures in a kit, which
should be reduced.
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Bibliography
Websites:
www.edelweiss.in
www.hdfc.com
www.icicidirect.com
www.demataccount.com
www.google .com
http://www.google.com/http://www.google.com/ -
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Reference Books
1.FINANCIAL INSTITUTIONS AND MARKETS
2.INVESTMENT MANAGEMENT
Questionnaire
Dear customer
As a management Trainee currently working with Edelweiss Broking Ltd
I would like to thank to giving this opportunity to sever you. Please help us
serveryou better by taking a couple of Minutes.
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Market Research Questionnaire
Please tick mark appropriate choices
DEMOGRAPHIC
NAME: ........................................................
Address.........................................................
Phone no: ......................................................
Type of business: .......................................
Gender
a. Male
b.Female
Yourannual income?
a) 0-4,00,000
b) 4,00,001-8,00,000
c) 8,00,001-12,00,000
d) 12,00,001-15,00,000
Questionnaire
Q1. Do you know the investment options availabl ?
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Ans: (a)Yes (b)No
Q.2: Knowledge related to the securities market?
Ans: (a)Yes (b)No
Q3: Do you like to invest your money in Stock Market?
Ans: (a)Yes (b)No
Q4: Why are you not invested your money in Stock Market?
Ans: (a) Market Instabilty (b) Market Risk
(c) Govt. Policy (d)Fraud companies
(e) Inadequate information about the market
Q.5 What is your most preferable investment scenario?
Ans: (a) Banking (b) Insurance
(c) Derivative of securities (d) Bonds(e) Bonds (f)Real estate
Q6 : Do you have a demat and trading account?
Ans: (a)Yes (b)No
Q7: Are you aware of on line share trading?
Ans: (a)Yes (b)No
Q8 What is the basic purpose of your investment?
Ans: (a) Return (b) Capital Apreciation(c) Tax Benefit (d) Risk covering
(e) Others
Q. Factors affecting the choice of a company?
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Ans: (a) Brand (b) Brokerage
(c) Services (d) Dealers Support
(e) Others
Q9: Do you know about Edelweiss Broking Ltd?
Ans: (a)Yes (b)No
Q10. How did you come to know about Edelweiss?
Ans: (a) Reference group (b) print media
(c) Internet
10. Are you aware of all the products offered by Edelweiss?
Ans: (a)Yes (b)No
Q12. Have you used any Edelweiss financial product?
Ans: (a)Yes (b)No
Q13: Which Edelweiss product are Using You?
Ans: (a) Mutual fund (b)Equity share
(c) Derivatives
Q14: The best Company according to responds?
Ans: (a) ICICI (b) HDFC
(c) EDELWEISS (d) MOTILAL OSWAL
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Q14:Are you satisfied with Edelweiss current services in sales and
distribution?
Ans: (a)Yes (b)No
Q15: What is your opinion about selling strategy of Edelweiss?
Ans:(a) Excellent (b)Above average
(c)Average (d)Below average
Q16:Will you recommend Edelweiss products to your friends/family?
Ans: (a)Yes (b)No
Q17: which company do you have De-mat account?
Ans: (a) ICICI (b) HDFC
(c) EDELWEISS (d) MOTILAL OSWAL
(e)Others
Q18: Which company provide you less Brokerage rate?
(a) ICICI (b) HDFC
(c) EDELWEISS (d) MOTILAL OSWAL
(e)Others
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