m .m dissertation

Contents1.EXECUTIVE SUMMARY..............................................................................................................................2

2.INTRODUCTION OF THE RESEARCH WORK...................................................................................3

2.1Introduction of stock brokerage firms................................................................................................3

3.Literature Review.....................................................................................................................................6

4.STATEMENT OF THE PROBLEM........................................................................................................6

5.OBJECTIVE OF THE STUDY.........................................................................................................................7

6.SCOPE OF THE PROJECT............................................................................................................................7

7.Research methodology.............................................................................................................................7

7.1RESEARCH DESIGN..............................................................................................................................8

7.2 SAMPLE DESIGN.................................................................................................................................8

7.3 Type of Research...............................................................................................................................8

7.2 COLLECTION TECHNIQUE.................................................................................................................10

8.Data Analysis & Interpretation...............................................................................................................14

9.Findings & Suggestion............................................................................................................................25

10.Conclusion............................................................................................................................................26

11.Biblography..........................................................................................................................................27

Comparitive Analysis Of five broking Firms in Dehardun

1.EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India. For investor it is

always difficult to decide which brokerage firm to choose.

Research was carried out to find which brokerage house providing what kind of services to their

customers.

Through this research I came to know about the strong points of five major broking firms on the

basis of which Comparative analysis is done. The comparison of different brokerage firms i.e.,

Indiabulls, Religare, Sharekhan, kotak securities and ICICI Direct is done with the help of a

questionnaire and by collecting secondary data.


2.INTRODUCTION OF THE RESEARCH WORKThe project is about comparison between major broking companies of the country i.e.

SHAREKHAN, RELIGARE, ICICI DIRECT, KOTAK SECURITIES,AND

INDIABULLS. It includes detailed comparison between the brokerage charged, annual

maintenance charges, account opening charges, and margin money.

2.1Introduction of stock brokerage firms

Sharekhan

Sharekhan Depository Services offers dematerialization services to individual and corporate

investors.

Sharekhan one of India's leading brokerage houses, is the retail arm of SSKI. S.S. Kantilal

Ishwarlal Securities Limited (SSKI) has been among India’s leading broking houses for more

than a century.

With over 240 share shops in 110 cities, and India's premier online trading portal

www.sharekhan.com, its customers enjoy multi-channel access to the stock markets.

KOTAK SECURITIES

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman

Sachs (holding 25% - one of the world's leading investment banks and brokerage firms) is India's

leading stock broking house with a market share of around 8%. Kotak Securities Ltd. has been

the largest in IPO distribution.

Incorporated in 1994, Kotak Securities Limited offers stock broking through the branch and

Internet, Investments in IPO, Mutual funds and Portfolio management service. It also offers

portfolio management services to high net worth individuals and corporate customers. Kotak

securities also distributes a range of financial products, including company fixed deposits,

mutual funds, initial public offerings, secondary debt, equity, and small savings schemes.


INDIABULLS

India bulls Financial Services Ltd. is a public company and listed on the National Stock

Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange.

The company ranks at 82nd position in the list of most valuable companies in India has a market

capitalization of approx US $ 800 million. The consolidated net worth of the company is approx

US $ 400 million.

India bulls, along with its subsidiary companies, offer consumer loans, brokerage and depository

services, personal loans, home loans and other financial products and services to the retail

markets.

RELIGARE

Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd and is

involved in equity related services which includes online trading at BSE and NSE, Derivatives,

commodities, IPO, Mutual fund, Investment banking and institutional broking services. Religare

retail network has more than 900 locations in 300 cities and towns in India.

Religare provides the online gateway to their investors so investor can trade online in Equities,

Commodities, apply for IPOs, invest in Mutual Funds, and buy Insurance. Company offers wide

range of services including equities, commodities, insurance broking, wealth advisory, portfolio

management services, personal finance services, Investment banking and institutional broking

services.

ICICI DIRECT

ICICI direct is an online trading and investment platform on ICICI Securities, the largest stock

broker firm in India providing a wide range of investment options to the retail and institutional


customers. ICICI Securities is part of ICICI Group, India's top financial service provider offering

banking and other financial services.

ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers.

ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading

platform lunched in India to provide browser based equity, commodity and currency trading; all

under one login.

ICICI direct.com is the most visited investment portal in India and by NRI's living across

countries.


3.Literature Review

The Indian capital market has changed dramatically over the last few years, especially since

1990. Changes have also been taking place in government regulations and technology. The

expectations of the investors are also changing. The only inherent feature of the capital market,

which has not changed is the 'risk' involved in investing in corporate securities. Managing the

risk is emerging as an important function of both large scale and small-scale investors.

Preethi Singh3(1986) disclosed the basic rules for selecting the company to invest in. She

opined that understanding and measuring return md risk is fundamental to the investment

process. According to her, most investors are 'risk averse'. To have a higher return the investor

has to face greater risks .She concludes that risk is fundamental to the process of investment.

Every investor should have an understanding of the various pitfalls of investments

4.STATEMENT OF THE PROBLEM This project was undertaken to compare the broking firms on the basis of some

parameters.

The main focus was to analyze the broking firms through the customer responses.


5.OBJECTIVE OF THE STUDY

To compare the prescribed brokerage rates, margin money and annual maintenance

charges and account opening charges collected by the companies.

To analyze the customer response towards these brokerage firms.

6.SCOPE OF THE PROJECT: The project entails a wide scope in terms of its objectives

only starting from understanding the customer’s mindset to finding the market standing of

various brands.

Limitations

Data don’t represent entire population behavior

This research was done in Dehradun city only. Hence the conclusion is valid only for

Dehradun.

It was assumed that respondents have the knowledge of the choice that were given in the

questionnaire and they were compelled to choose from the given alternatives only.

7.Research methodologyThe process of data collection has been conducted by survey. This method of data collection is

very useful in extensive enquiries. The data has been tabulated and analyzed and the results are

shown.


7.1RESEARCH DESIGNThe most desirable approach with regards to the selection of the research methodology depends

on the nature of particular work, time and resources available along with the desired level of

accuracy.

7.2 SAMPLE DESIGNSample design covers the method of selection, the sample structure and plans for analyzing

and interpreting the results. Sample designs can vary from simple to complex and depend

on the type of information required and the way the sample is selected. Sample design

affects the size of the sample and the way in which analysis is carried out. In simple terms

the more precision the market researcher requires, the more complex will be the design and

the larger the sample size. The sample design may make use of the characteristics of the

overall market population, but it does not have to be proportionally representative. It

may be necessary to draw a larger sample than would be expected from some parts of the

population; for example, to select more from a minority grouping to ensure that sufficient

data is obtained for analysis on such groups. Many sample designs are built around the

concept of random selection. This permits justifiable inference from the sample to the

population, at quantified levels of precision. Random selection also helps guard against

sample bias in a way that selecting by judgment or convenience cannot.

7.3 Type of ResearchThe Purpose of Research can be classified as:-

Descriptive Research

The purpose of research can be classified as:-

Quantitative

Qualitative


SAMPLING UNIT

For the particular research study I have used this Sampling Techniques:-

1. CONVIENENCE SAMPLING:- Easy to work with this, work is done

according to convenience of researcher.

SAMPLE AREA- DEHRADUN

SAMPLE SIZE- 75

COLLECTION OF DATA

PRIMARY SOURCE:

The data required for this stage was regarding the detail study of brokerage rates, and services of various competitors. And to know the behavior and perception of the customers towards the five broking firms The data have been collected in the form of questionnaires that was prepared. Though the primary source was not enough for the study but it did give some accurate conclusions.

The questionnaire is attached at the end as Annexure.

The above questions were really helpful in the conclusion part of the study. Some customers were very cooperative but some didn’t even bother to give a look. Overall, the study was a success as far as primary source was concerned.

Sources of Primary Data

a. Structured questionnaire for the customer.

SECONDARY SOURCE:

The secondary data was collected with the help of various books, websites, bank journals,

broachers and employees of the bank. The data collected from the websites and books was good


enough to be included in the study analyzed and concluded but the data got from the employees

of the companies was most accurate and reliable. Various newspapers, magazines, websites,

bank journals, etc were checked out for information regarding the comparative analysis of

various players in stock market.

The secondary source didn’t provide any personal views of the customers on the existing

activation charges, brokerage rate, services but were a great help in completing the report and

getting the details.

Sources of Secondary data

Journals

Web-sites

News papers

7.2 COLLECTION TECHNIQUE

There are many types of Research Instruments, some of the primary instruments are: -

Aggregate Data Analysis, Case Studies, Experimental Research, Interviewing, Surveys,

etc. For my research I have used SURVEYS as the research instrument.

For my project I have selected Questionnaires as the sub instrument under Surveys. A

Questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

I have chosen questionnaires as the option because it is an easy and less time consuming

method. Along with this it gives the subject to answer the questions from the various

options available to them


Parameters used for comparision

Comaparison of Broking firms on the basis of their charges that they collect

from customersRELIGARE:


Demat a/c opening charges

AMC (Annual Maintenance

Charges)

Margin money(according to

plans)

Brokerage

Trading a/c opening charges 500

Demat a/c annual maintenance charges 300

Brokerage

Equity delivery brokerage

Equity intraday brokerage

Equity future brokerage

0.25%

0.025%

0.05%

Margin Money 5000

Kotak Securities ltd.

India Bulls




Brokerage




0.49%

0.049%

0.049%

Margin Money 5000



Brokerage




0.40%

0.04%

0.04%

Margin Money Nil

Sharekhan




Brokerage




0.50%

0.10%

0.10%

Margin Money 5000

ICICI DIRECT

8.Data Analysis & Interpretation

I have done my research in Dehradun.The sapmle size was 75.The respondents of my research were 70% male and 30% female.

Table showing the population of male and female in the sample size

Figure




Brokerage




0.55%

0.275%

0.5-0.03%

Margin Money 975

Gender Counted no. percentageMale 54 72female 21 28Total 75 100

Male female Total0

20

40

60

80

100

120

Counted no.percentage

Questionnaires1)Do you trade in stock market?

Table showing the number of peoples who trade in stock market and who do not trade.Option Respondent

sPercentage

Yes 65 86.6666667

No 10 13.3333333

Total 75 100Analysis:-out of 75 respondents around 87% people they do the trade and remaining 13% dont.


Yes No Total0

20

40

60

80

100

120

RespondentsPercentage

Interpretation:-From the above discussion we can interpret that the majority of the people do the trade in the stock market.

Q2 .which Brokerage Firm do you prefer most for share investment?

Table showing the number of people who prefer different brokerage firms for their share investment

options Respondents

Percentage

ICICI Direct 10 13.3333333

Share Khan 22 29.3333333

India Bulls 16 21.3333333

Kotak Securities 9 12Religare 14 18.666666

7Any other 4 5.3333333

3


Total 75 100

Analysis:- out of 75 respondents 29% people prefer to invest in sharekhan 21 % people in India Bulls 18% in Religare 13% in ICICI Direct 12% in Kotak Securities and 5% in any other brokerage firm

Respondents

ICICI DirectShare KhanIndia BullsKotak SecuritiesReligareAny otherTotal

Interpretation:-from the above data we can interpret that the majority of people prefer Share Khan for share investment then other Brokerage Firms.

Q3. In your opinion which firms provides you the accurate market prediction data?

Table showing the customers opinion about market predictions of broking firms

options Respondents PercentageShare Khan 19 25.33333333India Bulls 15 20


Religare 21 28Kotak Securities 12 16ICICI Direct 8 10.66666667Total 75 100

Analysis:-out of 75 people 28% of people agreed with Religare 25 % with sharekhan 20% with India Bulls 16% with Kotak Securities and 10% with ICICI Direct.

25%

20%28%

16%

11%

Chart TitleShare Khan India Bulls ReligareKotak Securities ICICI Direct

Interpretation:- Majority of people agreed with Religare.

Q3.which feature of your prefered brokerage firm satisfies you the most?

(A)ICICI DirectTable 3Table showing the feature of prefered brokerage firms satisfies the customersOptions RespondentsA/c openings charges 4


Brokerages 3Annual Maintenance Charges

1

Margin Money 2Total 10

Analysis:-out of 10 people 4 are satisfied with the a/c openings charges 3 with brokerages 1 with AMC 2 with Margin money.

40%

30%

10%

20%

RespondentsA/c openings charges BrokeragesAnnual Maintenance Charges Margin Money

Interpretation:- from the above data we can interpret that the mojority of people satisfies with a/c opeings charges feature.

(B)Share KhanTable 4Table showing the feature of prefered brokerage firms satisfies the customers Options Respondentsa/c opening charges 10


Brokerages 4Annuak maintenance charges

5

Margin money 3Total 22

Analysis:-out of 22 10 people are satisfies the a/c opening charges 4 with brokerages 5 with annual maintenance charges 3 with margin money

45%

18%

23%

14%

Chart TitleA/C Brok AMC MM

Interpretation:-Majority of people are are satisfies with the feature of a/c opening charges.

(C) India Bulls

Table showing the feature of prefered brokerage firms satisfies the customers


Options RespondentsA/c openings charges 5Brokerages 4Annual Maintenance Charges

4

Margin Money 3Total 16

Analysis:-out of 16,5 people are satisfy with the a/c opening charges, 4 with brokerages 4 with annual maintenance charges 3 with margin money.

31%

25%

25%

19%

Chart TitleA/c openings charges BrokeragesAnnual Maintenance Charges Margin Money

Interpretation:-Majority of people are satisfy with a/c opening charges.

(D) Religare

Table shows the features of preferred brokerage firms satisfies the customersOptions RespondentsA/c openings charges 4Brokerages 5Annual Maintenance 3


ChargesMargin Money 2Total 14

Analysis:-out of 14 people 5 people are satisfy with the brokerage 4 with a/c opening charges 3 with annual maintenance charges 2 with margin money

29%

36%

21%

14%


Interpretation:-Majority of people are satisfied with brokerages and rest of the peoples are with others.

(E) Kotak SecuritiesTable shows the feature of preferred brokers that satisfies the customers

Options RespondentsA/c openings charges 3Brokerages 2Annual Maintenance 3


ChargesMargin Money 1Total 9

Analysis:-Out of 9 people 3 are satisfy with a/c opening charges 2 with brokerages 3 with annual maintenance charges and 1 with margin money.

33%

22%

33%

11%


Interpretation:-Majority of people are satisfied with the a/c opening charges and annual maintenance charges.

Q4 Please rank the company as their services

Table shows the rankings of the company by the customersOptions Share Khan India Bulls Religare ICICI Direct Kotak SecuritiesRank 1 21 17 14 12 11Rank 2 21 18 15 14 7Rank 3 15 16 18 17 9Rank 4 7 10 16 19 23rank 5 11 14 12 13 25Total 75 75 75 75 75


Analysis:-out of 75 ,21 people have given rank 1 and rank 2 to share khan,18 people have given rank 3 to religare 23 people have given rank 4 to ICICI Direct and 25 people have given rank 5 to kotak securities

Interpretation:-Majority of people have given rank 1 to share khan that shows the popularity of Share Khan in relation to its services offered.

Q5 Are you willing to change your Broking House?

Table shows the number of people who are willing to change their broking house?Option RespondentsYes 43No 22total 65

Analysis:-out of 65 people 43 people wants to change their broking house and 22 do not want.

66%

34%

Chart TitleYes No


Interpretation:-Majority of people wants to change their broking house.

Q6:- which Broking house are you willing to switch over?

Table shows the number of people who wants to switch their brokerage firmoptions RespondentsShareKhan 18India Bulls 11ICICI Direct 10Kotak Securities 6Religare 20Total 65Analysis:-out of 65 people 20 people wants to switch to Religare 18 wants to switch Share Khan 11 India Bulls 10 ICICI Direct and 6 kotak Securities

ShareKhan28%

India Bulls17%

ICICI Direct15%

Kotak Securities9%

Religare31%

Chart Title

Interpretation:- Majority of people wants to switch their brokerage firm to Religare.


9.Findings & Suggestion

o Majority of people do the trade in stock market in dehradun.o Mostly peoples prefers Share Khan and Religare broking firm for investment

in shares.o Religare is the first choice for customer who wants to switch their broking

firm.o Religare charges less brokerage and other charges in compare with other

broking firms.o ICICI Direct and Kotak Securities are less popular in peoples.o Kotak securities and ICICI Direct have to make changes in their charges to

stay competitive.

10.ConclusionFrom the research work the conclusion can be drawn as, that there are number of players in the market with the similar offerings but to attain the competitive advantage one must identify the customer needs and prepare strategies accondingly. In this intense competitive market where every second a new strategies get birth, the players have to take steps by judging every minute details.In this customer oriented market scenario customer satisfaction is the only key to stay competitive.


11.Biblography

Web sourceswww.wikipedia.comwww.kotaksecurities.comwww.indiabulls.comwww.religare.comwww.icici.com

References

1. Dr. Vijay Upagade,Research Methodology, S Chand & Company pvt ltd. Second edition

2. Bansal H S and Voyer P A (2000), “Word-of-mouth Processes within a Services Purchase Decision Context”, Journal of Services Research, No 3, pp 166-177.


http://www.icici.com/

http://www.religare.com/

http://www.indiabulls.com/

http://www.kotaksecurities.com/

http://www.wikipedia.com/

ANNEXURE QuestionnarieSir/Mam,I Mukesh Mishra student of Doon Business School doing a project on “comparative analysis of service pattern of five brokerage firms in dehradun”I request you to help me in completing the project,by filling the enclosed questionnaire.

Name:- _________________________Age:- _____ Gender:- Male Female Occupation _______________ Designation ______________

Q)1.Do you trade in stock market?

Yes No

Q)2.Which Brokerage Firm do you prefer most for share investment?

ICICI DIRECT ShareKhan India Bulls

Kotak Securities Religare Any other


Q3. In your opinion which firm provides you the accurate market prediction data?

ICICI DIRECT ShareKhan India Bulls

Kotak Securities Religare Any other

Q)4.Which feature of your preferred brokerage firm satisfies you the most?

(A) ICICI DIRECT

A/c opening charges Brokerages Annual Maintenance charges Margin money

(B)Share Khan


(C)India Bulls


(D)Religare


(E)Kotak Securities


Q)5.Please rank the company as their service offered?

Sharekhan_____ India Bulls_____ Religare_____ ICICI Direct_____

Kotak Securities_____

Q)6.Are you willing to change your broking house?

Yes No

Q)7.Which broking house are you willing to switch over?


Sharekhan India Bulls ICICI Direct Kotak Securities Religare

Date:-_____________ Signature_____________


m .m dissertation

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