A

Project study report

ON

Training Undertaken at

Titled

“ A COMPARISON STUDY OF INDIABULLS WITH OTHER BROKING FIRMS.”

Submitted In the partial fulfillment for the

Award of Degree of

Master of Business Administration

(2010-2012)

Submitted by: - Submitted to:-

Priyanka Ms. Padma Sharma

MBA 3rd SEM Asst. professor MBA dept.

2010-2012

Arya College of Engineering & Research Centre

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preface

The MBA curriculum is so designed that student get enough practical

knowledge of business world which helps them to explore their skills in

the corporate world in future

The summer training programme helps the students to understand and

gain knowledge about the industry & market environment. It develops

skills of analyzing & interpreting problems through application of

concepts & techniques of management.

Trainee did a project from indiabulls securities ltd., Dhanbad branch.

The study consists of following chapters.

Introduction of indiabulls

Study of product of indiabulls

Market competitors of indiabulls

Analysis of client satisfaction

conclusion

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Acknowledgment

I express my sincere thanks to my project guide, Ms. Padma Sharma,

Designation Asst. professor, Department.3rd SEM, for guiding me right

from the inception till the successful completion of the project. I sincerely

acknowledge her for extending their valuable guidance, support for

literature, critical reviews of project and the report and above all the moral

support she had provided to me with all stages of this project.

I would also like to thank Mr. Rajesh Tiwari, for his help and cooperation

throughout our project.

(Signature of Student)

Name of student

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Table of Contents

1 Executive summary

2 Overview of Indiabulls

3. Overview of Indiabulls Securities

4. Research Methodology

4.1 Title of the Study

4.2 Duration of the Project

4.3 Objective of Study

4.4 Type of Research

4.5 Sample Size and method of selecting sample

4.6 Scope of Study

4.7 Limitation of Study

5.The competitors

5 .Data interpretation

6 .SWOT Analyses

7 .Findings & Suggestions

8 .Conclusions

9 . Appendix

10. Bibliographies

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Executive Summary

India is a large and growing economy with rapidly expanding financial services

sector. The sector has witnessed a transformation over the last decade as a

result of the economic liberalization which started in 1991.The Indian capital

markets have undergone a substantial change over the last decade. India is now

placed among the mature markets of the world. With over 20 million

shareholders, India has the third largest investor base in the world after USA and

Japan.

IndiaBulls is India’s leading Financial Services and Real Estate Company having

over 640 branches all over India. IndiaBulls serves the financial needs of more

than 4,50,000 customers with its wide range of financial services and products

from securities, derivatives trading, depositary services, research & advisory

services, consumer secured & unsecured credit, loan against shares and

mortgage & housing finance

My summer internship was at indiabulls securities ltd, Dhanbad branch ,for a

period of 45 days. I was involved in online trading.

This Project titled ‘A COMPARISON STUDY OF INDIABULLS WITH OTHER

BROKING FIRMS’ is an attempt to understand the stock market and

role played by Indian retail Brokerage Firms in stock market. The

objective of brokerage firms is to help the investor to minimize the risk

involved in investment and maximize the return. Some of the main

characteristics of the brokerage industry include growth in e-broking;

growing derivatives market, decline in brokerage fees etc. An

endeavor was also made to understand the role played by Indiabulls

Securities compared to its competitors in Indian retail brokerage

market.

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The role played by Indian retail brokerage industry is of immense

significance, taking into account the health of the capital markets and

the intensity of competition among the brokerage companies.

OVERVIEW OF

Introduction

Indiabulls Group is one of the country's leading business houses with business

interests in Power, Financial Services, Real Estate and Infrastructure. Indiabulls

Group companies are listed in Indian and overseas financial markets. The Net

worth of the Group is Rs 16,844 Crore and the total planned capital expenditure

of the Group by 2013-14 is Rs 35,000 Crore.

Indiabulls Power is currently developing Thermal Power Projects with an

aggregate capacity of 5400 MW. The first unit is expected to go on stream in May

2012. The net worth of Indiabulls Power is Rs 3,919 Crore. The company has a

total capital expenditure of Rs 27,500 Crore. The company has been assigned

'BBB' rating.

Indiabulls Financial Services is one of India’s leading non-banking finance

companies providing Home Loans, Commercial Vehicle Loans and Secured SME

Loans. The company has a net worth of Rs 4,661 crore with an asset book of Rs

23,792 Crore. The company has disbursed loans over Rs 50,000 Crore to over

300,000 customers till date. Amongst its financial services and banking peers,

Indiabulls Financial Services ranks amongst the top few companies both in terms

of net worth and capital adequacy. Indiabulls Financial Services has been

assigned ‘AA+’ rating and has presence in over 87 cities and towns with a total

branch network of 170 branches.

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Indiabulls Real Estate is among India's top Real Estate companies with

development projects spread across residential complexes, integrated townships,

commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and

infrastructure development. Indiabulls Real Estate partnered with Farallon Capital

Management LLC of USA to bring the first FDI into real estate in the country. The

company has a net worth of Rs 7,505 Crore and has purchased prime land,

mostly in the metros and other Tier 1 cities worth Rs 4,000 Crore in government

auctions alone. Indiabulls Real Estate is currently developing 64.32 million sqft

into premium quality, high-end commercial, residential and retail spaces. The

company has been assigned 'A+' rating.

Indiabulls Securities is one of India's leading capital markets companies

providing securities broking and advisory services. Indiabulls Securities also

provides depository services, equity research services and IPO distribution to its

clients and offers commodities trading through a separate company. These

services are provided both through on-line and off-line distribution channels.

Indiabulls Securities is a pioneer of on-line securities trading in India. Indiabulls

Securities’ in-house trading platform is one of the fastest and most efficient

trading platforms in the country. Indiabulls Securities has been assigned the

highest rating BQ-1 by CRISIL.

The rise & foundation of

Year 2000-01:

One of India’s first trading platforms was set up by IndiaBulls Financial Services

Ltd. with the development of an in-house team

Year 2001-03:

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The service offered by IndiaBulls was increased to include Equity, F&O,

Wholesale Debt, Mutual fund, IPO Financing/Distribution and Equity Research.

Year 2003-04:

In this particular year IndiaBulls ventured into Distribution and Commodities

Trading Business

Year 2004-05:

This was one of the most important years in the history of IndiaBulls. In this year:

• IndiaBulls came out with its initial public offer (IPO) in September 2004.

• IndiaBulls started its Consumer Finance business.

• IndiaBulls entered the Indian Real Estate market and became the first company

to bring FDI in Indian Real Estate.

• IndiaBulls won bids for landmark properties in Mumbai

Year 2005-06:

In this year the company acquired over 115 acres of land in Sonepat for

residential home site development. The world renowned investment banks like

Merrill Lynch and Goldman Sachs increased their shareholding in IndiaBulls. It

also became a market leader in securities brokerage industry, with around 31%

share in Online Trading. The world’s largest hedge fund, Farallon Capital and its

affiliates committed` 2000 million for IndiaBulls subsidiaries Viz. IndiaBulls Credit

Services Ltd. and IndiaBulls Housing Finance Ltd. In the same year, the Steel

Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2%

stake in IndiaBulls Credit Services Ltd.

Year 2006-07:

In this year, IndiaBulls Financial Services Ltd. was included in the prestigious

Morgan Stanley Capital International Index (MSCI). IndiaBulls Financial Services

Ltd. was benefited with the Farallon Capital agreeing to invest` 6,440 million in it.

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The company also received an “in principle approval” from Government of India

for development of multi product SEZ in the state of Maharashtra. IndiaBulls

Financial Services Ltd acquired 100% of the equity share capital of Noble

Realtors Pvt Ltd. Noble Realtors is a Company engaged in the business of

construction and development of real estate projects. IndiaBulls Real Estate

Business was demerged to become a separate entity called IndiaBulls Real

Estate Ltd. The Board of IndiaBulls Financial Services Ltd. Resolved to

Amalgamate IndiaBulls Credit Services Ltd and demerge IndiaBulls Securities

Limited.

IndiaBulls Financial Services Ltd.

The Board of Directors

• Sameer Gehlaut CH and CFO

• Gagan Banga Exec. Director

• Rajiv Rattan CEO

• Saurabh K Mittal Director

• Shamsher Singh Director

• Aishwarya Katoch Director

• Karan Singh Director

• Prem Prakash Mirdha Director

• Amit Jain Co. Secretary

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An overview of company people

The company was established by three engineers from IIT Delhi, and has

attracted significant amount of investments from venture, private equity and

institutional investors. The details are as follows:

Mr. Sameer Gehlaut Mr. Rajiv Rattan Mr. Saurabh Mittal

Chairman, CEO, President, CFO, Co-Founder,

Whole-time Director Whole-time Director Electrical Engineer

Mechanical Engineer, Electrical Engineer, IIT, Delhi

IIT Delhi IIT Delhi Worked in

Worked for Halliburton Worked in Schlumberger

In the United States. Schlumberger MBA from

Acquired Inorbit Securities Harvard Business

in 2000 to establish School

IndiaBulls.

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VISION

To achieve and retain leadership, India Bulls shall aim for complete customer

satisfaction, by combining its human and technological resources, to provide

superior quality financial services. In the process, India bulls will strive to exceed

Customer’s expectations.

QUALITY OBJECTIVE

As per the Quality Policy, IndiaBulls will:-

Build in-house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of

services.

Establish a partner relationship with its investor service agents and

vendors

that will help in keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with

adequate knowledge & skills so as to respond to customer’s needs.

Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and

innovative financial products and services to meet the changing needs of

investors and clients.

Strive to be reliable source of value-added financial products and services

and constantly guide the individuals and institutions in making a judicious

choice of same.

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Introduction to particular firm

INDIABULLS SECURITIES LIMITED :- The Company's primary business activity

is to carry on business of stock and share broker on National Stock Exchange of

India Limited and Bombay Stock Exchange Limited. The Company also provides

depository services,mutual fund and initial public offering (IPO) distribution to its

clients. The Company is a depositary participant with the National Securities

Depository Limited (NSDL) and Central Depository Services (India) Limited

(CDSL) for settlement of dematerialized shares. It performs clearing services for

all securities andco mmo di ti e s transactions. Clients of the brokerage business

are able to use the depositary services to execute trades through the Company

and settle transactions. ISL is a corporate member of capital market & derivative

segment of The National Stock Exchange of India Ltd.

IndiaBulls Commodities Private Limited (ICPL), a 100% subsidiary of IndiaBulls

Securities Limited, offers commodity brokerage services to its customers. ICPL is

a registered Trading-cum-Clearing member of Multi Commodity Exchange of

India Ltd. (MCX) and National Commodity and Derivatives Exchange Ltd

(NCDEX).

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INDIABULLS OFFERS

• Broker Assisted trade execution

• Automated online investing

• Access to all IPO’s [Initial Public offer]

• Sales of Equity, Derivatives and commodities instruments listed on NSE,

BSE, NCDEX and MCX

BROKERAGE OFFERING:- IndiaBulls retail equity business primarily covers

secondary market equity broking. It caters to the needs of individual Indian and

Non-resident Indian (NRI) investors. They offer broker assisted trade execution

and automated online investing and trading facilities to the customers.

Automated online investing and trading includes automated order placement and

execution of market and limit equity orders; and advanced trading platforms for

active traders. All investors have full access to real -time quotes, personalized

portfolio tracking, charting and quote applications, real-time market commentary,

real-time quotes and news.

ONLINE AUTOMATED CHANNEL:-Automated Online Business contributes

more than 34.6% of their overall revenues. They control more than 20% market

share in the online business. Clients are able to obtain financial information and

execute trades on an automated basis through their online channel using product

offerings like Power IndiaBulls and IndiaBulls Market Trader. This channel is

designed to provide added convenience for clients and minimize our costs of

responding to and processing routine client transactions. Online channels include

the IndiaBulls Group Professional Network that provides access via our web-site

www.indiabulls.com to information and trading service on the Internet.

Additionally, Power IndiaBulls online trading system is designed for the high

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volume trader and provides enhanced trade information and order execution

integrated software-based trading platform

There are 3 mediums of using / accessing their Trading Services.

• Power IndiaBulls (PIB)

• IndiaBulls Signature Account

• Relationship manager (RM)

Power IndiaBulls:-The Power IndiaBulls software is ideally suited for the active

trader. This software gets installed on the client machine and is similar to a

Dealer Terminal over the Internet. The terminal has a lot of features that makes it

extremely usable from the point of view of a trader who is active in the market.

Some of the product features are

• Integrated market watches for cash and derivatives

• Multiple tick by tick charting

• Advanced Technical Analysis

• Single key stroke order entry

• Multiple customizable market watches

• Easy to use risk management reports

• Secured Socket Layer connectivity with server

• Two second order confirmation turnaround time even during peak hours

INDIABULLS SIGNATURE ACCOUNT:- A multitude of ways to access the

account either through priority access to Relationship Manager over phone or

online access to the Account & Research Tools

FEATURE:-

• Priority Service — Enjoy priority telephone access that gives direct access

to the Relationship Manager.

• Premium Research — Benefit from full access to IndiaBulls Equity Analysis ,

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our objective, fact-based approach to rating stocks.

• Online Accounting — Stay on the top of your investments with a snapshot of

your Account Statements. Get access to Portfolio statement and access to

digital contract notes.

BENEFITS:-

• Control — Stay on top of your investments with convenient access to your

account online or by phone.

• Confidence — Support your investing decisions with premium in-depth

research - IndiaBulls Equity Analysis.

• Value — Enjoy competitive commissions and get the service and support you

need at a fair price

• It offers the unique feature of relationship manager.

RELATIONSHIP MANAGER:- Relationship Manager driven sales model,

provide high quality service and exploit cross-sell opportunities.

Company’s clients benefit from the personal attention and advice of the trained

and motivated relationship managers. All our relationship managers are qualified

and educated professionals, who have been extensively trained in-house to

provide the products and services to the clients.

These relationship managers are encouraged to develop long-term relationships

with the clients and can access a variety of resources within our Company, such

as insurance specialists, research services and others to add value to our clients.

Most of our clients have dedicated relationship managers irrespective of the

channel they use.

IndiaBulls Securities And Derivatives Broking:- ISL is engaged in the

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business of Internet based trading and is registered with SEBI as a stockbroker,

trading and clearing member of NSE, member of BSE and as a depositary

participant with National Securities Depository Limited (“NSDL”) and Central

Depository Services (India) Limited (“CDSL”). ISL is also a member of the

National Securities Clearing Corporation Limited.

RESEARCH METHODOLOGY

TITLE OF THE PROJECT

Project Profile: “COMPARISON OF INDIABULLS WITH OTHER BROKING FIRM”

DURATION OF THE PROJECT:

The duration of the project was 45 days.

Each research study has its own specific purpose. It is like to discover to

question through the application of scientific procedure. But the main aim of my

research is to find out the truth that is hidden and which has not been discovered

as yet. My research study has two objectives:-

.

OBJECTIVE OF THE PROJECT:

PRIMARY OBJECTIVE: - How IndiaBulls Securities Ltd is best service provider

as a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: -

1. To know about the awareness towards stock brokers and share market.

2. To study about the competitive position of IndiaBulls Securities Ltd in

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competitive market.

3. To know the perception and psychology of investors towards share trading.

4. To study about the effectiveness & efficiency of IndiaBulls Securities Ltd in

relation to its competitors.

5. To know the perception and psychology of investors towards share trading.

6. To study about whether people are satisfied with IndiaBulls Securities

Services & Management System or not.

7. To study about the difficulties faced by clients while Trading in IndiaBulls

Securities Ltd.

8. To study about the need of improvement in existing Trading system.

Research Methodology refers to the search for Knowledge. It is a way to

systematically solve the research problem. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them.

TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these are

distributed on the nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One time research

My research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research:- Descriptive research includes surveys and fact finding

enquires of different kinds. The major purpose of descriptive research is

description of the state of affairs as it exists at present. Researcher has no

control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between different

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stock brokers. So this based on all qualitative data. In short, Qualitative research

is especially important in the behavioral sciences where the aim is to discover the

underline motives of human behavior. Through such research we can analyses

various factors which motivate to people to behave in a particular manner or

which make people like or dislike a particular thing.

Quantitative research:- Quantitative research is based on the measurement of

quantity or amount. It is applicable to phenomena that can be expressed in terms

of quantity. So we can use it in our research for collection of all the numerical

data.

SAMPLE DESIGN

“A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher would adopt

in selecting item for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

I used the probability research design.

SAMPLING UNITS

Sampling unit may be a geographical one, such as state, district, village etc. The

researcher will have to decide one or more of such units that he has to select for

his study.

In my research study Dhanbad as a sampling unit.

SIZE OF SAMPLE

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“This refers to the number of items to be selected from the universe to constitute

a sample”

In my research sample size is 70.

But I also studied the stock broker companies related to security market like

India infoline, ICICI direct, HDFC securities, Karvy consultant ltd. for the

appropriate collection of the information.

DATA COLLECTION

While deciding about the method of data collection to be used for the study the

researcher should keep two types of data.

1. Primary Data: - which is collected by new research called primary data.

Personal Interview

Close observation

Survey conduction

2. Secondary Data: - already existing data is called secondary data. I collected

them by following method

Internet

Books

Survey Method: - Survey refers to the method of securing information

concerning phenomena under study from all or selected number of respondents

of the concerned area. In a survey the investigator examines those phenomena

which exist in the universe independent of his action. We used the Scheduling

Method.

Scheduling: - In this method the enumerators along with schedules, go to

respondents, put to them the questions from the Performa in the order the

questions are listed and recorded the replies in the space meant for the same in

the performa.

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Details of actual work undertaken

As per my project which is “comparison of indiabulls with other broking firm” I

have to compare the different stock brokers available in market and I have to find

out how many people know about the stock market and whether they are

interested in investing.

I have also learned how Demat accounts are opened and what all documents are

required to open an account

ACCOUNT OPENING

“To avail the services of a depository an investor is required to open an

account with a depository participant of any depository.”

PROCEDURE FOR OPENING AN ACCOUNT

A Demat account are opened on the same lines as that of a Bank Account.

Prescribed Account opening forms are available with the DP, needs to be filled

in. Standard Agreements are to be signed by the Client and the DP, which details

the rights and obligations of both parties

• The DP officials will make available the relevant account opening form

(depending on whether the client is a retail investor or corporate client/clearing

member) and specify the list of documents regarding references that should be

submitted along with the form. It will also give a copy of the relevant agreement

to be entered with the client, in duplicate.

• The client will submit the duly filled in account opening form and client has to

visit personally for opening the account in DP. The DP officials have to do in

person verification and affix the “IN PERSON VERIFICATION” stamp on the

account opening form. It should also furnish such documents regarding

references, as specified by the DP, along with the account opening form. After

executing the agreement the client has to forward it to the DP.

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• The DP officials will verify that the account opening form is duly filled in. It will

also verify the enclosed documents, if any. Incomplete forms will be forwarded to

the client for rectification.

• For Corporate Clients, the DP officials will verify if the board resolution for

the authorized signatories is enclosed.

• In case the documents are not proper, the DP officials will reject the form

and intimate the client of the same, stating the reasons for doing so.

• If the form is in order; the DP officials will accept the same and affix the stamp

“verified with original” on each and every proof after seeing the original proofs.

• After completion of all documentation, the DP officials will verify the pan from

income tax website. And affix the stamp “PAN VERIFIED” with date and sign on

the stamp.

• The DP officials will enter the client details as mentioned in the account opening

form in the DPM (software provided by NSDL & CDSL to the Participant) screen

provided for the purpose. In case of NSDL A/c opening the SR. Assist will

capture all the details in the DPM and record the client’s signature (on the form)

as specimen for authorizations in the future.

• After entering client details in the system, a client account number will be

generated by the DPM. The DP officials will enter this in the account opening

form. After that the officers will verify the details in the DPM captured by the SR.

Assist. and activate the account.

• The DP officials are not allowed to give the demat a/c no to the clients

until the a/c is activate, this is applicable for both NSDL & CDSL.

• When the demat a/c is activated the DP officials have to send the client master

and the copy of agreement between DP and client at the client’s address

The account holder is called 'beneficial owner' in a depository system and the

account is known as 'beneficiary account'

DOCUMENTS REQUIRED FOR DEMAT ACCOUNT

Proof of Identity (POI):

• Passport

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• Voter ID card

• Driving license

• PAN card with photograph

• Identity card with applicant’s photograph issued by

1. Central or state government and its department

2. Statutory/regulatory authorities

3. Public sector undertakings

4. Scheduled commercial banks

5. Public financial institutions

6. College affiliated to universities

proof of Address (POA):

• Ration card

• Passport

• Voter ID card

• Driving License

• Bank passbook

• Verified copies of :

1. Electricity bills (not more than 2 months old)

2. Residence landline telephone bill (not more than 2 months old)

3. Leave & license agreement/agreement to sell (duly attested)

4. Self declaration by supreme court/high court judges, giving the new address

in respect of their own accounts

• Identity card with applicants photograph issued by

1. Central or state government and its department

2. Statutory/regulatory authorities

3. Public sector undertakings

4. Scheduled commercial banks

5. Public financial institutions

6. College affiliated to universities.

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• Passport-size photograph

• Copy of PAN card along with original PAN card for verification

Bank details:

• Copy of cancelled cheque with printed name from the bank.

• Copy of bank passbook with name and address and copy of cancelled

cheque.

• Bank statement with name and address (duly authorized by the bank, if

statement is on plain paper) not more than 4 months old and copy of cancelled

cheque of MICR & bank detail verification.

In case of minor

• Date of birth certificate duly notarized

• Proof of address and identity documents of the guardian both minor and

guardian’s photograph and guardian to sign across both photographs

•PAN card of minor as well guardian is mandatory

In case of NRI

• Foreign address and RBI approval date attested copy of RBI approval

• NRO-Indian address along with proofs

• Bank account details

In case of joint holdings

In case of joint holdings, POI and POA documents along with PAN card must be

submitted in respect of all account holders. Original documents must be taken to

the DP for verification.

The DP will also provide a copy of the DP-Client agreement.

Account opening form require the applicants to give the following details:

(a) Name(s) of account holder(s) -The investor should ensure that the name

is identical to that which appears on the certificate(s) to be dematerialized. In

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case of joint holdings, account may be opened in any one combination,

irrespective of the sequence in which names are appearing on share certificates.

Investors are advised to open their account in their fully expanded name, i.e., to

spell to the first name as well as the middle name. This would obviate any doubts

about the veracity of the information.

(b) Mailing and communication address(es) - The veracity of the applicant's

address is determined through the documents submitted for verification like

ration card, passport, voter ID, PAN card, driving license, bank passbook, etc.

For NRI accounts, proof is required for both addresses - that of the account

holder as well as the constituted attorney. For corporate accounts, a copy of

Memorandum of Association, Articles of Association, Board resolution permitting

opening of account, the registered address of the company have to be furnished.

(c) Details of guardian in case account holder is a minor -Only a guardian

can open a depository account for a minor. The guardian is required to sign the

application form, and details of his name and address need to be given in

addition to the details of the minor.

(d) Foreign Address and RBI approval details for NRI, FII or OCB

accounts -For foreign-based applicants like NRIs, Flls, OCBs, etc., the applicant

must furnish original or attested copies of the power of attorney and the approval

letter from RBI permitting them to invest, as the case may be.If the account

holder is an FII or an OCB, SEBI registration details along with attested copy of

registration certificate issued by SEBI and authorisation letter is required.

(e) Details of bank account -Details of bank account of the account holder,

including the nine digit code number of the bank and branch appearing on the

MICR cheques issued by the bank have to be filled in the application form.

Companies use this information for printing them on dividend/interest warrants

etc.

(f) Nomination declaration - A beneficial owner can make a nomination of his

account in favour of any person by filing the nomination form with his DP. Such

nomination is considered to be conclusive evidence of the account holder'(s)

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disposition in respect of all the securities in the account for which the nomination

is made.

(g) Standing Instruction - a facility of standing instruction is provided to

the investors for receiving securities to the credit of their accounts without

giving a separate receipt instruction.

• The demat account cannot be operated on "either or survivor" basis like

the bank account. In case of the joint account for the beneficial owners, all

the joint holders have to sign the account opening form.

• The investor will submit to his DP the duly filled in account opening form &

DP-client agreement along with the documents.

• The DP will verify whether the account opening form has been duly filled in

or not. He will also verify the submitted documents. For corporate investors, the

DP will also verify whether the board resolution for the authorized signatories has

been enclosed. The DP will ensure that client's signature is recorded on the form

which will serve as specimen for authorizations in future.

• If the application form and documents are in order, then the DP will accept them

and give an acknowledgement slip duly signed and stamped to the client. The

DP will execute the agreement and give a copy of it to the client.

• After completion of all documentation, the DP will enter the client details as

mentioned in the account opening form in the DPM (software provided by NSDL

to the DP) screen provided for the purpose. After entering client details in the

system, a client account number will be generated by the DPM. The DP will enter

this in the account opening form.

On successful opening of the account, the DP will give:

• Client Id - an eight digit number to be used along with DP Id for any future

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transactions.

• Delivery Instruction slip book.

Scope of the study

. Research, as a general concept, is the process of gathering information to learn

about something that is not fully known. Nearly everyone engages in some form

of research.

1) Will help you better communicate: By conducting the research Indiabulls

Securities Limited will be able to communicate to its clients easily. If the company

has proper information regarding the market then they will be able to provide the

required services to its clients on time.

2) Will help identify opportunities: By conducting research the company can

check the competition. They will also be able to know that are they missing

something they can capitalize on. What can they do better than they can? Are

their clients in need of something nobody else is offering?

3) ) Will minimize risk: Just like any situation, if the company is well prepared

then they will be less likely to loose and more likely to win. If the research is

conducted on timely basis then they can also retain their clients for longer period

of time.

4) Will create benchmarks to help you measure progress: If the research is

conducted then they will come to know how well they are doing. By setting the

standard high from the start, the company will be in a better position for

sustained growth.

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5) Will help to set competitive price: The research will also help to set better price

as against its competitors in the market, like, many stock broking houses have

low account opening charges as compared to Indiabulls Securities Limited.

Limitation of the study:

As Jharkhand dealt in survey so it does not represent the view of the total

Indian market.

Size of the research may not be substantial.

There was lack of time on the part of respondents

The survey was carried through questionnaire and the questions were

based on perception.

There may be biasness in information by market participant

Complete data was not available due to company privacy & secrecy

27

THE COMPETITORS

Major Competitors of Indiabulls Securities Ltd

Indiabulls Securities faces significant competition from companies seeking to

attract client financial assets, including traditional and online brokerage firms,

mutual fund companies and institutional players having wide presence and a

strong brand name. They are;

ICICI Securities Ltd.

Sharekhan

India Infoline

Religare

HDFC Securities

India Infoline Ltd

India Infoline Ltd is listed on both the leading stock exchanges

in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock

Exchange (NSE). The India Infoline group, comprising the holding

company, India Infoline Ltd and its subsidiaries, straddles the entire

financial services space with offerings ranging from Equity research,

Equities and derivatives trading, Commodities trading, Portfolio

Management Services, Mutual Funds, Life Insurance, Fixed deposits

and other small savings instruments to loan products and Investment

banking. India Infoline also owns and manages the websites,

www.indiainfoline.com and www.5paisa.com .

28

India Infoline Securities Pvt Ltd

India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline

Ltd, which is engaged in the businesses of Equities broking and

Portfolio Management Services. It offers broking services in the Cash

and Derivatives segments of the NSE as well as the Cash segment of

the BSE.

A choice of technologically advanced trading that is with the help of

5paisa.com. 5 paisa also represents the availability of world class

service to investors at the lowest possible rate - 5 paisa for every trade

of Rs100, i.e., a brokerage rate of 0.05%.

Features of 5 paisa.com:

Paisa sense - They offer a good value for money proposition. Their

brokerage rates are very competitive, charging only 5 paisa for Rs100

of trade done, which is 0.05% brokerage. They offer the most

reasonable rates, independent of your net worth or volumes. In case of

trades that result in delivery, they charge an additional 0.20% for back

office and securities handling.

Personalized service - At 5paisa.com, they are committed to provide

you with unparalleled service, using e-mail, call centers and support

staff. They have also invested in physical infrastructure.

Protection – All transactions of 5paisa.com are secure and

confidential. The orders are electronically routed via sophisticated

29

trading systems for execution. They follow a world class security

system that enables them to protect from any fraud or hacking.

Pedigree - 5paisa.com is a brand renowned for quality of information

and services, they are professionally managed, with a skill set which is

of high standard. Their top management has years of experience in

financial services with leading banks and institutions.

Religare:

Strengths of the Religare are:

1. Religare gives interest on unutilized cash when investor is waiting to make

next trade or online investment.

2. Religare Allow their investor to trade without having to worry about cash

margin. Investor can get exposure (on cash segment) as high as 20 times for

intraday trades.

3. They provide intraday reports and historical charting.

4. Lifetime free DP account.

5. Varity of fee structure to fulfill need of different type of investors.

Sharekhan Securities

Sharekhan was created when SSKI Investor Services Pvt. Ltd., a

company in the securities and equities segment decided to harness the

power of the Internet and offer services to its customers through an

online stock trading portal. Sharekhan brings and provides a user-

friendly online trading facility. They also have an extensive all-India

ground network of franchisees across the country.

The company offers its services through a combination of online and

offline channels. The online model comprises a portal, chat facilities,

30

and 'speed trade' terminals. And the offline model uses a combination

of an IVR infrastructure and a team of customer agents to receive

orders over the telephone.

ICICI SECURITIES

ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993

to provide investment-banking services to investors in India. As on

date ICICI Bank holds 99.9% of the share capital of ICICI Securities.

ICICI Securities Limited is India’s leading full service investment bank

with a dominant position in all segments of its operations –

Corporate Finance

Fixed Income and

Equities.

Features of ICICI securities ICICI provides multiple channels in

banking like, which is unique feature.

Internet Banking

Mobile Banking

ATM banking

Phone Banking

ICICI Securities is amongst the largest arranger of funds in Debt

and Equity segments and also amongst the leading advisors in

Mergers and Acquisitions.

COMPARATIVE ANALYSIS BETWEEN DIFFERENT STOCK BROKERS

31

After the whole study I found out the following results:-

There are the two type of the transaction: - 1.Intrabased

2. Delivery based

INDIABULLS ICICI DIRECT INDIA INFO-LINE

RELIGARE SHAREKHAN HDFC

Intraday 0.0500000000000001

0.15 0.1 0.03 0.1 0.15

delivery 0.25 0.750000000000001

0.5 0.3 0.5 0.5

0.05

0.15

0.25

0.35

0.45

0.55

0.65

0.75

Indiabulls security ltd: Charge a 0.05 % on intra based and 0.25 % on delivery

based transactions per 100 rupees.

ICICI Direct: charge a 0.75 % on delivery based and 0.15 % on intra based

transactions per 100 rupees.

Indiainfoline security ltd:

Charges a 0.01 % brokerage for intraday transactions. For trades that do result in

delivery which is less than 20% of total trades, statistically speaking there is a

nominal charge of 0.5 % for securities handling.

Religare Securities Limited:. Religare security ltd charges a 0.3 % on delivery

32

based and 0.03 % on non delivery based transaction. Service charges and other

charges are separately

Sharekhan: Sharekhan charges a 0.10 % on non delivery based and 0.50 % on

delivery based transactions.

HDFC Securities: HDFC charges 0.15 % on intraday transactions and 0.50 %

on delivery transactions

COMPETITIVE ANALYSIS

The Indian retail brokerage industry consists of companies that primarily act as

agents for the buying and selling of securities (e.g. stocks, shares, and similar

financial instruments) on a commission or transaction fee basis.

It has two main interdependent segments: Primary market and the Secondary

market

Objective:

• Analyze retail brokerage industry taking into account the health of the capital

markets, Derivative Market and the intensity of competition among the brokerage

companies.

• Doing Competitive Analysis for IndiaBulls.

The major growth drivers for brokerage revenue and trading volume are:

• Adoption of technology — screen-based trading, electronic matching, and

paperless securities

• Centralized operations, effective risk management, and control on large

interconnected operations spanning multiple locations, which is enabled by

telecom

connectivity and low costs

• Increasing access to capital and the ability to provide margin finance

33

Parameter Assessment for Doing Competitive analysis

A differentiating aspect is a comparative assessment of the top retail brokerages

on various value indicators, comprising of

• Product

• Pricing

• Service delivery model

• Unique selling proposition.

. Customers need to analyze the Brokerage Firms Based on these 5

Parameters.

• Brokerage & Miscellaneous charges

• Quote Software

• Execution Platform

• Demat Account

• Back office Support.

Brokerage & Miscellaneous charges: This accounts for all the charges that

you incur for your trading/investing. A few examples would be: Demat Account

maintenance, Brokerage, Annual account Fee, Telephone based trading

charges, trading software usage charges, etc. We should understand what all

charges we are bound to incur from our broker.

Quote Software: This is used mainly for technical study and for live quotes.

Many people don’t evaluate quote software. We typically use software that have

stumbled upon and stick with it just because we have eventually grown

comfortable using it. Does it allow us to back test our strategy? Does it allow

customizing technical signals/parameters? Does it allow adding new indicators?

Does it allow us to see historic data? For, what period is intraday data available?

We might need all this information. We should be clear on what we need and

ensure our quote software provides it all.

34

Execution Platform: It’s nothing but a platform that allows us to execute our

trade fast. It should automate trade management and execution, and should give

protection against human errors.

Demat Account: Demat account should only be opened with a well known and

established brokerage firm in the market.

Back office Support: People while trading face lots of problem because of lack

of good back office support. Relationship Managers trading without their client’s

knowledge, funds not being transferred, trades not being executed, slow

execution etc are a few examples.

IndiaBulls Securities Trading Products

They provide three products for trading. They are

• Cash account

• Intraday account

• Margin trading

Cash account provides the client to buy 4 times of cash balance in his

trading account.

Intraday product provides the client to buy 8 times of his cash balance in the

trading account.

Mantra account – called as margin trading, is a special account to buy on

leverage for a longer duration.

35

Senior Vice President

Regional Manager

Branch ManagerSenior Sales Manager

Support System Sales Function

RM/SRM

ARM

Local ComplianceOfficer

Back OfficeExecutive

Dealer

ORGANISATION STRUCTURE

36

FUNCTIONING OF DEPARTMENTS

1. SALES

KEY ASPECTS OF RM’S ROLE

a)CLIENT ACQUISITION

• Primary responsibility is to register clients who have the potential of generating

high brokerage annually

• Focus not only on account opening but also on margin money from clients

• Educate the customers on Indiabulls Trading platform so that he can trade on

his own

• Ensure smooth handling of the clients in terms of margin collection and

relationship management

• Achieve monthly targets as given by the Vice President(VP) /

Assistant Vice President (AVP) or above.

b) REVENUE GENERATION

• Primary responsibility is to generate revenue in excess of 3/4/5

times of own salary on a monthly basis from the allocated/acquired

base of clients

• Prepare the plan of action; maintain the daily activity report and

daily revenue plan so that you can meet your brokerage targets.

• Identify and acquire high net worth individuals (HNI) clients.

c) CLIENT SERVICING

• Guide clients in terms of investment and trading

• Rigorous follow up with the allocated clients.

• Explain ledgers, contract notes and charges . This maintains complete

transparency with the clients .

37

• Ensure that clients are receiving all relevant documents on time.

• Visit the top revenue generating clients at least once a week.

• Call up clients for trading, margin calls and for margin collection.

• Develop and maintain relation with the Clients. Ask for references.

2. OPERATIONS

All work related to:

• Punching – in kits

• Punching – in cheques

• Checking client account status

• Maintaining vouchers of expenses

• Payment of various bills

3. Local Compliance

• To check whether the dealer is putting correct order or not.

• Issuing warning letters.

• Verifying the signatures of clients.

SOURCES OF FINANCE

38

39

Offerings

40

IndiaBulls offers two products: -“Get More At IndiaBulls.”

1. NIB - Normal IndiaBulls

2. PIB - Power IndiaBulls

NIB – Normal IndiaBulls: -

“A multitude of ways to access your account either through priority access

to Relationship Manager over phone OR online access to your Account &

Research Tools.”

Enjoy priority telephone access that gives you direct access to your Relationship

Manager.

Stay on the top of your investments with a snapshot of your Account Statements.

Get access to Portfolio statement and access to digital contract notes.

PIB – Power IndiaBulls: -

“Trading just got faster”

Features of PIB:

• Live Streaming Quotes

• Fast Order Entry

• Tic by Tic Live Charts

• Technical Analysis

• Live News and Alerts

IndiaBulls: “A Cut Above The Rest”

Service Industry is base on differentiation of the product and service IndiaBulls is

different from its competitors because of following reason –

Internal Marketing: -

41

The main aim of internal marketing is to train and motivate employees to serve

customers. The selection, training and motivation of the employees will make a

huge difference in customer satisfaction.

In IndiaBulls the employees are well trained and motivated to work

and they work delicately. Because IndiaBulls know that employee’s attitude will

promote stronger customer loyalty. IndiaBulls designed a sound training

programme and support and rewards for good performance. They can use

Internet, internal newsletters, daily remainders, and employee roundtables to

reinforce customer-centered attitude

External Marketing: -

Describe the normal work to prepare, price, distribute and promote the service to

customers. It is mainly for customers to provide better service for this purpose

IndiaBulls is providing following unique services to his customers: -

1.Relationship Managers who are dedicated to supporting

customers trading and investing needs. They always keep in touch with client

and they give various tips to client by which he can invest in good stocks.

2.Dealers’ everyday gives confirmations of the client’s whole day

trading in the evening after signing out from the Market.

IndiaBulls is providing Funding for trading to its client on nominal rates of

interest i.e. on 18% limit of funding is as follow

Delivery- for delivery trading IndiaBulls providing 2 times funding

Intraday- for this type of trading IndiaBulls is proving 8 times

Funding without charging any interest.

Risk management team of IndiaBulls taking care of client portfolio

and

whenever the value of his portfolio will go decrease by 30% client always

42

informed by his Relationship Manager.

IndiaBulls is providing a software called “Power IndiaBulls” as

describe

above if a client have his own PC and Internet then he can trade from his

home or office.

Depository Services: -

IndiaBulls is a depository participant with the National Securities Depository

Limited and Central Depository Services (India) Limited for trading and

settlement of dematerialized shares. IndiaBulls performs clearing services for all

securities transactions through its accounts. Company offer depository services

to create a seamless transaction platform – execute trades through IndiaBulls

Securities and settle these transactions through the IndiaBulls Depository

Services.

NRI Account

You can now enjoy the convenience of hassle-free and fast way of trading

in the Indian Equity Markets through IndiaBulls NRI Investor Services Our unique

integrated service creates one window for all your trading, depository and

banking needs. You can buy and sell on your computer using our NRI Trading

Account Services, which have been seamlessly integrated with your IndiaBulls

Depository Account and with the HDFC NRE/NRO Bank Account.

IndiaBulls NRI Trading Account - Provides access to comprehensive trading

tools for independent NRI investors

• IndiaBulls Depository Services - Integrated services for seamless

delivery

43

• HDFC Bank Account - NRE/NRO Accounts with built in tax management

solutions and facility to source all regulatory approvals

• IndiaBulls Equity Analysis - Premium Research on 540+co mpa n i e s

updated daily

Promotion: -

IndiaBulls is turning to marketing public relations to directly support corporate

and product promotion and image making. Because public is any group that has

an actual or potential interest in or impact on a company’s ability to achieve its

objective. IndiaBulls has its team relationship manager that monitors the attitudes

of organization’s publics and distributes information and communications to built

goodwill. They are performing following five functions:

1. Press Relations: - They present news about the organization in the most

positive light.

2.Product Publicity: - All Relationship managers are sponsoring efforts to

publicize product offerings by IndiaBulls i.e. NIB and PIB.

3. Corporate Communication: - They promoting understanding of the

organization through internal and external communications.

4. Counseling: - All RMs advise management about public issues and company

positions and image during good and crises.

IndiaBulls is promoting its product by advertising by following medium:

• Electronic media: - By advertise its product via Television

• Print media: - By various newspapers, brochures, etc.

44

From above campaign we had good result we have come to know that public is

interested to know about IndiaBulls and shares trading.

Infrastructure: - IndiaBulls also try to demonstrate its service quality through

physical evidence and presentation. Because if we talk about online security

trading then we have to say that physical evidence is important for the company

in IndiaBulls office all client come every day and they trade but with the time

passing IndiaBulls is growing and number of client increasing day by day so

space of office is not sufficient for both staff members and clients also.

FUTURE PLANS OF INDIABULLS SECURITIES LTD

IndiaBulls is now looking at standardizing on Linux and is also considering

migrating to Red Hat Enterprise Linux v.3 to further increase performance. With

growing popularity of Linux on the desktop, IndiaBulls is considering to port its

client application to Linux. In doing so, it hopes to meet the needs of investors

who prefer to use Linux desktops from their home or office in connecting to their

services network

Data interpretation & analyses

Research is conducted for finding the solution of the problem. So to find the

solution of the problem data analysis and interpretation is must. There are some

questions related to this research to interpret the result.

The sample size in this study consisted of 70 individuals and data analyzed from

the response of these 70 individuals.

1.Are you aware of the stock market?

The basic purpose of this question is to know about how many people are

aware of the stock market and its activities.

45

responses no.of

respondents

% o

response

yes 70 100

no 0 0

total 70 100

yes no0

10

20

30

40

50

60

70

80

noyes

Interpretation:-

This graph shows that all the 70 individuals were aware of stock market. So it

can also be possible that investors will rise in near future.

2. Do you know about investment options available?

knowledge % age

yes 80

No 20

total 100

46

80%

20%

yes no

Interpretation

Only 80% people know the exact meaning of investment. Because of remaining

20% take his/her residential property as an investment. According to law purpose

this is not an investment because of it is not create any profit for the owner.

3.Are you aware of Demat account ?

The basic purpose of this question is to know about awareness of Demat account

among respondents.

Response No of response %of response

Yes 60 86

No 10 14

Total 70 100

47

86%

14%

yesno

Interpretation :

The above table clearly shows that from a sample size of 70 respondents, 60

individuals were aware of Demat account.

4. Most preferable investment scenario

Investment scenario % age

Banks 24

Derivatives & securities market 28

Insurance 4

Bonds 20

Real estate 20

Others 4

Total 100

48

24%

28%4%20%

20%4%

banksderivatives & securities marketinsurance bondsreal estateothers

Interpretation:

Today scenario is changed so that most area covered by the derivative and

securities market. It is 28% of the total population

5. What is the basic purpose of your investment ?

Investment purpose %

liquidity 30%

returns 25%

Capital appreciation 10%

Tax benefits 20%

Risk covering 5%

others 10%

total 100%

49

30%

25%10%

20%

5% 10%

liquidityreturncapital appreciationtax benefitsrisk coveringothers

Interpretation : 75% people are interested in liquidity, returns and tax benefits.

And remaining 25% are interested in capital appreciations, risk covering, and

others.

6. Most important things you take into your mind while making investments?

Factors %

Risk 8

Return 17

Both 75

Total 100

50

8% 17%

75%

Risk Return Both

Interpretation 75% people are considered the both factors risk as well as returns but, only 25% considered the risk or returns factor.

7.Do you have Demat & trading account?

60%

40%

YESno

Interpretation

51

Account %

yes 60

No 40

Total 100

Only 75% respondents have de-mat and trading account and remaining 25% says no because they don’t know why shares move up and down.

8. Specify the reason of satisfaction with the current broking house?

Satisfaction %

Operating expenses 18

Services 25

Brokerage 57

Total 100

18%

25%57%

Operating expensesServices Brokerage

Interpretation

We can see that most of the clients are satisfied with their broking houses

because of the lower brokerage charges which is followed by services they

provide.

9.In which company you have Demat and trading account?Company %INDIABULLS 38INDIAINFOLINE 20ICICI direct 14SHAREKHAN 12KARVY 9OTHERS 7

52

TOTAL 100

38%

20%14%

12%

9%7%

INDIABULLSINDIAINFOLINEICICI DirectSHAREKHANKARVYOTHERS

Interpretation:-

In IndiaBulls Securities Ltd 38% respondents have de-mat & trading account

because of better services and no annual maintenance and other charges except

for brokerage charges

53

SWOT ANALYSIS

STRENGTH

• Integrated technology

platform

• Pan India distribution

network

• Relationship manager facility

• Power indiabulls has

developed into brand

• Strong sales & marketing

teams that deliver market

leading product innovation

WEAKNESS

• Lacking of banking arm

• Loss of relationship manager

leads to loss of clients

OPPORTUNITIES

• Changing demographics with

higher disposable income

• Rapid penetration of internet

& computers

• Market size & characteristics

THREATS

• Economic slowdown

• Political instability

• Volatile movement in market indices

• Competition

• substitutes

• low product differentiation

54

Competitive Strength of Indiabulls Securities

Indiabulls securities Ltd have a distinct set of competitive advantages

that make it uniquely capable of winning in the marketplace against its

competitors

Diverse Branch Network

Bouquet of financial products and services

Advanced technology team that delivers market leading product

innovation

Strong sales and marketing teams with continuous reinvestment

and training

Strong cross-selling opportunities.

Strong and experienced promoters

Leading product innovation and marketing strategies

Well capitalized player, with strong banking relationships and

credit ratings

Ability to combine people and technology in unique ways

Strong market presence and increased market share leading to a

virtuous cycle of growth and Profitability.

Core pillars of Business strategy

Increase the number of Client Relationships.

Offer Diversified Financial Products & Services.

Multiple Channels – Enhance Customer Experience and

Opportunities.

Low cost and highly scalable business.

Merits of Indiabulls Securities

55

Low brokerage charges (Competitive) with 0.10 for Intra-day and

0.50 % for delivery.

Indiabulls securities provide 8 times margin for Intra-day and 4

times margin for delivery.

Indiabulls is suitable for both Day trading & Long term

investment

IndiaBulls has software called Power IndiaBulls. It is a Java based

application, with real-time streaming quotes. It is fast in terms of

speed and execution

Research reports are free of cost to trading members. They Provide 3 in 1 interface, i.e. Demat Account, Trading

account & bank account all are linked in one interface.

De-Merits of Indiabulls Securities

You have to open a bank account with the banks mentioned in

Indiabulls site for Credit/ Debit Facility as they don’t have their

own bank. And In ICICI direct , you have a direct debit/credit

facility with the bank

Most customers feel that it is difficult to understand the ledger

reports of Indiabulls securities, so proper customer guidance

should be given.

Lack of Banking arm

Rural market is yet to be tapped.

More importance should be given to promotions &

advertisements.

Value Proposition of Indiabulls Securities

ISL provide a very good Trading tools like Power Indiabulls &

Indiabulls market trader.

Power Indiabulls: A desktop Trading application offering clients

sophisticated trading tools accessible at lightning fast speed.

56

Indiabulls Market Trader: Browser based trading application

built for retail investor.

Indiabulls Equity Analysis: Premium research on 400 plus

companies.

Indiabulls Professional Network: Offers real-time prices,

detailed data and news, intelligent analytics and electronic

trading capabilities.

Relationship manager: Indiabulls securities robust technology

is integrated with knowledgeable and customer-focused

relationship managers who are available 24X7 to assist the

clients.

In Depth Market Analysis and Research

Their special research cell bring you intensive research reports

on how the stock market is faring, when is the right time to

invest, when to execute your order and more. Depending on

what kind of investor you are, they bring you fundamental or

basic research and technical research.

Merits & De-merits of Competitors

ICICI securities: It provides products & services in fixed income,

equity & corporate finance.

Merits of ICICI Securities

ICICI Direct is considered best for long term investment.

( Indiabulls is suitable for both Day trading & Long term

investment)

A direct debit/credit facility with the bank.

All facilities available under one umbrella.

BTST (Buy today & sell tomorrow) is available; this facility is

available only in ICICI Direct.

Can apply for IPO online (we can’t do this in Indiabulls).

57

Can apply for mutual funds online and can also sell them online.

Internet banking demo which gives customers an opportunity to

learn.

De-Merits of ICICI Securities

Brokerage charges are high - intraday 0.3% and 0.75% delivery

compared to other brokerage firms (is considered as highest in

the market).

Day trading is a night mare in ICICI because of Web based

terminal, which is very slow. Orders placed at or around 10.00

hrs may be queued for a while. So

intra-day Margin trading could be annoying now & then. It's not

much of a hassle for Cash trading though.

(Indiabulls offers you a trading terminal 'power Indiabulls', which

is java based software. It is fast in terms of speed and

execution).

ICICI Direct brokerages are not negotiable ( Where as Indiabulls

Brokerage Charges are negotiable)

While opening Demat account, three accounts are opened ,the

saving bank account, trading account and Demat account and

you have to maintain minimum of rs5000 in case if it is not a

salaried account. (That Rs5000 sleeps without earning any

money)

Other banks account cannot be linked with the ICICI trading

account.

They charge an annual maintenance charges are Rs540.

Value Proposition of ICICI Securities

E-Instructions: You can transfer securities 24 hours a day, 7

days a week through Internet & Interactive Voice Response (IVR)

58

at a lower cost. Now with "Speak to transfer", you can also

transfer or pledge instructions through our customer care officer.

Mobile Request: Access your Demat account by sending SMS to

enquire about Holdings, Transactions, Bill & ISIN details.

The equities research team tracks over 15 key sectors of the

Indian economy and publishes in-depth research reports every

year.

The equities team at ICICI Securities comprises of research desk,

sales desk and the trading desks.

ShareKhan

Merits of ShareKhan Securities

Low brokerage charges, intraday 0.1% and 0.5% for delivery.

Live streaming quotes

Customer support is good

No monthly charges

Can trade in both BSE and NSE

HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing Development Financial

Corporation). www.hdfcsec.com would have an exclusive discretion to decide the

customers who would be entitled to its online investing services.

www.hdfcsec.com also reserves the right to decide on the criteria based on

which customers would be chosen to participate in these services .The present

web site (www.hdfcsec.com) contains features of services that they offer/propose

to offer in due course. The launch of new services is subject to the clearance of

the regulators, i.e, SEBI, NSE and BSE.

59

PRODUCT OFFERED BY HDFC SECURITY

• Online trading for Resident & Non Resident Indians.

• Cash-n-Carry on both NSE and BSE.

• Day trading on both NSE and BSE.

• Trade on Futures & Options on the NSE.

• Online IPO's.

• Telephone-based Broking (Equity & Derivatives).

De-Merits of ShareKhan Securities

No BTST (buy today sell tomorrow), in ShareKhan you can’t sell a

share today which you bought yesterday.

You have to open a bank account with the banks mentioned in

ShareKhan site.

Streaming quotes requires JVM (Java Virtual Machine); this may

be big headache for customers.

Annual charges are Rs330.

Their trading terminals are certainly not for "investors", only for

active traders. That is because, you have to trade a certain

volume every month, otherwise you end up paying a fine

Comparing ShareKhan & ICICI Direct

Sharekhan ICICI Securities

Live Streaming quotes No live streaming quotes

but streaming quotes require JVM

No BTST facility BTST facility is available

(Buy today sell tomorrow)

Annual Maintenance charge Rs 330 Annual Maintenance charge Rs 540

60

You have to open a bank account other banks account cannot be

With the banks mentioned in ShareKhan site

linked with ICICI trading account

Can apply IPO online Can apply IPO online

Not necessary while opening a Demat account you

Need to maintain a minimum of Rs 5000

Can trade in BSE & NSE Can Trade in BSE & NSE

No Monthly Charges No Monthly Charges

Cannot apply can apply mutual funds online

India Infoline

Merits of India Infoline (5 Paisa.com) Securities

Low brokerage charges, intraday 0.10% and 0.50% for delivery

and it is negotiable.

Minimum brokerage per share will be 1 paisa for trading

transactions and 5 paisa for delivery based transactions.

5 paisa provides 6 times margin for Intraday & 8 time’s margin for

Delivery.

All customers will get Digital Contract Notes. Physical contract

notes could be provided on request which would entail a nominal

charge.

De- Merits of India Infoline (5 Paisa.com) Securities

Registration Fees (one time) Rs.500/ and is non-refundable.

61

Software License Fee Rs.799/- per month or 7999/- per annum and

is non-refundable.

There is lot of Hidden costs.

Annual Service Charges Rs.250.

Customers who just want to have a depository relationship will be

required to pay Rs.1000/-, for each Demat account, which will be

adjusted against service charges.

The information in their web based terminal is too much

compressed in one screen.

Trader terminal is good, but the interface is too complicated

FINDINGS & SUGGESTIONS

Aggressive Promotions: Indiabulls Securities compared to its

competitors concentrates less on advertising and promotions,

especially through electronic media. Its competitors like Sharekhan,

ICICI and Kotak are advertising aggressively through media. Hence

Indiabulls should concentrate more on advertising through print and

electronic media.

Tapping Rural Market: The Indian rural investors market are

relatively untapped, with only small and private firms meeting the

current demand. Indiabulls Securities can gain the “First Mover

Advantage” over its competitors, especially in areas were commercial

crops are grown and the standard of living is high. These people do not

have much option to invest other than banks and post offices.

Reduce the initial account opening charges: The charge for

opening a trading and Demat account in Indiabulls securities is high

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compared to its competitors. This influences the potential investors to

open their account with another company which provides the same at

lower prices. Thus it acts as a mental barrier for potential customers,

who tend to overlook all other benefits offered by Indiabulls. Hence

Indiabulls should consider reducing their account opening charges.

Bring in more product differentiation: Product differentiation here

means that Indiabulls securities should bring in more customized

services and more value proposition for large investors. It can reduce

the brokerage charges for large investors which will encourage them to

invest more in the company.

Invest more on R&D: Indiabulls should concentrate on its research

and development since most of its competitors are investing on R&D.

This will help the company to read the market better and will also be in

a better position to understand the needs of the customers. This can

be extremely beneficial for Indiabulls in the long run.

QUESTIONNAIRE

Q1 Do You invest in shares?.

o Yes o no

In case ``yes`` start filling q2,but in case of ``NO`` reply switch on to Q12

Q2. Through which brokerage firm you are

dealing______________________________________

Q3.How do you come to know about the firm?

O newspaper O friends

O Executive O others(please specify)____________

Q4. You are more interested in?

O Intraday O Short term O Long term

Q5.How do you trade?

O through phone O through internet

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O by visiting broker firm yourself

Q6. On what basis do you buy a scrip?

O On the recommendation of the broker

O fundamental analysis

O on the recommendation of your friend

O with your own research

O On the basis of news

Q7.What is the basic purpose of your investment?

O capital appreciation O high returns

O Liquidity O diversification

Q8. What is your trading exchange preference?

ONSE O BSE

Q9. How do you like to trade ?

OAs a spectacular/trader O As an investor

Q10.Do you invest in futures and options? Yes/no

Q11. TO what extent do you agree /disagree with the following statement about

share trading

Statement strongly disagree neutral agree ya disagree

a) I m satisfied with the services of my broker

b) I am ready to shift to other brokerage house if he promises me to

provide better services

c) Trading software of my brokerage house keeps me update about

scrip prices.

In case ``no`` option start filling Q12.

Q12. If you do invest in shares then in which other mode of

investments do you invest your savings? ( you can tick more than

one )

O Saving account O Fixed deposits

O insurance O REAL ESTATE

O Mutual Funds

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Q13. If a professional guides you to invest in equity, are you ready

to make investments?

O YES O NO

Q14. Which of the ollowing names of brokerage houses have you

heard ?( can tick more than one)

O Motilal Oswal securities Ltd.

O Kotak securities Ltd.

O ICICI Direct

O Indiabulls

O Indiainfoline

O Religare securities ltd.

O karvy

Personal information

Name:

Contact no.

Age group:

O 20-25 O 25-30 O 30-50 O more than 50

Occupation

O Business O Professional O Service

O House wife O Student

Income:

O upto 1.5 lacs O 1.5- 3 Lacs O More than 3

lacs

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CONCLUSION

Indiabulls faces significant competition from companies seeking to

attract clients’ financial assets including traditional and online

brokerage firms, mutual fund companies and institutional players,

having wide presence and a strong brand name. As Indiabulls enter

newer markets, they are likely to face additional competition from

those who may be better capitalized, have longer operating history,

have greater retail and brand presence, and better management than

Indiabulls. As new players like Reliance Money enters the market the

competition will only get more intense. If they are unable to manage

their business it might impede their competitive position and

profitability.

Hence they should continue to compete vigorously to capture more

market share and should add more management personnel to manage

their growth in an optimal way.

Post economic liberalization in 1991 the Indian financial services

industry has experienced significant growth. Exposure to global

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practices has made the Indian customer more demanding. As a result

of falling interest rates, bank deposits, other traditional investment

opportunities are losing their attraction. Thus, Indian investors are

getting attracted towards alternate investments such as the Retail

Security Market and are looking for newer financial products.

As the Indian Retail Security Market is still in a nascent stage and as a

lot of potential for growth, it’s a very good opportunity for companies

like Indiabulls to increase their market presence. They will have to

concentrate more on the Research and Development and come up with

strategies which are beneficial for the company. Thus for the purpose

of Applied Research Projects in the company, they can do more

research on the market and identify the major factors which will drive

the market in the future.

ANNEXURE

1.Are you aware of the stock market?

O YES O NO

Do you know about investment options available?

O YES O NO

Are you aware of Demat account ?

O YES O NO

Most pref erable investment scenario

O Investment scenario O Banks O Derivatives & securities

market

O Insurance O Bonds O Real estate O.Others

What is the basic purpose of your investment ?

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O liquidity O returns O Capital appreciation O Tax

benefits O Risk covering O.others

6. Most important things you take into your mind while making investments?

O Risk O Return O Both

7.Do you have Demat & trading account?

O.YES O No

8 Specify the reason of satisfaction with the current broking house?

O Operating expenses OServices O Brokerage

9.In which company you have Demat and trading account?

OINDIABULLS OINDIAINFOLINE O ICICI direct

OSHAREKHAN O RELIGARE O OTHERS

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