A Summer Training Report 2

8/4/2019 A Summer Training Report 2

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A SUMMER TRAINING REPORT

ON

SHAREKHAN LTD.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

GURU JAMBHESHWAR UNIVERSITY, HISAR

SHARE TRADING IN INDIACUSTOMER FEEDBACK ON CLIENT ACQUISITION

SERVICES AND COMPARATIVE ANALYSIS OF MAJOR

PLAYERS

TRAINING SUPERVISOR SUBMITTED BY

Ravi K. Shankar SONIA SOLANKI

(Finance Manager) Enrolment No.: 06511242489

SESSION 2006-2009

GURU JAMBHESHWAR UNIVERSITY

HISAR


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PREFACE

Share trading in India is undergoing phase witnessed never before. The competition is

likely to become so severe after the entry of many players, retaining a customer is

most difficult practice for any service provider.

Though India has a very big untapped market but the players will not flourish unless

they change the way the customers are being served. Given the awareness level of

today customers every player has to treat with care and make the customer feel that

he is the king. Number of Online Share trader in India has crossed the line. More and

more customers are coming under this umbrella and many of the existing one are

changing pavilion. So customer retention and satisfaction is now more important as it

was never before. Players keep coming with new schemes in order to attract new

customers and retain the existing one.

My topic of study was customer feedback on client acquisition services and

comparative analysis of major players. This project is an effort to do a depth study

and analysis of various known and unknown reasons for customer satisfaction and

retention. To err is human and I am not an exception, valuable comments are

always welcomed since it will motivate to work with greater zeal and efficiency in the

future.


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ACKNOWLEDGEMENT

No task can be achieved alone, particularly while attempting to finish a project of

such magnitude. It took many very special people to facilitate it and support it.

Hence, I would like to acknowledge all of their valuable support and convey my

humble gratitude to them.

First of all, I would like to express my sincere gratitude to Ravi K. Shankar

(Finance Manager) at Sharekhan for putting me on the project of Online Share

Trading for ShareKhan. It has been great honor & pride for me to be associated with

such an esteemed organization

I would also like to thank him who has always been open to discussion and frequently

enquired about the project and any problems faced etc. He has also given me valuable

guidance as to how to go about the project

I have put my best effort to make this project as informative & understandable as

possible. I have done the best I could do & have been honest to the company, to the

professor & most importantly to myself.

Thank you all for supporting me in making this projects a reality

SONIA SOLANKI


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INDEX

CONTENTS PAGE NUMBER

Chapter 1 Introduction

Chapter 2 Objective & Methodology

Significance Managerial usefulness of the Study

Objective Scope Of The Study Methodology

Chapter 3 -Conceptual Discussion

Chapter 4 - Data Analysis

Chapter 5 -Findings & Recommendations

Conclusion

Questionnaire

Bibliography


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CHAPTER- I

Introduction


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INTRODUCTION

1.1 INDUSTRY OVERVIEW

Overview of Industry as a Whole

Do you know that the world's foremost marketplace New York Stock Exchange

(NYSE), started its trading under a tree (now known as 68 Wall Street) over 200

years ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE)

can also trace back its origin to as far as 125 years when

it started as a voluntary non-profit making association.

You hear about it any time it reaches a new high or a newlow, and you also hear about it daily in statements like

'The BSE Sensitive Index rose 5% today'. Obviously,

stocks and stock markets are important. Stocks of public

limited companies are bought and sold at a stock

exchange. But what really are stock exchanges? Known

also as TV News on the stock market appears in different media every day. he stock

market or bourse, a stock exchange is an organised marketplace for securities (like

stocks, bonds, options) featured by the centralisation of supply and demand for the

transaction of orders by member brokers, for institutional and individual

investors. The exchange makes buying and selling easy. For example, you don't

have to actually go to a stock exchange, say, BSE - you can contact a broker, who

does business with the BSE, and he or she will buy or sell your stock on your behalf.

All stock exchanges perform similar functions with respect to the listing, trading, and

clearing of securities, differing only in their administrative machinery for handling

these functions. Most stock exchanges are auction markets, in which prices are

determined by competitive bidding. Trading may occur on a continuous auction basis,

may involve brokers buying from and selling to dealers in certain types of stock, or it

may be conducted through specialists dealing in a particular stock.


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But where did it all start? The need for stock exchanges developed out of early

trading activities in agricultural and other commodities. During the middle Ages,

traders found it easier to use credit that required supporting documentation of drafts,

notes and bills of exchange. The history of the earliest stock exchange, the French

stock exchange, may be traced back to 12th century when transactions occurred in

commercial bills of exchange.

The first stock exchange in India, Bombay Stock Exchange was established in 1875

as 'The Native Share and Stockbrokers Association' and has evolved over the years

into its present status as the premier stock exchange in the country. It may be noted

that BSE is the oldest stock exchange in Asia, even older than the Tokyo Stock

Exchange, which was founded in 1878. The country's second stock exchange wasestablished in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE).

CSE can also trace its origin back to 19th century. From a get together under a 'Neem

Tree' way back in the 1830s, the CSE was formally established in May 1908.

India's other major stock exchange National Stock Exchange (NSE), promoted by

leading financial institutions, was established in April 1993. Over the years, several

stock exchanges have been established in the major cities of India. There are now 23

recognised stock exchanges Mumbai (BSE, NSE and OTC), Calcutta, Delhi,

Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad,

Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore

and Meerut. Today, most of the global stock exchanges have become highly efficient,

computerised organisations. Computerised networks also made it possible to connect

to each other and have fostered the growth of an open, global securities market.

Realizing there is untapped market of investors who want to be able to execute their

own trades when it suits them, brokers have taken their trading rooms to the Internet.

Known as online brokers, they allow you to buy and sell shares via Internet.

Online Trading is a service offered on the Internet for purchase and sale of shares. In

the real world, you place orders on your stockbroker either verbally (personally or


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telephonically) or in a written form (fax). In Online Trading, you will access a

stockbroker's website through your internet-enabled PC and place orders through the

broker's internet-based trading engine. These orders are routed to the Stock Exchange

without manual intervention and executed thereon in a matter of a few seconds.

There are 2 types of online trading service: discount brokers and full service online

broker. Discount online brokers allow you to trade via Internet at reduced rates. Some

provide quality research, other dont. Full service online brokerage is linked to

existing brokerages. These brokers allow their clients to place online orders with the

option of talking/ chatting to brokers if advice is needed. Brokerage rates here are

higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, sharekhan.com,

HDFCsec.com, Tatatdw.com, HMRstreet.com are some of the online broking sites in

India.

Stock Market

Wth the backing of the World Bank group, many developing countries started giving

prominence to stock markets for financing enterprises and allocation of savings. In

India too, the process started in the early eighties. In the wake of increased pace of

economic liberalisation initiated in 1991, the Capital Issues Control Act, 1947, which

till then regulated the issue and pricing of new capital, was done away with and even

greater emphasis was placed on the stock market. As a part of the measures to

develop the stock market and liberalisation of the external sector, foreign institutional

investors were invited to trade directly on the Indian stock exchanges. The main

expectations were that the market would help corporates raise resources directly from

investors, help attract foreign portfolio capital and facilitate the process of

privatisation. The entry of foreign portfolio/institutional investors (FIIs) was expected

to broaden the base of the market and also help in the markets development by

forcing developing country governments to follow consistent and market friendly

policies. Through their expert analysis and research, FIIs were expected to help in

better price discovery. Since 1991, a number of measures at improving share trading


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and delivery mechanisms and investor protection ranging from more periodic

disclosures, takeover regulations, insider trading rules, corporate governance code,

etc. have been introduced by the Securities and Exchange Board of India ( SEBI), the

market regulator.

PARTIES INVOLVED IN SHARE TRADING

1. BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich

heritage. Popularly known as "BSE", it was established as "The Native Share & Stock

Brokers Association" in 1875. It is the first stock exchange in the country to obtain

permanent recognition in 1956 from the Government of India under the Securities

Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the

development of the Indian capital market is widely recognized and its index,

SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the

Exchange is now a demutualised and corporatised entity incorporated under the

provisions of the Companies Act, 1956, pursuant to the BSE(Corporatisation and

Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of

India (SEBI).

The Exchange has a nation-wide reach with a presence in 417 cities and towns of

India. The systems and processes of the Exchange are designed to safeguard market

integrity and enhance transparency in operations. During the year 2004-2005, the

trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debtinstruments and derivatives. The BSE's On Line Trading System (BOLT) is a

proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance

and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.


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2. NATIONAL STOCK EXCHANGE (NSE)

Capital market reforms in India have outstripped the process of liberalization in most

other sectors of the economy. However, the creation of an independent capital market

regulator was the initiation of this reform process. After the formation of the

Securities Market regulator, the Securities and Exchange Board of India (SEBI),

attention were drawn towards the inefficiencies of the bourses and the need was felt

for better regulation, discipline and accountability. A Committee recommended the

creation of a 2nd stock exchange in Mumbai called the "National Stock Exchange".

The Committee suggested the formation of an exchange which would provide

investors across the country a single, screen based trading platform, operated through

a VSAT network.

It was on this recommendation that setting up of NSE as a technology driven

exchange was conceptualized. NSE has set up its trading system as a nation-wide,

fully automated screen based trading system. It has written for itself the mandate to

create a world-class exchange and use it as an instrument of change for the industry

as a whole through competitive pressure. NSE was incorporated in 1992 and was

given recognition as a stock exchange in April 1993. It started operations in June

1994, with trading on the Wholesale Debt Market Segment. Subsequently it launchedthe Capital Market Segment in November 1994 as a trading platform for equities and

the Futures and Options Segment in June 2000 for various derivative instruments.

NSE was set up with the objectives of:

(a) Establishing a nationwide trading facility for all types of securities;

(b) Ensuring equal access to investors all over the country through an appropriate

communication network;

(c) Providing a fair, efficient and transparent securities market using electronic

trading system;

(d) Enabling shorter settlement cycles and book entry settlements; and

(e) Meeting international benchmarks and standards.


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NSE has been able to take the stock market to the doorsteps of the investors. The

technology has been harnessed to deliver the services to the investors across the

country at the cheapest possible cost. It provides a nation-wide, screen-based,

automated trading system, with a high degree of transparency and equal access to

investors irrespective of geographical location. The high level of information

dissemination through on-line system has helped in integrating retail investors on a

nation-wide basis. The standards set by the exchange in terms of market practices,

products, technology and service standards have become industry benchmarks and are

being replicated by other market participants.

Within a very short span of time, NSE has been able to achieve all the objectives for

which it was set up. It has been playing a leading role as a change agent in

transforming the Indian Capital Markets to its present form. The Indian Capital

Markets are a far cry from what they used to be a decade ago in terms of market

practices, infrastructure, technology, risk management, clearing and settlement and

investor service.

FUTURE OUTLOOK

With increasing globalisation and consolidation amongst exchanges, the future of the

regional stock exchanges, around 22 in India, is likely to be very uncertain and even

their very survival is a question mark.

Sebi has permitted the regional exchanges to form subsidiary companies, which are

akin to super brokers. These companies have acquired membership of both BSE and

NSE at confessional entry fees and permitted their members to trade on the BSE and

NSE thus increasing trade volumes and business in both BSE and NSE.

The stock markets of the future will have a redefined purpose and reinventedarchitecture due to the advent and widespread use of technology. Information and

stock price quotations are available almost instantaneously and more importantly

investors can act on this data by executing a trade from anywhere at any time.

This new market will bring benefits to investors, listed companies, and the economies

of countries. Trading will be cheaper, faster and settlement will be simpler and with


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reduced risk. Raising capital for companies will be easier, thus contributing directly

to economic expansion.

The leaders in this new world of investing will be the ones willing to be agents of

change, to best meet the needs of investors and companies, and to do what is best for

these two principal stakeholders in the capital markets.

If done right, the stock markets of the future will be even better vehicles than today in

helping companies grow, creating jobs, providing fair investment opportunities for

people, and in improving economies.

Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use

leading-edge technologies to effectively compete in the global environment. In the

not-too-distant future, once full capital account convertibility is permitted in India one

could well witness an expansion of trading volumes and its resultant economic

benefits to the thriving and ever-young metropolis of Mumbai.

1.2 PROFILE OF THE SHAREKHAN LTD.

Sharekhan is an equities focused organization

tracing its lineage to SSKI, a veteran equities

solutions company with over 8 decades of

experience in the Indian stock markets.

If you experience our language, presentation

style, content or for that matter the online

trading facility, you'll find a common thread;

one that helps you make informed decisions and simplifies investing in stocks. The

common thread of empowerment is what Sharekhan's all about!

Sharekhan is also about focus. Sharekhan does not claim expertise in too many

things. Sharekhan's expertise lies in stocks and that's what he talks about with

authority. So when he says that investing in stocks should not be confused with

trading in stocks or a portfolio-based strategy is better than betting on a single horse,

it is something that is spoken with years of focused learning and experience in the

stock markets. And these beliefs are reflected in everything Sharekhan does for you!


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To sum up, Sharekhan brings to us a user- friendly online trading facility, coupled

with a wealth of content that will help you stalk the right shares.

Apart from this, Sharekhan also offers the facility to visit (or talk to) any of the share

shops across the country in order to cater to people who are not computer - savvy.

In fact Sharekhan runs India's largest chain of share shops with around 250 outlets in

113 cities.

Below an online polling is being conducted among 41 strong members from

www.traderji.com , which clearly shows the expert opinion with respect to

Customer satisfaction, quality products etc.

Poll Results: which online broker u prefer and why - choose one

5paise 10 24.39%

Sharekhan 12 29.27%

Motilal Oswal 0 0%

ICICI Direct 8 19.51%

HDFC 2 4.88%

India Bulls 7 17.07%

Kotak Securities 1 2.44%

any other 1 2.44%

ABOUT SSKI

SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment

bank with strong research-driven focus. Our team members are widely respected for

their commitment to transactions and their specialized knowledge in their areas of

strength. The team has completed over US$5 billion worth of deals in the last 5 years

- making it among the most significant players raising equity in the Indian market.

We strive to be the best research-driven investment bank involved in India-related

equity transactions. Our investment banking team provides a full range of services,

from private placements and public offerings to advisory work and mergers and

acquisitions. The extensive industry expertise of our professionals is matched only by


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the exceptional degree of their commitment to all aspects of client servicing. What

differentiates our investment-banking group is our commitment to provide senior

level attention to all projects and clients. We at SSKI Corporate Finance are in a very

strong position to raise capital for our clients. We have deep and long-standing

relationships with most prominent institutional investors in Indian equities; this

strength is further bolstered by the relationships that the SSKI Institutional Equities

sales team enjoys with institutional investors spread across the globe.. Over the past

five years, SSKI Corporate Finance has raised and advised on equity deals in excess

of US$5 billion

SSKI GROUP COMPANIES

SSKI Investor Services Ltd (Share khan) S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance Idream Productions

SSKI CORPORARE STRUCTURE


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Share khan is India's leading retail financial Services Company with We have over

250 share shops across 115 cities in India. While our size and strong balance sheet

allow us to provide you with varied products and services at very attractive prices,

our over 750 Client Relationship Managers are dedicated to serving your unique

needs. Sharekhan is lead by a highly regarded management team that has invested

crores of rupees into a world class Infrastructure that provides our clients with real-

time service & 24/7 access to all information and products. Our flagship Sharekhan

Professional Network offers real-time prices, detailed data and news, intelligent

analytics, and electronic trading capabilities, right at your fingertips. This powerful

technology complemented by our knowledgeable and customer focused Relationship

Managers. We are Creating a world of Smart Investor. Sharekhan offers a full range

of financial services and products ranging from Equities to Derivatives enhance

your wealth and hence, achieve your financial goals. Sharekhan' Client Relationship

Managers are available to you to help with your financial planning and investment

needs. To provide the highest possible quality of service, Sharekhan provides full

access to all our products and services through multi-channels.

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PRODUCTS OFFERED BY SHAREKHAN

Sharekhan offers two types of products to its customers depending upon the usage of

frequency of trading of the customer.

Classic

This is a product for the retail investor who is risk averse and hence to invest in

stocks selective or who does not trade frequently. There is no volume commitment

on part of the client; the features of the product are as follows.

- The registration charges are Rs. 750/- that is one time payment.- With the online package defaults demat a/c would be opened with sski for the

1st year and no demat charges have to be paid. Its free

- The client gets exposure upto 4 times in case of margin trading of the depositamount.

- The brokerage applicable is 0.50 on delivery/cash tradings and 0.10% onintraday trading.

Sharekhan classic account allows the client to trade through our website and is

suitable for the retail investor who is risk averse and hence prefers to invest in

stocks or hdoes not trade too frequently. At sharekhan we like to take care of

our cliets. Which means arming them with that extra bit of care to take the

markets head-on. So as a sharekhan classic client you get access to privileged

information an sre eligible for those month-watering that are made available

from time to time. In other words the benefits of share khan classic accounts

are classic too! . key features of classic accounts

- no interface tradingyou can buy and sell shares, untouched by human hand. Thats right. The

internets flexibility combined with sharekhans powerful yet simple trading

engine puts you in the pilots seat on your voyage in the investing jungle. You

choose the stock, you punch the order and you get the confirmation that it is

done. All in a matter of seconds.

- any where ordering


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met a bright and committed infosys executives while on holiday in Nepal who

inspired you to buy the stock ? No problem. Just drop by at the nearest cyber

caf and you are in business. May be the example is a wee bit fanciful but the

point is still valid. Just because you travel on business or for pleasure doesnt

mean you should lose control over your investment. Log on from anywhere in

the world and do it.

- any time orderingyou can now place your order on sharekhan at your convenience, round the

clock. No need to wait for the exchange to open. No need to spend precious

office time logging on and trading. Do it from the club in the evening, do it

from a cyber caf at lunch, wake up at 2.00am with a brainwave and do it

from home. No problem. Sharekhan will queue your order in the system and

your order will be executed when the market opens!

- credit against salessold some stock? Now want to buy? No sweat. Go ahead and place your order

worth as much as the sale you just made. Sharekhan will take care of it.

CLASSIC PRICING FOR RETAIL CUSTOMERS

Account Opening: Rs 750 Demat 1st Yr: Nil Initial Margin: NIL Min Margin Retainable: NIL Brokerage:

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes


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SPEEDTRADE

Speedtrade is state-of-the-art web trading product ideal for active traders and jobbers

who transact frequently during a days trading session to capitalize on intraday price

movements. There is a volume commitment on the part of the customer. Speedtrade

can be given to those clients who are able to generate brokerage of Rs1000 to 1500

per month. The features of the speedtrade are as follows:

- it comes with NEAT(national exchange for automated trading) terminal forfrequent traders.

- The registration charges are Rs 1000 that is one time payment.- The client would be getting a live terminal loaded on his pc with streaming

quotes.

- Demat services are same as that of classic accounts.- The brokerage is also same as that of classic accounts.- Single screen trading terminal.- Real time streaming quotes- Live tic-by-tic intraday charting- Instant order/trade confirmation in the same window.- Hot keys similar to brokers terminal- Customized alerts based on multiple parameters- Back up facility to place trades on direct phone lines.

SPEED TRADEPRICING FOR HNI CLIENTS

Account Opening: Rs 1000 (Refundable against brokerage in Month + 1) Demat 1st Yr: Incl in Account Opening Initial Margin: NIL Min Margin Retainable: NIL Brokerage:

Trading 0.10% each side + All Taxes


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Delivery 0.50% each side + All Taxes

(Negotiable based on volume)

Account Access ChargesMonthly Rs 500, adjustable qtrly against brokerage of Rs 9000/-

SERVICES OFFERED BY AN OUTLET

1. Online BSE and NSE executions (through BOLT and NEATterminals)

2. Free access to investment advice from Sharekhan's research team Sharekhan Value Line (a fortnightly publication with

reviews of recommendations, stocks to watch out for

etc

Daily research reports and market review (High Noon,Eagle Eye)

Pre-market Report (Morning Cuppa) Daily trading calls based on technical analysis Cool trading products (Daring Derivatives, Trading

Ring and Market Strategy)

Personalized advice Live market information

3. Depository services: Demat and Remat transactions4. Derivatives trading (Futures and Options)5. Internet-based online trading: Classic Account, SpeedTrade,

SpeedTradePlus


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BRANCHES ALL OVER INDIA


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INVESTING ONLINE SO MUCH EASY WITH

SHAREKHAN

This account enables you to buy and sell shares through our website. You get features

like

a) Streaming quotes (using the applet based system)

b) Mutltiple watchlistsc) IntegratedBanking, demat and digital contracts

d) Instant credit and transfer

e) Real-time portfolio tracking with price alerts

and, of course, the assurance of secure transactions.

F e a t u r e s o f

C l a s s i c A c c o u n t

that enable you to invest effortlessly

Online trading account for investing in Equities and Derivatives via

sharekhan.com


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Integration of: Online trading + Bank + Demat account

Instant cash transfer facility against purchase & sale of shares

Make IPO bookings

You get Instant order and trade confirmations by e-mail

Streaming Quotes

Personalised Market Scan with your own customized stock ticker!

Single screen interface for cash and derivatives Your very own Portfolio

Tracker

SYSTEM REQUIREMENTSYou'll need access to a computer, which has at least the following configuration:

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Dial-up Modem / Cable modem Internet Connection Account Internet Explorer 6.0 Java enabled in IE

The Power and Speed of a Broker's Terminal on your Desktop!

The ideal tool for active traders and jobbers who transact frequently during the day's

trading session, Speedtrade enables you to capitalize on intra-day price movements.


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Speedtrade is an Internet-based executable application that provides everything a

trader needs on ONE screen:

1: Real-time streaming quotes

2: Live Tic-by-Tic Intra-day charting

3: Trading in Cash and Derivatives on a single

INTRODUCTION TO FUTURES

Futures markets were designed to solve the problem that exists in forward markets. A

futures contract is an agreement between two parties to buy or sell an asset at a

certain time in the future at a certain price. But unlike forward contracts, the future

contracts are standardized and exchange traded. To facilitate liquidity in the futures

contracts, the exchange specifies certain standard features of the contract. It is a

standardized contract with the standard underlying instrument, a standard quantity

and quality of the underlying instrument that can be delivered, (or which can be used

in reference purposes for settlement) and a standard timing of such settlement. A

futures contract may be offset prior to maturity by entering into an equal and opposite

transaction.

The standardized items in a future contract are:

Quality of the underlying

Quantity of the underlying

The date and month of delivery

The units price quotation and minimum price change

Location of settlement

Report

The sources of information can broadly categorize in to two categories:-

1. Formal information sources:-These sources of information are authentic and

reliable obtained through a proper channel in the organization by adhering to a


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systematic and structured procedure. In this we have collected the information from

company manuals, journals, brochures and other published materials such as balance

sheets, annual reports, articles etc. We are also including the information that our

company guide provide us. Through all theses information we are comparing

ShareKhan with other.

2. Informal information sources:- In this sources of information we collected the

information from the employees of the companies. We also collected the information

from external sources.

STOCK TRADING PROCEDURE

Stock Exchange is a market place where buyers and sellers of securities meet in order

to trade on the same between themselves. This process is called Stock Trading.

In order to trade on a stock exchange, an investor needs to appoint a broker who acts

as an intermediary between the investor client and the stock exchange. After the

appointment of the broker, the investor has the option of going for either of the

trading procedures:

1. ONLINE TRADING: Under this type of trading, the trading is done by theinvestor himself through the internet using the Trading Software provided to

him by his broker.

2. OFFLINE TRADING: Under this type of trading, the investor communicateshis decision to invest to his broker who in turn trades on the behalf of the

client using his trading terminal.

However, on close evaluation of both the procedures, it is found that after acertain point, offline trading merges into online trading as the broker too uses theinternet to put in the bid on behalf of his client.


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PROCESS CHART OF ONLINE TRADING PROCEDURE

The various transactions involved in online trading can be shown from the point of

view of the

y Clienty Brokery Stock Exchange


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PROCESS CHART OF OFFLINE TRADING PROCEDURE

BENEFITS OF ONLINE TRADING

Decision to invest in the Stock Market

Search of a Broker

Selection of a Broker and Negotiation of terms

Finalization of Contract

Opening of Demat Account

Payment of Margin Money

Decision of Offline Trading

Communication with the Broker

Convey the decision of Buy/Sell

Placement of the bid by the Broker on NEAT

Execution of Bid

Transfer of Shares


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This technique offers the best price for the buying and selling transactions of the

investors, by ensuring proper matching of their orders within the communication

network itself. Also due to the high level of transparency with regard to display of

information relating to the specific stocks and company profiles, the investors will be

able to get the best quote for the shares. This leads to a reduction in the transaction

cost for the investors.

OFFERS LIQUIDITY TO THE INVESTORS

Online trading offers 24-hour trading facilities or trading for longer hours when

compared to the traditional stock exchanges. This provides added liquidity to the

investors.

OFFERS GREATER TRANSPARENCY

Online trading gives greater transparency to the investors by providing them an audit

trail. This involves a complete integrated electronic chain starting from order

placement, to clearing and settlement and finally ending with a credit to the

depository account of the investor. All these stages are subject to inspection, thus

bringing in transparency into the system.

ENABLES HASSLE FREE TRADING

Online trading integrates the bank, the brokerage firm and the demat accounts, which

leads to easy and paperless trading for the client.

ALLOWS QUICK TRADING

The investor will be able to execute the entire trading transaction, right from logging

on to the brokers site, to the execution and settlement of his bank account, in a very

short period of time.


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PROVIDES A LEVEL PLAYING FIELD

Trading on the net, gives even the smallest retail investor access to information that

earlier was available only to the big traders. This provides a level playing field for all

investors in the securities market.

REDUCES THE SETTLEMENT RISK

This method of trading reduces the settlement risk for the investor, as in this case no

short sale is possible i.e. the seller will not be able to sell the securities unless he has

their actual possession. In the case of a demat account (required for an online

transaction), when a seller wants to sell the securities, his demat account is checked

by the Depository Participant before executing the sale transaction. This reduces the

settlement risk for the buyer, who is assured of the delivery of the securities.

FACTORS TO KEEP IN MIND WHILE SELECTING ONLINE BROKERS.

Brokerage cost: It is important to weigh up the subscription and trading costs

charged by an online broker against benefits offered by the site. All online brokers

display their charges on their sites. Some make sure you find the charges easily, while

with others you will have to search a bit.

Safety: We should make sure site has 128-bit encryption to ensure safety of

transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit

encryption. You normally get a secured Login id and password. It is always advisable

to frequently change trading password. Ideally online trading site should be fully

integrated. The greater the backward integration, the better it is for the customer.

Ideally broking account, demat account and bank account should be linked

electronically.

Rate refresh: Rate refresh has to be real-time with no time lag. The speed and

reliability comes with huge investment in technology. It is always advisable to check

rates of online broking sites with BSE/ NSE terminal rates.


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Speed of execution: System has to be fast and reliable that does just one job-

executes your trades. The last thing you need is a site that is heavily congested with

the users who are downloading heavy jpeg graphs or pulling the latest story why

market is moving. The site should be one click wonder where squaring off all your

positions or canceling all your pending orders takes one click and a confirmation of

action.

Trading limit: For trading, all sites provide 4 times buy and sell limit against margin

money put in by customer. For delivery of shares, buying limit is equal to margin

money put in by customer. Couple of sites also provides margin funding for buying of

shares.

Free trial period: Site should allow users free trial period to familiarize yourself

with system before you decide to become trading member of the site.

Intraday chart/ historical chart: The site should provide Intraday chart tick-by-tick

time and price data / historical chart for technical analysis by investors of particular

scrip. Lot of people trade based on charting packages.

Before you can trade, you need to open an account and register as a trader as with

online broking site. This involves filling up trading account form, Demat account

form and for faster transfer of money- Internet enabled bank account. We should read

terms and condition of each site before commencing to deal with them. As per SEBI

rule, Photo id proof and current address proof is a must for opening trading account.

Online share dealing on the Internet is now a way of life for thousands of investors.

80% of South Korea and 30%-40% US trade are executed online. If you want to deal

in shares, there is no easier way.


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DEMATERIALISATION

Dematerialisation is the process by which a client can get physical certificates

converted into electronic balances. An investor intending to dematerialize its

securities needs to have an account with a Depository Participant (DP). The client has

to deface and surrender the certificates registered in its name to the DP. After

intimating NSDL electronically, the DP sends the securities to the concerned Issuer/

R&T agent. NSDL in turn informs the Issuer/ R&T agent electronically, using NSDL

Depository system, about the request for dematerialization. If the Issuer/ R&T agent

finds the certificates in order, it registers) and communicates to NSDL the

confirmation of request electronically. On receiving such confirmation, NSDL credits

the securities in the depository account of the Investor with the DP.

PROCESS CHART OF DEMATERIALISATION

Submission of Dematerialization Requisition Form

Verification of Certificates by Depository

Participant

Generation of Dematerialization Requisition

um er DR

Electronic forwarding of DRN to NSDL

Electronic forwarding of Request to Issuer

Punching of Certificates by DP

Confirmation of Acceptance by Issuer

Authorization of Credit to client by NSDL

Intimation to Client


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CUSTOMER SUPPORT BY SHAREKHAN

Sharekhan provide its customers services and support through various means like:

(1) Websites: - customer can clarify there problems and queries by accessing share

khans website www.sharekhan.com. This website is full of information

regarding share market, ongoing trends, news related to shares or some particular

script etc.

(2) Call centers: - sharekhan also provide its customer an toll free call center. These

call centers provide assistance to customer in solving there queries and problem

related to share market or services of sharekhan.

(3) Relationship managers: - sharekhan also provide facility of relationship

managers to its customers. These relationship managers guide the customer about the

present scenario and advice them where to invest.

(4) Sms facilities: - sharekhan send regular sms to its customer related to current

market happening, which share is doing good etc. this will be helpful if you are not intouch with are representatives or even with computer.

(5) Email: - sharekhan send daily six reports and recommendation to its customer

regarding real time market situation and market situation. Sharekhan also recommend

certain shares to its customer to purchase/sell.

(6) Live chat: - sharekhan also provide live chat facility so that there customer can

interact with each other.


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Employee support by sharekhan

Website: - a separate website is launched by sharekhan for its employees at different

branch with the name branch.sharekhan.com. It provides email facilities,

(1)all information related to inside of sharekhan, any changes takingplace in near future, MIS etc.

(2)MIS: - management information system helps the employees to keepthemselves update about the latest position of particular employees.

We can check the number of customer made by each employee, what

is their position among other employees and information related to

the working of office

(3)LMS: - lead management system. This system provides leads to theemployees allotted from headquarter to a particular branch.


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MANAGEMENT TEAM

VISION & MISSION

VISION

To be the best retail broking brand in the Indian Equities market.

MISSION

To educate and empower the individual investor to make better investment

decisions through quality advice and superior service.


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1.3 PROBLEMS OF THE ORGANIZATION

y ShareKhan has failed to evolve into a widespread internet broking firm because ofits un-focused promotional strategies (advertisements in electronic media,

newspapers, etc) across the length and breadth of India. Although it is a well

known broking house in some states like Maharashtra, Gujarat, etc. it still lacks

considerable awareness in the northern parts of India where its competitors have

been building their reputation very rapidly.

y The other of ShareKhan is that they give more attention to HNIs (high networthindividuals) as compared to retail investors or individuals; this is why volumes of

trading at SHAREKHAN are less as compared to its competitors.

y Most of the processing and clarifications (account opening, payments, etc) arerouted to the head office in Mumbai due to lack of decision making powers of

local branches which delays the speedy execution of decision


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1.4 COMPETITION INFOMRATION

5PAISA.COM

Company Background

Indiainfoline was founded in 1995 and was positioned as a research firm. In 2000 e-

broking was started under the brand name of 5 paisa.com. Apart from offering online

trading in stock market the company offers mutual funds online.It also acts as a

distributor of various financial services i.e GOI securities, Company Fixed Deposits,

Insurance.Limited ground network, present in 20 Cities.

Online Account Types

Investor Terminal : Investors / Students

Trader Terminal : Day Traders / HNIs

PRICING FOR RETAIL CLIENTS

Investor Terminal

Account Opening: Rs 500

Demat 1st Yr: Rs 250

Initial Margin: Rs 2500(Compulsory)

Min Margin Retainable: Rs 1000

Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST


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PRICING FOR HNI CLIENTS

Trader Terminal


Demat 1st Yr: Rs 250



Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

(Negotiable to 0.05% each side & 0.25%)

Account Access Charges

Monthly Rs 800, adjustable against Brokerage

Yearly Rs 8000, adjustable against brokerage

Deal Clinchers v/s 5 Paisa

Downtime

Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency

downtime between 3 3:30 p.m due to server load (as their T.T is feature heavy

compared to Speetrade charting)

Manual Accounting


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The 5 paisa accounting system is manual, Online fund transfer through bank is

not credited instantly. Limit is provided EOD for shares sold from DP, or call

Similarly limit released for shares sold under BTST is manual Delay in receiving pay-

out of clear funds from trading to Bank Account

Min Account Balance

Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep

account active. This can be withdrawn only on closure of account.

KOTAKSTREET

Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint

venture between Kotak Mahindra Bank and Goldman Sachs

Online Account Types

Twin Advantage / Green Channel: 2 DPs, Limit against shares

Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction

High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55

PRICING OF KOTAK


Demat: Rs 22.5 p.m



Brokerage Slab wise: Higher the volume, lower the brokerage. Even older

customers (on 0.25% & 0.40%) have been moved to the slab wise structure.


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Deal Clinchers v/s Kotakstreet

Rigid Account Opening Terms

No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs5000/- Account opening free with Rs 10,000 Margin OR competitor Contract Note.

No Customization of commercial Terms

No Flexibility in Leverage Dependent on Type of Account ( 4 to 6 times

only) No flexibility in Brokerage, driven by slab structure

Many Other Charges

Rs 22.5 p.m towards DP AMC charges

DP incoming charges extra, 0.02%

Rs 1,000 as retainable Margin to keep account active

Rs 25 per call after 20 calls for the month

Restricted Access to Terminal like product

KEAT Desktop restricted distribution on payment of Rs 500, Non refundable

INDIABULLS

Company Background

India Bulls is a retail financial services company present in 70 locations covering 62

cities. It offers a full range of financial services and products ranging from Equities to

Insurance. 450 + Relationship Managers who act as personal financial advisors

Online Account Type


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Signature Account: Plain Vanilla Account with focus on Equity Analysis. The

equity analysis is a paid service even for A/c holders

Power Indiabulls: Account with sophisticated trading tools, low commissions and

priority access to R.M

Pricing of IB Accounts

Signature Account


Demat: Rs 200 if POA is signed, No AMC for this DP

Initial Margin:NIL

Brokerage: Negotiable

Power IndiaBulls


Demat: Rs 200 if POA is signed, No AMC for this DP

Initial Margin:NIL

Brokerage: Negotiable

Deal Clinchers v/s IndiaBulls

POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and

the same is shown as a reflection in client DP account. Charges are levied to move

shares from IB pool Account to client DP account


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Paid Research Services

Access to a research even for an IB trading account holder is charged a min of

Rs 500 a month

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T+1 day itself

@21% p.a, on a daily basis

The role of Relationship Manager

Each RM is looked upon as a revenue generator and he gets a % on business

generated from client. This can lead to over leveraged (Interest) & high frequency

(Brokerage) trading, which may not be in the best interest of the client.


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ICICIDIRECT

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate ofICICI Bank Limited and the Website is owned by ICICI BankLimited

Account Types

ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1

advantage. Differentiated in services within the account

1. Cash on spot

2. MarginPlus

Premium trading interface of ICICIDirect Link is given to DBC partners and HNIs


Schemes: For short periods Rs 750 is refundable against brokerage generated in a

qtr. These schemes are introduced 3-4 times a year.

Demat: NIL, 1st year charges included in Account Opening Plus a facility to open

additional 4 DPs without 1st yr AMC

Initial Margin:Nil

Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

Slab wise brokerage ranges from 0.75% to 0.25% depending on volume.


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Deal Clinchers v/s ICICIDirect

Poor online Interface

Slow website interface with no real-time quotes creates dissatisfaction among highfrequency traders

Margin trading restriction

The margin trading system is available up to 2:45 p.m, with outstanding net positions

under margin segment automatically squared off at any time between 2:45 3:30

p.m. Thus no control of square off price.

Morning Trades Issue

Being one of the websites with largest no of after hour orders which are pushed 1st

thing in the morning, creates a choking of orders to the exchange, causes delay of

confirmations for new order placed during the early morning trades.

Restriction of BTST

The sale of shares purchased is restricted to T+1 day and is not permitted on T+2

Day.

No leverage for Delivery trades

Delivery is restricted to the total money allocated into the trading account.

No flexibility on leverage on Intra-day trades

The leverage of 4 times is available for intraday trades.

Restriction of Bank Account

The choice of bank is restricted to ICICI Bank.


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Higher Brokerage rates with slabs

The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this makes

is very unviable for customers dealing in large volumes. Although progressively the

delivery and trading brokerage reduce as volumes go up.


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1.5 S.W.O.T. Analysis of Share Khan

Strengths

y It is a pioneer in online trading with a turn over of Rs.400crores and more than800 peoples working in the organization.

y . SSKI the parent company of ShareKhan, has more than eight decades of trustand credibility in the indian stock market.In thr Asian Money Brokers poll

SSKI won the Indias best broking house for 2004 award.

y ShareKhan provides multi-channel access to all its customers through a strongonline presence with www.sharekhan.com, 250 share shops in 130 cities and a

call-center based Dial-n-Trade facility

y ShareKhan has dedicated research teams for fundamental and technicalresearch.which constantly track the pulse of the market and provide timely

investment advice free of cost to its clients which has a strike rate of 70-80%.

Weaknesses

y Localized presence due to insufficient investments for country wideexpansion.

y Lack of awareness among customers because of non-aggressive promotionalstrategies (print media, newspapers, etc).

y Lesser emphasis on customer retention.y Focuses more on HNIs than retail investors which results in meager market-

share as compared to close competitors.

Opportunities

y With the booming capital market it can successfully launch new services andraise its clients base.


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y It can easily tap the retail investors with small saving through promotionalchannels like print media, electronic media, etc.

y As interest on fixed deposits with post office and banks are all time low, moreand more small investors are entering into stock market.

y Abolition of long term capital gain tax on shares and reduction in short termcapital gain is making stock market as hot destination for investment among

small investors.

y Increasing usage of internet through broadband connectivity may boost awhole new breed of investors for trading in securities.

Threats

y Aggressive promotional strategies by close competitors may hamper ShareKhans acceptance by new clients.

y Lack of sufficient branch-offices for speedy delivery of services.y Other players are providing margin funds to investors on easy terms where as

there is no such facility in share khan.

y More and more players are venturing into this domain which can furtherreduce the earnings of Share Khan.


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CHAPTER- II

Objective & Methodology


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OBJECTIVE AND METHODOLOGY

2.1 SIGNIFICANCE

y Every research is conducted to fulfill certain objective and these objectives inturn fulfill some purpose. BBA curricular is designed to give more practical

exposes to the student so that he can make use of theoretical knowledge in the

real life situation, with this thrust dissertation study has been included which

provides opportunity to research to gain practical insight of the market. This

hand on experience helps him in identifying the critical factor of consumer

buying behavior. This rich experience will be great help in researchers future

endeavors and it also solves the purpose for the partial fulfillment of BBA

curriculum.

y I sincerely believe that road to improvement is never- ending and one alwayslearns from a new experience. This project is a step towards gaining

knowledge about real world and putting the theory of practice. I shall look

forward to and gratefully acknowledge all suggestion on this small step I have

taken.

y The report consists of a stepwise efforts towards meeting the objectives ofthe study. It covers the step-wise collection of data collection and the

representation of the data together with the analysis. It also includes some

suggestions put forward hoping it would help the company achieve its vision.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

y The marketing department can use this study to enhance their marketingstrategies for better sales. This report helps marketing department in taking

decision to what change in distribution channels and what should be done so


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that marketing problem could be shorted out and how to sell their range of

product in the competitive market.

y The very essence of every project related to marketing is providing a view tomanagement for chalk out the organization. So that they can maintain a viable

fit between the organization objective, skill and resources and its changing

market opportunities. Also give proper shape to the company business target

profit and growth. It provides a feedback to the organization about their sales,

sales schemes and what impact dose it has on the retailers and consumer.

Every market research proves useful suggestion to the organization.

Marketing research helps the firm in every component of the total marketing

task.

y It helps the firm in every component of the total marketing task. It helps thefirm acquire a better understating of the buyer, the competition and marketing

environment. It also aids the formulation of the marketing mix, product,

distribution and pricing needs marketing research support. It also in taking the

information of competitors strategies and their impact on the buyer. The

study revels may fact that have come up during the project and these facts can

either be used as opportunities in exploring and expending the business as

well as can be used as safeguard against threats by the competitors to preparean effective marketing strategy. Every market research proves usefulness to

the organization. Marketing research helps the firm in every component of the

total marketing task.

y Its helps the firm acquire a better understanding of the consumer, thecompetition and the marketing environment. It also aids he formulation of

marketing mix, decision on each element of marketing mix, product,

distribution and promotion and pricing etc need the support of marketing

research


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2.3 OBJECTIVES

y The objective of my summer training is to gain knowledge about how anorganization works and in particular setup of a stock broking house.

y Under this summer training a small project was undertaken, the primary objectiveof which was to obtain a feedback from the clients of Sharekhan. Particularly

about their experience while opening the online trading account with Sharekhan.

y The secondary objective of this project was to help out the clients with theirproblems in Sharekhan to the extent possible.

Primary objectives of the project are:

1. To study the sharekhans competitors strengths2. To study the sharekhan.com competitors weaknesses in relation to

sharekhan.com

3. To analyze the product & services of competitors in relation to sharekhan.com

Secondary Objective

1. To study the consumer behavior towards share khan.com.2. To learn about company routine working.

2.5 SCOPE OF THE STUDY

These are some of the following scope of the study:-

1. To analysis the products of ShareKhan and find out the strength andweakness.

2.

We come to know about market policy of the competitors.3. We are making company vision. Through this company generate more

business and help to improve their policies.

4. The present study can be extended to assess the present marketing conditionof stock market.


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5. The study can be used to design a proper product, price, place & promotionalstrategy for stock market.

6. From the present study we can know the market share of different by-productsand accordingly formulated strategy to enhance it.

7. The result of marketing success of different by-product can be interpreted toassess the rate of employees satisfaction in that department (marketing).

8. This study can be applied to find out an effective distribution channel toenhance the sale of by-product of sharekhan.com

2.4 METHODOLOGY ADOPTED

Research Methodology

The manner in which a study is conducted is the basic plan that guides the project.

With respect to this, the building blocks of the research may be explained as under.

Type of Research

The research design is essentially Exploratory in nature. Thus it is necessary to obtain

an investigation of the situation(s), with a minimum expenditure of financial and time

resources. It will also lend flexibility to the study, to discover previously

unrecognized insights. Such a sensitized research design also takes into account the

unexpected situations. As a result, perspective regarding the breadth of the variables

operating in a situation is obtained.

Data Collection Approach

The plank on which the study rests is information, which will be procured as a

judicious mix of both secondary data and primary sources of data.

Secondary Data

Already published data formed the launch pad for the study. This included: -

i) Internal Data: which originates within the organization?

Brochures, pamphlets Official reports, specially the Annual report(s)


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ii) External Data: which originates outside the organization?

Books Periodicals (magazines, journals) The World Wide Web for Information or the Internet

Primary Data

Data was collected specifically for the research need at hand. This includes:-

Interviews and surveys of people with informed ideas about the subject of theproject.

Questionnaire survey of corporatesANALYTICAL TOOLS :

Simple statistical tools (PIE CHART) have been used in the present study to analyze

and interpret the data collected from the field. The data are presented in the form of

diagrams

Time Frame:

This project is moulded within a specific period of time i.e. it took precious two

months time for completion.

Sampling Design

Sampling Element: The basic element studied were corporates

Sampling Methodology: Non-probability convenience and judgmental sampling

Sample Size: A sample size of 100 customer were taken

Sampling Extent: The procedure of sampling was restricted to corporate at delhi


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CHAPTER- III

Conceptual Discussion


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CONCEPTUAL DISCUSSION

MEASURING CUSTOMER SATISFACTION

Organizations are increasingly interested in retaining existing customers while

targeting non-customers;[2] measuring customer satisfaction provides an indication of

how successful the organization is at providing products and/or services to the

marketplace.

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and

product/service to product/service. The state of satisfaction depends on a number ofboth psychological and physical variables which correlate with satisfaction behaviors

such as return and recommend rate. The level of satisfaction can also vary depending

on other options the customer may have and other products against which the

customer can compare the organization's products.

Because satisfaction is basically a psychological state, care should be taken in the effort

of quantitative measurement, although a large quantity of research in this area has

recently been developed. Work done by Berry, Brodeur between 1990 and 1998[3]

defined ten 'Quality Values' which influence satisfaction behavior, further expanded

by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of

satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access,

Environment, Inter-departmental Teamwork, Front line Service Behaviors,

Commitment to the Customer and Innovation. These factors are emphasized for

continuous improvement and organizational change measurement and are most often

utilized to develop the architecture for satisfaction measurement as an integrated

model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988

provides the basis for the measurement of customer satisfaction with a service by

using the gap between the customer's expectation of performance and their perceived

experience of performance. This provides the measurer with a satisfaction "gap"

which is objective and quantitative in nature. Work done by Cronin and Taylor


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propose the "confirmation/disconfirmation" theory of combining the "gap" described

by Parasuraman, Zeithaml and Berry as two different measures (perception and

expectation of performance) into a single measurement of performance according to

expectation. According to Garbrand, customer satisfaction equals perception of

performance divided by expectation of performance.

The usual measures of customer satisfaction involve a survey [4] with a set of

statements using a Likert Technique or scale. The customer is asked to evaluate each

statement and in term of their perception and expectation of performance of the

organization being measured.

As markets shrink, companies are scrambling to boost customer satisfaction and

keep their current customers rather than devoting additional resources to chase

potential new customers. The claim that it costs five to eight times as much to get

new customers than to hold on to old ones is key to understanding the drive toward

benchmarking and tracking customer satisfaction.

Measuring customer satisfaction is a relatively new concept to many companies that

have been focused exclusively on income statements and balance sheets. Companies

now recognize that the new global economy has changed things forever. Increasedcompetition, crowded markets with little product differentiation and years of

continual sales growth followed by two decades of flattened sales curves have

indicated to today's sharp competitors that their focus must change.

Competitors that are prospering in the new global economy recognize that measuring

customer satisfaction is key. Only by doing so can they hold on to the customers they

have and understand how to better attract new customers. The competitors who will

be successful recognize that customer satisfaction is a critical strategic weapon that

can bring increased market share and increased profits.

The problem companies face, however, is exactly how to do all of this and do it well.

They need to understand how to quantify, measure and track customer satisfaction.

Without a clear and accurate sense of what needs to be measured and how to collect,


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analyze and use the data as a strategic weapon to drive the business, no firm can be

effective in this new business climate. Plans constructed using customer satisfaction

research results can be designed to target customers and processes that are most able

to extend profits.

Too many companies rely on outdated and unreliable measures of customer

satisfaction. They watch sales volume. They listen to sales reps describing their

customers' states of mind. They track and count the frequency of complaints. And

they watch aging accounts receivable reports, recognizing that unhappy customers

pay as late as possible--if at all. While these approaches are not completely without

value, they are no substitute for a valid, well-designed customer satisfaction

surveying program.

y It's no surprise to find that market leaders differ from the rest of the industryin that they're designed to hear the voice of the customer and achieve

customer satisfaction. In these companies:

y Marketing and sales employees are primarily responsible for designing (withcustomer input) customer satisfaction surveying programs, questionnaires and

focus groups.

y Top management and marketing divisions champion the programs.y Corporate evaluations include not only their own customer satisfaction ratings

but also those of their competitors.

y Satisfaction results are made available to all employees.y Customers are informed about changes brought about as the direct result of

listening to their needs.

y Internal and external quality measures are often tied together.


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y Customer satisfaction is incorporated into the strategic focus of the companyvia the mission statement.

y Stakeholder compensation is tied directly to the customer satisfactionsurveying program.

y A concentrated effort is made to relate the customer satisfaction measurementresults to internal process metrics.


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CHAPTER- IV

Data Analysis


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DATA ANALYSIS

To make our research project most effective in a given time period of two months

surveyed the information of the competitors. We undertook both Explorative as wellas Conclusive Research Design. The data has been collected from both Primary as

well as Secondary sources and we also did the fieldwork for which utmost care has

been taken to keep project unbiased from personal opinion.

Respondents first interaction with our sales executive?

Around 45% of our Respondents found it to be good where as 30 % found it

excellent & 20% Average.

Excellent

Good

Average

Bad

Very Bad

Excellent

Good

Average

Bad

Very Bad


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Q. Did our sales executive made you familiar with all the

services offered by Sharekhan?

Q.How did you find our sales executive when he gave you the demo

of our product?

Respondents mostly found our sales executive Up To Date, Punctual

& Confident

YES

NO

YES NO

15

20

2528

18

35

9

0

5

10

15

20

25

30

35

40


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Q.Did he explain you everything about the account and the services

offered when he came for demo, like,

ACCORDING TO THE RECORDS RESPONDENTS WERE

QUITE SATISFIED WITH OUR SALES EXECUTIVE

98 98

100

98

99

97

97.5

98

98.5

99

99.5

100

100.5

Research Reports IPO Online Exposure Terminal Online Money

Transfer


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Q.How did you find our processes from Client Acquisition to Client

Servicing

64 % RESONDENTS FOUND IT TO BE EFFICIENT WHERE AS

27% FOUND IT TO BE TEDIOUS AND 9% UNNECESSARY

Efficient

Tedious

Unnecessary

Efficient Tedious


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Q.Did you face any problem while opening the account ?

MANNY RESPONDENTS FOUND IT TO BE TIME CONSUMING

ACTIVITY

ACCORDING TO THEM OPENING AN ACCOUNT TOOK A LONG TIME.

Q. Do you consider our terminal user friendly?

72

% RESPONDENTS FOUND IT TO BE USER FRIENDLY

YES

NO

YES NO

YES

NO

YES NO


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CHAPTER- V

Findings & Recommendations


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FINDINGS

Services of competitors:

We cannot give proper comment on competitors services till we use it. But I try

to collect as accurate information as possible. As we all know services are

intangible and we cannot predict its quality, it is a thing to feel not to see.

No proper assurance of right information:

The main data sources are websites, telephonic information and offices visit.

#The data on websites might be possible, not get updated.

# The marketing person might be possible, is not through with all concepts to

whom I contacted. #Sometimes, they try to hide information.

Lack of awareness of Stock market: -- Since the area is not known before it

takes lot of time in convincing people to start investing in shares primarily in

IPOs.

Mostly people comfortable with traditional brokers: -- As people are doing

trading from there respective brokers, they are quite comfortable to trade via

phone.

Lack of Techno Savvy people and poor Internet penetration: -

o Since most of the people are quite experienced and also they are nottechno savy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk: -- Some respondents either do not have

time or willing does not respond, as they are quite annoyed with the phone call.

Inaccurate Leads: -- Sometimes leads are provided which had error in it whichvaries from only 5 digit phone number to wrong phone number

Misleading concepts: -- Some people think that Shares are too risky and just

another name of gamble but they dont know its not at all that risky for long

investors


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RECOMMENDATION

We suggest following measures, which Sharekhan could take so as to take on heavy

competition from India bulls and 5 Paisa

1. To identify regions where promotions are required. Sharekhan lacks visibility in

northern region where as it is a well known name in western region. Even then, its

promotional campaign focuses on western region where as northern region is still

waiting for promotional campaigns.

2. Try to reduce cost, so that benefits can be passed on to customers. Senior

managers at Sharekhan keep on telling that it is difficult to reduce cost, because of

services we provide. But the fact is, India being a price sensitive market, people at

times go for monetary benefits rather than for long term non- monetary benefits.

3. If charges cant be reduced because of costs involved, make the services

customized, so that services are provided to only those customers who are willing

to pay the price for services they are getting and let the other customers enjoy

costs benefits without getting services.


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CONCLUSION

CONCLUSION


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In online trading, sharekhan.com.com have mainly competition with 5Paisa.com

India bulls. HMR comes at no. 2 retail broker. It has an advantage of being in this

industry for more than 8 decades. It has launched its website in 2000 and were among

the first player in the online share trading. The sharekhan.com has decided to spend

its advertisement budget through four medias i.e. Television, Print, Web and Outlets.

Mr. Boman Irani is the brand ambassador for Sharekhan on television media. From

the above analysis we can point out some points:

1. Sharekhan.com account opening charges are little higher than othercompetitors. Sharekhan.com is less flexible to cut down its account opening

charges on the other side; some of the brokers are offering free account

opening to High Net Worth customers.2. The charges of demat account are reasonable at 300 p.a. but Indiabulls is

offering pool account with no Annual Maintenance charges.

3. Sharekhan provides trading in NSE, BSE and Derivatives. It is also about tolaunch online Mutual Funds. Arbitrage facility is not available to customers.

4. Sharekhan is the only one that does not have any Demat transaction chargeseither on buying or selling.

5. Unlimited toll free calls service is provided to customer in Sharekhan.com.6. Sharekhan accept offline payment from other banks also but icicidirect.com,

HDFCsec.com clients have compulsion to open an online account.

7. BTST facility is available on almost all scrips of NSE in Sharekhan,Indiabulls. But this facilty is not providing by HDFCsec.com, HMRstreet

offers it only for 75% of share value and icicidirect.com gives it only on 127

scrips.

8. SMS alerts facility is not available at HDFCsec.com, 5Paisa.com andIndiabulls.

9. IPO Online service is better provided in Sharekhan in comparative to others.Indiabulls and HDFCsec.com dont have this facility. 5paisa.com have

recently started it.

10.Sharekhan is only broker in which no margin needs to keep.


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11.Sharekhan research reports come in client e-mail at free of cost around 5-6times in a day. But some brokers charged for it and some provide it only at

once in a day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com.

12.In brokerage, 5paisa.com have an edge on others with lowest brokerage .25%on delivery and .05% on intraday.

To sum up, we can say that computerization and automation are not to be avoided.

Technology has been able to make the stock markets accessible to every individual. It

has also led to positive developments in terms of reduced costs and fewer errors. But,

as some experiences have indicated, IT cannot be applied as a panacea for all

problems. Regulation and knowledge dissemination are still important. The use of

technology should be preceded by a detailed study and assessment of all otheralternatives. The key to successful use to technology is the appreciation of its

constraints.


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QUESTIONNAIRE

ANNEXURE

QUESTIONNAIRE


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Q1. Are you aware of online Share trading?

Yes No

Q2. Heard about Sharekhan?Yes No

Q3. Do you know about the facilities provided by Sharekhan?

Yes No

Q4. With which company do you have your DEMAT account?

Sharekhan ICICI Direct Kotak Mahindra India Bulls

Q5. How was your first interaction with our sales executive?

Excellent Good Average Bad Very Bad

Q6. Did he make your familiar with all the services offered by Sharekhan

Yes No

Comments

Q7. How did you find our sales executive when he gave you the demo of

our product?

Courteous Polite Punctual

Confident Informative Up-to-date

Communication Skills

Q8. Did he explain you everything about the account and the services

offered when he came for the demo, like

Research Reports IPO Online Exposure

Terminal Online Money Transfer


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Q9. How did you find our processes from Client Acquisition to Client

Servicing?

Efficient Tedious Unnecessary

Q10. Did you face any problem while opening the account?

Yes No

Q11. Do you consider our terminal user friendly?

Yes No

Q12. How frequently do you use it for trading?

Comments, Please specify

Q13. What extra do you expect from Sharekhan


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BIBLIOGRAPHY


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BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED:

BOOKS Kotler Philips, Marketing Management: 11th Edition, 2004,Prentice Hall

of India Ltd., New Delhi.

Jim Blythe, The essence of consumer behaviour, Prentice Hall, EuropeHertford shire, 1997

Philip Kotler, Principles of Marketing, Prentice Hall of India Pvt Ltd,New Delhi, 1985.

Everett M. Rogers Diffusion of Innovations, 4th Edition, New York:Free Press, 1995.

MAGAZINE: -

Business World

WEBSITES:-

www.icicidirect.com www.sharekhan.com www.5paisa.com www.HDFCsec.com

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