Presentation on “Perceptual study on satisfaction level of LSE Securities Ltd customer in Ludhiana”

Presented By

ANGAD KUMAR

MBA 2A

CAPITAL MARKET

The Capital Market is the market for securities, where companies and the government can raise long term funds. The capital market includes the stock market and the bond market. Financial regulators ensure that investors are protected against fraud

CAPITAL MARKET SEGMENT

PRIMARY SECONDARY

Introduction of Stock Exchange

Stock exchange are provide platform for buying and selling of securities as which include bonds, shares, debenture, commercial paper, NSC commodities etc.

Functions of stock Exchange

• To protect the interest of investor.

• To encourage the people for invest their saving.• Mobilizing savings for investment• Raising capital for businesses• Barometer of the economy

Who gain from Stock Exchange

• Investor• Broker• Company• Economy and Country

Stock Exchanges in India

Non-Regional Stock Exchanges – 2

BSE and NSE

Regional Stock Exchanges – 19

Out of 19 there are 8 stock exchanges have been granted permanent reorganization and rest of them have been valid for 5 years

Cont.

During the years 2008 to 2010 there are 3 stock Exchanges which are derecognized by SEBI;

• Magadh Stock Exchange• Hyderabad Stock Exchange• Saurashtra hutch Stock Exchange

Introduction of the LSE

The Ludhiana Stock Exchange Limited was established by Sh. S.P. Oswal of Vardhman Group and Sh. B.M. Munjal of Hero Group, leading industrial luminaries, to fulfill a vital need of having a Stock Exchange in the region of Punjab, Himachal Pradesh, Jammu & Kashmir and Union Territory of Chandigarh. LSE was actually introduced in 17 April 1981 but it was fully established in 1983.

Cont.

Vision of LSE –

“To maximize the satisfaction level of its customers.”

Mission of LSE -

“To provide DP services to its clients and facilitate its broker i.e. LSE SECURITIES LTD. & sub –brokers at LSE (These are like broker for LSE securities), for trading purposes.”

Work Profile of LSE

Board of Director of LSE

Sr. No. Name of the Director Designation

1 Sh. Padam Prakash Kansal Chairman and Shareholder Director

2 Sh. Joginder Kumar Vice-Chairman and Shareholder Director

3 Sh. Sanjay Anand Trading Member Director

4 Sh. T.S. Thapar Trading Member Director

5 Sh. Sunil Gupta Trading Member Director

6 Dr. Ravinder Nath Sethi Shareholder Director

7 Sh. Ashok Kumar Shareholder Director

8 Sh. Satish Nagpal Shareholder Director

9 Sh. Varun Chabra Shareholder Director

10 Sh. Ashwani Kumar Public Interest Director

11 Dr. Raj Singh Public Interest Director

12 Sh. Ved Prakash Gaur Public Interest Director

13 Ms. Pooja M. Kohli Executive Director (Officiating)

ORGANIZATIONAL CHART OF LUDHIANA STOCK EXCHANGE

SWOT Analysis

Strengths:-• It has a good infrastructure for the Capital Market activities which include

a multi-storyed, centrally air conditioned building situated in the hub of the city i.e. Feroze Gandhi Market.

• The turnover of their subsidiary is the highest amongst all the subsidiaries of Regional Stock Exchanges in India.

• Weakness: -• It has less no. of branches in Punjab

• It should not hire more young talented staff in this competitive era.

Contd…

Opportunities: -

• These days various companies are coming up with IPO’s which influence more people with new investments.

• Investor Awareness Campaign services of LSE Securities are good.

• Investors are becoming more and more professional which leads to healthy Growth.

Threat: -

• Tough Competition as private investment agencies are in the market.

Introduction of LSE Securities Ltd.

• LSE Securities Ltd., was incorporated in 07th January, 2000.

• LSE SECURITIES LIMITED (LSESL) is a subsidiary of the Ludhiana Stock Exchange Limited under the policy formulated by the Securities and Exchange Board of India (SEBI) for “Revival of Small Stock Exchanges”.

• LSESL is a Trading-cum-Clearing member in the capital

market. • Incorporation of LSE COMMODITIES TRADING

SERVICES LTD., a subsidiary of LSE. Securities ltd

Objective of LSE securities Ltd.

“The objective of the LSESL is to enhance business and investment opportunities for the investors and members of Ludhiana Stock Exchange at large, through innovative products by encompassing a variety of activities related to the capital market.”

Features of LSE securities Ltd.

• First 100% subsidiary of any Regional stock exchange.

• Provides D/P service of NSDL and CSDL.

• Provides Platform for Trading in capital market.

• More than 40000 clients

• The company has 295 sub-brokers

Work profile of the LSE securities Ltd.

Board of Directors

1 Chairman1 vice Chairman

3 From Broker Member

5 Public interestDirector

1 from LSE1 CEO cum

Director

Board of Director of LSE securities ltd.

Sr. No. Name of the Director Designation

1 Sh. Anurag Arora Chairman

2 Sh. Vishal Goomber Vice-Chairman

3 Sh. Jatinder Garg Member Director

4 Sh. M.S. Sarna Member Director

5 Sh. Lalit Kishore Member Director

6 Sh. Susheel Bhakoo Public Representative Director

7 Sh. Vijay K. Bansal Public Representative Director

8 Dr. Prem Kumar Public Representative Director

9 Dr. Anil Angrish Public Representative Director

10 Sh. Pawan K. Garg Public Representative Director

11 Ms. Pooja M. Kohli LSE Representative Director

12 Mr. Rajesh K. Sharma CEO Cum Director

DEPARTMENT OF LUDHIANA STOCK EXCHANGE

Departments HOD

Depositary Department Mr. Viney Mahajan

KYC Department Ms. Sonia Makkar

Clearing Department Mr. Vipun Goyal

Margin Department Mr. Rajinder Pal Singh

Account 1 Department Mr. Ram Ji

Account 2 Department Mr. Ravinder Saini

Surveillance Department Ms. Paramjeet Kaur

IT Department Mr. Madhur Gupta

Personnel Department Ms. Pooja Sharma

Trend analysis of Net Profit

-150

-100

-50

0

50

100

150

200

250

300

2005-06 2006-07 2007-08 2008-09

Year

Per

cen

tag

e

percentage

Trend Analysis of Earning Per share

6.8611.91

64.05

115.73

0

20

40

60

80

100

120

140

2005-06 2006-07 2007-08 2008-09

Perc

en

tag

e

years

E P S

Introduction of the Project

Depository

A depository is an organization which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant.  It also provides services related to transactions in securities.

CONSTITUENTS OF DEPOSITORY SYSTEM

1.The Depository Participant

2.The Beneficial Owner/Investor

3.The issuer

4.The Depository

Depository in india

• National Securities Depository Ltd. - NSDL - Having 95 Cr. Demat A/c as on 31-03-2010 - 300 DPs in India

• Central Depository Services Ltd. - CDSL - Having 65 lacks Demat A/c as on 31-03-2010 - 500 DPs in India

FACILITIES OFFERED BY DEPOSITORY SYSTEM:

• Dematerialization• Rematerializations• Electronic settlement of trade• Electronic credit of securities allotted in public, rights

and bonus issue. Pledging or hypothecation of dematerialized securities

• .Freezing of demat account.

Dematerialization process

Rematerialization

Electronic Form → Physical Securities

Initial public offer

Title of the Project

Perceptual study on satisfaction level of LSE Securities Ltd customer in Ludhiana

Objective of the Project

• To understand the attitude and perception of investors of LSE SECURITIES LTD towards the Depository.

• To ascertain the factor affecting satisfaction of customer regarding the service of LSE SECURITIES LTD

Research Methodology

Research Designs - descriptive .

Data collection method -Primary and secondary source of data was used for data collection.

Universe - all investors of Stock Exchanges.

Population - all investor of Ludhiana.

Sample Unit - included an investor of Ludhiana.

Sample Size - 100

• Sample Techniques - Convenience sampling techniques was used to get the questionnaire filled from investors of Ludhiana.

Limitations of the study;

•Time constraint• Biasness• Data collection

DATA ANALYSIS AND INTERPRETATION

Graph 4.1(Number of respondents investing in capital markets) N =(110)

Graph4.2 ( No. of years holding & trading in LSE securities ltd)

N=(100)

0

10

20

30

40

50

60

0-3 year 3-6 year 6-9 year above 9 year

resp

onde

nt

duration

Respondent

Respondent

4.3 Graph showing the source in which the information is available

4.4Graph showing in which form holding securities

 4.5 (Graph showing the degree of securities in Demat Account)

0

10

20

30

40

50

60

Excellent Very Good Good Average below average

Perc

enta

ge o

f res

pond

ent

particuler

no of respondent

4.6. Graph showing the most preferred DP Product

4.7.Graph showing the attribute of services influences the investors

4.8.Graph showing the Value-added services provided by LSE securities ltd

4.9. Graph showing At what time interval, providing Demat A/C holding statement

4.10 how satisfying LSE securities Ltd is in terms of account opening & maintence charges

4.11 Graph showing how satisfying LSE securities Ltd is in terms of account Holding statement

4.12 .Graph showing how satisfying LSE securities Ltd is in terms of brokerage charges

4.13 Graph showing how satisfying LSE securities Ltd is in terms of Hardware & software

 

4.14.Graph showing how satisfying LSE securities Ltd is in terms of Value added Services

4.15.Graph showing how efficient & effective the DP services of LSE securities ltd compared to other depository service provider

4.16 . Graph showing how effective the LSE securities ltd in settling the stock.

 

Findings

  Out of the entire DP holders 20 of them trading in 3-6 years, 30% are 3-6

years, 20% are 6-9 years, 10% are above 9 years. This indicates the popularity of the organization in the last 6 years, during which time 60% of the existing members are trading from

  From the analysis part it shows the most preferred DP product is Equity It

shows that the Interest of the investors would be Equity which has high risk and high returns. This is substantiated the fact that maorty of the holders are interested to invest in Equity & Mutual Funds and other investments are distributed as Bonds, Broking and Insurance.

  From the survey it is noted that the best method of spreading information

seems to be word of mouth , which draws the interest of investors better than any other media

Contd…

The respondents gave most interest to SafeReturns provided and quality of service, only some as Market updates.

Therefore it is essential for the company to give more priority about Safety and Security and returns.

Though the Equity shares has got the highest risk, the investors are willing to take risk by investing in Equity shares for higher returns since the LSE Securities is doing well. 

It is noted from the survey the Value-added services provided byLSE Securities Ltd is through Online transaction updates.& portfolio update

Contd…

• The survey indicates majority of respondents are satisfied in terms of Infrastructure, hardware and software installed account opening and maintence charge for serving clients.

 

• The services provided by the LSE Securities Ltd are better when compared to other financial institutions.

 

• The survey indicates that the investors are more safe and secured from the demat in securities

Recommendations & suggestion

• Value Dematerialization plays a major role in influencing DP holders there must be increased effort in promoting enhanced services involving security and safety. 

• To encourage the existing and prospective shareholders good returns must be ensured in addition to security and safety. 

• The Investors taken interest in Equity shares LSE SECURITIES LTD should provide frequent updates on the web relating to Equity share trading movement.

• LSE securities provide more added service a mobile sms alerts etc.

Conclusion