Bonanza Portfolio Ltd...

CHAPTER 1

INTRODUCTION

1.1 General Introduction

What is Stock Market

A stock market is a market for the trading of company stock, and derivatives of same;

both of these are securities listed on a stock exchange as well as those only traded

privately.

Definitions of Stock Market

Where stocks and shares are bought and sold.

A general term used to refer to the organized trading of securities through various

exchanges and through the over-the-counter market. A "stock exchange" is a

specific form of a stock market, a physical location where stocks and bonds are

bought and sold, such as the Bombay Stock Exchange, NASDAQ or American

Stock Exchange.

This market can be split into two main sections: the primary and secondary market. The

primary market is where new issues are first offered, with any subsequent trading going

on in the secondary market.

PRIMARY MARKET

A market that issues new securities on an exchange. Companies, governments and other

groups obtain financing through debt or equity based securities. Primary markets are

facilitated by underwriting groups, which consist of investment banks that will set a

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beginning price range for a given security and then oversee its sale directly to the

investors.

Some of the important features of Primary Markets are as follows:

It is the market that deals with new long-term securities, not the existing ones.

That is, the securities are sold for the first time in the Primary Market.

Here, the securities are sold by the company directly to the investors. However, it

is not so in the Secondary Market.

New security certificates are issued to the investors once the company receives

money from them.

The funds from selling the securities are used by companies for starting new

business or expanding the existing ones.

It facilitates capital building in the economy. Thus, affecting the economic sector

to a great extent.

It doesn't include other new long-term external finance sources, like loans from

financial institutions.

Only the original holder of the securities has the authority to redeem the sold

securities or issues.

The main source of any updates about the upcoming shares is the Primary Market. In

Primary Market, the securities can be issued through any of the following methods:

Initial public offering: It refers to the initial sale of securities by a private

company to the public sector. Generally small and young companies are a part of

Primary Market. However, large-scale private companies that desire to be

publicly traded also become a part of this market.

Rights issue (for existing companies): It refers to a special form of shelf offering

or shelf registration. Under these rights, the existing shareholders enjoy the

freedom to buy a specified number of new shares from the firm at a particular

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price and time. It is the opposite of Initial public offering where shares are issued

to the general public through stock exchange.

Preferential issue: Issue of shares kept aside for the designated buyers. For

example, the employees of the issuing company.

The investment banks play key role in Primary Market. They decide the starting

price range for a particular security and then direct its sale to investors.

SECONDARY MARKET

A stock that is considered riskier than blue chips because it has a smaller market

capitalization.

1.2 INDUSTRY PROFILE

A. ORIGIN AND DEVELOPMENT OF INDIAN STOCK MARKET

The origin of the stock market in India goes back to the end of the eighteenth century

when long-term negotiable securities were first issued. However, for all practical

purposes, the real beginning occurred in the middle of the nineteenth century after the

enactment of the companies Act in 1850, which introduced the features of limited

liability and generated investor interest in corporate securities.

An important early event in the development of the stock market in India was the

formation of the native share and stock brokers 'Association at Bombay in 1875, the

precursor of the present day Bombay Stock Exchange. This was followed by the

formation of associations/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras

(1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant

periods to recede into oblivion during depressing times subsequently.

Stock exchange means any body of individuals, whether incorporated or not, constituted

for the purpose of regulating or controlling the business of buying, selling or dealing in

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securities. These securities include:

(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like

nature in or of any incorporated company or other body corporate;

(ii) Government securities; and

(iii) Rights or interest in securities.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd

(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock

Exchanges. However, the BSE and NSE have established themselves as the two leading

exchanges and account for about 80 per cent of the equity volume traded in India. The

NSE and BSE are equal in size in terms of daily traded volume. The average daily

turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore

in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has

around 1500 shares listed with a total market capitalization of around Rs 9, 21,500 crore.

The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,

68,000 crore. Most key stocks are traded on both the exchanges and hence the investor

could buy them on either exchange. Both exchanges have a different settlement cycle,

which allows investors to shift their positions on the bourses. The primary index of BSE

is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which

consists of fifty stocks. The BSE Sensex is the older and more widely followed index.

The key regulator governing Stock Exchanges, Brokers, Depositories, Depository

participants, Mutual Funds, FIIs and other participants in Indian secondary and primary

market is the Securities and Exchange Board of India (SEBI) Ltd.

Market Basics

Electronic trading

Exchanges in India

Index

Execute an order

Need a broker

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Contract note

Split

Buy Back

Settlement cycle

Rolling settlement

Short selling

Auction

Separate market for auctions

If the shares are not bought in the auction

Bad Delivery

Stock & Exchange Board of India

REGULATION OF BUSINESS IN THE STOCK EXCHANGES

Under the SEBI Act, 1992, the SEBI has been empowered to conduct inspection of stock

exchanges. The SEBI has been inspecting the stock exchanges once every year since

1995-96. During these inspections, a review of the market operations, organizational

structure and administrative control of the exchange is made to ascertain whether:

the exchange provides a fair, equitable and growing market to investors.

the exchange's organization, systems and practices are in accordance with the

Securities Contracts (Regulation) Act (SC(R) Act), 1956 and rules framed there

under:-

the exchange has implemented the directions, guidelines and instructions issued

by the SEBI from time to time.

Importance of stock Markets:-

Accelerate Economic Growth.

Sources for Companies to raise Money.

Investors.

Brokers.

Technological Development.

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B.GROWTH AND PRESENT STATUS OF THE INDIAN STOCK

MAREKT

The financial services sector contributed 15 per cent to India's GDP in FY09, and is the

second-largest component after trade, hotels, transport and communication all combined

together, as per the Banking & Finance Journal, released by an industry body in August

2010.

Financial services, banking, insurance and real estate sectors rose by 8 per cent during the

quarter ended march 2011.

There are a total of 1,732 foreign funds registered with the Securities & Exchange Board

of India (SEBI).

Overseas funds infused US$ 4.78 billion in the capital market in November 2010, taking

the year-to-date total to US$ 39 billion. The total inflows of foreign institutional

investors (FIIs) as on December 2, 2010 have crossed the record US$ 38.76 billion mark.

According to data available with SEBI, FIIs have made investments worth US$ 4.11

billion in equities and invested US$ 667.71 million into the debt market.

As on November 26, 2010, India's foreign exchange reserves totalled US$ 293.9 billion,

according to the Reserve Bank of India's (RBI) Weekly Statistical Supplement.

According to Venture Intelligence, a research firm, private equity investment in India

totalled US$ 6.57 billion in the first three quarters of 2010, which is more than double the

US$ 2.5 billion invested during the same period last year.

As of December 7, 2010, as many as 114 private equity investments have come from

domestic funds compared to 126 foreign ones, according to data available with Venture

Intelligence. In terms of value, PE firms promoted by Indians invested US$ 1,751 million

so far this year, as against US$ 4,377 million put in by foreign fund investments,

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according to Venture Intelligence.

The study said the main market for PF in 2009 was the domestic Indian market, which

raised US$ 30 billion, accounting for 21.5 per cent of the global PF market. This was up

from US$ 19 billion in 2008.

Over the recent years, there has been a considerable growth in Indian market

which has led to high Gross Domestic Product (GDP) with an average annual growth of

around 6 to 7%. In the financial year 2008-09, the factor cost of the GDP was around 6.7

%. To keep up this favorable growth, the government is also taking steps. The present

Indian Prime Minister, Dr Manmohan Singh, has stressed that the government is taking

various steps to make the yearly economic growth go up to 9 %. In fact, the World Bank

too has projected that the market growth rate of India will reach around 8 % in the year

2010.

Stock markets

Market capitalization of India as a proportion of world market cap has risen to a record

high. According to data sourced from Bloomberg, the country's market capitalization as a

proportion of the world market cap is currently 3.34 per cent. India's current market-cap

is US$ 1.55 trillion as compared with world market-cap of US$ 46.5 trillion. This is

higher than 3.12 per cent share India enjoyed at the market peak of January 2008.

Twenty Indian companies raised a significant US$ 1.2 billion through initial share sale

offers in the first three months of 2010, a period when global IPOs were worth over US$

53 billion, according to a report by global consultancy firm Ernst & Young. With 20

IPOs in the first quarter of the year, India had the third largest number of IPOs across the

globe.

Overall, the primary market has witnessed robust inflows from FIIs this year and

cornered around 27 per cent of equity market inflows. Of the total FII investment of US$

28.4 billion, about US$ 7.7 billion have come into the primary markets, according to

SEBI data.

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Fund raising by way of initial public offerings (IPOs), follow-on public offerings (FPOs)

and qualified institutional placements (QIPs) have totalled a record US$ 19.49 billion as

of November 17, 2010, as per data from SMC Global Securities, beating the previous

high of US$ 14.51 billion in calendar year 2007.

C. FUTURE OF THE INDIAN STOCK MARKET

Now people are busy searching about 2011 Indian Stock Market Outlook, Sensex

and Nifty Prediction for 2011, Economic Outlook for 2011, Best Sectors for 2011, etc.

Predictions for 2012 : India will lead with 9% GDP growth.

Stock markets in India is likely to stabilize and will remain at current level for the

next 2 – 3 months. Before end of 2011 markets are likely to reach new highs. BSE

Index will reach around 22000 before end of 2011.

This year India has received good monsoons which will help India to achieve 9 %

GDP growth this year.

FIIs are bullish on Indian and Chinese economy. They consider India as one of

the most favorite destinations.

In near future market may remain flat or may correct by around 800 – 1000 points

(on Sensex).

Small investors should hold investments at current level.

Currently, the capital market in witnessing volatility and process are edging down

on account of fears of impending interest rates hikes due to global commodity

supply shock induced spiraling inflation and this might have a negative impact on

stock prices as high input costs would erode corporate profit margins. However,

further declines would improve valuations and make equity buying attractive

Infrastructure and cement, engineering and metal stocks are likely to remain FII’s

and DII’s hot favorites.

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Falling prices may not be good for traders, but in stock market one's loss is

somebody else's profit. Fallen down prices opens up opportunity for Investors to

look out for the good, top and best sectors to Invest in 2011-2012 which

complements the growing Indian Economy.

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CHAPTER 2

PROFILE OF THE ORGANISATION

2.1 ORIGIN OF THE ORGANIZATION

Bonanza is established in the year 1994, Bonanza developed into one of the largest

financial services and broking house in India within a short span of time. Today, Bonanza

is the fastest growing financial service with 5 mega group companies under it. With

diligent effort, acknowledged industry leadership and experience, Bonanza has spread its

trustworthy tentacles all over the country with pan-India presence across more than 1611

outlets spread across 550 cities.

With a smorgasbord of services across all verticals in finance, Bonanzas offers you the

perfect blend of financial services right from Equity Broking, Advisory Services that

cover Portfolio Management Services, Mutual Fund Investments, Insurance to

exceptional Depository Services.

Bonanza believes in being technologically advanced so that we can offer you – our tech-

savvy customers - an integrated and innovative platform to trade online as well as offline.

Besides, we also have one of the finest and most dedicated research teams with experts

who have in-depth, unsurpassed knowledge of the market place. All this and more makes

Bonanza the perfect place for you to take your first step in the direction of financial

success.

Bonanza is affiliated with the best in the industry – right from the NSE, BSE MCX,

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MCX-SX to CDSL, NSDL, etc. These affiliations prove our worth in the market and

make Bonanza a name to reckon with.

2.2 GROWTH AND DEVELOPMENT OF THE

ORGANIZATION

It provides an extensive smorgasbord of services in equity, commodities, currency

derivatives, wealth management, distribution of third party products etc. Keeping in par

with the modern tech-savvy world , Bonanza makes an integrated and innovative use of

technology; it also enables its clients to trade online as well as offline and the strategic

tie-ups with the latest technology partners has earned Bonanza this prestigious place in

one of the top brokerage houses in the country. Client -focused philosophy backed by

memberships of all principal Indian Stock and Commodity Exchanges makes Bonanza

stand apart from its competitors and a preferred service provider in the industry for value-

based services.

To add to our ever-growing achievements, a study by Dun and Bradstreet has

rated Bonanza as the SIXTH largest broking house in terms of equity terminal listings in

the country. If this is not enough, Bonanza Portfolio Ltd was recently nominated amongst

the Top 3 Retail Financial Advisors of the country in an event conducted by CNBC-

TV18 and OptiMix Financial Advisor Awards 2008. Also Bonanza has been awarded by

BSE the "Major Volume driver for the year 2004-2005, 2006-2007 and 2008-2009".

ACHIEVEMENTS

1. Top Equity Broking House in terms of branch expansion for 2008*.

2. 3rd in terms of Number of Trading Accounts for 2008*.

3. 6th in terms of trading terminals in for two consecutive years 2007- 2008*.

4. 9th in terms of Sub Brokers for 2007*

5. Awarded by BSE 'Major Volume Driver 04-05, 06-07, 07-08’.

6. Nominated among the Top 3 for the "Best Financial Advisor Awards '08" in the

category of National Distributors - Retail instituted by CNBC-TV18 and OptiMix.

* As per the survey by DUN & BRADSTREET.

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CORPORATE TIE UPS

The company has Corporate Tie ups with Birla Sunlife ,Bajaj Allianz, ICICI Prudential,

SBI , Aviva , Kotak Mahindra and Reliance for Life Insurance and General Insurance.

In General Insurance, Bonanza provides Insurance for Motor, Health, Travel,

Housekeeper, Shopkeeper, Marine, Personal and Group Insurance.

2.3 PRESENT STATUS OF THE ORGANIZATION

There are certain benefits which defines the status of the BONANZA

1 Secure Order by Voice Tool Dial-n-Trade.

2 Automated Portfolio to keep track of the value of your actual purchases.

3 24x7 Voice Tool access to your trading account.

4 Personalized Price and Account Alerts delivered instantly to your cell phone & email

address.

5 Special Personal Inbox for order and trade confirmations.

6 On-line customer service via web chat.

7 Anytime Ordering

SERVICE PROVIDED BY BONANZA

1. Mutual Funds

2. Insurance

Life Insurance

General Insurance

3. PMS

4. Share Broking

5. IPO

6. Currency Derivatives

7. Share Broking

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8. Commodity Broking

2.4 Functional departments of the organization

Administration:

The role of this department is to provide all the assistance regarding anything to the all

other departments which they need to deliver their efforts more efficiently in the interest

of the company.

Human resource department:

The role of HR department is to recruit the efficient workers for the company, and to

keep eye on the grievances, problems which the employees are facing in performing their

work. This department also takes care of various works like calculating salaries, leave

status, attendance of employees, etc.

Finance:

As the name suggests this department is concerned with the all finance related matters of

the company be it the salary payment or the financing the various requirements of the

business.

Talent and Knowledge Management:

The role of this department is to take care of all the activities of the various production

departments. This department is responsible for organising the various trainings which

are needed by the employees to work with more efficiency.

Quality Control:

The work of this department is to make sure that the services and information provided

by the all three production department is up to the quality measure set by the clients. This

department randomly checks the services and information to make sure the company is

standing on client’s expectations and is truly reliable.

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Software:

This department deals wit the software side of the company. All the three production

departments use various software design by the software department to do work more

easily and efficiently. this department keeps on updating the software so that work can be

done in time.

2.5 ORGANIZATION STRUCTURE & ORGANIZATION

CHART

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Corporate Hierarchy

The users of the trading system can logon as either of the user type. The

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Significance of each type is explained below:

Corporate Manager: The corporate manager is a term assigned to a user placed at the

highest level in a trading firm. Such a user receives the End of Day reports for all

branches of the trading member. The facility to set Branch Order Value Limits and User

Order Value Limits is available to the corporate manager.

Branch Manager: The branch manager is a term assigned to a user who is placed under

the corporate manager. The branch manager receives End of Day reports for all the

dealers under that branch. The branch manager can set user order value limit for each of

his branch.

Dealer: Dealers are users at the lower most level of the hierarchy. A dealer can view and

perform order and trade related activities only for oneself and does not have access to

information on other dealers under either the same branch or other branches.

2.6 Market Profile Of the Organisation

REASONS TO CHOOSE Bonanza Portfolio LTD .

EXPERIENCE

Bonanza Portfolio ltd has more than eight decades of trust and credibility in the Indian

stock market. In the Asia Money broker’s poll held recently, SSKI won the ‘India’s best

broking house for 2004 award. Ever since it launched Sharekhan as its retail broking

division in February 2000, it has been providing institutional-level research and broking

services to individual investors.

TECHNOLOGY

With our online trading account you can buy and sell shares in an instant from any PC

with an Internet connection. You will get access to our powerful online trading tools that

will help you take complete control over your investment in shares.

ACCESSIBILITY

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for

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investors. These services are accessible through our centers across the country (over

250 locations in 123 cities), over the internet (through the website www.sharekhan.com)

as well as over the voice tool.

KNOWLEDGE

In a business where the right information at the right time can translate into direct

profits, you get access to a wide range of information on our content-rich portal,

sharekhan.com. You will also get a useful set of knowledge-based tools that will

empower you to take informed decisions.

CONVENIENCE

You can call our Dial-N-Trade number to get investment advice and execute your

transactions. We have a dedicated call-centre to provide this service via a toll free

number from anywhere in India.

CUSTOMER SERVICE

Our customer service team will assist you for any help that you need relating to

transactions, billing, Demat and other queries. Our customer service can be contracted via

a toll-free number, email or live chat on sharekhan.com.

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CHAPTER 3

DISCUSSION ON TRANNING

3.1 My Work Profile (Role and Responsibility)

I worked with Bonanza Portfolio Ltd. as a Management Trainee. During my training

period, I was not confined to any particular work and responsibility rather I was given an

exposure of all departments’ and operations like Depository Department, Marketing and

Sales Department, Branch Coordinating Department, Accounts & Finance Department,

Trading Department, etc. The exposure during the training period was vital since I got the

knowledge about motivation techniques, means of controlling power, financial services

sector etc.

During my training period, I made my project under the guidance of the Incharge

Manager and I completed the same to the best of my ability. I decided to choose some

stocks listed in NSE for conducting the fundamental analysis. I had sorted out all my

queries after having the discussions with the concerned staff members and Incharge

Manager of the training. I noted all important figures and facts about financial market and

updated my Project Report accordingly.

Achievements: The main achievement which I gained during my entire training was the

knowledge about the financial market and most importantly, the technical and

fundamental analysis which gave me a great exposure. I had successfully completed my

training with the support provided to me by the Incharge Manager and the MD of the

company.

Key Learning's: In my entire training period, I had learnt how to control the managerial

work existing in all departments by practically implementing my skills and knowledge.

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The cordial support by the staff members and the Incharge Manager is a prerequisite to

work smoothly in an organization. I learnt how to analyze the equities for investing

money through both the methods of analysis i.e. technical and fundamental analysis. I

had learnt alot more, the department-wise details of which are described in following

points:-

DEPOSITIORY OPERATIONS

During my training, the complete process of Depository Operations was taught to me.

The following is the list of the tasks which I had learnt:-

Opening Demat Accounts of the Investor

Maintenance of beneficial holdings

Dematerialization

Stock Lending and Borrowing

TRADING DEPARTMENT AND RMS OPERATIONS

I learnt the whole process of Trading Department during my training period. The

following are the tasks included in Trading Department:

Practical knowledge of the trading softwares. ( Diet ODIN, NEAT )

Trading for different types of market. ( NSE, BSE, F&O, NCDEX & MCX and

Currency trading)

Proper telecon Interaction with clients regarding net position, trading, etc.

Giving suggestion on Buying or Selling of Stocks to clients for better profits.

Observing the clients’ thought process.

Control over the client trade with RMS.

Locking of their trading limit according to their token amount.

RMS functions.

ACCOUNT DEPARTMENT AND BILLING DEPARTMENT

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Billing work.

Dispatch trading statement to client on quarterly basis or according to client

preference.

Lock the limit of client with the help of RMS.

Fix a Brokerage before start the trading.

Get money back from client on their credit or extra limit with help of recovery

department.

MARKETING & SELLING DEPARTMENT



Handling of Promotional work and making more promotion strategies.

Selling strategy.

Determined target for Branches & Franchises for Demat Account and Brokerage.

Development of more Branches or Franchises.

Corporate Tie-ups.

Strategy development for expansion of an organization.

PORTFOLIO MANAGEMENT DEPARTMENT

Portfolio management is very difficult, tedious and requires very strong analytical skills.

It includes the best combination of investment through the working knowledge of

Portfolio Manager. I made one of my client’s profile under the guidance of Portfolio

Manager. Portfolio includes the continuous watch on invested money and predetermined

the certain level of return on investment. The tasks which are included in Portfolio

Management Department are as follows:-

Making of best portfolio for Client’s money invested in.

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Measurement of the risk involved in the investment.

Diversified risk with a maximum return on investment.

Regular watch on the portfolio.

Calculate the return on invested money which may be positive or negative.

ANALYSIS DEPARTMENT

Analysis department includes both technical and fundamental analysis. Technical

analysis refers to the chart analysis and daily fluctuation in the share price. Analyst

makes intraday calls, weekly and monthly calls on buying and selling of share with the

help of Technical or Chart Analysis. Fundamental analysis refers to the analysis of a

company or a sector with the help of Economic, Industrial and Company Analysis.

Analyst makes the report on a stock or sector for a certain period like this auto sector will

decrease from the current level after 3 months or same as a Company’s stock also.

Analysis Department includes the following features:-

Make intraday calls & reports on the stock with a target and stoploss with the

help of chart analysis and technical indicators.

Fundamental analysis on stocks.

Give financial advisory services to the clients.

Financial Analyst work.

Calculation of return on stocks

Analyze the performance of share price.

TOOLS AND TECHIQUES

I gained the knowledge about the stock market as a tool and technique. The following are

the tools and techniques:

Knowledge about operating any type of computer and process to learn any new

software or technology.

My communication skills.

My knowledge about share market supported me in my training. With the help

analysis and portfolio management, work was easy to operate & understand.

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I used Technical indicators as my techniques in technical analysis.

Fundamental analysis was also used as a technique for stock analysis.

Portfolio Theory or Model (Markowitz, Sharpe’s Index model, CAPM model,

arbitrage price theory )

Challenges Faced:

Busy schedule of training period and got short time to learn. I had to wait the

whole day for learning process of technical or fundamental analysis.

There was as such no operational work in the head office.

Technical analysis was quite risky so learning the same was a tedious job.

Sometimes, I used to generate the intraday calls with the help of the chart which

was objected by my Manager.

Reasons for Success:

The main reason for the successful completion of this training is my dedication &

determination of work, passion, cordial relations with all staff members and assistance

being provided by the Incharge Manager of the training.

Project Detail

“This study suggest that people are reluctant while investing in stock market due to lack

of knowledge”

The Project is to analyze the equities to invest the money for getting the higher return on

investment in future. The Report is meant for the investors who want to invest their

money in equities. But they should analysis the securities before investing the money as

the money plays a vital role in everybody’s life. I chose this title because I wanted to

analysis the equities from investor’s point of view so that they can get good returns in

future. Also, wanted to do the fundamental and technical analysis of securities through

the various theories, able to understand the fluctuation and performance of stocks and

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also known the factors that affect the fluctuation of stock prices in the Indian Stock

Markets. Through this project, I was also able to understand, what are the positive and

strong points of our Company ( Bonanza portfolio Ltd.), on the basis of which we came

to know what could be the basis of pitching to a potential client. I also gave suggestions

to the company, what improvements could be done for our products & services.

Fundamental and technical analysis go hand in hand and compliment with each other.

Since all the investors in the stock market want to make the maximum possible profits,

they just can’t afford to ignore the fundamental or technical analysis.

Team: This is my solo project assigned by project guide and supported by the all staff

members of the Head Office. I did my analysis with the Finance Manager.

Duration: The time was very crucial factor in making the Project Report. The training

was for 69 days so I spent as much as time to learn from the internship and prepare this

report to share my golden time with you.

Key Deliverables: The company was expecting me to give my 100% dedication for

making this project, sorting out the queries about project to the best extend feasible and

submits a detailed Report accordingly at the Head Office.

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CHAPTER 4

STUDY OF THE SELECTED RESEARCH

PROBLEM

4.1- Statement of research problem

NECESSITY OF DEFINING THE PROBLEM

A research problem properly is a prerequisite for any study and is a step of the highest

importance. In fact, formulation of a problem is often more essential than its solution. It

is only on careful detailing the research problem that we can work out the research design

and can smoothly carry on all the consequential steps involved while doing research. A

common proverb is “a problem clearly stated is a problem half solved”: This statement

signifies the need for defining a research problem. The problem to be investigated must

be defined unambiguously for that will help to discriminate relevant data from the

irrelevant ones. A proper definition of research problem will enable the researcher to be

on the track whereas an ill-defined problem may create hurdles. Defining

TECHNIQUE INVOLVED IN DEFINING A PROBLEM

A brief description of all these points will be helpful.

1) Statement of the problem in a general way: First of all the problem should be stated

in a broad general way, keeping in view either some practical concern or some scientific

or intellectual interest. For this purpose, the researcher must immerse himself thoroughly

in the subject matter concerning which he wishes to pose a problem.

2) Understanding the nature of the problem: The next step in defining the problem is

to understand its origin and nature clearly. The best way of understanding the problem is

to discuss it with those who first raised it.

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3) Surveying the available literature: All available literature concerning the problem at

hand must necessarily be surveyed and examined before a definition of the research

problem is given. This versan means that the researcher must be well cont with relevant

theories in the field, reports and records as also all other relevant literature.

4) Developing the ideas through discussions: Discussion concerning a problem often

produces useful information. Various new ideas can be developed through such an

exercise. Hence, a researcher must discuss his problem with his colleagues and others

who have enough experience in the same.

5) Rephrasing the research problem: Finally, the researcher must sit to rephrase the

research problem into a working proposition. Once the nature of the problem has been

clearly understood, the environment (within which the problem has got to be studied) has

been defined, discussions over the problem have taken place and the available literature

has been surveyed and examined, rephrasing the problem into analytical or operational

terms is not a difficult task.

4.2 Statement of research objective

Objective of the Research

The objective behind this exercise is to get an in depth knowledge of the financial sector.

This proposal is prepared with some objectives which are stated below:

To gain an in depth knowledge of Indian mutual fund industry.

To get an exposure of the real working environment in the corporate sector.

To have a better understanding of the investment options available.

To learn and understand the behavior exhibited by individual consumer in the course

of making an investment.

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Acquire knowledge of financial terminologies and the financial products.

Which option is better to do trading i.e. online or offline

4.3- Research design and methodology

RESEARCH METHODOLOGY

OBJECTIVES:

To study about the stock market industry.

To study the approach of investors towards online trading..

To study the behaviour of the investors whether they prefer trading in the share

market.

SCOPE OF THE STUDY:

Subject matter is related to the investor’s approach towards the online trading in

the share market

People of age between 20 to 60

Area limited to Delhi.

Demographics include names, age, qualification, occupation, marital status and

annual income.

STEPS OF RESEARCH DESIGN:

Define the information needed:- This first step states that what is the

information that is actually required. Information in this case we

require is that what is the approach of investors while investing their

money in mutual funds and ulips e.g. what do they consider while

26

deciding as to invest in the share market.. Also, it studies the extent to

which the investors are aware of the various costs that one bears while

making any investment. So, the information sought and information

generated is only possible after defining the information needed.

Design the research:- A research design is a framework or

blueprint for conducting the research project. It details the procedures

necessary for obtaining the information needed to solve research

problems. In this project, the research design is explorative in nature.

Specify the scaling procedures:- Scaling involves creating a

continuum on which measured objects are located. Both nominal and

interval scales have been used for this purpose.

Construct and pretest a questionnaire:- A questionnaire is a

formalized set of questions for obtaining information from

respondents. Where as pretesting refers to the testing of the

questionnaire on a small sample of respondents in order to identify

and eliminate potential problems.

Population

All the clients of Bonanza and the regular employees and also the person

in the various market from where I have collected the data, who are

investing money in Share market.

Sample Unit:

Investors and non-investors.

Sample Size:

This study involves 104 respondents.

Sampling Technique:

27

The sample size has been taken by non-random convenience sampling

technique.

Data Collection:

Data has been collected both from primary as well as secondary sources as

described below:

Primary sources

Primary data was obtained through questionnaires filled by people

through direct communication with respondents in the form of Interview.

Secondary sources

The secondary sources of data were taken from the various websites ,

books, journals reports, articles etc. This mainly provided information

about the mutual fund and ulips industry in India.

LIMITATIONS :

No study is free from limitations. The limitations of this study can be:

Sample size taken is small and may not be sufficient to predict the results with

100% accuracy.

The result is based on primary and secondary data that has it’s own limitations.

The study only covers the area of Chandigarh that may not be applicable to other

areas.

RESEARCH METHODOLOGY

Research Methodology is the way to systematically solve the Research Problem is done

scientifically. In it we study the various steps that are generally adopted by researcher in

28

studying his logic behind them. It was quite hard to collect primary data by meeting each

individual and interview him/her so I have collected primary data with the help of

questionnaire. Secondary data was also available to get information about the study. All

the executives and official person were quite helpful and provided full support.

Data was collected in the following manner:

Interacting with some of the customers of Bonanza

By questionnaire seeking information

Interacting with the employees of Bonanza

Primary Data

Questionnaire seeking information

Interaction with the employees of Sharekhan and with the customer of Sharekhan

Secondary Data

There are following things that have been the source of secondary data:

Journal

Magazines

Manual of Bonanza

Welcome kit of Bonanza

SAMPLING PLAN

Methodology for Market Research

I divided the entire city into zones and drew out samples out of each zone. The size of

samples drawn from each zone depended on the prospective ness of the particular area.

For e.g., if a particular research area consisted of Offices then the sample size would

obviously be higher than an area like Shopping mall or PVR. This is because Office

employees constitute the service sectors that are the active investors of today. Also, the

office areas consist of people from the business class who have always been in the hunt

29

for quick money, not to forget that smart and timely investment in the share market can

yield to enormous returns.

After dividing the city into zones, the Target audience was probed using Interviews and

questionnaires. These were later analyzed to draw out conclusive results.

The Research Area Comprised of the following places:

Zone Areas Covered Sample Size

East Karkarduma 14

West Punjabi Bagh 24

North Delhi University 6

South Vasant Kunj 25

Methodology for Customer Acquisition

The leads for customer acquisition primarily came from the questionnaires filled up by

prospective customers. Apart from these customers were also pitched through personal

references and contacts. Moreover the organization takes every possible effort in order to

spread mass awareness. As a result of this publicity campaign, influenced prospective

customers approach the organization. There are various ways to make people aware about

the organization as such Marketing Research, Canopy, Personal References, Pop-up

windows having collaboration with various portals e.g. Rediffmail.com etc. Person with

adequate interest leaves his contact information. Later on these leads are contacted

personally for further development. Thus all these factors sum up into a result oriented

work force. These leads were the contacted through tele-calling and after developing a

relationship, they were pitched in at the addresses provided by them. After giving them a

presentation about the product and its advantages over its competitors, they were

promised of a Demo by company sales force in case a sale had resulted. Also references

were collected from such people and the same methodology was repeated. For each and

every customer personal quarries have been entertained after the sale is done.

30

CHAPTER 5

ANALYSIS

5.1 ANALYSIS OF DATA

ANALYSIS OF QUESTIONNAIRE

In which of these Financial Instruments do you invest into?

Instrument Frequency Percent

Shares 70 67.3

Mutual Funds 19 18.3

Bonds 6 5.8

Others 9 8.7

Total104 100.0

PEOPLE WANT TO INVEST INTO

67.30%Share

8.70%Others5.80%

Bonds

18.30%Mutual Funds

31

Findings:

This question was meant to closely study the pulse and investment pattern in the stock

market. It is clearly evident that 67.3% of the respondents prefer to invest in the share

market to other Financial Instrument.

Which type of trading do you prefer?

Type of trading Frequency Percent

Online 77 74.0

Offline 16 15.4

Not Applicable 11 10.6

Total104 100.0

Findings:

The result shows that Online Trading has taken the driver’s seat over the conventional trading

ever since Internet triggered a revolution across the globe. 74% of the respondents prefer

online trading.

32

If you prefer Online Trading then the reason for it?

Reasons Frequency Percent

Privacy 20 19.2

User Friendly and time saving 27 26.0

Convenient 20 19.2

All the above 21 20.2

Total88 84.6

Missing System 16 15.4

Total104 100.0

Findings:

The preferred choice of online trading itself is a proven fact that 26% of the respondents

find it user friendly, time saving and convenient. Hence it does not come as a surprise as

20% of the respondents preferred all the options.

33

What factors motivated you to invest in securities?

Factors Frequency Percent

New IPO's 25 24.0

Entry of FII's 9 8.7

More returns in less time 63 60.6

Others 7 6.7

Total104 100.0

Findings:

This question was meant to understand why more and more investors have started

creeping in the share market as never before. About 60% of the respondents believe that

there is a possibility in multiplying there money within a short period of time and about

24% of the respondents is driven by the IPO’s issued by potential companies.

34

Does Online Trading motivate you to deal in securities?

Respondents Frequency Percent

Yes 84 80.8

No 20 19.2

Total104 100.0

Findings:

It is clear and transparent that Online Trading has become more convenient way to deal

in securities as majority (as much as 81%) of the sample population voted for it.

Have you heard about BONANZA?

Respondents Frequency Percent

Yes 85 82.74

No 19 18.26

Total104 100.0

35

Findings:

Out of the total sample size surveyed, BONANZA has its slice of share, as it is familiar and

popular among 82% of the total sample population. Hence Bonanza is a well heard off name

among the investors.

Which brokerage firm do you prefer for online trading?

Brokerage Firms Frequency Percent

ICICI Direct 14 13.5

Bonanza 27 26.0

Indiabulls 23 22.1

Kotak Securities 21 20.2

5 Paisa 18 17.3

HDFC Securities 1 1.0

Total104 100.0

36

Findings:

This question was framed to understand the effectiveness of Bonanza among its

competitors. The push and pull factor worked out well for Bonanza as it grabbed 26% of

the market share out of the total people surveyed. But the survey also reveals an

interesting point that there is not much variation among the players in terms of investors’

consideration for a brokerage firm.

How often do you trade?

Duration Frequency Percent

Daily 53 51.0

Weekly 31 29.8

Monthly 17 6.7

Yearly 13 12.5

Total104 100.0

37

Findings:

This shows that how stock market has swept the nation as a whole. Most of the investors

prefer daily and weekly trading to keep a watch on the volatility of the stock market so as

to take decisions accordingly.

In which category does your income fall? (Per month in Rs.)

Rs. Per Month Frequency Percent

0-15000 26 25.0

15000-35000 61 58.7

35000-60000 17 16.3

Total104 100.0

38

Findings:

People from different categories of income group have taken their chance to invest in the

booming stock market. The upper middle and middle class (income category ranging from 15000

– 35000) people have taken the primary seat as far as the number of people involved in trading is

concerned.

What percentage of your earning do you invest in share trading?

Frequency Percent

Up to 10% 40 38.46

Up to 25% 35 33.65

Up to 50% 15 14.42

Above 50% 14 13.46

Total104 100.0

39

Findings:

About 70% of the respondents feel that not more than 25% of their earning will be

pushed into the market that clearly signifies that how volatility in the stock market can

influence the investors.

Rank the attribute “customer service” of a share trading company?

Frequency Percent

Most Important 27 26.0

Important 24 23.1

Neutral 22 21.2

Less Important 18 17.3

Not Important at all 13 12.5

Total 104 100.0

40

Findings:

Investors feel that they should be provided with the best of the services in order to

associate themselves with a brokerage company over a long period of time. Hence more

than half of the respondents preferred it to be an important parameter of a brokerage firm.

Rank the attribute “proper guidance” of a share trading company?

Frequency Percent


Important 41 39.4

Neutral 24 23.1



Total 104 100.0

41

Findings:

More than 50% of the sample population felt that they require proper guidance from the

brokerage company in order to execute their operation effectively.

Rank the attribute “regular updates” of a share trading company?

Frequency Percent


Important 14 13.5

Neutral 17 16.3



Total 104 100.0

42

Findings:

Surprisingly about 35 respondents out of the 104 surveyed thought that the regular

updates provided by the company were not that important. Only 34 of the respondents

felt that the importance of regular market updates.

Rank the attributes “trustworthiness” of a share trading company?

Frequency Percent


Important 7 6.7

Neutral 28 26.9



Total104 100

43

Findings:

A mere 20% of the respondents consider the significance of the trustworthiness of the

brokerage company with whom they have been associated.

Rank the attribute “brokerage charge” of a share trading company?

Frequency Percent


Important 15 14.4

Neutral 13 12.5



Total104 100.0

44

Findings:

The brokerage charges imposed on the investors makes a significant impact on 50% of

the respondents whereas another 35% felt that this is of no significance at all.

Rank the company “BONANZA” according to the quality of service?

Frequency Percent

Excellent 31 29.8

Very Good 24 23.1

Good 29 27.9

Average 17 16.3

Below Average 3 2.9

Total104 100.0

45

Findings:

More than half of the sample population was satisfied with the kind of service that

Bonanza offers its customers.

5.2 SUMMARY OF FINDINGS

The Major competitors are:

• 5paisa.com

• KotakSecurities.com

• India bulls

• ICICIDirect.com

• HDFCsecurities

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1) 5paisa- 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 / HNI’s

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 0.05% each side + ST

-Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal

Account Opening

: Rs 500

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Demat 1st Yr : Rs 250

Initial Margin : Rs 5000(Compulsory)


•Brokerage :

Trading 0.05% 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

•Company Background

Not having a very positive image, relatively new in the broking arena, limited network

•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.

2. KOTAK SECURITIES

Company Background:

Kotak Securities is the sister concern of Kotak Mahindra bank. Kotak Securities limited

is a joint venture between Kotak Mahindra Bank and Goldman Sachs.

Online Account Types

Kotak Gateway Account :

KEAT desktop version, Sms charge

Rs 100, KEAT premium at RS 500

pm, Min margin Rs 20000

Kotak Value Account :

KEAT desktop version, Sms charge

Rs 75, KEAT premium at Rs 500 pm,

49

PRICING OF KOTAK

Account Opening : Rs 550 with kotak savings account, Rs 750 with

margin of Rs 50000, otherwise Rs 1200.

Demat : Rs 30 pm


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 wef 1/4/2004.

Slab Structure of Kotak

Delivery volume pm Brokerage

< 1 lakh 0.59% Gateway Acc

1 lakh – 5 lakhs 0.55% Gateway Acc

5 lakhs – 10 lakhs 0.45% Gateway Acc

10 lakhs – 20 lakhs 0.36% Value Acc.

20 lakhs – 60 lakhs 0.27% Value Acc.

60 lakh – 2 Cr 0.23% Value Acc.

> 2 Cr 0.18% Privilege Circle

50

Delivery volume pm Brokerage Square off

<25 lakhs 0.06% both sides Gateway acc

25 lakhs – 2 Cr 0.05% both sides Value acc.

2 Cr – 5 Cr 0.04% both sides Value acc.

> 5 Cr 0.03% both sides Privilege acc.

Derivative Brokerage Slab

Delivery volume pm Daily Sq. up Settlement

2 Cr 0.07% both sides 0.09% both sides

2 – 5.5 Cr 0.045% both sides 0.073% both sides

5.5 Cr – 10 Cr 0.036% both sides 0.046% both sides

10 Cr – 25 Cr 0.027% both sides 0.046% both sides

> 25 Cr 0.023% both sides 0.032% both sides

Deal Clinchers v/s Kotakstreet

•Rigid Account Opening Terms

No Flexibility of A/c opening charges (Rs 550) + Compulsory margin Rs5000/-

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•No Customisation 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 30 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

3. INDIABULLS

Company BackgroundIndiaBulls 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 advisor

Online Account TypeSignature 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

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Signature Account

• Account Opening : Rs 250

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

• Initial Margin : NIL

• Brokerage : Negotiable

Power IndiaBulls

• Account Opening : Rs 750

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

• Initial Margin : NIL

• Brokerage : Negotiable

PAID Research

SCHEME FACILITY

WebBased-1-Month-500 : View & Print on website

WebBased-1-Year-6000 : View & Print on website

PrintReport-1-Month-750 : View & Print on website + 10 Reports

Delivered

PrintReport-1-Year-9000 : View & Print on website + 10 Reports

Delivered

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 an 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.

4. ICICI Direct

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of

ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Account Types

•ICICI Direct e-invest Account :

Plain Vanilla Account with focus on 3 in 1 advantages. Differentiated in services within

the account

1.Cash on spot

2.Margin Plus

Premium Trading interface of ICICIDirect Link is given to DBC partners and HNI’s

•Account Opening : Rs 750

•Schemes :

54

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

DP’s without 1st yr AMC

•Initial Margin : Nil

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

Delivery Vol per qtr Brokerage * Square Vol off p m Brokerage **

< 10 lakhs : 0.75%

10 lakhs - 25 lakhs : 0.70%

25 lakhs -50 lakhs : 0.55%

50 lakhs – 1 Cr : 0.45%

1 Cr – 2 Cr : 0.35%

2 Cr – 5 Cr : 0.30%

> 5 Cr : 0.25%

Deal Clinchers v/s ICICIDirect

•Poor online Interface

Slow website interface with no real-time quotes creates a dissatisfaction among high

frequency 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.

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•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.

5. HDFC SECURITIES

Company Background

The HDFC BANK, HDFC and ChaseCapital Capital Partners and their associates

promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the

largest team of Tele-brokers

Online Account Type:

HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage

Pricing of HDFC Account

Account Opening : Rs 750

Demat : NIL, 1st year charges included in Account Opening

Initial Margin : Rs 5000/- for non HDFC Bank customers (AQB)

•Brokerage:

Trading 0.05%* each side + ST

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Delivery 0.50%** each side + ST

* Rs 25 Min Brokerage per transaction

** Rs 8 Min Brokerage per transaction

FINDINGS

People with an eye for investment prefer to invest in shares.

This is mainly due to the fact that shares provide high returns in less time.

People investing in shares prefer online trading because of convenience and time

saving.

People who recently started trading were mainly motivated by online share

trading concept.

Bonanza is a known entity in the online business.

In online share trading brokerage and research reports are the major criteria for

selecting a broking company.

60-65 % of the people are satisfied with Bonanza.

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CHAPTER 6

SUMMARY AND CONCLUSSIONS

6.1 SUMMARY OF LEARNING EXPERIENCE

While working for this research problem, I discovered the in depth efforts being put in

working with bonanza. The forming of customer relations and service departments, to

extend knowledge and experience for the well being of different customers. The mind set

of the customer, what a customer is really thinking before investing.

THE PRIME EXPERIENCE:

Understanding the customer satisfaction.

Understanding the mind of upcoming customers and there requirement.

Analyzing different customers and interacting with them was all together a great

experience and understanding their needs.

Interacting the corporate people and understanding there demands with the

customer satisfaction.

Talking with the various talented people and coordinating with different people

was a new experience.

The up and down’s of market and the expectations of the customers with the

services given and handling them was another thing which I learned while

working for this project.

Under the guidance of our esteem panel of subordinates and top management it was a

great learning experience

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6.2 CONCLUSION AND RECOMMENDATION

Indian economy has been globalize and the capital market has been linked to the

international financial market. Foreign individuals and institutional investors are now

encouraged to participate into it. So, there is a need for raising the Indian Capital market

in to the international standards in terms of efficiency and transparency. One such

measure is the passing out of the Depository Act during the year 1996. Dematerialization

of securities and under this system is one of the major steps aimed at improving and

modernizing the capital market and enhancing the levels of investor’s protection

measures which aims at eliminating the bad deliveries and forgery of shares and

expediting the transfer of shares.

Thus online share trading is gaining its popularity. Though it still has to go a long way

but it has established its foothold in the metropolitan cities like Delhi, Mumbai etc. The

dematerializing of shares coupled with the huge growth of Internet has been the fuel for

the online trading which is now a considerable part of the total trading.

It can therefore be said that online share trading is here to stay and will only grow to

bigger proportions and will penetrate deeper into the economy. So online trading would

become the order of the day, taking over the traditional norms in the years to come.

LIMITATIONS

Usual sampling errors may exist.

The universe selected was Delhi region. So the result cannot be generalized.

Some of the customers may be uninterested and may not have replied correctly.

Respondent may also be biased due to several reasons.

Sample size was small which may affect the reliability of the result.

Internet fraud

Still many of Indian customer do not know to use Internet

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RECOMMENDATION

Company should invest more in its marketing strategies by giving ads in

newspapers, magazines, TV commercials etc.

The Account opening time taken is about 7 working days. Improving logistics

should reduce this.

The account opening charges should also be reduced to attract customers.

Customer care is not its best at Bonanza. Prompt customer handling should

improve this.

Some of the customers do not get the service promised to them. There should be a

check on the promises made.

Form should be simplified.

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