Business Plann

7/28/2019 Business Plann

1/68

A STUDY ON BUSINESS PROCESS ANALYSIS OF

KOTAK SECURITIES.

PROJECT REPORT

Submitted to SRM University, in partial fulfillment of the requirements for the

aware of the Degree.

MASTER OF BUSINESS ADMINISTRATION

Submitted by

GOBU M

(Register No: 35080184)

Under the guidance of

Ms. NISHA ASHOKAN

Asst. Professor (SG)

Department of Business Administration

S.R.M. UNIVERSITY

Kancheepuram - 603203.

May 2010


2/68

BONOFIDE CERTIFICATE

This is to certify that this project report titledA STUDY ON BUSINESS

PROCESS ANALYSIS OF KOTAK SECURITIES. submitted to SRM

University in partial fulfillment of the requirements for the award of Master of

Business Administration is a record of original work done by GOBU M during the

period of his study in S.R.M. UNIVERSITY Kancheepuram was done under my

supervision.

Ms. NISHA ASHOKAN Dr. JAYSHREE SURESH

Internal guide Dean

EXTERNAL EXAMINER


3/68

DECLARATION

I hereby declare that the project work titled A STUDY ON BUSINESS

PROCESS ANALYSIS OF KOTAK SECURITIES. submitted to SRM

University in partial fulfillment of the requirements for the award of Master of

Business Administration is a record of original work done by GOBU M under the

supervision and guidance ofMs. NISHA ASHOKAN, Asst. Professor (S.G.) and

that it has not formed the basis for the award of any degree, diploma or similar title

to any candidate of any university.

GOBU M


4/68

ACKNOWLEDGEMENT

I wish to place on record my indebtness to our beloved Dean, Dr. (Mrs.)

JAYSHREE SURESH, Dean, School of Management, SRM UNIVERSITY

Kattankulathur-603203 for providing me all the facilities to complete my project

work successfully in time.

I express my sincere thanks to Ms. NISHA ASHOKAN, Asst. Professor

(SG) my guide for this encouragement and his guidance during the course of this

project work.

I also thankKOTAK SECURITIES and Branch Manager, Sales Manager,

all faculty members, and friends from whom; I received encouragement and

suggestions to complete this project successfully.

Above all I thanks GOD, the almightily has been of great inspiration who

throughout stand by me in my entire endeavor to complete this successful work of

mine.

GOBU M


5/68

TableofContent

Sl.No Topic PageNO

1 Preface 1

2

Historyof

Company

2

Main areas of business Kotak Securities 43 Productsofthecompany 6

4 Offers

Pre requisites to start e- trading 9 Offered by Kotak securities 9 Kotak Privilege circle account 9 Kotak Value account 10 Kotak gateway Account 10 Kotak free way account 11 Kotak High trader account 11 Brokerage structure 12

5 Comparisonofinvestment

Demat Vs Physical form 15 Buying and selling 16 Depository similar to bank 17

6 MajorFinancialinstitution

CDSL 18 SEBI 19 Role of Depository Participants 21


6/68

7 KotakGroup 27

8 MarketShareofKotak 31

9

JobDescription

Detailed job profile 33 Area and target assigned 34 Day to Day job experience 35

10 Findingsandanalysis

Types of investors 37 Investors regarding their investment 38 Perception of investors regarding the investment 39 Investors knowledge regarding the investment schemes 40 Age group of various investors 41 View of investors if the stock market as crashed 42

12 DifficultiesandmajorLimitations 44 45

13 Suggestionandconclusion 47 48

14 Bibliography 50

15 Questionnaire 52


7/68

PREFACE

Expansion of an existing product in market is an interdisciplinary science that investigates the

activitiesrelatedtothecreationofproperdistributionchannelsthroughmarketintermediariesthatiswhyitis

committedtospiritofdiversityofconsumers.

It is studied as a part of marketing curriculum as it helps in understanding why and how

consumer make their purchase decision as these insights enables marketers to design more effective

marketing strategies .

So this project has been taken by the KOTAK SECURITIES to expand the highly successful

project title that is A STUDY ON BUSINESS PROCESS ANALYSIS OF KOTAK SECURITIES,

Chennai.


8/68

HISTORYOFTHECOMPANY

TheKotakMahindragroupwasbornin1985asKotakcapitalmanagementfinanciersltd.UdayKotak,SindeyA.APinto,thecompany.IndustrialistsHarishMahindraandAnandMahindraTookastakein1886andthatswhenthecompanychangeditsnametoKOTAKMAHINDRAFINANCELIMITED.

1986:Kotak

Mahindra

Finance

Limited

starts

the

activity

of

bill

discounting.

1987:Entersthebaseandhirepurchasemarket.1990:Autofinancedivisionwasstarted.1991:Investingbankingwasstarted.1992:Entersfundssyndicationsector.1995:BrokerageanddistributionbusinessesincorporatedintoaseparatecompanyKotakSecurities.1996: The auto finance business was hived of into a separate company- Kotak Mahindra Primus

Limited. Kotak Limited, for financing ford vehicles.

1998:EntersthemutualfundmarketwithlaunchofKotakMahindraCompany


9/68

2000:KotakMahindratiesupwitholdmutualforthelife4insurancebusiness.KotakSecuritieslaunches

Kotaksecuritiessystem.Com itsonlinebrokingsite.

2003:KotakMahindrafinanceLimitedconvertstobank.

2004:LaunchesIndiagrowthfund,aprivateequityfund.

2005:Kotakgrouprealignjointventureeinfordcredit;BuysKotakMahindraprime(formerlyknownas

KotakMahindraprimuslimited)andsellsfordcreditKotakMahindra.Launchesarealestatefund

2006: Bought the 25% stake held byGoldman sachs in KotakMahindra capital company and Kotak

securities

Kotak securities limited is a subsidiary of Kotak Mahindra Bank Limited is one of largest private

brokerageand

distribution

house

Set

up

in

1994

by

Mr.

Uday

Kotak.

Kotak

securities

have

25%

equity

participationfromGoldmanSachs.

Kotak securities have been the largest in IPO distribution andwere ranked no.1 in the year

20032004 as book running leadmanagers in I POs by prime database. The core strengths are the

expertiseinequityresearchandwideretaildistributionnetwork.Ithasanoutstandingresearchdivision

involved inmacro economic studies, industry and company specific equity researchwith analysts

specializing inparticulareconomic sectors and large cap stocks. Kotak securitiesmanage assetsover

rupees1200

crs

under

portfolio

management

services.


10/68


11/68

MainareasofbusinessKotakSecuritiesare:-

Institutionalbrokingbusiness

Privateclientgroup

Clientmoneymanagement

Retaildistributionoffinancialproducts

Depositoryservices

Onlinetrading

Institutionalbrokingbusiness:-

This service primarily covers secondary market broking. It caters to the needs of foreign

and Indian institutional investors in Indian equities Kotak Securities institutional business also

incorporates a comprehensive research cell with sect oral analysts who cover all the major areas

of Indian economy.


12/68

Privateclientgroup:-

Private client group is a special investment division for high net worth individuals.

Nonresident Indian investors, trusts corporate and banks the investments product range at private

client group is among the widest in the country and covers debt and equity, mutual funds and

specialized structured investment products.

Client money management :-

This division provides professional portfolio management services to high net worth

individuals and corporate. Efficient fund management is maintained at all times as well as

complete accountability and transparency. Its expertise in research and stock broking gives it the

right perspectives from which it provide its clients with investments advisory services that

benefit the clients.

Retail distribution of financial products:-

Kotak Securities has a comprehensive retail distribution network, comprising about 7000

agents, 13 branches and over 20 franchisees across India. This network is used for the

distribution and placements of a range of financial products that includes company fixed

deposits, mutual funds initial public offerings, equity and small saving schemes.

Depository services:-

Kotak Securities is a depository participant with national securities depository limited for

trading and settlement of dematerialized shares. Since it is also in the broking business investors

who use its depository services get dual benefit.

Online trading:-

Kotak Securities online broking service Kotaksecurities.com offers services for retail

investors who like to trade on net its unique product offering securities as margins and its market

watch facility with real time prices combined in an order facility not offered by and other web

site at present.


13/68

PRODUCTOF

THE

COMPANY

Introductiontoonlinetrading:

Technology is revolutionizing every field of human endeavor and activity. The rapid

growth in number volume and value and securities in the Indian capital market exposed the

limitation of handling and dealing in securities. In physical / paper modes, shortcoming of the

market became manifest in terms of bad deliveries, delay in transfer and irregular settlements etc.

electronic medium of trading introduced first by national stock exchange (NSE) followed by the

stock exchange Mumbai (BSE) in 1995 by the help of online trading. Share traders can easily

purchase and sell their shares through their own terminals or through brokers terminal without

any paper work.

In order to provide efficiency, liquidity and transparency NSE introduced a nation wide

online fully automated screen based trading system (SBTS) where a member can punch into the

computer quantities securities and the prices at which he likes to transact and the transaction

executed as soon as it finds a matching sale or by orders from a counter party SBTS electronic

matches orders on a strict price/ time priority and hence cuts down on time cost and risk of errors

as will as on fraud resulting in improved operational efficiency. It allows fasters incorporation of


14/68

price sensitive information into prevailing prices, thus increasing the informational efficiency of

market .

NSE has main computer, which is connected through very small aperture terminal (V-

SAT) installed at its office, Brokers have terminal installed at their premises which are connected

through V-SAT/ leased lines/ modems.

Investors inform a broker to place an order on his behalf. The broker enters the orders though his

PC and sends signal to the satellite vie V-SAT. the signal is directed to mainframe computer at

NSE. The order confirmation message is immediately displayed on the PC of the broker. By the

help of given diagram we can easily understand how people trade online.

The online division of Kotak securities offers its customers the facility e-broking and through

it customers accesses a brokers website through his Internet enabled PC can place orders on the

trading engine of the e- broker and the orders are routed the stock exchange and executed there

on. Electronics broking services offered on the Internet by Kotak securities through its website

www Kotak security.com offers only on the NSE. The scripts on which NSE moves are fifty

which are as follows:

ONGC RELIANCE IND. TATA CONSULTANTS INFOSYS TECHNOLOGY WIPRO BHARTI TELEVISION ITC HLL SBI ICICI BANK HDFC BHEL SAIL


15/68

RANBAXYLABS TISCO HDFC BANK GAIL SATYAM COMPUTERS TATAMOTORS L&T BAJAJ AUTO MARUTI UDYOG RELIANCE ENC HCL TECHNOLOGY PUNJAB NATIONAL BANK HERO HONDA HIDALCO BPCL SUNPHARMA HPCL GRASIM INDS CIPLA NATIONAL ALU GUJRAT AMBUJA CEMENT TATA POWER MTNL GLAXO SMITH P ACC VSNL M&M ORIENTAL BANK ZEE TELEFILM DR. REDDYS ABB


16/68

IPCL SHIPING COPORATION TATA CHEMICLES DABUR TATA TEA COLGATE

The pre requisites to start e trading are :

9 Trading account to deal in electronic share mutual funds and ipos on Kotaksecurities.com9 Demat account with Kotak securities for dealing.9 Internet bank account with a banking partner to move funds to Kotaksecurities.com or

receive payments from Kotaksecurities.com. The banking partners are Kotak Mahindra bank

HDFC, CITI bank or UTI bank.

The offered by Kotak securities are:-

Kotak privilege circle account Kotak value account Kotak gateway account Kotak freeway account Kotak high trader account

Kotak privilege circle account:-

One can activate a KPC account with any amount more than Rs.10,00,000 as margin by

way of cash on stock.


17/68

In KPC one can avail the following:-

6 times expenses on the margin Initial brokerage payment as per the lowest brokerage slab to be recalculated at the end of the

month as per the turnover

Acess to KEAT premium free of cost. Free call& trade facility. Margin finance at attractive rates of 13% p.a. Lowest delayed payment interest if 13% p.a. Free research advice via SMS.

Kotak value account:-

One can open KVA account with any amount between Rs. 10,00,000 and 5,00,000 as

initial margin.

One can avail the following:

5 times exposure on the margin initial brokerage payment as per the middle brokerage slab torecalculated at the end of the month as per the turnover.

Access to KEAT PRO Software free and discount on KEAT premium charge of Rs. 300 onlyper month.

Research advice via SMS for a fee of Rs. 75 per month. Call and trade facility with 20 calls free thereafter Rs. 15 per call. Discounted delayed payment interest of 16% p.a.

Kotak gateway account:-

KGA account can be opened with any amount less than Rs.5,00,000 as inintial margin.

One can avail the following:-

4 times exposure on the margin, Access to KEAT desktop free of cost and KEAT premium for Rs 500 only per month.


18/68

Research advice via SMS for a fee of Rs. 100 per month. Call and trade facility with 20 calls free thereafter Rs. 20 per call Delayed payment interest at 18% p.a.

Kotak free way account:-

Free account can be opened with any amount less than Rs. 1,25,000 as initial margin.

One can avail the following:-

Zero brokerage plans on square off trades, only levy, service tax and other charges at 0.03%per transaction.

Flat fee of Rs. 999 per month. 4 times exposure on the margin. Maximum exposure Rs.5,00,000 Delivery brokerage ranging from 0.59% to 0.18% depending on volumes Delayed payment interest at 18% p.a.

Kotak high trader account :-

High trader account can be opened with any amount of margin.

In the Kotak free way account one can avail the following:-

6 times exposure on the margin. And auto square off product where al the cash order would be squared off after 3.10 PM. Can trader in the derivative segment on the high trader with the normal limit i.e. multiple of

four on stock derivatives.

Delayed payment interest at 18% p.a.


19/68

THE BROKERAGE STRUCTURE:-

DELIVERY SLABS

Volume Slab Brokerage

2 crores 0.18%

With Citi bank, AXIS, KOTAK, HSBC and HDFC bank for online fund transfer. Any money

owed to client credited directly into Internet bank account of customer by Kotak securities on the

next day.

Documents required are:-

9 Two photographs signed across.

9 Identity proof photocopy of passport, PAN/voters ID card, driving license.


20/68

9 Address proof photocopy of electricity bill, telephone bill, bank S/M.

9 Cheques for margin in the name of Kotaksecurities.com + bank account opening.

9 Signature proof passport, PAN card Bank intro.

Cash Squaring Up

Volume slab Brokerage

< 25 lakhs 0.06% both sides

25 lakhs- 2 crores 0.05% both sides

2 crores-5crores 0.04% both sides

> 5 crores 0.03% both sides

Buy now sell tomorrow with a guarantee (BNST-G):-

BNST-G is special service offered by Kotaksecurities.com in which one can sell 75% of

the specified shares that one has purchased before you receive the delivery of the shares from the

exchange, without the worry of short allotment.

New from Kotak securities.com:-


21/68

Securities accepted in lieu of cash margin green channel.

Multiple available on sales marked for delivery.

Short sales are possible.

Stop loss order

After market order

Cash and derivatives rates on single screen

Account opening process:-

Account opening involves opening of trading account with Kotak securities.com demat

account with Kotak securities, bank account with a banking partner. Demat account can be with

Kotak securities or Kotak bank or even with Citi bank. Account opening fee as per the margin

paid up front. Kotak Securities has Internet banking tie-up

Cholamandalam Mutual fund.

Initial public offerings (IPO):-

At Kotak securities.com one can apply for IPOs with out going through the tedious

process of application filling, cheque signing and submission. One need to do is fill the requisite

details in the online screens of IPO application. Kotaksecurities.com will dot the paper work for

you on the basis of information provided by you. This is done on the authority of the power of

attorney executed by you in favor of Kotak securities.com


22/68

DEMAT FORM V/S PHYSICAL FORM:-

A Comparison of investment in securities:-

In physical form In demat form

Insurance is required No insurance is required

Laborious inventory verification during

internal stock taking and audits.

The DPs makes periodic statement of holding

available. Easy verification of audits.

No custody charges if using own premises

however, custodians charges- 20 to 40 basic

points.

Custody charges vary from 3 to 10 basis points

depending upon DP selected.

Risk of theft No risk of theft

Receipt of corporate benefits need monitoring

and risk of loss in transit not ruled out

Faster and hassle free receipt of corporate

benefits.


23/68

BUYING:-


High brokerage Low brokerage

Stamp duty at 50 basis points No stamp duty

Posted and handling charges for

lodgments and transfers

No posted and handling charges

Cost involved in follow up/rectification Guaranteed good delivery

No transaction charges Transaction charges vary from 7 to

10basis points.

SELLING:-


High brokerage Low brokerage, NSE brokers charges

half the brokerage on electronic trades


24/68

Transaction only in market lots No market lot concept

Off market transaction are costly and

risky

Facility for off market transaction market

transactions, specially within the group

Jumbo lots need to be split into market

lots for selling

No need to split

How a depository similar to bank

Bank Depository

Holds funds in an account Hold securities in an account

Transfers funds between accounts on

the instruction of the account holder

Transfer securities between accounts on the

instruction of the account holder

Facilities transfer without having to

handle money

Facilities transfer of ownership without

having to handle securities

Facilities safe keeping of money Facilities safe keeping of shares


25/68

CDSL - CENTRAL DEPOSIATORY SERVICES LIMITED

CDSL is another depository after NSDL its promoters are Bombay Stock Exchange,

The Calcutta Stock Exchange Association Limited, Bank Of India, HDFC Bank Ltd. Standard

charted bank, State Bank Of India, Bank Of Baroda, Union Bank of Indian, bank Of

Maharashtra, Centurion Bank etc.

As on 30th

June 2001, CDSL which are to instead to benefit the ultimate investors, are briefly

narrated below:

CDSL choose the Centralized Data Base Architecture with online connectivity with the DPswho provide the services to the investors, because of the online Centralization, the cost for

setting up Depository Participant services is drastically low. CDSL have urged the DPS topass on the benefit of lower cost of set up to investors.

CDSL on its part have kept its tariff as low as possible. It has virtually nil charges under allthe major heads except against transactions. CDSL might add that right from the stage of its

conceptions. Its promoters, in the main the BSE, have taken a public stand that there shall be

no custody charge on the ground that

(1) Investors who otherwise keep their scripts at Home, do not insure that charge and

(2) That they can get more and more investors enthused about Dematerialization and holding

there decorates in book entry from.

Software offer to clearing houses of the stock exchange free of cost permits direct entry oftransaction in the account beneficial owner (investor), without having go route it through a

broker account. this facility is a safeguard against possible mis-directions


26/68

Of clients securities and it cuts down time taken for Completion of transaction. It is found tobe an investor friendly innovate system.

SECURITIES AND EXCHANGE BOARD OF INDIA

Major part of liberalization process was the repeal of the capital Issues (control) Act,1947, in

may 1992. With this, governments control over issues of capital, pricing of the issues, fixing of

premium and rates of interest on debentures etc. ceased, and the office which administered the

Act Was abolished: the market was allowed to allocate resources to computing uses. However, to

ensure effective regulation of the market, SEBI Act 1992 was enacted to establish SEBI with

Statutory powers for:

Protecting the interests in securities Promoting the development of securities market, and Regulation the securities market.

Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of

securities, in addition to all intermediates and person associated with securities market. SEBI can

specify the matters to be discloser and the standards of disclosure required for the protection of

investors in respect of issues; can issue directions to all intermediaries and other person

associated with the securities market in the interest of investors of orderly development of the

securities market: and can conduit Enquirer, audits and inspection of all concerned and

adjudicate offences under the Act. In short, it has been given necessary autonomy and authority

to regulate and develop an orderly securities market. All the intermediates in the market, search

as broker and sub broker and sub broker, underwriters, merchant bankers, bankers to the issues,

share transfer agents and registrar to the issues, are now required to register with SEBI and are

governed by its regulations. A code of conduct for each intermediary has been prescribed in the


27/68

regulation; capital adequacy and norms have been specified; a system of monitoring and

inspecting their operations has been instituted for compliment; and discipline action are being

taken against the intermediaries violating are regulation.

FUNCTIONS OF SEBI

SEBI has been obligated to the interest of the investors in securities and to promote and

development of, and to regulate the securities market by such measures as it thinks fit.

SEBI, in particular, has powers for:

Regulating the business in stock exchange and other securities market; Registering and regulating the working of stock brokers, sub-brokers ,share transfer agents ,

bankers to an issues ,trusts of trust deeds registrar to an issues, an issue, merchant bankers

,underwriters, portfolio managers, investment adviser and such other intermediates who may

be associated with securities markets in any manner;

Registering and regulating the working of the depositors, participants, custodians ofsecurities, foreign institutional investors , credit rating agencies and such other intermediaries

as SEBI may, by notification, specify in this behalf; Registering and regulating the working of venture capital funds and collective investment

schemes including mutual funds ;

Promoting and regulating self- regulatory organization; Promoting investors education and training of intermediaries of securities market; Prohibiting insider trading in securities; Regulating substantial acquisition of shares and take over of companies; Calling for information from, undertaking inspections, conducting inquiries and audits of the

stocks exchange, mutual funds and other persons associated with the securities market and

intermediates and self regulating organization in the securities market;

Performing such functions and exercising to securities Contrast (regulation)Act, 1956, asmay be delegated to it the central government:

Leaving fees or other charges for carrying out the purpose of this sections;


28/68

Conducting research for the above purpose: Calling from or furnishing to any such agencies as may be specified by SEBI such

information as may considered necessary by it for the efficient discharge of its functions.

ROLE OF THE DP

(DEPOSITORYPARTICIPANTS)

A depository is an organization formed to provide electronic depository facilities for securitiestraded. Securities are then held in the electronic from through the medium of depository

participants(DPs).TheNationalSecuritiesDepositoryLimited(NSDL)isthefirstdepositoryinIndia.

ThefunctionsofNSDLareregulatedbytheSecuritiesandExchangeBoardofIndia(SEBI).

The depository is not just another custodian the depository can legally transfer beneficialownership,whichacustodiancannot.Thechiefobjectiveofadepositoryistoreducesettlementrisk

byminimizingthepaperworkinvolvedintrading,settlingandtransferringsecurities.

To utilize the services offered by a depository, youmust open an accountwith the depositorythroughaDP.TheDPsarethelinkbetweentheshareholder,thecompanyandNSDL.

Dependingon theDP, theremayormaynotbe anopening account fee.DPs levy fees towardstransactionandcustody.

Banks,financial institutionscustodiansandstockbrokerscanbecomeDPssubjecttotheirmeetingcertain requirementprescribedbyNSDLandSEBI,NSDLpublishes the listofDPs registeredwith

them,fromtimetotime.


29/68

TheDPwillprovideyouwithapassbookorStatementofAccountperiodicallyto informyouonyourholdings.

Youcanevenhaveazerobalanceinyouraccount. IfyouloseyourStatementofAccount,informtheDPandobtainaduplicate.

Ifholdinginthestatementareincorrect,approachtheDPforclarification.

If you receive an incorrect dividend amount or donot receive it at all, contact the company orregister.

MEANINGOFDEPOSITORYSYSTEM

Depository system is concerned with conversion of securities from physical to electronic

form, settlement of trades in electronic segment, transfer of ownership and custody of securities.

Inthedepositorysystem,theownershipandtransferofsecuritiesplacebymeansofelectronics

booksentries.ThisRids theCapitalmarketof thedangers and risks related tohandlingofpaper. Its

transactioncostsarealsolessascomparedtothatofphysicaltransactions.

Whileinvestorswillcontinuoustoexercisetheoptionofholdingsecuritiesinthephysicalform,

those preferring Rematerialisation of scripts are permitted to withdraw from the depository by

requestingtheissueofphysicalcertificateagain.Sharetransactioncostsinthedepositoryshallbelower

thanthecostofbuyingandsellingphysicalshares.


30/68

Depositorysystemisnotmandatoryasofnow;itisoptionalandisleftontheinvestortodecide

whetherhewantsthesecuritiestobedematerialized.

Holding and handling of securities in electronic form eliminates problems that are normally

associatedwithphysicalcertificatesanditfacilitatesfastersettlementcycles.

TRADINGSYSTEM

THE Exchange, as stated earlier, had an open outcry trading system tillMarch 1995where

memberbrokersusedtoassemble inatradingringfordoingtransaction insecurities. Ithadswitched

overtoafullyautomatedcomputerizedmodeoftradingknownasBOLT(BSEonLineTrading)System

w.e.fMarch14,1995.ThroughtheBOLTsystem,thememberbrokernowentersordersforpurchaseor

sellofsecuritiesfromTraderWorkStations(TWSs)installedintheirofficesinsteadofassemblinginthe

tradingring.Thissystem,whichwasinitiallybothorderandquotedriven,iscurrentlyonlyorderdriven.

The system,which isnowonlyorderdriven, facilitiesmoreefficient inputtingprocessing,automatic

matching and faster execution of orders in a transparentmanner. The trading in securities at the

Exchangeisconductedinananonymousenvironmentandthecounterpartyidentifyisnotrevealed.The

buyerandsellersofsecuritiesdonotknowthenamesofeachother.

ThememberbrokersoftheExchangewerepermittedtoopentradingterminalsonlywithinthe

city limitsofMumbai till1996.TheExchangeobtainedpermission fromSEBI forexpansionof itsBOLT

networkto

locations

outside

Mumbai.

The

expansion

of

BOLT

network

to

cities

outside

Mumbai

was

inauguratedbyShriP.Chidambaram, theFinanceMinister,Governmentof IndiaonAugust31,1997.

The Exchangewas initially allowed by SEBI to set up[ trading terminals in all places except in the

jurisdictional areas of other Regional Stock Exchanges, for settingup trading terminal in the

jurisdictional areas of other Regional Stock Exchanges, the Exchanges was required to enter into

MemorandumofUnderstanding(MOU)withtherespectiveStockExchange.


31/68

However,withcertainmodification in this regardannouncedbySEBI towards theendof the

year 1999, thememberbrokeof theexchange arenow free to install their trading terminals at any

placerinthecountryincludinginthejurisdictionalareasofotherRegionalStockExchanges.

In

order

to

expand

the

reach

of

BOLT

network

to

centers

outside

Mumbai

to

reach

out

to

investors in these centers and provide them access t the trading facilities in all scripts listed and

permitted to be traded in the Exchange and to support the smaller Regional Stock Exchange, the

Exchangehasadmittedsubsidiarycompaniesformedby15Regional.

Stock Exchange as itsmemberbrokers as on June 30, 2003. Thememberbrokers of these

RegionalStockExchangeworkassubbrokersofthememberbrokersoftheExchange.

TradingontheBOLTSystem isconductedfromMondaytoFridaybetween9:55a.m.and3:30

p.m.the

scripts

traded

on

the

Exchange

have

been

classified

into

A,

B1,B2,

F,

G,

and

Z

groups.

TheExchangehas for theguidanceandbenefitof investorsclassified thescripts in theEquity

Segment in A, B1,&B2 based on certain qualitative and quantitative parameters which include

numberoftrades,valuestraded,etc.fortheguidanceandbenefitofinvestors.

TheFgrouprepresentthefixedincomesecuritieswherein730securitieswerelistedasonJune

30,2003

TheExchange

has

commenced

trading

in

Govt.

Securities

for

retail

investors

under

G

group

w.e.f.January16,2003And85Govt.SecuritiesaretradedontheExchangeunderthisgroupasonJune

30,2003.

The Zgroupwas introducedby theExchange in July1999and includes the companieswhich

havefailedtocomplywiththe listingrequirementoftheExchangeandhavefailedtoresolve investor

complaints or have not made the required arrangement with both the Depository Ltd.(NSDL) for

dematerialization of their securities. Companies in Zgroup numbered 2776 as on June 30, 2003.of

these,1275

companies

were

in

Z

group

for

not

complying

with

the

provisions

of

the

Listing

Agreement

andnotresolvingpendinginvestorcomplaintsandthebalance1501companieswereonaccountofnot

making arrangement for dematerialization of their securities with both the Deposotories.1501

companies have been put by the Exchange in Z group as a temporary measure till they make

arrangement for dematerialization of their securities. Once they finalize the arrangement for


32/68

dematerializationof their securities, trading and settlement in their scriptswouldbe shifted to their

respectiverestgroups.

MUTUALFUNDS

MutualFundsareanattractivemeansofsavingtaxesanddiversifyingyourinvestmentportfolio.So

ifyouare lookingto invest inmutual funds,KotakSecuritiesoffersyouahostofmutual fundchoices

underoneroof;backedbyindepthinformationandresearchtohelpyouinvestsmartly.

Kotaksecurities

have

made

investing

in

Mutual

funds

so

simple.

All

you

have

to

do

is

one

phone

callandthatsall.Nopaperworknoqueues.Simplypickthephoneor logontothewebsiteandplace

yourorder.

TostartinvestinginNFOs,allyouneedtodoisopenanonlinetradingaccount.Choosefromour

wide range of accounts to suit your investment needs. You can call us and we will have our

[email protected]

KotakMahindraMutualfund PrudentialICICIMutualfund HDFCmutualfund StandardCharteredMutualfund SundaramMutualfund TataMutualfund FranklinTempletonMutualfund CholamandalamMutualfund

INITIALPUBLICOFFERINGS(IPO)
http://www.contentlinks.asiancerc.com/kotaknew/mutualfund/MFProfile1.asphttp://www.contentlinks.asiancerc.com/kotaknew/mutualfund/MFProfile1.asphttp://www.contentlinks.asiancerc.com/kotaknew/mutualfund/MFProfile1.asphttp://kotaksecurities.com/research/researchmutualfund.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/accountsection/index.htmlhttp://kotaksecurities.com/contactus/contactus.htmlhttp://kotaksecurities.com/contactus/contactus.htmlhttp://kotaksecurities.com/contactus/contactus.htmlhttp://kotaksecurities.com/jsp/account/openaccount.jsphttp://kotaksecurities.com/jsp/account/openaccount.jsphttp://kotaksecurities.com/jsp/account/openaccount.jsphttp://kotaksecurities.com/contactus/contactus.htmlhttp://kotaksecurities.com/accountsection/index.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/callandtrade/callntrade.htmlhttp://kotaksecurities.com/research/researchmutualfund.htmlhttp://www.contentlinks.asiancerc.com/kotaknew/mutualfund/MFProfile1.asp


33/68

At Kotaksecurities.com one can apply for IPOs without going through the tedious process

of application filling, cheque signing and submission. One need to do is fill in the requisite

details in the on line screens of IPO application. Kotaksecurities.com will do the paper work for

you on the basis of information provide by you. This is done on the authority of the power of

attorney executed by you in favor of Kotaksecurities.com.


34/68

THEGROUP

Thegroupisorganizedonthefollowing:

KotakMahindraGroupStrategicBusinessUnits

AssetFinance Knowledge&Skill


35/68

WealthManagement Insurance

KotakMahindra KotakSecurities KotakMahindra Om KotakMahindra

CapitalCompany LifeInsurance

BankLtd Ltd

KotakMahindra KotakMahindra

PeimusLtd.

A

M

C

KotakMahindra

VentureCapitalFund

KotakMahindra(UK)

Ltd.

KotakMahindra

(International)Ltd.

KotakMahindraInc


36/68

KotakMahindraBank

InFeb.2003KotakMahindraBankfinance limitedthegroupsflagshipcompanywasgiventhe

licensetocarryonbankingbusinessbyRBI.ThisapprovalcreatesbankinghistorysinceKotakMahindra

FinancelimitedisthefirstcompanyinIndiatoconverttoabank.Mr.K.M.Gherdaisthechairmanand

Mr.UdayKotakisthevisechairmanmanagingdirectorofthebank.

AKotakMahindraPrimuslimited

KotakMahindraPrimuslimitedisajointventurebetweenKotakMahindrabanklimitedandford

creditformed

to

finance

all

non

ford

passenger

vehicles.

The

company

was

incorporated

on

20th

February1996andcommences itsoperationon1stNovember1996.Thenetworthon31

stMarchwas

464crores.Mr.KotakisthechairmanandMr.DipakGupta,Mr.C.Jairam,Mr.GaurangShah,Mr.Pankaj

Desai,Mr.Nishchal,Mr.GregeryCohamandMr.RaghuNadaaaare thedirectorsofKotakMahindra

PremiumLimited.

KotakMahindraAssetManagementCompany

KotakMahindraAssetManagementCompany isawhollyownedsubsidiaryofKotakMahindra

Bank limited is the asset manager of KotakMahindraMutual Fund. KMAMC started operation in

December1998hasover1,35,000investorsinvariousschemes.

KotakMahindraVentureCapitalFund

KMVCFsponsored

by

Kotak

Mahindra

Bank

limited

was

formed

to

cater

the

needs

of

the

modern day entrepreneur. The fund partner with companies for their first and second of funding

requirements in theemerginghigh growth sectors suchas IT researchandproudest, internet andE

commerce,media, healthcare, investments in company could range from Rs. 20millions to Rs. 100

millions. KMVKF is a SEBI registered VCFwith KMBL as the principal investor and 30 other private

investors.KMBListheinvestmentmanageroffund.


37/68

KotakMahindraInternationalLimited

KotakMahindrainternationallimitedistheinternationalarmofKotakMahindraGroupandwas

incorporatedin1994inMaruitius;withabrandinDubaiandnowinternationaloperationarecoverthe

UnitedKingdom

through KotakMahindraUK limited inUSA through KotakMahindra Inc.USA. These companies are

subsidiariesofKotakMahindraCapitalCompany.

KotakMahindraCapitalCompanyLimited

KMCCLwas incorporated1996asajointventurebetweenGoldmanSachs the international

bankingandbrokeragefirmandKotakMahindraBanklimited.KMCCinitsfranchiseebusinessfocusesin

fine care areas capital markets, mergers acquisition, corporate advisory, structured finance and

internationaloperational.KMCChas advised someof the largest telecom and cementdeals in India.

KMCCisaleadingplayerinthefieldofMediaandadvertisement.KMCCisalsoRBIisapprovedprimary

dealsinthegovernmentsecuritiesmarket.Mr.KotakisthechairmanandAjaySondhiisVicepresident

andmanagingdirector.

OmKotakMahindraLifeInsurance

OmKotakMahindra life insuranceventuresa74:26jointventurewitholdmutual.U.K.Kotak

MahindraBank limitedbelievesthat life insurance isa logicalexpansionof itsexitingfinancialservices

business.Oldmutual is a leading financial services provider in theword, providing awide range of

financialservicesintheareaofinsurance,assetmanagementandbanking.


38/68


39/68

MARKETSHARE

KotakSecuritiesisoneoftheworldsleadingbrokeragefirmwithamarketshareof9%.KotakSecurities

limitedhasbeenthelargestinIPOdistribution.

Itwasrankedno.1inyear20032004asbookrunningleadmanagersinpublicequityofferings.Ithas

alsowonthebestequityhouseawardfromfinanceAsiaintheyear2004.


40/68

Againintheyear2005KotakhasalsowontheAsiasbiggestbrokeragefirmaward.

Intheabovediagramitisgiventhat9%shareofthetotalmarkethasbeencapturedbyKotak,8.5%by

ICICIDirect.com,8%by IF& FS,2%by IndiaBulls and rest72.5%byother localbrokers likeMotilal

Oswal,Alankrit,AnandRathi,UTISecurities,Sharekhan,johari,5paise.com.


41/68


42/68

DETAILEDJOBPROFILE

Thejobundertakenwas regarding adetailed analysisofmarketingofpromotionof Kotak Securities

online trading products, studying its current scenario and studying the challenges faced by Kotak

Securitiesonlinedivision.

The studyhelps toknowabout themarketpositionofKotak securitiesascompared toothermarket

players, through theopinionofcustomersandpromoting theproductsofKotaksecurities.opinionof

customersandpromoting theproductsofKotaksecurities.weuse toputcanopies in frontofvarious

financialinstitutionslikebanks,commercialplacesandentertainmentplaces(likegauravtower,vaibhav

multiplex)toapproachtothepeopleandpromotingtheproductsofKotaksecurities.

Throughdirectlyanddataavailable,weusedtodotelemarketingfortheinvestorsandthenoninvestors

andtry

to

convince

them

about

the

Kotaksecurities.com

and

how

it

is

better

from

others,

then

personallymeeting them andproviding themwith the companybrochures and giving themdetailed

knowledgeabouthowwithaminimumamountofmoneyhecanstartwithonlinetrading.Tellinghim

aboutthevariousaccounts,whichhecanopenwithKotakandtellinghimtheprocesshownewjoinhis

etradingaccount,demataccountwithhissavingaccount.


43/68

Atthesametime,handlingbackofficework,whichincludedsolvingtheclientsquarries,toplaceorders,

givingdailyrecommendationtotheexistingclients.Alsogiving

The demonstration of the software K.E.A.T. (Kotak E trading) Assess Terminal) throughwhich the

clientscanbuyandsellhissharesandcandoallthetradingonlineonly.

AREAASSIGNEDANDTARGETASSIGNED

Areaassigned

Area assigned tomewas Chennai city only.Wheremainly I have surveyed the investors ofVaishali

Nagar,MalviyaNagar,GopalpuraandMansarover.

Targetassigned

Asmyworkwasmainlygenerating leadsandconvertingthem intotheclients,and Iwasalsohandling

backofficeworksothetargetgiventomewas10accountsintwomonths.


44/68

DAYTODAYJOBEXPERIENCE

AsKotak securities isoneof the leading financial institution in India, so for the first10dayswas the

trainingperiod to about theprofile the company, the knowledgeof Kotak securities, theproductof

Kotak securities, accountopeningprocess in Kotak Securities, complete knowledgeofmarketwatch,


45/68

alsoabouttheupsanddownsofthemarkethowNIFTYandSENSEXmoves,whatarethemainscriptson

whichtheymovesandcompleteknowledgeofthesoftwareK.E.A.T.

Afterthetrainingofthetendays, Iwasvery familiartoalltheproducts,theaccountopeningprocess

andaboutthesoftwareandKotaksecuritiesproductsandvariousaccountsthatcanbeopenedinKotak

Securities.

Iused todo telemarketing togenerate leadsandconverting them into theclientsofKotakSecurities

alsousetoputcanopies infrontofbanks,commercialplaces,entertainmentplacesforpromotingthe

products

of

Kotak

Securities

online

division.

At

the

same

time

I

was

handling

the

back

office

work

which

includedgivingdaily recommendations to theexisting clients, solving the clientsqueries,placing the

ordersofclientsthroughcallandtrade,fillingsaccountopeningforms.

Duringmytrainingperiod Iwastheonetogeneratemaximum leads, forwhichmyregionalmanager

and the executive appreciatedme. During the last seven to ten days I have done a survey of the

investorsofChennaicityandfoundthatstillpeoplearenotawareofKotakSecuritiesandthosewhoare

awarearemainlyabovetheageof50astheyhaveadeepknowledgeofsharemarkets.


46/68


47/68

TABLESHOWINGTHETYPESOFINVESTORS

Table:1

TYPESOFINVESTORS NO.OFRESPONDENTS PERCENTAGE(%)

Aggressive 27 18%

Moderate 51 34%

Conservative 42 28%

VeryConservative 30 20%

TOTAL 100 100%


48/68

TABLESHOWINGTHEEXPECTATIONOFINVESTORSREGARDINGTHEGROWTH

Table:2

EXPECTATIONOF NO.OFRESPONDENTS PERCENTAGE(%)


49/68

INVESTORS

Average 62 62%

High

13

13%

Low 25 25%

TOTAL 100 100%

1

62%2

13%

3

25%

Inthe

above

diagram

62%

of

the

surveyed

investors

expected

their

investments

to

grow

at

and

averagerate,25%expectedtogrowathigherratethatismorereturnsontheirinvestmentsand13%of

thesurveyedinvestorsexpectedtheirinvestmentstogrowsteadily.


50/68

TABLESHOWINGTHEPERCEPTIONOFTHEINVESTORSRESPECTTOTHERETURN

Table:3

PERCEPTIONTOWARDSRETURNNO.OF

RESPONDENTSPERCENTAGE(%)

AboveInflationRate 64 64%

High 21 21%

Safety

to

principal

15

15%

TOTAL 100 100%

1

64%

2

21%

3

15%

1

2

3


51/68

Fromtheabovediagramitwasfoundthat64%ofthesurveyedinvestorsweremoreconcerned

aboutearningreturnsaboveinflationrate,21%weremoreconcernaboutearninghighreturnsand15%

hadaprimarymotiveofthesafetyofprincipal.

TABLESHOWINGTHEINVESTORSKNOWLEDGEABOUTVARIOUSINVESMENT

SCHEMES

Table:4

INVESTORSKNOWLEDGENO.OF


Average 70 70%

Good 22 22%

Low 8 8%

TOTAL 100 100%


52/68

1

70%

2

22%

3

8%

In the abovediagramwe can see thatoutof total surveyed investors 70%were foundwith

average investmentknowledge,22%were foundwithgood investmentknowledgeand8%ofpeople

werefoundwithlowinvestmentofknowledge.

TABLESHOWINGTHEAGEGROUPOFINVESTORS

Table:5

AGEGROUPNO.OF


Above50 51 51%


53/68

31 50 32 32%

20 30 17 17%

TOTAL 100 100%

1

51%

2

32%

3

17%

1

2

3

Agegroupwasalsoarationalissuetoknowwhiledoingthesurvey.Itwasfoundthat17%ofthe

total surveyed investorswerebetween2030 years,32%werebetween3050 years and51%of the

totalsurveyedinvestorswereabove50years.

Itwas found that investors above the age of 50 years are having great potential and good

knowledgeregardinginvestment.

TABLESHOWINGTHEVIEWOFINVESTORSIFTHESTOCKMARKETSCRASH

DOWN


54/68

Table:6

VIEWOFNVESTORS NO.OFRESPONDENTS PERCENTAGE(%)

StateofInvestment 29 29%

Wait&Watch 52 52%

StateofWithdrawal 19 19%

TOTAL 100 100%

1

29%

2

52%

3

19%

1

2

3


55/68

Outofthetotalsurveyed investorswecansee fromtheabovediagramthat52%of investors

waitandwatchwhenthemarketcrasheddowntheyhavealotofpatience.29%willinvestmoreasthey

arerisktakersandhopethatinfuturemarketwillgrowand19%investorswillwithdrawtheirmoney.


56/68

DIFFICULTIESFACED

HighBrokerage: KotakSecuritieshashighbrokerageascomparetootheronlineplayers.

Callandtrade: Callandtradefacilityispayablewhichisnotconvenientforalltheclients.

Saving Accounts: saving accountwith KotakMahindraBank,AXIS,HDFC,HSBC andCITIbank ismandatory.

Documentation: inKotakSecuritiesthedocumentationprocessisverylengthyandcumbersome.


57/68

LackofAwareness: inChennaicity,thoughKotakiswellknownbutstillthereislackofawarenessregardingKotakSecuritiesanditsonlinedivisioni.e.Kotaksecurities.comanditsproducts.

MAJORLIMITATIONS

Uncertaintyofmarket

Securities investments are subject tomarket risk and there is no assurance of guarantee that the

objectiveoftheschemewillbeachieved.

Aswithanyinsecurities,theNAVoftheunitsissuedundertheschemecangoupordowndependingon

thefactorsandforcesaffectingthecapitalmarket.

ToughCompetition


58/68

Duetothelargenumberoflocalbrokersinvestorsareconfusedthatwheretoinvestandwherenotto

invest.Localbrokersarereadytogivethesameinvestmentplaninveryleastbrokerage.

Rigidandtraditionalstructure

Thepeoplebelieve investing inbankFDsandpostofficesavingandarereluctantto invest inmutual

fund.Peopleliketosecuremoneyintermsofleadingtothepeopleonhighinterest,themeantthereis

safe.

Socioeconomicfactors

Themostofthepeopleofthecountryareagriculturedependent.Sotheyinvestlessinthecapitalinthe

market.

Politicalfactors

Duetovolatilegovernmentandtherepoliciesregarding investorsand investment,stokemarket isnot

integratedwhichinturnaffectthecapitalmarket.


59/68


60/68

ConclusionandSuggestions

Suggestions

1. According to the analysis the investor above the age of 50 years must be taken intoconsideration

as

they

are

having

great

potential

regarding

investment.

2. Timetakeninaccountopeningtoolongtheyshouldreduceit.

3. KotakSecuritiesmustusemarketingtools likepointofpurchase,advertisementthroughmassmedia,likenewspapers,magazines,televisions,fairs,andadvertisementsonInternet.

4. Documentsrequiredforanaccountopeningaretoouniqueandconfusing.VotersIDordrivinglicenseshouldbetakenbothasidentityproofaswellasaddressproof.

5. Theorganization is lackingontheparametersofmotivation.Forexample incentivesontargetsshouldbegiventimetotime.

6. No.ofsignatures,whicharemadebythelinesaretoomany,thereforeshouldbereduced.

7. Kotakmust lay some sound strategies to trapmore customers by providing themwith lessbrokerageincomparisontoothers.


61/68

Conclusion

FromtheanalysisoftheresponsesreceivefromtheinvestorsinChennaicity,amajorityofinvestors

arefound

to

be

conscious

and

enlightened

regarding

their

investment,

returns

and

growth.

WehaveverygoodmarketinChennaiwhich comprisespotentialinvestorsbutduetolackofbasic

promotion andpublicity these investors arenot fully awareofour company andwho soever is

awareofthecompanytheirinvestmentdecisionsaredoneonthebasisofsecurity,analysisofrisk

yieldandreturnfewparameterslikedemographic,physiological,incomeetc.

Etrading account is a unique combination of saving account; demat and online share trading

accountasnootherdepositoryprovidesallthethreefacilitiestogether.

So my findings are that Kotak securities should make little more efforts to trap the potential

investors, like media advertisements, paper advertisement, seminars and business meets and

building a good relationship with potential business, more over friendly guidance.


62/68


63/68

`


64/68

BIBLIOGRAPHY

Books

NCFM Basic Module Security analysis and Portfolio management (Punithavathy Pandian) Financial Accounting (T.S. Reddy and Hari Prasad)

Websites

www.Kotak.com www.Kotaksecurities.com www.google.com www.nseindia.com www.bseindia.com www.tradeonline.com
http://www.kotak.com/http://www.kotak.com/http://www.kotakstreet.com/http://www.kotakstreet.com/http://www.google.com/http://www.google.com/http://www.nseindia.com/http://www.nseindia.com/http://www.bseindia.com/http://www.bseindia.com/http://www.tradeonline.com/http://www.tradeonline.com/http://www.tradeonline.com/http://www.bseindia.com/http://www.nseindia.com/http://www.google.com/http://www.kotakstreet.com/http://www.kotak.com/


65/68


66/68

QUESTIONNAIRE

1. In which DP you have account?

a. ICICI Bankb. Kotak Securitiesc. HDFCd. India bulls

2. Are you aware of Kotaksecurities.com?

a. Yes b. No


67/68

3. Which trading pattern do you generally prefer?

a. Intradayb. Delivery basec. Future & options

4. How frequently do you trade?

a. Dailyb. Weeklyc. Monthlyd. Fortnight

5. Expectations regarding the growth of investments?

a. Averageb. Higherc. Low

6. Perception with respect to return

a. Above Inflation rateb. High returnc. Safety to principal

7. Investors knowledge regarding Investmenta. Averageb. Goodc. Low

8. Age Groupa. 20 30


68/68

b. 31 50c. Above 50

9. What you will do if stock market crashes down?

a. Wait and watchb. State of withdrawalc. State of investment

Suggestions:

______________________________________________________________________________

______________________________________________________________________________

_________________________________________________________

Your answer will be kept confidential

Thank You

Have a Nice day

Business Plann

Documents

Transcript of Business Plann