Comparative Analysis of Bro King Firms u 1303488265833 b u

8/6/2019 Comparative Analysis of Bro King Firms u 1303488265833 b u

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Contents

S/NO. TOPICS PAGE NO.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Acknowledgement

Declaration

Objectives

Introduction

Company Profile

Different players in the Industry

Activation and Other Charges Of

Different Co.

Data Analysis

Findings

Annexure

Bibliography

3

4

5

6

8

12

13

14

20

21

22


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Acknowledgement

Preservation, inspiration and motivation have always played a key

role in the success of any venture. In the present world of competition and

success understanding of theoretical and practical working makes you

aware about the real Business; willingly we prepared this particular project.

We would like to thank our faculty Prof. Samarjeet Sen Gupta to give

us the opportunity to do this project.

We would also like to thank the Microsec Capital Ltd. for helping us

to provide the information about their broking firm.

And finally, we would like to thank EIILM for providing us the

platform to do this project and to learn about the different broking firms.


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Declaration

We the student of Eastern Institute for Integrated Learning in Management,

Kolkata , declare that this project report title ACOMPARITEIVE STUDY OFVARIOUS BROKING FIRMS submitted, is our original work and has not

been previously submitted as a part of any other degree or diploma of

another Business school or University.

The findings and conclusions of this report are based on our personal study

and experience.


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Objectives

1. To know the customers preference in different sector of

investment and to know what are the factors consider mostimportant in order to choose their broking firm.

2. To know the different companies Activation and Other charges.

3. To know about the different broking firms and to make a

comparison between them with the help of primary and

Secondary Data.


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Introduction

The Bombay Stock Exchange (BSE) and

the National Stock Exchange of India Limited

(NSE) are the two primary exchanges in India.

In addition, there are 22 Regional Stock Exchanges. However, the BSE andNSE have established themselves as the two leading exchanges and account

for about 80% 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

Rs851crore in 1997-98 to Rs1284crore in 1998-99 and further to

Rs2273crore in 1999-2000. NSE has around 1500 shares listed with the

total market capitalization of around Rs9, 21,500crore.

The BSE has over 6000 stocks listed and has a market capitalization

of around Rs9, 68,000crore. Most key stocks are traded on both the

exchanges and hence the investor could buy on either of the exchanges.Both exchanges have a different settlement cycl e, which allows investors to

shift their position on the bourses. The primary index of BSE in BSE Sensex

comprises 30 stocks. NSE has the S&P NSE 50 Index (Nifty), which consists

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

Both these indices are calculated on the basis of market capitalization and

contain the heavily traded shares from key sectors.

The markets are closed on Saturdays and Sundays.

Both the exchanges have switched over from the open

outcry trading system to a fully automated computerizedmode of trading known as BOLT (BSE On Line Trading)

and NEAT (National Exchange Automated Trading)

system. It facilitates more efficient processing, automatic

order matching, faster execution of trades and

transparency.

The scrip traded on the BSE has been classified into A,

B1, B2, C, F, and Z groups. The A group shares represent those, which

are in the carry forward system (Badla). The F group represents the dept

market (fixed income securities) segment. The Z group scrip is the

blacklisted companies. The C group covers the odd lot securities in A,

B1, & B2 groups and Rights renunciations. The key regulator governing

Stock Exchanges, Brokers, Depositories, Depository participants, MutualFunds, FIIs and other participants in Indian secondary and primary market

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


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Financial Market

MONEY MARKET:

The Money Market refers to the market where borrowers and lenders

exchange short-term funds to solve their liquidity needs.

CAPITAL MARKET:

The Capital Market is a market for financial investments that are

direct or indirect claims to capital (Gart, 1988).

SECURITIES MARKET:

It refers to the markets for those financial

instruments/claims/obligations that are commonly and readily

transferable by sale. It has two inter-dependent and inseparable segments,

the new issues (primary) market and the stock (secondary) market.

Primary Market

Securities generally have two stages in their lifespan. The first stage is

when the company initially issues the security directly from its treasury

at a predetermined offering price. This is a primary market offering. It is

referred to as the Initial Public Offering (IPO). In Primary market,

securities are offered to public for subscription for the purpose of

raising capital or fund.

Secondary Market

Secondary market refers to a market where securities are traded after

being initially offered to the public in the primary market and listed on

the Stock Exchange. Majority of the trading is done in the secondary

market. Secondary market comprises of equity markets and the debt

markets.


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Company Profile of Microsec

Microsec endeavors to provide services in the arena of Financial

Services which includes Equity & Derivatives Trading on NSE and

BSE, Commodities Trading on MCX & NCDEX, Investment Banking,

Insurance, Depository Services, Portfolio Management Services, Mutual

funds-SIP, Mediclaim.

Microsec Capital Limited has its principal offices in Kolkata and Mumbai

with another 250(app.) business locations in 49 Indian Cities/Towns in 13

States. It is an ISO 9000 Certified Process.


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EQUITIES

Microsec Capital Limited is a member of National Stock Exchange of India

and Bombay Stock Exchange and is in the business of distribution of

financial savings products to its clients.

Microsec Group provides services to a wide range of clients. In order to

keep the pace going we have developed our equity broking team which is

equipped with research team, relationship manager, dealers and round the

clock back office.

Microsec add value to people by:

y Providing data source from Bloomberg

y Research Team

y Online Back office support

y Transaction mailed on daily basis & also through SMS.

y Margin Trading

y Man to man interaction

y In house DP


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PRODUCT AND SERVICES PROVIDE BY MICROSEC CAPITAL

LTD.

Equity & Derivatives Trading on NSE and BSE

Commodities Trading on MCX& NCDEX

Investment Banking

Insurance

Depository Services

Portfolio Management Services

Mutual funds-SIP

Mediclaim


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DE-MAT ACCOUNT

Definition:

De-mat account is a safe and convenient means of holding securities

just like a bank account is for funds. Today, practically 99.9% settlement (of

shares) takes place on De-mat mode only. Thus, it is advisable to have a

Beneficiary Owner (BO) account to trade at the exchanges.

Benefits Of De-mat Account:

1. A safe and convenient way of holding securities. (equity and debt instruments

both).

2. Transactions involving physical securities are costlier than those involvingdematerialized securities (just like the transactions through a bank teller are

costlier than ATM transactions). Therefore, charges applicable to an investor are

lesser for each transaction.

3. Securities can be transferred at an instruction immediately.

4. Increased liquidity, as securities can be sold at any time during the trading hours

(between 9:00 AM to 3:30 PM on all working days), and payment can be received

in a very short period of time.

5. No stamp duty charges.

6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with

physical certificates, are eliminated.

7. Pledging of securities in a short period of time.

8. Reduced paper work and transaction cost.

9. Odd-lot shares can also be traded (can be even 1 share).10.Nomination facility available.

11.Any change in address or bank account details can be electronically intimated to

all companies in which investor holds any securities, without having to inform

each of them separately.

12.Securities are transferred by the DP itself, so no need to correspond with thecompanies.

13.Shares arising out of bonus, split, consolidation, merger etc. are automaticallycredited into the De-mat account of the investor.

14.Shares allotted in public issues are directly credited into De-mat account of the

applicants in quick time.

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form.

Although the market regulator, the Securities and Exchange Board of India(SEBI), has allowed trades of up to 500 shares to be settled in physical form,

nobody wants physical shares any more. So a de-mat account is a must for

trading and investing.


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Diffe e Playe s in the Industry


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Activation and other Charges of firms

COMPANY

A/c

Opening

Charges

Brokerage

(Intraday,

Delivery)

AMC Trading

Exposure

Interest

Rate

Debit

Period

Mode of

Trading

Margin

Money

Software

used

Microsec

Capital LtdNIL 3p,30p Rs350pa 5 times 18% T+2 Online/

Offline

Rs5000 NOW

SharekhanNIL 5p,50p 1styr free,

2nd yr

Rs400

4-6 times 19% T+4 Online/

Offline

Rs5000

ICICI DirectRs750 50p,75p Rs500pa 3-4 times 18% T+2 Online/

Offline

NIL Accesed

through net

IndiabullsRs900 3-4p,

30-40p

NIL 4-5 times 17% T+2 Online/

Offline

NIL Power

India Bulls

Angel

brokingRs660 3p,20p Rs225 4-6 times 18% T+2 Both

online/

Offline

Rs5000

/10,000


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Data Analysis

Primary Data collection

Structured questionnaire for customer.

Secondary Data Collection

Journals

Websites

News papers

Research Approach

Descriptive approach

Techniques to be used in Research Approach

Survey and Interview


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D

Fi

di

Tot Sample Si e : 82

Male : 47

Female : 35

Online/Offline Tr

ding

Tot l S pl (82)

online(64)

offline(18)

21.95%

78 04%


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InvestmentPr ductPreference

05

101520

2530


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Mode OfA

reness

05

1015

202530


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Preference forBroking Firm

0

51015

2025


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Factors while choosing a Broking firm

FAC ORS 1 2 3 4 5

L w

br kerage 2.44% 14.63%31.7% 39. 2% 12.2%

Better cust.

service 1.21% 23.17% 37.8% 2 .73%

Brand l yalty

3.65% 7.31% 19.51% 4 .24% 29.26%

Margin

M ney 2.44% 4.87% 31.7% 43.9% 17. 7%G d trading

Tips 1.21% 6.1% 35.36% 3 .48% 26.82%

Timely

Research

rep rt

% 13.41% 45.12% 29.26% 12.2%

Friends refer 1.21% 17. 7% 45.12% 26.82% 9.75%


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Annexure

QUE

TIONAIRE

1. Are you interested in share trading?

a Yes b No

2. Which mode of trading would you prefer?

a

Online b

Offline

3. Which type of product do you invest in?

a

Mutual fund b

Equity c

Commodity d

Insurance e

Others

4. If you trade in future, which broking firm would you prefer?

a

Share khan bIndia Bulls c

Angel broking d

ICICI Direct e

Microsec f

Others

5. How did you come to know about the broking firm?

a

Newspaper bJournals c

TV Advertisement d

Friends e

Internet f

Others

6. How important do you think these factors influence in choosing a broking firm?

Select one

a Low brokerage

Not very important 1 2 3 4 5 Extremely important

b Better customer service


c Brand loyalty


d Margin money


e Good trading tips


f Timely research report


g Friends recommendations



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NAME: AGE:

GENDER: MALE/FEMALE

CONTACT NO:

Bibliography

Internet Referrals:

www.sharekhan.comwww.icicidirect.comwww.nseindia.comwww.google.comwww.indiabulls.com

www.angelbroking.com

Comparative Analysis of Bro King Firms u 1303488265833 b u

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