Comparative Analysis of Indiabull Securities With Other Companies

8/12/2019 Comparative Analysis of Indiabull Securities With Other Companies

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Mentoring Project On

COMPARATIVE ANALYSIS OF INDIABULL SECURITIESWITH OTHER COMAPNIES

Submitted in the Partial Fulfilment for the Requirement of Post

Graduate Diploma in Management

(PGDM)

Submitted to: Submitted by:

DR.GARIMA SACHDEVA Pratyush joshi

(Project Guide) ROLL NO 71

Batch(2013-15)

Jagannath International Management Kalkaji, New Delhi


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Table of contents

S.no Topic Page no

1 Acknowledgement

2 Executive summary

3 Objective of the study

4 Company overview

5 History

6 Why indiabull securities

7 Overview of the stock market

8 Methodology

9 Limitations

10 SWOT analysis of india infoline

11 SWOT analysis of indiabulls

12 SWOT analysis of icici direct

13 SWOT analysis of Angel broking

14 SWOT analysis of Share khan

15 Recommendations

16 conclusion

17 Biblography

18 Questionnaire

19 Glossary/Terminology


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ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to

my guide Dr. Garima Sachdeva for her exemplary guidance, monitoring and

constant encouragement throughout the project.

I also take this opportunity to express a deep sense of gratitude to

Mr. Ravikant Chopra,Indiabull Securities Ltd. for his cordial support,

valuable information and guidance which helped me in completing this task

through various stages.

Above all i thank god, the almighty has been of inspirat ion who throughout

standby me in my entire endeavour to complete the successful work of mine.


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EXECUTIVE SUMMARY

The objective of the study was to do the competitive analysis of DP

service and broking service provided by INDIABULLS SECURITIES and

its major competitors in Delhi region on the basis of marketing strategy .The study

was conducted to measure the customer satisfaction level of I n d i a b u l l s

S e c u r i t i e s . S t u d y w a s f o c u s e s o n c l i e n t s w i t h i n d e l h i r e g i o n

Indiabulls Securities provides many products and services but we focused

our study on DP services and Broking services only. Outcome of the analysis shows

that though INDIABULLS SECURITIES is new player In the market , that is

why they are still behind in many more factors and they need to

improve those factors . Some recommendations are

given to improve. (Project study has been done with the help of primary and

secondary data.)


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Objectives of the study:

1. To study the working procedure of Indiabulls investment solution as a

broking House.

2 .To study the Indiabulls Securities Competitors weaknesses in relation

to Indiabulls

.

3 To analyze the product& services of Indiabulls investment solution.

4. To analyze the customer reflection on investment sector.

5 .To study on customer portfolio.


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Company Overview

Type Public company

Traded as NSE : INDIABULLS

BSE : 532544

Industry Financial Services , Real Estate ,Power

Founded January, 2000

Headquarters Gurgaon , India

Key people Sameer Gehlaut Chairman & CEO, Rajiv Rattan, Vice Chairman, Saurabh Mittal, Vice Chairman

Products Securities , Consumer Finance ,Mortgages , Real Estate

Revenue Rs. 6571 Crore($ 1.07 billion)

Net income Rs. 1,454 Crore ($ 238 million)

Total equity Rs. 19,356 Crore ($ 3.17 billion)

Employees ~ 9000 (2014)

Website www.Indiabulls.com
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532544http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532544http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532544http://en.wikipedia.org/wiki/Financial_Serviceshttp://en.wikipedia.org/wiki/Financial_Serviceshttp://en.wikipedia.org/wiki/Electrical_power_industryhttp://en.wikipedia.org/wiki/Electrical_power_industryhttp://en.wikipedia.org/wiki/Electrical_power_industryhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Consumer_Financehttp://en.wikipedia.org/wiki/Consumer_Financehttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Equity_(finance)http://www.indiabulls.com/http://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/File:Indiabulls_logo.svghttp://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/File:Indiabulls_logo.svghttp://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/File:Indiabulls_logo.svghttp://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/File:Indiabulls_logo.svghttp://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/File:Indiabulls_logo.svghttp://www.indiabulls.com/http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Consumer_Financehttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Electrical_power_industryhttp://en.wikipedia.org/wiki/Financial_Serviceshttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532544http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Types_of_business_entity


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Indiabulls Group is an Indian conglomerate headquartered in Gurgaon

with business interests in financial services, real estate, power and

information technology. Indiabulls Group was founded in 2000 by three

IIT Delhi classmates Sameer Gehlaut , Rajiv Rattan and Saurabh Mittal.

The Group has 7 listed companies each operating independently with a

combined market capitalization of INR 13,376 Crore ($ 2.19 billion).

The major Indiabulls Group companies are Indiabulls Housing Finance

Ltd., Indiabulls Real Estate Ltd., Indiabulls Power Ltd., Indiabulls

Securities Ltd and IB Technology. During the year 2012-13 the group

had combined revenues of Rs. 6,571 Crore ($ 1.07 billion) and earned

profit after tax of Rs. 1,454 Crore ($ 238 million). The net worth of the

Group as on 30th September 2013 stood at Rs 19,356 Crore ($ 3.17

billion).

HistoryIn middle of 1999, when e-commerce was just about starting in India,

Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together

and bought a defunct securities company with a NSE membership and

started offering brokerage services. A Few months later, their friend

Saurabh Mittal also joined them. By December 1999, the companyembarked on its journey to build one of the first online platforms in India

for offering internet brokerage services. In January 2000, the 3 founders

incorporated Indiabulls Financial Services and made it as the flagship

company.

In mid 2000, Indiabulls Financial Services received venture capital

funding from Mr L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls
http://en.wikipedia.org/wiki/Sameer_Gehlauthttp://en.wikipedia.org/wiki/Sameer_Gehlauthttp://en.wikipedia.org/wiki/Sameer_Gehlauthttp://en.wikipedia.org/wiki/Sameer_Gehlaut


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Securities, a subsidiary of Indiabulls Financial Services started offering

online brokerage services and simultaneously opened physical offices

across India. By 2003, Indiabulls securities had established a strong pan

India presence and client base through its offices and on the internet.

In September 2004, Indiabulls Financial Services went public with an

IPO at Rs 19 a share. In late 2004, Indiabulls Financial Services started

its financing business with consumer loans. In March 2005, Indiabulls

Properties Private Ltd, a subsidiary of Indiabulls Financial Services,

participated in government auction of Jupiter Mills, a defunct 11 acre

textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls Properties

private Ltd won the mill in auction and that purchase started Indiabulls

real estate business. A few months later, Indiabulls Real Estate

Company Pvt Ltd bought Elphinstone mill in Lower Parel, another textile

mill auctioned by NTC.

With real estate business gaining size, Indiabulls Financial Services

demerged the real estate business under Indiabulls Real Estate and

each shareholder of Indiabulls Financial Services received additional

share of Indiabulls Real Estate through the demerger. Subsequently,

Indiabulls Financial Services also demerged Indiabulls Securities and

each shareholder of Indiabulls Financial Services also received a share

of Indiabulls Securities.

In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary,

Indiabulls Power to build power plants and started work on building

Nashik & Amrawati thermal power plants. Indiabulls Power went public

in September 2009.


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WHY INDIABULLS SECURITIES ?

Why customer would choose INDIABULLS SECURITIES as a preferred

Service Provider?

Well integrated front and back office, paper and electronic systems. A

focused Client Relation Team to manage your needs & queries. A single

point contact for your comfort . In-house capability to address all IT needs in terms of software

development, maintenance, back office processing,

databaseadministration, network maintenance, backups and disaster rec

overy Multilevel security is maintained in software, applications and guard s

to access to various data, client and internal reports Expertise in running processes utilizing digital signatures.

Constant review and benchmarking of processes to ensure adherence

to global best practices

Insurance cover with international re-insurance

Full Confidentiality of business operations

VALUES OF INDIABULLSSECURITIES

Safety & Efficiency of Operations is a hallmark of INDIABULLS SECURITIES

Professionalism & Integrity

Customer First


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Relationship building

Commitment to Quality irrespective of asset size

Indian Stock Market Overview

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

Ltd (NSE) are the two primary exchanges in India. In India, in addition, there

are 22 Regional Stock Exchange. However, the BSE and NSE have established

themselves as the two leading exchanges and account for about 80 percent of

the equity volume traded in India. 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 Rs9, 21,500 crore

(Rs 9215-bln). The BSE has over 6000 stocks listed and has a market

capitalization of around Rs 9,68,000 crore (Rs 9680-bln). 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 NSE50 Index (Nifty), which consist of fifty stocks. Both theexchanges have switched over from the open outcry trading system to a fully

automated computerized mode 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 scrips traded on the BSE have been classified

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


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those, which are in the carry forward system (Badla). The F group represents

the debt market(f ixed income securities) segments. The Z group scrips are the

blacklisted companies. The C group covers the odd lot securities in A, B1

& B2 groups and right renunciations. The key regulator governing Stock

Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FII

and other participants in Indian secondary and primary market is the Securities

and Exchange Board of India (SEBI) Ltd.

Working of the stock Market

A person desirous of buying/selling shares in the market has to first place his

order with a broker. When the buy order of the shares is communicated to the

broker he routes the order through his system to the exchange. The order stays

in the queue exchanges systems and gets executed when the order logs on to

the system within buy limit that has been specified. The shares purchased will be sent to the purchase by the broker either in physical or demat format.

Rolling Settlement Cycle

In a rolling settlement, each trading day is considered as a trading period andtrades executed during the day are settled based on the net obligations for the

day. At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i.e.

on the 2 nd working day. Typically trades taking place on the Monday are settled

on the Wednesday, Tuesdays trades settled on Thursday and so on.


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Primary Markets

Securities available for the first time are offered through the primary securities

markets. The issuer may be a brand-new company or one that has been in

business for many, many years, like that of MARUTI. The securities offered

may be a new type for the issuer or additional amounts of a security used

frequently in past. The key is that these securities absorb new funds for the

coffers of the issuer.

Secondary Markets

Once investors have purchased new issues, they change hands in the secondary

markets. There are actually two broad segments of the secondary markets the

organized exchanges and the over-the-customer (OTC) market. The primary

middlemen in the secondary market are brokers and dealers. Broker act as an

agent while dealer as a principal in a transaction.

Organized stages are physical market place where the agent of buyers andsellers operate through the auction process.

Depository

The organization responsible to maintai n investors securities in the electronic

from is called the depository. In other words, a depository can therefore beconceived of as a Bank for securities. In India there are two such


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organizations viz. NSDL and CDSL.The depository concept is similar to the

banking system with the expectation that bank handle funds whereas a

depository handles securities of the investors. An investor wishing to utilize the

services offered by a depository has to open an account with the depository

through a depository participant. Depository participant: the market

intermediaries through whom the depository services can be availed by the

investors are called a Depository Participant (DP).

Indian online share trading

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

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

the Internet known as online brokers, they allow you to buy and sell shares via

Internet. There are 2 types of online trading service:

Discount brokers

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

provide quality research, other dont.

Full service online

Full service online brokerage is linked to existing brokerages. These brokersallow their clients to place online orders with the option of talking/ chatting to

brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com,

ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com,

HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking

sites in India.


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Factors investors keep in mind while selecting online

brokers in India

Brokerage cost

It is important to weigh up the subscription and trading costs charged by an

online broker against benefits offered by the site. All online brokers display

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

with others you will have to search a bit.

Security

Please make sure site has 128-bit encryption to ensure safety of transaction

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

advisable to frequently change trading password. Ideally online trading site

should be fully integrated. The greater the backward integration, the better it is

for the customer. Ideally broking account, Demat account and bank accountshould be linked electronically.

Rate refresh


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

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

of online broking sites with BSE/ NSE terminal rates.

Speed of execution

System has to be fast and reliable that does just one job - executes your trades.

The last thing you need is a site that is heavily congested with the users who are

downloading heavy jpeg graphs or pulling the latest story why market is

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

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

confirmation of action.

Trading Exposure

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

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

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

buying of shares.

Free trial period

Site should allow users free trial period to familiarize yourself with system

before you decide to become trading member of the site.


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Intraday chart/ historical chart

The site should provide intraday chart tick-by-tick time and price data /

historical chart for technical analysis by investors of particular scrip. Lot of people trade based on charting packages.

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

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

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

Please read terms and condition of each site before commencing to deal with

them. As per SEBI rule, Photo id proof and current address proof is a must for

opening trading account.

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

investors. 80% of South Korea and 30%-40% US trade are executed online. If

you want to deal in shares, thereto deal in shares, there is no easier way.

Sensex and Nifty

Sensex and Nifty are the two important indices that track the Indian equity

market. There are however many differences in their construction and

behaviour. Investors must choose one between the two to benchmark their

portfolios. It is sometimes seen that these indices move with a low correlation to

each other, that is to say that they are not moving together.


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Finally, indices are useful in modern financial applications of derivatives.

Indices serve as the underlying for Future & Options products. In the

Indian market, both Sensex and Nifty are underlying for Futures and

Options contracts.

Margin Trading

Margin Trading is nothing but borrowing money to invest in stocks, Here the

investor borrows money from his/her broker to invest in stocks through the

same broker. The margin here is the money actually borrowed from the broker. The margin loan can be up to 50% of the total amount invested. This

effectively means that you can invest in shares worth Rs 100 by borrowing Rs

50 from your broker. This is called buying shares on a 50% margin. If the value

of t he shares goes down, the investor has to pay a maintenance margin to

bring the margin up to 40% of the market value of the shares. This margin is

paid when the broker makes a margin call to the investor, and investor has to

pay the difference between current margin and maintenance margin to take it to

40%. If the margin falls below 30%, the broker has the discretion of liquidating

the clients holdings and thus recovering the loan advanced.

Risks in Margin Trading:

You can lose more money that you have invested

You may have to deposit additional cash or securities in your account on

short notice to cover market losses;


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You may be forced to sell some or all your securities when falling stock

prices reduce the value of your securities

Your brokerage firm may sell some or all of your securities without

consulting you to pay off the loan it made to you.

Benefits of Margin Trading:

I. The main benefit of Margin Trading for the investors is that it servesas an avenue for the investor who wants to buy more shares than

the cash available.

II. The investor leverages the transaction and aim to make more

money on the investment than the interest payable on the margin

loan.

III. It can be very effective tool in the hands of the experienced andheavy trades, who can invest up to double his investible sum in the

hope to earn high profits .

IV. Trading on Margin improves liquidity in the market. With lesser

amounts of cash with investors, they can assume higher risk and

can invest in higher value of stocks.

V. The Official and structured market for Margin Trading will most

likely lead to an expansion of day trading activity in the market.

Day Trading provides the market needed liquidity to the equity

market.


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Online Trading

Investors can have complete control of their stock investing actions, now that

they have the convenience of buying and selling shares on the NSE online and

in real time. Each individual has access to the latest information and tools to

analyse any stock investment decision. Plus the power to execute the sale or

purchase right before them on their personal computer screen.

Advantages of online trading:

The convenience of desktop investment-trade from anywhere at any time.

Not just online but real time-from placing an order to having it executed-in

a few seconds.

Continuous feedback of all transactions orders and their status.

three level security via Firewalls, data encryption using Secure Socket Layer

(SSI) technology, User IDs and Passwords i.e your personal information

remains for your eyes only.

Online access to a wealth of live information that can facilitate better

investment decisions.


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METHODOLOGY

This is a two dimensional project focusing on two aspects, as alreadymentioned (objectives). For my project work I have focused on both

primary and secondary data as well.Basically any research work proceeds as:


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Fig: 1

For this project my challenge was to find out the factors and thecompetitive advantages. For which I conducted a descriptiveresearch.

I have collected primary data through questionnaire and survey.

For secondary data , company records, some reviews ineconomic times, data on money control site, some onlineresearch works have been referred.


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I have taken some factors in my survey so my population size isof 66. I have targeted only investors, who were customers,general investors and company employees.

For rest my own analytical skill is used.

LIMITATIONS OF STUDY

The population size is limited to delhi area. There may be redundancy of data or area surveyed. Due to time and resource constraints some important segment of population might have been missed out.


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SWOT ANALYSIS OF INDIABULLS

This is a strategic planning method to evaluate the Strength,

Weaknesses (limitations), Opportunities and Threats involved in a

project or business venture. It involves specifying the objectives of

the business venture or project and identifying internal and external

factors that are favorable or unfavorable to achieve it. This technique

is credited to Albert Humphrey of Stanford University.


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Online trading platform. Diverse branches and networks provide a great

oppourtunity to cater tapped and untapped

market as well. Provides competitive brokerage and DP charges. Equity analysis reports to support its clients. Both online and offline trading facility. Real time online transfer of funds and exposure

facility with HDFC, Citybank, ICICI, etc

Strength

It should have its own mutualfunds asit provides advises onmutual funds.

Position to answer the questionsof the clients in their fields.

It does not provide indices onmajor world markets, ADR

prices of Indian scripts. Lacks banking arm

Weaknesses


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Financial services like mutual funds andinsurance.

It is registered with Luxemberg StockExchange so can target other stockexchanges also.

ATM facility should be provided foreasy withdrawals.

Tie-ups with third party companies forselling products.

High client base will help for cross salesof its products.

Oppourtunities

Companies like Sharekhan, ICICIDirect, Kotak Securities, and private

brokers are major threats. Banks with demat facilities are

jockeying for position. Local brokers capable of charging

lower brokerage.

Changes in SEBI guidelines and othertax implications.

Government regulations

Threats


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COMPARISON OF INDIABULLS BROKERAGE SERVICES

COMPARISON OF DELIVERY AND INTRADAY

*MMC Minimum Monthly Charges.

Fig: 35


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COMPARISON OF VARIOUS RATES

FIRMS

FACTORHDFC SHAREK

HANMOTILAL

OSWALICICI KOTAK INDIABULLS

BROKERAGE

5p to 50p 5p to 25p 5p to50p,1p-10p ( min)

3p to 25p 4p to 40p 2p to 20p or1p to 10p (min)

MINIMUMAMOUNT

Rs 10000,Rs 0(for bigcorporate

clients)

Rs 10000 Rs 50000 Rs 0 Rs 10000 Rs 0

MINIMUMOPENINGCHARGES

Rs 799 Nil Rs 200 Rs 555 Rs 550 Rs 950

PRODUCTS -Equity, featuresand options,ETF, IPO,mutual funds.-Do it yourselfsystematicinvestmentplanning, and-NRI offerings,loans, FD.

TradeTigers,IPO, MFonline,contract noteon paper,and ODINSoftware.

ETF, IPO,mutualfunds, andNRIofferings.

IPO,MutualFunds,andCommodities

K-25 andT-25.Brokerage,IPO,MutualFunds,Commodities.

IPO, MutualFunds, RealEstate, Homeloans, Commodity,and Derivatives.

SERVICES-J2 ME windows,blackberry,android, iphone.- Call and trade,online andoffline servicesfor different timezones.

Brokerageservices,trade onmobile,online, calland trade,dedicateddealer deskat every city.

Call andtrade.

Brokerage-e andbankingservices.

Brokerageandbankingservices.

Brokerage, Onlineand OfflineTrading availableon all phones, Noextra charges oncalls from clients.

QUALITY OFSALESPERSON

Good Good Good Good Good Good

PROCESS T+2 days T+2 days T+2 days T+2 days T+2 days T+2 days


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PRICE COMPARISON CHART

Fig: 37

In the above price band, Indiabulls is facing somewhat strongcompetition from Sharekhan, as it is more or less near to what

Indiabulls is charging. At the same time Kotak Securities also poses a

threat because of the improved technology used by them and constant

research and development. Where ICICI Direct is a little below

Kotak. Motilal Oswal and HDFC both are commodity side of the

graph with relatively higher prices charged for their product. Thus

with its current pricing Indiabulls enjoys price leadership as far as

brokerage is concerned.


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SWOT ANALYSIS OF COMPETITOR FIRMS

SWOT OF SHAREKHAN

Market share leadership. High Research and

Development. Strong management team,

financial position andcompetitive pricing. Reputation management,

Unique products diverse products and offers for thecustomers.

Strong brand recall andstrong reach to masses.

Strength

Diseconomies of scale. Not much differentiated products. More employee turnover. Less small investors.Weaknesses


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Fig: 38

Financial markets (raise moneythrough debt, etc)

Innovation, OnlineProduct andservices expansion.

Penetration in developingcities.

Increase in awareness of peopleabout stock market

Oppourtunities

Competition. Cheaper technology. Economic slowdown. External changes (government, politics, taxes, etc).

Exchange rate fluctuations.

Threats


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SWOT OF INDIA INFOLINE

Brand image. Brand experiance. Innovative products.

Strength

High targets for thefinancial advisors and salesdepartment.

Many competitors, lessdifferentiated products.

The reach in semi-urbanareas and rural markets is

still very less.

Weaknesses


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Fig: 39

Growing FinancialServices industry's shareof wallet for disposableincome.

Regulatory reforms wouldaid greater participation byall class of investors.

Leveraging technology toenable best practices and

processes.

Increased appetite (need)of Indian corporate forgrowth

Oppourtunities

Execution risk. Slowdown in global

liquidity flows. Increased intensity of

competition from local andglobal players.

Unfavorable economicconditions.

Threats


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SWOT ANALYSIS OF ICICI DIRECT

Banking arm. Upgraded product design

and development facilitiesto develop new products.

Ongoing activities tosupport up gradation ofoperational performance.

Team of talented andcommitted professionals

available to improvecompanies performance.

Strength

Not innovative.

Not diversified

high employee turnoverless.

small investorsWeaknesses


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Innovation.

Increse in penetration inthe market.

Oppourtunities

Constant pressure to be costcompetitive to meetcustomer expectations.

Threats


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Fig: 40

SWOT OF MOTILAL OSWAL

Large and diversedistribution network.

Strong research and salesteam..

Brand recognition.

Experienced topmanagement.

Strong financial results.

Strength

Charges are high compare toother companies in industry.

Weaknesses


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Growing FinancialServices industry's shareof wallet for disposableincome.

Regulatory reforms wouldaid greater participation byall class of investors.

Leveraging technology toenable best practices and

processes. Increased appetite (need)

of Indian corporate forgrowth capital.

Oppourtunities

Execution risk.

Slowdown in globalliquidity flows.

Increased intensity ofcompetition from local andglobal players.

Unfavorable economicconditions.

Threats


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SWOT OF ANGEL BROKING

Service

Distribution network

Products

Strength

Customer Satisfaction.

Branding.

Competition from Banks.

Weaknesses


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Fig: 42

Ever increasing market.

Improving technology.

Unfulfilled needs ofcustomers..

Education level.

Oppourtunities

New competitorsTechnology based business.

Threats


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Bibliography

1) www.nseindia.com

2) www.sebi.gov.in

3) www.indiabulls.com

4) www.kotakstreet.com

5) www.indiainfoline.com

6) www.yahoofinancials.com

7) www.hindubonline.net

10) www.icicidirect.com
http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.kotakstreet.com/http://www.kotakstreet.com/http://www.kotakstreet.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.yahoofinancials.com/http://www.yahoofinancials.com/http://www.yahoofinancials.com/http://www.hindubonline.net/http://www.hindubonline.net/http://www.hindubonline.net/http://www.hindubonline.net/http://www.yahoofinancials.com/http://www.indiainfoline.com/http://www.kotakstreet.com/http://www.indiabulls.com/http://www.sebi.gov.in/


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Questionnaire

Q1. Do you invest?

a)Yes b) No

From this graph i can interpret that 83.3% investors invest and 16.6% investors

are not interested in investing.

Q2). Which firm do you prefer for investment?

a)Indiabulls Securities

INVEST

YES=83.3

NO=16.7


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b ) I I L

c) Kotak Securities

d) Motilal Oswal

e) ICICI Direct

f ) O t h e r s

From this graph i can interpret that investors invest 30.3% in each indiabull

securities and kotak securities, 7.57% in motilal oswal, 22.72% in Icici, & 6% in

others.

Q4 Which feature do you prefer for selecting the broking firm?

.a) Past record of company

b) Brokerage

c) Goodwill of the company

d) Service quality e) Ot he rs

0

5

10

15

20

25

indiabull kotak motilal oswal icici others

investment

investment


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From this graph i can interpret that 45.4% investors see the past record of the

company, 22.7% investors see brokerage services, 15% see the goodwill of the

company, 7% investors see the service quality & 6% see others

0

5

10

15

20

25

30

past record brokerage goodwill servicequality

others

Series 1

Series 1


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Q5. What is your purpose to invest in stock market?

a) Sav ing

b) Short term gains

c) Long term gains

From this graph i can interpret that37.8% investors looking for

long term gain, while 45.4% investors looking short term gain,

& 22.7 looking for saving.

Q6. How long have you been to invest in the stock market?

Series 1

0

5

10

15

20

25

30

long term gain short term gainsaving

Series 1

Series 1


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a) Less than 1 year

b)1-3 year

c ) 3 -5 yea r

d) More than 5 year

From the graph it is clear that 15% of investors ve been investing since

less than 1 year ,37.8 % more than 1 year, 30.3% more than 3 year &

16.6% more than 5 year.

Q7. What is your investing money range for stock?

a) Rs.0-50000

b) Rs.50000-100000

c) Rs.100000-500000

d) Rs500000 and above

0 5 10 15 20 25 30

< 1yr

1-3yr

3-5yr

5yr>

investors

investors


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From the graph its very clear that most range of investors 60% invest

upto 50k, 30.3% investors invest up to 1L, 9% range of investors invest

Up to 5L and 1% investors do not invest more than 5L.

Q8. How you invest your money?

a) Month ly

b ) Qua r t e r ly

c ) Ha l f yea r ly

d ) Annua l ly

0

5

10

15

20

25

30

35

40

45

0-50k 50k-1L 1L-5L 5L=>

investors

investors


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From the graph it can interpret that 68.1% investors invest monthly,

15.1% investors invest quarterly, 9.09% invest half-yearly,& 7.57%

invest annually.

investors

monthly=68.1

qauterly=15.1

half-yearly=9.09

annually=7.57


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RECOMMENDATION

After doing my project work by survey of market position following

recommendations is required for Indiabulls to take top position in

investment sector.

Need different strategy for different sector of equity.

For equity market they need to pull the young generation 0f 20-35yrs. Who are ready to take risk as client ? Also need to look after the

old client properly.

Indiabulls have to search those clients who are investing their money

monthly and yearly basis.

I t is more profi table for the company get those cl ients who

are invest ing10%-

20% from their income because these types of people have

a largenumber in market. So these types of people increase the no of

client of the Company which is the profitable for the company.

Indiabulls should build up a good relation with their customer.

Indiabulls should give extra facilities to their client than other broking

houses


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Conclusion Public have a good response about the investment market.

Public prefer the risk factor than quick profit.

Investment sector has a g o o d market in future.

Public preferred short term investment than long term.

Public preferred to invest either monthly or yearly basis

than quar ter ly andyearly basis.

Major part of public paid tax for their investment

Young generations are more interested to the equity market.


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Book Closure- Before a company declares a dividend or issues bonus or rights

shares, it closes its register of members for a certain period, from one week toa month, during which no transfer of shares is registered.

Brokers- are intermediaries who compete for the right to help people buy or

sell something of value on his clients behalf.

Bulls-Those who buy shares in anticipation of increase in price.

Call Option- Right to buy at fixed price.

Capital Market- includes primary market, securities market term lending

institutions, banks, investors engaged in providing long-term capital (whether

equity capital or debt capital) to the Industrial Sector.

Commodities Market- Market for trading bulk & basic goods like grain, edible

oils, rubber, cotton, metals, etc. Certain special items like tea & coffee are

traded in auctions with inspection facilities for the goods.

Day Trading- Buying and selling the same share during a single day, hoping to

make a profit from price fluctuations.


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Depth market - refers to the number of participants in the market ready to

transact at a given price to ensure sufficient liquidity.

Derivatives- is a product whose value is derived from the value of underlying

asset, index etc. The underlying assets can be equity, forex commodity, or any

other asset.

Government Securities- means a security created & issued by the Central

Government or State Government for the purpose of raising a public loan.

Grey Market- Unofficial premium market in which new, not-yet-listed shares

rebought and sold.

Equity Market - Ownership of tangible assets are bought & sold in Equity

Market.

Ex-Dividend Date- A publicly announced date on or after which a buyer will notbe entitled to the dividend declared on a share. The share price is usually

shade lower on the ex-dividend date.

Exercise- To put into effect, the right to buy or sell.


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Financial Market - provide the channel for allocation of savings to investment

& provide a variety of assets to savers as well as various forms in which the

investors can raise funds.

FI- Financial Institution

FII-Financial Institutional Investor

Floor Broker- A person who actually does the buying & selling of shares on

behalf of a member of the stock exchange for a small share of the commission

charged by a broker.

Forward Dealing/Trading -Contracts to buy or sell specific quantities of goods,

currency, or freight at a stated price and a stated time in the future. Forward

contracts are bought & sold in the FUTURES MARKET.

Futures- Shares or commodities bought or sold for delivery at a future date.

These can be sold at a profit before delivery if prices in the market have

changed.

Holding the Market- Market intervention by public corporations like the UTI or

LIC with large buy orders of shares to stabilize a falling market. It is a part of

their government mandate.


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Hot Shares- 1. Shares in great demand.

2. Stolen shares.

In-and-Out Trader- One who buys and sells the same share in the course of the

trading day, hoping to profit from sharp price movements & keeps no over-

night position.

IPO- Initial Public Offering. New shares offered to public in the Primary Market.

Jobbers- Brokers broker. One who specializes in specific securities catering to

the needs of other brokers.

Liquid Market - One where the size of an order creates minimal affects on the

transactions price.

Lot-A fixed number in which shares are bought & sold.

Low-The lowest price paid for a share in the last twelve months.


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Mark Down- When a broker is buying shares on his own account from a

customer he takes the best Bid Price and deducts a commission, which is the

mark down.

Mark Up- When a broker is selling from his own account to a customer, he

charges the best Ask Price and adds a commission, which is the mark up.

Market at Rest- The days closing prices that are taken into account while

preparing share price movements charts.

Market Capitalization- The total market value, at the current stock exchange

list price, of the total number of equity shares issued by a company.

Market Order- Order to the stockbroker to buy or sell a share at the best

available price.

Market Price- The last reported price of a share at which it was sold on thestock exchange.

Market Lot- Each Company specifies the minimum number of securities, which

makes an even or market lot.


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Margin- The difference in prices at which a Jobber will buy and sell. Also called

a Haircut .

Margin Account- An account with a brokerage firm, which will allow the client

to buy shares with money borrowed from the broker. Margin requirements

can be met with a deposit in cash or shares.

Maturity- Day on which option is exercised.

Meltdown- The phenomenon of fast, uncontrolled fall in share prices.

Member Code- A unique code given to each member of the stock exchange to

enable the clearinghouse to check his payment or delivery position.

Member Firm- A brokerage firm which has at least one membership on a

major stock exchange.

MIT- Market If Touched. A limit order which automatically becomes a market

order when the price is reached.

Nave Buy-and-Hold Strategy- Selecting shares randomly, buying them, and

holding them regardless of any information available in the market.


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Naked Call Writing- Selling a call option on shares the writer does not own.

Naked Option- A Call option for which the seller does not own the supporting

shares.

One Way Market- A market dominated by only buyers or sellers.

Out of the money- Option exercised price is above (in case of call) or below (in

case of put) prevailing price of underlying asset.

Over the Counter Market or OTC Market- A market where shares which are

not listed on the stock exchange are traded.

Panic Selling- A condition of the stock market in which not only inexperienced

investors, but also sturdy bulls, take fright and start selling.

Portfolio- Combined holding of many kinds of financial securities- shares,

debentures, government bonds, Unit Trust certificates, and other financial

assets. Reducing risk by diversification and maximization of gains are the

primary objects.


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Portfolio Manager- A professional who manages other peoples or institutions

investment portfolios with the objectives of profitability, growth and riskminimization.

Premium- 1. A price above the face value of a share or any other financial

security.

2. Price paid for buying an Option.

Price Gap- A shares high and low during a day does not overlap the prices on

the previous.

Profit Booking- Selling shares when their prices have risen above their

purchase price.

Profit Taking- Selling a share, bought when its price was relatively low, when

the market price has risen.

Punter- Small speculator who hopes to make a quick buck by buying shares,

holding them for short period, and selling them to make a quick profit.

Purchase Order- Written instruction to a share broker to buy or sell particular

shares in a particular way.


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Put Option- Right to sell at fixed price.

Quotation- Highest bid and lowest offers for a share.

Quoted Price- The price at which a share was last bought and sold on the stock

exchange.

Quoted Shares- The shares of a company which are officially registered on a

stock exchange, and whose prices are quoted on the Official List.

Rally- Noticeable rise in the price of a share, or a noticeable rise in the share

market index, after a period of stagnancy or a declining trend.

Ramping- Large-scale buying of a stock from the market with the object of

boosting the image of the stock and the company behind it to increase its

demand and consequently its price.

Rate of Turnover- Total annual sales divided by the average inventory shows

the speed with which stock has been turned over.


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Record Date- For the purpose of dividend distribution and entitlements to

Bonus or Rights Issues, a company fixes a date on which a shareholder must

officially own shares to qualify.

Resistance Level- A level at which the rise in price of a share has repeated

halted, as there are more sellers at that price than buyers.

Retail Investor- He is the individual buying shares for himself, as opposed to

the institutional investor who buys for others.

Rigging- Manipulation of share prices so as to attract nave investors to buy or

sell shares.

Rights Issue- Issue of shares at par or at a premium by an existing company to

its shareholders in a certain proportion to their holdings, as a matter of their

right to receive preferential treatment.

Roll Over- Transfer of funds from one investment to another.

Round Lot- The minimum number of shares in a trading lot; 10 or 50 in the

case of Rs.10 shares, and 10 or 5 for Rs.100 shares.


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Running Ahead- A broker buying or selling a share on his own account before

his clients order for the same share.

Sauda Book- A book used by members of a stock exchange or their authorizedassistants to record sales and purchase transactions.

Screening Stocks- A process of looking for shares, which meet predetermined,

financial and investment criteria. With computerized share scan the process

has now become much simpler.

Scrip- Share Certificate.

SEBI (Securities & Exchange Board of India)- is the National Regulatory body

for the securities market set up under the SEBI ACT, 1992 to protect the

interests of investors in securities & to promote the development of, & to

regulate, the securities market & for matters connected therewith or

incidental to.

Secondary Market- Place where already issued and outstanding shares are

bought and sold. Distinguished from the primary market in which the issuer

sells shares directly to the investor.

Securities Market- refers to the markets for those financial instruments/

claims/ obligations that are commonly & readily transferable by sale.


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Sellers Market - Characterized by a shortage of shares in the market in relation

to their demand and consequent high prices, indicating a BULL MARKET.

Sell Out- When a client fails to pay and take delivery of the shares bought on

behalf of him by the broker, the broker sells off the shares at the best market

price and the client is responsible for any financial loss to the broker.

Selling Short- Sale of shares, which he doesnt possess, by a speculator.

Sensitive Market- Market easily influenced by good or bad news.

Settlement Date- In a spot delivery contract the delivery of share certificates

and payment for them have to be concluded on the same day or the next day.

In hand delivery contracts the delivery and payments have to be made on an

agreed date, not exceeding a fortnight from the date of contract.

Settlement/Badla Trading Buy share even if we do not have the requisite

amount of money or sell shares even if we do not have the Share Certificates.

Share- A share is one unit of ownership of a company.


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Share Certificate- Documentary evidence of the ownership of a block of

shares.

Shareholder- A person or a legal entity who owns equity or preference shares

of a company.

Share Premium- An amount in excess of the face value of a share charged by a

company on its share issue.

SHCIL-Stock Holding Corporation of India Ltd. Set up in 1988 to provide post-

trade services like holding stocks on behalf of investors.

Specified Shares- The most widely traded shares, also known as GROUP A

SECURITIES, CLEARED SECURITIES,transactions in which are made through the

clearinghouse of the stock exchange.

Spot Delivery- Delivery of shares and payment for the same on the date of

purchase or within 48 hours.

Spot Market- Commodities market in which goods are sold against cash and

delivered immediately.


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Squaring Up- Settling of accounts on ACCOUNTS DAY , by actual delivery of

shares or carrying forward ones transactions to the next account day, by

paying BACKWARDATION.

Stock Exchange- A marketplace where shares change hands for consideration.

An association of individual members called member brokers/ members/

brokers formed for the purpose of regulating & facilitating the buying & selling

securities by the public & institutions at large.

Stock Exchange operates with due recognition from the Government under the

Securities & Contracts (Regulations) Act, 1956. BSE controls 80% of total

volume of transactions.

Stock Option- In share trading, it is the right to buy or sell a hare at a particularprice within a particular period, in order to hedge the investment.

Striking or Exercise Price: Fixed price at which the option may be exercised

and the underlying asset bought or sold.

Take a Position- To buy a share for the long-term.

Take Delivery- Physical acceptance of shares, which have been bought on his

account, by a client.


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Comparative Analysis of Indiabull Securities With Other Companies

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Transcript of Comparative Analysis of Indiabull Securities With Other Companies