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Transcript of Finance Project Burdwan
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ASUMMER TRAINING PROJECTREPORT
ON
Competitive Analysis ofTrading
In
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PREFACE
“A good ro!er system m"st e a le to #ope $it% an e&tremely #omple&
and dynami# environment'(
The microstructure of the stock market in which brokers work is highly
dynamic and volatile. Many stocks are available to be bought and sold, each
exhibiting its own patterns and characteristics that are highly unpredictable.
With so many options and considerations that need to be taken into account, it
is an extremely difficult task for a broker to investigate aspects of the stock
market and consistently provide effective advice to their clients.
Thus, brokers perform their day to day tasks with the aid of a broker system.
!uch a system should provide tools for interacting with exchanges and
performing analysis. "s a conse#uence, these broker systems are #uite large and
complicated by themselves.
This research aims to analysis !tock broker on the basis of their
services, products, growth, and their competitiveness. $ecause !tockbrokers are
one of the main participants in stock exchanges worldwide, they often act as an
agent for their clients, making trades on their behalf. They also act as advisors,
providing suggestions to their clients on what stocks to buy and sell.
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EXECUTIVE SUMMARY
There is growing competition between brokerage firms in post reform India.%or investor it is always difficult to decide which brokerage firm to choose.
&esearch was carried out to find which brokerage house people prefer and to
figure out what people prefer while investing in stock market.
This study suggests that people are reluctant while investing in stock and
commodity market due to lack of knowledge.
Main purpose of investment is returns and li#uidity, commodity market is less preferred by investors due to lack of awareness. The ma'or findings of this
study are that people are interested to invest in stock market but they lack
knowledge.
Through this report we were also able to understand, what are our (ompany)s
*&eliance Money+ positive and strong points, on the basis of which I come to
know what can be the basis of pitching to a potential client.
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INTRODUCTION TO TOPIC
In most industriali ed countries, a substantial part of financial wealth is not
managed directly by savers, but through a financial intermediary, which implies
the existence of an agency contract between the investor *the principal+ and a
broker or portfolio manager *the agent+. Therefore, delegated brokerage
management is arguably one of the most important agency relationships
intervening in the economy, with a possible impact on financial market and
economic developments at a macro level.
In most of the metros, people like to put their money in stock options instead of
dumping it in the bank lockers. -ow, this trend pick pace in small but fast
developing cities like urgapur, "sansol, &anigun' etc. My research is based on
the residents of Asansol) *"rgap"r and its nearby areas.
"s the per capita income of the city is on the higher side, so it is #uite obvious
that they want to invest their money in profitable ventures. /n the other hand, a
number of brokerage houses make sure the hassle free investment in stocks.
"sset management firms allow investors to estimate both the expected risks and
returns, as measured statistically. There are mainly two types of 0ortfolio
management strategies.
1. 0assive 0ortfolio !trategy
2. "ctive 0ortfolio !trategy
Passive Portfolio Strategy+ " strategy that involves minimal expectation
input, and instead relies on diversification to match the performance of
some market index. " passive strategy assumes that the marketplace will
reflect all available information in the price paid for securities.
A#tive Portfolio Strategy+ " strategy that uses available information
and forecasting techni#ues to seek a better performance than a portfolio
that is simply diversified broadly.
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INTRODUCTION TO INDUSTRY
The emergence of stock market can be traced back to 1345. In $ombay,
business passed in the shares of banks like the commercial bank, the chartered
mercantile bank, the chartered bank, the oriental bank and the old bank of
$ombay and shares of cotton presses. In (alcutta, 6nglishman reported the
#uotations of 78, 98, and :8 loans of 6ast India (ompany as well as the
shares of the bank of $engal in 134:. This list was a further broadened in 134;
when the (alcutta newspaper printed the #uotations of banks like union bank
and "gra bank. It also #uoted the prices of business ventures like the $engal
bonded warehouse, the ocking (ompany and the storm tug company.
$etween 1375 and 1395, only half a do en brokers existed for the limited
business. $ut during the share mania of 13:5 :9, the number of brokers
increased considerably. $y 13:5, the number of brokers was about :5 and
during the exciting period of the "merican (ivil war, their number increased to
about 255 to 295. The end of "merican (ivil war brought disillusionment and
many failures and the brokers decreased in number and prosperity. It was in
those troublesome times between 13:3 and 13uly, 13
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established in $ombay on 4rd day of ecember, 133
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S" 1 ro!er
" sub broker acts as agent of stock broker. ?e is not a member
of a stock exchange. ?e assists the investors in buying, selling or dealing in
securities through stockbroker. The broker and sub broker should enter into an
agreement in which obligations of both should be specified. !ub broker must be
registered !6$I for a dealing in securities. %or getting registered with !6$I, he
must fulfill certain rules and regulation.
Mar!et Ma!ers
Market maker is a designated specialist in the specified
securities. They make both bid and offer at the same time. " market maker has
to abide by bye laws, rules regulations of the concerned stock exchange. ?e is
exempt from the margin re#uirements. "s per the listing re#uirements, a
company where the paid up capital is &s. 4 crore but not more than &s. 9 crore
and having a commercial operation for less than 2 years should appoint a
market maker at the time of issue of securities.
Portfolio #ons"ltants
" combination of securities such as stocks, bonds and
money market instruments is collectively called as portfolio. Whereas the
portfolio consultants are the persons, firms or companies who advise, direct or
undertake the management or administration of securities or funds on behalf of
their clients.
MAJOR PLAYERS IN THE REGION
1. @arvy
2. I(I(I direct
4. Indiainfoline
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7. ? %( security
9. Indiabulls
KARVY
2AR34 is a premier integrated financial services provider, and ranked among
the top five in the country in all its business segments, services over 1: million
individual investors in various capacities, and provides investor services to over
455 corporate, comprising the who is who of (orporate India. @arvy has a
professional management team and ranks among the best in technology,
operations and research of various industrial segments.
History of Karvy
The birth of @arvy was on a modest scale in 1;31. It began with the vision and
enterprise of a small group of practicing (hartered "ccountants who founded
the flagship company, @arvy (onsultants Aimited. They started with consulting
and financial accounting automation and carved inroads into the field of registry
and share accounting by 1;39. !ince then, @arvy utili ed its experience and
superlative expertise to go from strength to strength, to better their services, to
innovate, diversify and in the process, evolved as one of India)s premier
integrated financial service enterprise.
PRO*UCT AN* SER3ICES O5 2AR34 GROUP
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@arvy comtrade.
@arvy consultant ltd.
@arvy merchant banking.
@arvy global services ltd.
ICICI DIRECT
I(I(I Web Trade Aimited *IWTA+ maintains www.icicidirect.com *herein after
referred to as the BWebsiteB+ whereas IWTA is an affiliate of I(I(I $ank
Aimited and the Website is owned by I(I(I $ank Aimited. IWTA has launched
and established an online trading service on the Website.
PRODUCTS AND SERVICES OF ICICI DIRECT
Investing in Mutual funds
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0ersonal %inance
(ustomer !ervice %eatures
I0/)s
Margin Trading
Margin 0AC! Trading
(all Trade
Trading on -!6D$!6
Trade in derivatives
INDIAINFOLINE SECURITY PRIVATE LTD
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http://funct2%28%29/http://marginplus%28%29/http://marginplus%28%29/http://funct2%28%29/
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India Infoline.com !ecurities 0vt. Atd. is a wholly owned subsidiary of India
Infoline.com Atd and is the stock broking arm of India Infoline.com. The
subsidiary was formed to comply with regulatory guidelines. $$$'6paisa'#om
is a focused website for online stock market trading. 9paisa.com is a trade name
owned by the India Infoline.com group. IIA!0A has applied for trading
membership of the $!6 under !ecurities and 6xchange $oard of India *!tock
$rokers and !ub $rokers+ &ules 1;;2.
IIA!0A is in the business of providing broking services online via the Internet
*B6 broking !ervicesB+ and has been permitted by the -!6 by way of
registration permission noE -!6IAD(M/DI-6TD1154D2555 dated 0-7J"ly7,000 ,
and will be applying for permission to the $!6, to provide 6 broking !ervices
to its clients. IIA!0A is a T&" I-F M6M$6& of the -ational !tock
6xchange of India.
PRO*UCT O55ERE* 84 II9SP9
Sto#! mar!et E IIA!0A deals in stock market by trading in e#uity and derivatives.
Personal finan#e+1 It eals In Mutual %und "nd Insurance.
Online Trading +1 It provides services in stock and commodity trading *through
Internet+.
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HDFC SECURITY
:*5C se#"rity is the subsidiary of ? %( *?ousing evelopment %inancial
(orporation+. www.hdfcsec.com would have an exclusive discretion to decide
the customers who would be entitled to its online investing services.
www.hdfcsec.com also reserves the right to decide on the criteria based on
which customers would be chosen to participate in these services .The presentweb site *www.hdfcsec.com+ contains features of services that they
offerDpropose to offer in due course. The launch of new services is sub'ect to the
clearance of the regulators. i.e. !6$I , -!6 and $!6 .
PRO*UCT O55ERE* 84 :*5C SECURIT4
• /nline trading for &esident G -on &esident Indians.
• (ash n (arry on both -!6 and $!6.
• ay trading on both -!6 and $!6.
• Trade on %utures G /ptions on the -!6.
• /nline I0/Hs.
• Telephone based $roking *6#uity G erivatives+.
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http://www.sebi.com/http://www.nseindia.com/http://www.bseindia.com/http://www.sebi.com/http://www.nseindia.com/http://www.bseindia.com/
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INDIABULLS SECURITIES LIMITED
Indiabulls !ecurities Aimited was incorporated as F0% !ecurities 0rivate
Aimited on >une ;, 1;;9. The name of the company was changed to /rbis
!ecurities 0rivate Aimited on ecember 19, 1;;9 to change the profile of the
company and subse#uently due to the conversion of the company into a public
limited company the name was further changed to /rbis !ecurities Aimited on
>anuary 9, 2557. The name of the company was again changed to Indiabulls
!ecurities Aimited on %ebruary 1:, 2557 so as to capitali e on the brand image
of the term “Indiabulls= in the company name. I!A is a corporate member of
capital market G derivative segment of The -ational !tock 6xchange of India
Atd. "t present, I!A accounts for approximately 48 of the total daily turnover
of the 6xchange with 42,49; client relationships and
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IN*IA8U99S REA9 ESTATE+1 Indiabulls through its group companies has
entered Indian &eal 6state business in 2559. It is currently evaluating several
large scale pro'ects worth several hundred million dollars. Indiabulls became
the first company to bring % I in Indian &eal 6state through a >J with %arallon
(apital Management, a respected C! based investment firm.
PRODUCT OFFERED BY INDIA BULLS
• 6#uity G ebt !tock $roking• Insurance• (ommodity trading• epository !ervices• erivatives $roking !ervices• 6#uity &esearch !ervices• Mutual %und istribution• I0/ istribution
COMPARISON WITH COMPETITORS
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MAR2ET S:ARE
15
RELIANCE MONEY
ICICI DIRECT
HDFC INDIA BULLS
INDIAINFOLINE KARVY
DELIVERY .01% .40-.85
%
. 5-1.0%
.!5% 0.!-0.5% 1%
INTRADAY .01% .0"-.04
%
.05% .0!5% 0.0!-0.05% 0.1%
AMC "00 50 #00 !50-50
500 !50
E$ &'()* 5 4 4-# 4-10 # #
S&+, )* +)** O/ +&)
*',**2*3
/. . 50 .2 .
1000 1800 . .
O/ /*,) 3 /6
*' Y*' *' *' *' *'
M /. 7 / * / 50009:; 5000 /. . 5000 5000
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i !ia"#$$s% &'(
i)i)i% &*(
i !iai fo$i +% ,&(-!f) s+).% '(
/arvy% 0(
Reliance Money; 4% ot-+rs% ,( i !ia"#$$si)i)ii !iai fo$i +-!f) s+)./arvyR+$ia )+ Mo +yot-+rs
Indiabulls is the market leader about 4
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INTRODUCTION TO THE COMPANY
The Relian#e K Anil *%ir" %ai Am ani Gro"p is among India)s top three
private sector business houses on all ma'or financial parameters, with a market
capitalisation of &s 155,555 crore *C!L 22 billion+, net assets in excess of &s
41,955 crore *C!L < billion+, and net worth to the tune of &s 2
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of choice by leveraging our superior expertise, best in class service delivery
and state of the art technology.
Smit%a S"d%eendra Business Head
!mitha !udheendra is the ?ead K istribution at &eliance Money.
!mitha is primarily responsible for building and expanding the distribution set
up through our existing channels, creating new channels and build up sell and
cross sell synergies across the group.
" $usiness Management graduate from A&I >amshedpur, !mitha has over 13years experience in building and managing the retail sales.
0rior to &eliance Money, !mitha has worked with I(I(I !ecurities, "$- "mro
and @otak Aife Insurance.
Re lian#e Capital 9td
&eliance (apital is one of India)s leading and fastest growing private sector
financial services companies, and ranks among the top 4 private sector financial
services and banking companies, in terms of net worth.
&eliance (apital has interests in asset management and mutual funds, life and
general insurance, private e#uity and proprietary investments, stock broking and
other activities in financial services.
&eliance (apital entered into lucrative online trading business with &eliance
money. There are mixed reports about this online trading platform. It shook up
online trading business with cheap brokerage charge offer.
B#si +ss Ov+rvi+1
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&(A is registered as a depository participant with -ational !ecurities
epository Atd *-! A+ and (entral epository !ervices Atd *( !A+ under the
!ecurities and 6xchange $oard of India * epositories and 0articipants+
&egulations, 1;;:. &(A has sponsored the &eliance Mutual %und within the
framework of the !ecurities and 6xchange $oard of India *Mutual %und+
&egulations, 1;;:.&(A primarily focuses on funding pro'ects in the
infrastructure sector and supports the growth of its subsidiary companies,
&eliance (apital "sset Management Aimited, &eliance (apital Trustee (o.
Aimited, &eliance Feneral Insurance (ompany Aimited and &eliance Aife
Insurance (ompany Aimited. "s of March 41, 2559, the company)s investmentin infrastructure pro'ects stood at &s. 15
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Insurance and Fold (oins. (ustomers can also avail Aoans, (redit (ard, Money
Transfer and Money (hanging services.
The largest broking house in India with over 2.9 million customers and a widenetwork of over 15,555 outlets and 25,555 touch points in 9,555N locations.
&eliance Money endeavors to change the way investors transact in financial
markets and avails financial services. The average daily volume on the stock
exchanges is &s. 2,555 crores, representing approximately 48 of the total stock
exchange volume. &eliance (apital is one of IndiaHs leading and fastest growing
private sector financial services companies, and ranks among the top 4 private
sector financial services and banking groups, in terms of net worth.
H )3 &)@> H&2*
&)@> T* 2 &)@ > L* )/ /6 /3 I//& , &/> E2 , /3 H(2 , /3
', 7(, /&, , * * ', , ' , * N*, &)@ .
VISION OF RELIANCE MONEY
To a#%ieve ; s"stain mar!et leaders%ip) Relian#e Money s%all aim for
#omplete #"stomer satisfa#tion) y #om ining its %"man and te#%nologi#al
reso"r#es) to provide $orld #lass
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MISSION STATEMENT
/3 * 2 ,& * * , ' * 3*)' &' , &/ 7 7( 3 /6 /
//& , *> */,*) ) ' /6 > /3 ,* /& &6 3) */ &)6 / , &/ '*,
, * 6 *', ', /3 )3' &+ '*) * /3 7(' /*'' *, '.?
Hi2-$i2-ts of R+$ia )+ Mo +y
The highlights of &eliance moneyHs offerings areE
1. Cost1effe#tive
The fee charged by the affiliates of &eliance Money, through whom the
transactions can be placed, is among the lowest charged in the present
scenario. 0ay a flat fee of 'ust &s. 955D valid for 2 months or specified
transactional value. The facility of trading is sub'ect to expiry of the validity
period or value limit, whichever comes first.
Ill"strations depi#ting fee str"#t"re and validity limits
♦ "ccess fee &s. 955
Jalidity Time validity of 2 months or Turnover validity of &s. 1 cr., whichever
is earlier
Turnover limit -on delivery turnover of &s. ;5 lakh, elivery turnover of &s.
15 lakh.
♦ "ccess fee &s. 1495
Jalidity Time validity of : months or Turnover validity of &s. 4 cr., whichever
is earlier
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Turnover limit -on delivery turnover of &s. 2.< cr., elivery turnover of &s.
45 lakh
♦ "ccess fee &s. 2955
Jalidity Time validity of 12 months or Turnover validity of &s. : cr.,
whichever is earlier.
Turnover limit -on delivery turnover of &s. 9.7 cr., elivery turnover of &s.
:5 lakh.
Cnutili ed delivery limit may be added to -on delivery limit.
2. Convenien#e
Oou have the flexibility to access &eliance Money services in multiple
waysE through the Internet, Transaction @iosks, (all G Transact *phone+ or
seek assistance through our $usiness 0artners.
4. Se#"rity
&eliance Money provides secure access through an electronic token thatflashes a uni#ue security number every 42 seconds *and ensures that the
number used for earlier transaction is discarded+. This number works as a
third level password that keeps your account extra safe.
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>' Single $indo$ for m"ltiple prod"#ts
&eliance Money, through its affiliatesDpartners, facilitates transactions in 6#uity,
6#uity G (ommodity erivatives, /ffshore Investments, Mutual %unds, I0/s,
Aife Insurance and Feneral Insurance products. "ll overseas investments are
sub'ect to rules, regulations and guidelines of the &eserve $ank of India as lay
down from time to time.
6' - in ? integrated a##ess
&eliance Money offers integrated access to your banking, trading and demat
account. Oou can transact without the hassle of writing che#ues emat account
with &eliance (apital ?assles free demat account with &eliance (apital. The
"nnual Maintenance (harge for the emat "ccount is 'ust &s. 95D per annum.
/' Ot%er Servi#es
Through the portal www.reliancemoney.com, &eliance Money providesE
a' &eliable research, including views of external experts with an enviable track
record
' Aive news from &euters and ow >ones
#' (6/sHDexpertsH views on the economy and financial markets
d' The 0ersonal finance section provides tools that help you plan your
investments, retirement, tax, etc
e' "naly e your risk profile through the &isk "naly er
f' Fet a suitable investment portfolio using the "sset "llocator.
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2E4 8ENE5ITS O5 RE9IANCE MONE4
6#uity is a share in the ownership of a company. It represents a claim on the
company)s assets and earnings. "s you ac#uire more stock, your ownershipstake in the company increases. The terms share, e#uity and stock mean the
same thing and can be used interchangeably.
?olding a company)s stock means that you are one of the many owners
*shareholders+ of a company, and, as such, you have a claim *to the extent of
your holding+ to everything the company owns. Oes, this means that technically,
you own a portion of every piece of furniture every trademark every contract,
etc. of the company.
"s an owner, you are entitled to your share of the company)s earnings as well as
any voting rights attached to the stock.
"nother extremely important feature of e#uity is its limited liability, which
means that, as a part owner of the company, you are not personally liable if the
company is not able to pay its debts. In case of other entities such as
partnerships, if the partnership goes bankrupt, the partners are personally liable
towards the creditorsDlenders and they may have to sell off their personal assets
like their house, car, furniture, etc., to make good the loss. In case of holding
e#uity shares, the maximum value you can lose is the value of your investment.
6ven if a company of which you are a shareholder goes bankrupt, you can never
lose your personal assets.
&eliance Money gives you the access to /ver 9555 !chemes of 23 "ssets
Management (ompanies *"M(s+ with 'ust one account. !ome of them included
are.
Portfolio Tra#!er
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Manage your mutual fund portfolio from the &eliance Money account. $enefit
from live valuation and alerts and also track -"Js of any scheme online.
C%oi#e of investment strategies
%rom 'ust two scheme types *e#uity scheme and debt scheme+ offered when the
mutual fund industry was conceived more than four decades ago, today, mutual
funds offer a plethora of scheme types with different investment strategies.
9ife Ins"ran#e
&eliance Money "ccount gives you the advantage of buying policies from 12
different Aife Insurance companies, helping you get unbiased opinion.
General Ins"ran#e
&eliance Money "ccount also extends the product offerings from 15 Feneral
Insurance (ompanies with exhaustive range of insurance products that covers
most risks including Motor, ?ealth, 0roperty, Marine, (asualty and Aiability.
O3ER T:E COUNTER PRO*UCTS
Oour &eliance Money "ccount makes it so simple for you to buy insurance
products that it)s as easy as buying something over the counter.
&elianceMoney.com is offering most dynamic web based trading environment
to its customers. The new trading platform has many new features which
basically fill up the gap between old online trading companies in India and their
customers.
The &eliance Money trading websites comes with special security features
!ecurity Token, which makes you online trading experience more secure
without complexity.
!tock Trading is available in $!6 and -!6. /ffline trading is also available
through &eliance Money partners in your city and through phone by dialing
522 4;33:555.
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T4PE O5 ACCOUNT
&eliance money is offering 4 types of accounts to its customers. "ccount for
beginners, for meddlers and for experts.
:o$ to open a##o"nt $it% Relian#e Money@
"ccount opening with &eliance Money is easy. !imply fill a form online at
below address and somebody from &eliance Money will contact you soon.
Advantages of Relian#e Money
1. 6xtra security features with H!ecurity which is the most secures and tested
technology in computer world.
2. !imple, easy and fast online stock trading.
4. "lmost all investment options are available under one account including
6#uity Trading, erivatives, %orex, (ommodity, I0/, Mutual %unds and
Insurance.
7. $ranches are now available in all ma'or cities and the number is growing.
$ranches are open from ;am to ;pm.
/nline trading is presently at its nascent stage and is not the most preferred
option for financial transactions owing to security concerns and lack of
accessibility points. &eliance Money through this hi speed, technologically
secure kiosks will therefore be able to reach out to all its existing and potential
customers at even the remotest locations in the country without compromising
on the security of its customer)s funds.
%y s%o"ld yo" #%oose Relian#e Money@
1. $ecause it is from &eliance. &eliance capital has big plans regarding this
business. It may announce attractive offers to gain market share. &eliance
will never enter into a business with small plans.
2. Its brokerage charges are lowest in the country among ma'or providers. With
&s 2955 prepaid amount, you can trade for &s 9 crore.
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4. !ite is simple in design, fast to access and easy to find re#uired information.
7. Its daily reports on market trends and technical breakouts are very useful.
9. Website content is divided according to the re#uirements of experts and
beginners.
:. Oou can trade in %orex, erivatives, Mutual funds, I0/ and buy Insurance.
%y s%o"ld yo" stay a$ay from relian#e Money@
1. The trading platform is still in development stage. There are many bugs
needs to be rectified.
2. Its “Insta trade= service is not up to the standard. &eliance Money software
is a 'ava based simple software. It should provide advanced software to
meet the needs of advanced traders.
4. Its system is sometimes very slow and orders are not placed at the time.
7. Its market watch solution is a way behind its competitors like Money
control and I(I(I direct.
9. Its service people are not as efficient as competitors.
:. It is still not providing options to buy 0ost office savings.
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CEO
Deputy CEO
National
e
a!
"ON#$
E#D
"ON#$
E#D
"ON#$
E#D
RE%&ON#$
E#D
RE%&ON#$
E#D
RE%&ON#$
E#D
C$'( )ER
E
#D
C$'( )ER
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C$'( )ER
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CEN )ER
M#N
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CEN )ER
M#N
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RE9IANCE A*A GROUP STRUCTURE
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PRODUCTS
PRODUCTS &++*)*3 7 R* / * M&/* )* -? ' Trading Porta l *with almost negligible brokerage +
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• 6#uity $roking
• (ommodity $roking
• erivatives * %utures G /ptions +
• /ffshore Investments *(ontract %or ifferences+
• Mat "ccount.
, ' 5 inan#ial Prod"#ts
• Mutual %unds
• Aife Insurance
o ULIP plan
o Term Plan
o Money Back Plan
General Ins"ran#e
o Vehicle/Motor Insuranc e
o
Health Insuranceo House insurance
IPO s
N5Os
-' 3al"e1Added S ervi#es
• &etirement 0lanning
• %inancial 0lanning
• Tax !aving
• (hildren %uture 0lanning
>' Credit Cards
6' Gold #oins retai ling
LITERATURE REVIE3
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*r' Jayanta 2"mar Seal explore e#uity trading in India was basically a floor
based activity in the $!6. Traditionally, stock trading was done through stock
brokers, personally or through telephones. "s the no. of people trading in stock
market increased enormously in last few years, a no. of stock brokers comes in
the field, thus increasing further competition. ue to this, there come new
innovations in trading. In this scenario, the existing players are left with two
options either to change their product offerings or to perish.
Ravinder 2"mar ; Nid%i alia found Indian investors are more
conservative they do not adopt any change easily. Till now 'ust few investors
can be recogni ed who are using technology for online stock trading.
Traditional traders still prefer to choose broker as a stock trading mechanism
because they are more loyal to their broker. /nline trading empowers educated
investors to make their own decisions with close watch on market sensitivity by
browsing through various sites.
Ms' Nid%i alia explores that with IT fueling economy, internet is adopted as
effective tool in cataly ing the business activities. Aatest developments in
information technology have altogether changed business done traditionally. "s
financial system is becoming more complex it has become need of hour, where
investor should comprehend the data and understand recent intricacies of onlinetrading. In Indian context, e trading is relatively new concept, which has yet to
gain some significant meaning. In the past, investor had no option to get
market information except to contact local broker. $ut internet trading in stock
trading is becoming medium of exchange whereby investor can order stock
exchange on simple mouse click sitting at his place. @eeping in view current
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market re#uirement an attempt has been made in this research paper to analy e
current status of online trading in Indian scenario.
Mr' ADay 2"mar through this research finds which brokerage house people
prefer and to figure out what people prefer while investing in stock market. This
study suggests that people are reluctant while investing in stock and commodity
market due to lack of knowledge. Main purpose of investment is returns and
li#uidity, commodity market is less preferred by investors due to lack of
awareness. The ma'or findings of this study are that people are interested to
invest in stock market but they lack knowledge.
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OBJECTIVE OF THE STUDY
6ach research study has its own specific purpose. It is like to discover to
Puestion through the application of scientific procedure. $ut the main aim of
our research to find out the truth that is hidden and which has not been
discovered as yet. This research study has following ob'ectivesE
Primary O De#tive+ 1 To know about the competitive position of the &eliance
Money in competitive market.
Se#ondary O De#tives+ 1
?' To know the market share of different players in !hare Market.
,' To study the services offered by different players to the customer.
-' To access how &eliance Money is better than others competitors.
>' To analysis the financial market condition of &eliance Money.
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LIMITATIONS OF THE STUDY
• "s only Asansol and *"rgap"r dealt in survey so it does not representthe view of the total Indian market.
• !i e of the research may not be substantial.
• There was lack of time on the part of respondents.
• The survey was carried through #uestionnaire and the #uestions were based on perception.
• There may be biasness in information by market participant.
• (omplete data was not available due to company privacy and secrecy.
• (ustomer dissatisfied with the services.
• 0eople fear that as &eliance Money is a 0rivate company so their moneyis not secured.
• -ot much of importance was attached to this task by some of the
&espondents.
• The sample si e of the respondents is very small.
• The method of sampling is 'udgment sampling.
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RESEARCH METHODOLO4Y
Meaning of Research:
&esearch in common parlance refers to a search for knowledge. /ne can also
define research as a scientific and systematic search for pertinent information on
a specific topic. In fact, research is an act of scientific investigation. The
advanced learner s ictionary of (urrent 6nglish lays down the meaning of
research as a careful investigation or in#uiry especially through search for new
facts in any branch of knowledge. &edman and Mory define research as a
systemati ed effort to gain new knowledge.
&esearch is an academic activity and as such the term should be used in a
technical sense. "ccording to (lifford Woody research comprises defining and
redefining problems, formulating hypothesis or suggested solution collecting,
organi ing and evaluating data making deductions and reaching conclusions
and at last carefully testing the conclusion to determine whether they fit the
formulating hypothesis. It is the pursuit of truth with the help of study,
observation, comparison and experiment. In short, the search for knowledge
through ob'ective and systematic method finding solution to problem is
research.
O8JECTI3ES O5 RESEARC:+
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The purpose of research is to discover answer to #uestions through the
application of scientific procedures. Through each research study has its own
specific purpose, we may think of research ob'ectives as falling into a number
of following groupsE
1. To gain familiarity with a phenomenon or archive new insights into it.
2. To portray accurately the characteristics of a particular individual, situation or
a group.
Meaning of research methodology:
&esearch methodology is a way to systematically solve the research problem. It
may be understood as science of studying how research is done scientifically. In
it we study various steps that are generally adopted by a researcher in studying
his research problem along with logic behind them. It is necessary for
researcher to know not only the research methodsD techni#ues but also the
methodology. &esearch methodology has many dimensions and research
methods do constitutes a part of the research methodology. Thus when we talk
of research methodology we not only talk of research methods but also consider
logic behind the methods we use in context of our research study and explain
why we are using a particular method or techni#ue and why we are not using
others so that research result is capable of being evaluated either by the
researcher himself or by others.
Research process:
$efore embarking on the details of research methodology and techni#ues, it
seems appropriate to present a brief overview of research process. &esearch
process consists of a series of action or steps necessary to effectively carry out
research and the desires se#uencing of these steps. The following order
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concerning various steps provides a useful procedural guideline regarding the
research processE
1. %ormulating the research problem.
2. 6xtensive literature survey.
4. evelopment of working hypothesis.
7. 0reparing the research design.
9. etermining sample si e.
:. (ollecting the data.
$y observation.
Through personal interview.
Through telephone interview.
$y mailing of #uestionnaires.
Through schedules.
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SI E OF SAMPLE
“This refers to the number of items to be selected from the universe to
constitute a sample=
In the present research sample si.e is ?00'
$ut the research also study the 9 stock broker companies related to security G
commodity market like India infoline, I(I(I direct, ? %( securities, @arvy
consultant ltd. and indiabulls for the appropriate collection of the information.
Pro5otio a$ A)tiviti+s
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DATA ANALYSIS
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The data after collection has proposed G analy ed in accordance with the
outline laid down for the purpose at the time of developing the research plan.
The data collected in the stated manner tabulated according to the
corresponding variables. The table thus prepared were analy ed G interpreted to
draw the meaning, out of the study.
? *o yo" !no$ a o"t investment options availa le@
Y+s% 67(
No% *7(
Y+sNo
INTERPRETATION
Today scenario is changed so that most area covered by the securities and
commodity market. It is 278 of the total population.
41
2NO 9E*GE FOes 358
-o 258TOTA9 ?00
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2+ Most prefera le investment s#enario'
Investment s#enario F
!hares 278Mutual %unds 258$onds 138$anks 178&eal 6state 158Insurance :8(ommodity market 78/thers 78
S-ar+s% *8(Mutual ,un!+; 20%
Bo !s% ,6( Ba /s% ,8(
R+a$ Estat+% ,7(&n+u-ance; 6%
Co55o!ity 5ar/+t% 8( Ot.e-+; 4%S-ar+s M#t#a$ F# !sBo !s Ba /sR+a$ Estat+ I s#ra )+Co55o!ity5ar/+t
Ot-+rs
INTERPRETATION
/nly 358 people know the exact meaning of investment. $ecause of remaining
258 take hisDher residential property as an investment. "ccording to law purpose this is not an investment because of it is not create any profit for the
owner.
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- ' %at is t%e asi# p"rpose of yo"r investment@
IN3ESTMENT PURPOSE FAi#uidity 458&eturns 298(apital appreciation 258Tax benefits 158&isk covering 98/thers 158
Li9#i!ity% &7(
R+t#r s% *:(Ca;ita$ a;;r+)iatio % *7(
Ta< "+ +=ts% ,7(Ot-+rs% ,7(
Ris/ )ov+ri 2% :(
Li9#i!ity R+t#r s Ca;ita$ a;;r+)iatio
Ta< "+ +=ts Ot-+rs Ris/ )ov+ri 2
INTERPRETATION
458 people are interested in li#uidity, 298 in returns and 158 tax benefits.
"nd remaining 258 are interested in capital appreciations, 198 in risk covering
and others.
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> 5rom $%i#% option yo" $ill get t%e est ret"rns@
IN3ESTMENT SCENARIO F
!hares 1
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INTERPRETATION
Most of the people say that Mutual fund gives satisfactory result following itare bonds, shares and banks.
6 Most important t%ings yo" ta!e into yo"r mind $%ile ma!ing
investments@
5ACTOR FAGE&isk 38&eturns 1
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INTERPRETATION
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%rom the above chart it is show that 2
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INTERPRETATION
Ma'ority of people are in losses and hence they are getting no results.
H Are yo" a$are of online S%are trading@
2NO 9E*GE FOes
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Y+s% '*(
No% *6(
Y+sNo
INTERPRETATION
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:eard a o"t Relian#e money@
2NO 9E*GE F
Oes 328 -o 138TOTA9 ?00
82%
18%
e+No
INTERPRETATION
Ma'ority of people are aware about the &eliance Money, this shows thatmarketing strategy are good.
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?? *o yo" %ave any *e1mat ; trading a##o"nt@
ACCOUNTS PERCENTAGEOes
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?, In $%i#% #ompany yo" %ave *e1mat and trading a##o"nt@
COMPAN4 F
I(I(I I&6(T 2:8I- I"I-%/AI-6 298I- I" $CAA! 228&eliance Money 1:8@"&JO
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INTERPRETATION
In &eliance Money 1:8 respondents have e mat G trading account because of better services and min. annual maintenance and other charges.
?- %at differentiates yo"r S%are trading #ompany from ot%ers@
Options F$rokerage 24/perating expanses 29!ervices 250roducts 1<
!oftware 19Total 155
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*&(
*:(*7(
,'(
,:(Bro/+ra2+O;+rati 2+ %i#% S%are trading #ompany provides good e&pos"re@
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r+$ia )+ 5o +y i)i)i -!f) s+).7(
,7(
*7(
&7(87(
:7(
07(
'7(
67(
>7(
,77(
1010
60
1030
15 15
25
25
6070
65
15
60
15 10 20
80
v+ry -i2-
-i2-5+!i#5
$o1v+ry $o1
INTERPRETATION
Ma'ority of clients of indiabulls feels that the exposure provided by them is
neither high nor low, while some believe it is enough. $ut in I(I(I it is
contrary. & Money gets positive response from ma'ority of clients.
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?6 %i#% S%are trading #ompany provides its Soft$are to #"stomers@
r+$ia )+ 5o +y i)i)i -!f) s+).7(
,7(
*7(
&7(
87(
:7(
07('7(
67(
>7(
,77(
202 0 0 0 0
57
0
53
81 8066
18
0
42
14 15
10
0
51
0 0 0 0
v+ry $o1$o15+!i#5-i2-v+ry -i2-
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INTERPRETATION
"s far as software is concerned, & Money dominates, followed by indiainfoline.
?/ %i#% S%are trading #ompany #%arges fair 8ro!erage@
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r+$ia )+ 5o +y i)i)i -!f) s+).0%
10%
20%
30%
40%
50%60%
70%
80%
90%
100%
12 2010 18 30
6040
70
85
45
25
25
9 10
30
16
65
e-y .i .
.i ./e!iu/lo
e-y lo
INTERPRETATION
"lthough ma'ority of customers of all the firms feel that brokerage charged is
neither high nor low, customers of & Money are highly satisfied. /n the other
hand, customers of I(I(I are most dissatisfied. "nd about 758 of customers of
indiabulls consider it to be -?-A, and another 758 rate it as good, while 258feel that it is not #uite low.
? %i#% S%are trading #ompany provides fair operating e&penses@
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0%10%20%30%
40%50%60%70%80%90%
100%
50
22
2541
32
47 6044
58
59
13
34 7 10
37 36
2 3
e-y .i ..i .
/e!iu/lo
e-y lo
INTERPRETATION
"s per operating charges, comparison among the firms clearly points out that
there is not much difference among the firms. %irst is & money, followed by
indiabulls.
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?H Are yo" satisfied $it% yo"r present S%are trading #ompany@
7(,7(*7(&7(87(:7(
07('7(67(>7(
,77(
23 3153
37 46 32
45 35
44
4542
23
32 34
318 12
45
# satis=+!
+#tra$satis=+!
INTERPRETATION
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The above chart shows that customers of &eliance money are not satisfied while
Indiainfoline is stood first in this parameter.
FINDIN4S
Ma'ority of clients of indiabulls feels that the exposure provided by them
is neither high nor low, while some believe it is enough. $ut in I(I(I it is
contrary. & Money gets positive response from ma'ority of clients.
"lthough ma'ority of customers of all the firms feel that brokerage
charged is neither high nor low, customers of & Money are highly
satisfied. /n the other hand, customers of I(I(I are most dissatisfied.
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"nd about 758 of customers of indiabulls consider it to be -?-A, and
another 758 rate it as good, while 258 feel that it is not #uite low.
"s far as software is concerned, & Money dominates, followed by
indiabulls.
"s per charges, comparison among the firms clearly points out that there
is not much difference among the firms. %irst is & money, followed by
indiabulls.
/n the basis of call and trade facility, there is again not much differences.
(omparison among I(I(I and indiabulls shows that icici has less no. of
customers who rated it low as compared to indiabulls and also higher no.
of customers rate it good, but indiabulls has the edge over the rest when it
comes to customers who rate it very high.
(ustomer)s feedback regarding the &esearch Tips parameter shows that
the competition is primarily between three firms Indiabulls, icici and
Indiainfoline.
&eliance Money is gaining its share which is currently at 4.;8 market
share by providing better offerings, less brokerage and other services,
indiabulls is the market leader.
"pprox. 1:8 respondents have e mat G trading account because min.
annual maintenance and other charges.
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& Money brought many innovations in products which are liked by
customers.
& Money)s offerings are very competitive.
Though reliance money is working very hard in order to meet the
competition but there is a gap between the expectations and the
experiences of the customers which is widening regularly.
This gap has emerged because of the sales oriented focus of reliance
money.
In order to increase the sales figures, the company has somewhere
ignored the service delivery and left the customer on his own.
R+)o55+ !atio s
$uild relationship with the customers to keep them retained.
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(ompany should start a system of filling up of feedbacks and complaints
online so that rectification of errors can be done easily.
(ompany should start a kind of soft skill training program for all of its
distributors so that the customers feel the same level of satisfaction as they
feel while transacting with the company.
Though the service #uality is good but it should become better consistently
as good service and better relationships are the key success factors of
current market situations.
The process of documentation is a hassle for customers as it is not at all
user friendly. (ompany should take care of user friendliness of the system.
In order to fill the gap between actual and expected, company needs to
customi e its services as it is dealing into financial instruments.
These financial instruments are risky and it is very essential to make the
customer feel that you are taking care of his money.
This can be done only if all the services are customi ed and the system is
made transparent for the customer as well as for the employees.
0roper financial analysis should be done for any kinds of newly launched
services.
Insurance means AI( for maximum people. &eliance Money should make
proper awareness about their facilities among people.
"gents and $rokers should be trained properly by the company.
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0romotional activities and proper assured security for the customers may
motivate the people to go for & money.
CONC$'(&ON
The expectations of the customers are regularly increasing because of the
increasing competition and emergence of global market. In such conditions it
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becomes very necessary for a company to fulfill all the expectations of the
customers and give them a delightful experience.
&eliance Money aims to provide better services by consistently improvement.
The study concludedE
• &eliance Money Atd. has better 0ortfolio Management services
than /ther (ompanies.
• &eliance Money Atd. keeps its process more transparent.
• &eliance Money Atd. is giving more returns to its investors.
• &eliance Money charges are less than other stock brokers.
• &eliance Money is providing daily updates about the stocks
information.
• Investors are looking for those investment options where they
get maximum returns with less costs.
• Market is becoming complex G it means that the individual
investor will not have the time to play stock game on his own.
• 0eople are less aware about the !ervices provided by &eliance
Money.
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BIBLIOGRAPHY
BOOKS: -
*1+ 0unithawati 0andiyan, “!ecurity "nalysis G 0ortfolio Management=,
Jikas 0ublishing ?ouse, -ew delhi.
*2+ %inancial Markets, The Icfai Cniversity press, ?yderabad, 255. >ordan, “!ecurity "nalysis G 0ortfolio
Management=, 0rentice ?all of India, -ew elhi.
*7+ Qikmund, “$usiness &esearch Methodology=
*9+ @othari (.&., “&esearch Methodology E Methods and Techni#ues=,
Wishwa 0rkashan, -ew elhi, 2551.
MAGAZINES:-
*1+ /mkar Foswami, “-ew 6ntrants in !ock Trading=, $usiness Week.
*2+ &a'esh Fa'ra, “!ebi)s Wake Cp call=, $usiness World.
*4+!rikanth !rinivas, “Increasing competition in /nline Trading=, $usiness
Today.
JOURNALS:-
*1+-idhi Walia and &avinder @umar, “/nline !tock Trading in IndiaE an
empirical investigation=, Indian >ournal of marketing.
*2+>ayanta @umar !eal, “(hanging ynamics of !tock Trading=, 0ortfolio
/rgani er, page 1< 29.
*4+"ggarwal !an'iv, “!tock Trading o -et=, $usiness Aine, "ug. 2515, page
41 4
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*9+-idhi Walia, “/nline !tock Trading in IndiaE on the road of progress=,
"pplied finance, page 21 2:.
*:+-ay %u (hen, &ichard &oll and !tephen ". &oss, “6conomic %orces and
the !tock Market=, The >ournal of $usiness, Jol. 9;.
INTERNET:-
• httpEDDen.wikipedia.orgDwikiD!tockRMarket
• httpEDDsurfindia.comDfinanceDstock market.html
• httpEDDwww.moneycontrol.com
• httpEDDwww.reliancemoney.com
• httpEDDwww.sebi.gov.in
• httpEDDwww.reliancecapital.com
• httpEDDwww.indiainfoine.com• httpEDDwww.icicidierct.com
• httpEDDwww.hdfcsecurity.com
• httpEDDwww.karvy.com
• httpEDDnseindia.com
• httpEDDbseindia.com
69
http://en.wikipedia.org/wiki/Stock_Markethttp://surfindia.com/finance/stock-market.htmlhttp://www.moneycontrol.com/http://www.reliancemoney.com/http://www.sebi.gov.in/http://www.reliancecapital.com/http://www.indiainfoine.com/http://www.icicidierct.com/http://www.hdfcsecurity.com/http://www.karvy.com/http://en.wikipedia.org/wiki/Stock_Markethttp://surfindia.com/finance/stock-market.htmlhttp://www.moneycontrol.com/http://www.reliancemoney.com/http://www.sebi.gov.in/http://www.reliancecapital.com/http://www.indiainfoine.com/http://www.icicidierct.com/http://www.hdfcsecurity.com/http://www.karvy.com/
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QUESTIONNAIRE
Name+ 1Age+ 1 Se&+ 1 Male %emale
P%one No+ 1
1+ o you know about Investment options availableS
a+ Oes b+ -o
2+ In which of these %inancial Instruments do you invest intoS a+ !hares b+ $onds c+ (ommodity market
d+ Insurance e+ Mutual %unds f+ $anks
g+ &eal 6state i+ /thers
4+ What is the basic purpose of your investmentS
a+ Ai#uidity b+ &eturns
c+ (apital appreciation d+ &isk covering
e+ Tax benefits
7+ %rom which option you will get the best returnsS
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a+ !hares b+ $onds c+ (ommodity marketd+ Insurance e+ Mutual %unds f+ $anks
g+ &eal 6state i+ /thers
9+ What are the most important things you take into account, while making any investmentS
a+ &isk b+ &eturns c+ $oth
:+ o you have any knowledge of share marketsS
a+ 0artial b+ (omplete c+ -il
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a+ $rokerage b+ /perating 6xpanses
c+ !ervices d+ 0roducts
e+ !oftware
17+ Which !hare trading company provides good exposureS
19+ Which !hare trading company provides its !oftware to customersS
1:+ Which !hare trading company charges fair $rokerageS
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