A

Project ReportOn

“RELATIVE STUDY OF DEMAT ACCOUNTS OF VARIOUS BROKERAGE HOUSES”

ATGLOBE CAPITAL MARKET LIMITED

NEW DELHI.

As a partial fulfillment for the award of PGPM Degree under

SESSION (2008 - 2010)

“K R MANGALAM INSTITUTE OF MGMT.”

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Submitted by:

Aditya Kr. Shukla

Regn. No. 582

PGPM

2008-10

Submitted to:

Ms. Neha Jain

(LECTURER)

INDUSTRY GUIDE:

PIYUSH PRIYA

(Asst. Manager)

To Whomsoever It May Concern

This is to certify that Mr. Aditya Kr. Shukla, Registration Number 582 of PGPM

IIIrd semester is a bonafide regular student of this institute for the session 2008 –

2010.

He has completed the project report title “Relative Study of Demat Accounts of

various Brokerage Houses” under my supervision, is a part of partial fulfillment for

the award of PGPM Degree. His report is satisfactory and not copied from anywhere

to the best of my knowledge.

Date:

Signature

Ms. NEHA JAIN

Project Supervisor

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DECLARATION

This is to inform that this project titled ‘Comparative Analysis of Demat Accounts

of Various Broking Firms’ is my original work and has not been copied from any

source.

ADITYA KR. SHUKLA

PGPM

2008-10

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ACKNOWLEDGEMENT

The guidance, the helping hand, the support, the inspiration of all those who have

helped me in the completion of this report cannot be compared to anything, perhaps

that’s the reason why I treasure them, the most.

I would like to take this opportunity to thank my Industry Guide, Mr. PIYUSH

PRIYA the Asst. Manager of Globe Capital Mkt. Ltd. who provided continuous

guidance and support during my summer internship. I would also like to thank

everyone at Globe Capital Market Ltd. for helping me in every possible way during

my summer internship.

I would also like to thank Dr.Raj Singh, the Director General of K R Mangalam

Institute Of Mgmt. and also the head of KRM, for providing every such facility in the

college which helped me learn how to conduct a research, which provided me a great

help in carrying out and completion of this project.

I would also like to express my sincere gratitude to my Faculty Guide, Ms. Neha

Jain for her constant support and guidance towards the preparation of this project.

Very big thanks to the Almighty for having given me the power and capabilities to

make this project successfully. I am also very thankful to my family and friends who

not only provided me with constant support, encouragement and motivation all

through the project but also with all possible information from their side which acted

as an aide in successful completion of this project.

ABSTRACT

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The Project deals with the “Relative Study of Demat Accounts of Various Brokerage

Houses”. Here under study are: Globe Capital Market Ltd., Kotak Securities Ltd.,

Reliance Money Ltd., ICICIdirect, Sharekhan and Religare.

A Demat Account is mandatory for online trading of shares. The shares in

dematerialized or electronic are kept in Demat Account. There are certain factors like

the speed provided in trading, security in transaction, brokerage charges, convenience,

customer services etc. that are taken into consideration while opening a Demat

Account.

The analysis is done on the answers given by the respondents on the features of theses

Broking Houses. The graphical representation of these comparisons makes it clear

that which feature is in the unique selling proposition of a broking house and also the

cost effectiveness that the customer attaches with their share trading.

The project covers in a comprehensive way all the details required for the

comparative analysis of Demat Accounts of the above specified Broking Firms.

TABLE OF CONTENTS

1. Introduction 8

2. Company Profile 10

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3. Research Methodology 14

4. Objectives of the Study 15

5. SEBI 17

5.1 National Stock Exchange 17

5.2 BSE Sensex 17

5.3 Stock Exchange 18

6 Meaning of Share 20

6.1 Types of Shares 20

6.2 Advantages of holding Shares 21

6.3 Reasons for the issue of Shares by a Company 22

7 Meaning of Demat Account 24

7.1 Depository Participants 24

7.2 Online Trading Account 25

7.3 Required Documents for Demat Account 26

7.4 Types of Trading 27

7.5 Considerations for opening Demat Account 29

7.6 Benefits of a Demat Account 29

Table 1 Details of Statutory/ Regulatory Charges 30

Table 2 Schedule of Demat Account Charges: SBI Bank 31

Table 3 Schedule of Brokerage: Delivery Trading: SBI Bank 32

Table 4 Schedule of Brokerage: Intraday Trading: SBI Bank 32

7.7 Basis of Comparison 33

8 Share Khan: Company Profile 35

Table 5 Schedule of Demat Account Charges: Share Khan 35

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9 Kotak Securities: Company Profile 37

Table 6 Schedule of Demat Account Charges: Kotak Securities 38

10 Reliance Money Ltd.: Company Profile 39

Table 7 Trading Fee Plan of Reliance Money Ltd. 40

Table 8 Schedule of Demat Account Charges: Reliance Money Ltd.

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11 ICICIdirect: Company Profile 41

Table 9 Demat Fees Schedule: ICICIdirect 42

Table 10 Brokerage Structure: ICICIdirect 43

12 Religare: Company Profile 44

Table 11 Demat Account Charges: Religare 46

13 Comparative Analysis of Demat Account and Interpretations

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14 Conclusions and Recommendations 72

15 Bibliography 74

16 Annexure 75

INTRODUCTION

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Until 1988, stock exchanges were more or less self regulatory organizations

supervised by the Ministry of Finance under the Securities Contracts Regulation Act

(SCRA). However, the stock exchanges were not discharging their self regulatory role

well as result of which malpractices crept into trading, adversely affecting investors’

interests. SEBI has setup to ensure that the stock exchanges discharge their self

regulatory role properly. Ever since SEBI began to monitor brokers, stock broking is

emerging as a professional advisory service, in tune with the requirements of mature,

sophisticated, screen-based, ringless, automated stock exchanges in the country in

sharp contrast to traditional, closed character as inherited family business.

The broad system of cash/normal trading mechanism in Indian Stock Market is in

reference to the National Stock Exchange (NSE) Ltd. The NSE represented an attempt

to overcome the fragmentation of regional markets by providing a screen based

system that transcends geographical barriers .In order to promote Dematerialisation of

securities , NSE joined hands with leading financial institutions to establish the

National Securities Depositaries Ltd . (NSDL) ,the first depository in the

country ,with the objective of enhancing the efficiency in settlement systems as also

to reduce the menace of fake, forged and stolen securities.

This has ushered in an era of Dematerialized trading and settlement. The SEBI has

made dematerialized settlement mandatory in an ever –increasing number of

securities in a faced manner, thus, bringing about an increase in the proportion of

share delivered in Dematerialized form.

With the fast growing technology enabled working preference of the people,

everything is now converted to be performed in a click of a mouse. So is the most

preferred online trading option by many of the traders.

SEBI has come with the mandating the dematerialization of shares in Physical form

that is paper form for the purpose of online trading of shares. So in order to

understand the concept of what are the benefits of doing Online Trading, the concept

of the Stock Market is the regulatory institution of the Stock Market.

INTERNET TRADING

February 2000 witness the introduction of stock trading on the internet in

India .Currently Globe Capital Market Ltd., ICICI Webtrade , Sharekhan, Kotak

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Securities Ltd. , Geogit securities ,Investmart, Reliance Money, Religare, and others

offer internet trading .

To do internet trading one has to register himself as a client with a internet broker,

apart from having a computer, a modem and a telephone . One also has to keep a

minimum deposit in the bank account with the internet broker which the broker can

directly debit or credit.

The Securities market is the market for equity , debt and derivatives. The debt market,

in turn, may be divided into three parts, viz the government securities market , the

debt market and the money market . The derivatives market may be divided into parts

viz the option markets and the future markets

1 COMPANY PROFILE

Globe Capital is one of the largest growing investment solutions companies that provide a wide range of services to its vast and diversified client base.

The company has its corporate office in New Delhi with regional offices in Mumbai, Kolkata & Jaipur and growing network of more than 200+ offices across 150+ locations in India with overseas office in London and Dubai.

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Globe Capital accounts for more than 10% of NSE clearing volumes in its F&O segment.

In 2008, Globe Capital Market Ltd. attracted US$ 42 million of equity capital in Foreign Direct Investment (FDI) from Citi Group and its representative is also on the Board of the Company.

Promoted by a group of professionals, Globe Capital has grown consistently since inception

Important Milestones:

1994     Globe became the member of National Stock Exchange.1999     Globe became the depository participant of NSDL.2000     Globe acquired Trading as well as Clearing membership of NSE F&O.2000     Globe became the depository participant of CDSL.2003     Globe group acquired the membership of NCDEX, MCX and NMCE.2006     Globe group expanded globally and acquired the Trading & Clearing Membership of Dubai Gold and Commodity Exchange (DGCX) and London Stock Exchange in 2007. 2007     Globe became the clearing member of Bombay Stock Exchange in its F&O segment.2008     Globe became clearing and trading member of Currency              Derivatives in NSE, BSE and MCX.

Our Core Value

Always Be Client Centric: Clients' interests always come first. lf we serve our clients well, our own success will follow.

Always Be Transparent:Integrity and honesty are at the heart of our business. We maintain highest ethical standards and demonstrate sound judgment in executing the responsibility.

Always Be Prudent:We apply wise financial and business strategies. Our clients rely on our experience, judgment and analysis for their hard earned wealth to grow.

Always Be Foresighted:Long term relationship with our clients is more important than short term gains. Always anticipate change and be prepared.

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Our Services

Being a trusted name in the broking circle we are members of all the major stock exchanges in India. We also hold membership for DGCX, Dubai and LSE, London. We also offer Clearing Services to the Trading Member in the F&O segment and are responsible for a significant chunk of the total clearing activities as high as 10% of the total clearing process.

The Group through Globe Capital Market Limited (GCML) offers trading facilities in the Capital Market and Futures Options (F&O) segments of NSE as well as of BSE. Through our Group company, Globe Commodity Private Limited, we have membership and trading facilities for all major Commodities Exchanges in India: MCX, NCDEX and NCME. Globe Comex International DMCC is exclusively responsible for trading on Dubai Gold and Commodities Exchange.

Globe also holds membership of two major Depositories in the country i.e. NSDL and CDSL and are catering to over 65000 accounts.

To address varying investment preferences Globe offers Portfolio Management services (PMS). As a focused service, PMS pays attention to details, and portfolios are customized to suit the unique requirements of investors. Equities as an asset class outperform almost any other investment vehicle over a longer time period. PMS aims at providing the same by investing on behalf of clients on the basis of well-conducted research, experience and expertise of our Fund Manager, well supported by our research team.

Globe Capital Market is the # 1 clearing member for both NSE FX and MCX SX in currency trading. At Globe Capital Market we offer currency trading on both NSE FX and MCX SX and is supported by valued research. We offer expert advice on Currency Arbitrage and Hedging strategies to our individual and corporate customers.

Our Memberships

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Multi Commodity Exchange (MCX)

National Commodities & Derivatives Exchange (NCDEX)

National Multi-commodities Exchange of India Limited (NMCE)

National Securities Depository Limited (NSDL)

Central Depository Services Limited (CDSL)

Dubai Gold & Commodity Exchange (DGCX) (Registered with ESCA,

Dubai)

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London Stock Exchange (FSA registered Broking Entity, London)

Portfolio Manager (Registered with SEBI)

Global Presence

Dubai The Globe Group Company, Globe Commodities Private Limited, a wholly owned subsidiary of Globe Capital, has membership and trading facilities for all major Commodities Exchanges in India: MCX, NCDEX and NCME. Globe Comex International DMCC, which is a subsidiary of Globe Commodities Private Limited, the Indian arm, is devoted to trading on Dubai Metals and Commodities Exchange.

London Globe Group company, Icon Capital Ltd.( http://www.iconcap.co.uk ) is an India centric broking company which was incubated within Credo Capital Pic since 2002. The company was incorporated in January 2006, received FSA authorization in January 2007 and in March 2007 obtained membership of the London Stock Exchange (LSE),

The company serves high net worth individuals, Corporates and institutions world wide by ensuring that they have access to the best investment opportunities emerging from the subcontinent. Our key deliverables to the clients include veritable investment ideas in private equity, initial public offerings and secondary markets from India. We strive to serve foreign investors in Indian markets and Indian investors in foreign markets. Indian investors are offered global investment access

GLOBE CAPITAL DEMAT ACCOUNT CHARGES

Demat Account Opening Charges NIL

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Demat Account Maintenance Charges Rs. 350 per annum

Account Closing Charges NIL

Buy 0.02% (minimum Rs. 15/-)

Buy (Off Market from other DP) NIL

Sell 0.05 (minimum RS.15/-)

Dematerialization Charges Rs. 3/- per certificate or Rs 15/- per

request whichever is higher.

Rematerialization Charges Rs 15/- per certificate or 0.12% of the

value of the securities requested for

rematerialization, whichever is higher.

Custody Fees NIL

Request foe freezing or defreezing

Account

Rs. 25/- per request

Pledge Creation/ Closure 0.02% (minimum Rs.15/-)

1. RESEARCH METHODOLOGY

Research can be defined as “logical and systematized application of the fundamental science to the general and overall question of a study, and scientific techniques which provide precise tools, specific procedures and technical, rather than philosophical means for getting and ordering the data prior to their logical and manipulations”

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Research methodology is a way to systematically solve the research problem .It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research method /technique but also the methodology.

Research Design:

Based on the objective of the study, the type of study used is descriptive research .

Nature of data:

The data that is used for the study:

Primary Data which has been collected through survey by using questionnaires.

Secondary Data collected through company brochures, magazines, and internet.

Sampling Details:

Sampling units: Government Servicemen, Businessmen, Student,

Home-maker

Sampling method: Random Sampling

Sample Size: 51

2. OBJECTIVES OF THE STUDY

The main purpose of Relative Study of Demat Accounts of Various Brokerage Firms

is to analyse which Broking Firm offers the best feature of online trading to its

customers.

The Broking Firms are: Globe Capital Market Ltd.,Kotak Securities, Reliance Money

Ltd., ICICIdirect, Sharekhan and Religare.

The main objectives are:

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To find out the most preferred Broking Firm among the firms under

study,

The features that make them different from the rest broking firm,

The area of improvement of the broking firms under study,

The comparison of various charges of the broking firms,

The most preferred trading type.

Scope of the Study:

The present study has been done with a view to highlight the various features that are

considered while opening a Demat Account. All those features that make the Broking

Firms competitively ahead of the other and the awareness about the mandation of

Demat Account for online trading of Shares. The area of improvement required by the

firms under study.

Limitations of Study:

The time period of just 45 days was the major limitation.

The study covers only the geographical region of New Delhi only, covering

certain areas only, as such the result cannot be inferred for the other regions.

The Demat Account Services are now offered by Government Sector as well

as in large number private sector, but the study covers only five of such

broking firms.

The features of Demat Accounts, especially the charges keep changing with

time and increase in completion.

The questionnaire is filled by only those who were aware of and already aware

of the Demat Accounts and the services offered by the Firms under study so as

to be able to compare the features of the firms themselves and get the

authentic result.

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6. SEBI:

The Securities and Exchange Board of India is the Regulatory Institution for Stock

Market, it was established on April 12, 1992 in accordance with the provisions of the

Securities and Exchange Board of India Act, 1992.

The Preamble of SEBI:

The Preamble of the Securities and Exchange Board of India describes the basic

functions of the Securities and Exchange Board of India as

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“…..to protect the interests of investors in securities and to

promote the development of, and to regulate the securities market and for

matters connected therewith or incidental thereto”

Functions of SEBI:

Collection of information and advice the government on matters relating to

stock and capital market.

Licensing and regulation of merchant banks, mutual funds etc.

Prepare legal drafts for regulator and development role of SEBI.

Perform any other functions as may be entrusted to it by the Government

5.1 The National Stock Exchange:

Inaugurated in 1994, the National Stock Exchange had been the most important

development in the Indian stock market .Its seeks:

Establish nationwide trading facilities for equity.

5.2 The BSE SENSEX:

The Bombay Stock Exchange Sensitive Index started functioning from 1st January

1986.

It is composed of 30 stocks of companies known as the “BLUE CHIP” Companies

which are the representatives of all the sectors. These companies account for around

one-fifth of the market capitalization of the BSE.

5.3 The Stock Exchange:

A stock exchange, also known as Securities Exchange is a corporation which

provides "trading" facilities for stock brokers and traders, to trade stocks and

securities. A stock exchange is a market on which shares are bought and sold (or

"traded"). For a company's shares to be traded on a stock exchange, they must

generally be listed on that stock exchange in which shares are to be traded. Stock

exchanges also provide facilities for the issue and redemption of securities as well as

other financial instruments and capital events including the payment of dividend.

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The securities traded on a stock exchange include:

Shares issued by companies,

Derivatives,

Unit Trusts,

Pooled investment products and bonds.

The initial offering of stocks and bonds to investors is by definition done in the

Primary Market and subsequent trading is done in the Secondary Market.

The role of stock exchange:

Stock exchanges have multiple roles in the Economy, this may include the following:

Raising capital for businesses:

The Stock Exchange provides companies with the facility to raise capital for

expansion through selling shares to the public to invest.

Mobilizing savings for investment:

When people draw their savings and invest in shares, it leads to a more rational

allocation of resources because funds, which could have been consumed, or kept in

idle deposits with banks, are mobilized and redirected to promote business activity

with benefits for several economic sectors such as agriculture, Commerce and

Industry, resulting in stronger Economic Growth and higher productivity levels and

firms.

Facilitating companies’ growth:

Companies view acquisitions as an opportunity to expand product lines, increase

distribution channels, hedge against volatility, increase its Market Shares or acquire

other necessary business assets. A takeover bid or a merger agreement through the

stock market is one of the simplest and most common ways for a company to grow by

acquisition.

Corporate governance:

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By having a wide and varied scope of owners, companies generally tend to improve

on their management standards and efficiency in order to satisfy the demands of these

Shareholders and the more stringent rules for public corporations imposed by public

stock exchanges and the government.

Creating investment opportunities for small investors:

As compared to other businesses that require huge capital outlay, investing in

shares is open to both the large and small stock investors because a person buys

the number of shares they can afford. As such the Stock Exchange provides the

opportunity for small investors to own shares of the same companies as large

investors.

Government capital-raising for development projects:

Government sells their Securities and Bonds to raise funds to invest in developmental

activities such as infrastructure, sewage, etc. These bonds can be raised through the

Stock Exchange whereby members of the public buy them, thus loaning money to the

government.

Barometer of the economy:

Share prices tend to rise or remain stable when companies and the economy in view

show signs of stability and growth. Situations such as an economic recession,

depression, or financial crisis could eventually lead to a fall in share prices. Therefore

the Stock Market Crash movement of share prices and in general of the Stock

Indexes, it can be an indicator of the general trend in the economy.

6. Meaning of Shares:

A ‘share’ is defined as a unit of ownership in a company. When you buy a share

you become a part-owner, a shareholder, in the company. Shares are also known as

equities or securities.

A ‘stock’ represents a claim on the company's assets and earnings. As one acquire

more stocks, the ownership stake in the company becomes greater.

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A Share has a "nominal" price - at which it was originally authorized for issue and a

market price - at which it is currently trading.

Factors affecting the share price of a company:

There are certain factors which affect the Share Prices though many of which are

outside the company's control.

The factors may include:

The financial performance and future prospects of the company,

The performance and prospects for the industry in which the

company is operating,

Political, economical, financial and Stock market conditions,

particularly where the company is operating or is listed,

And also the perceptions of investors about the above stated factors.

6.1 Types of share:

Ordinary shares:

When people talk about Shares they usually mean

Ordinary Shares these are the most commonly bought is ordinary shares. Ordinary

shares give the owner a share in the company's dividend the right to vote, attend the

annual general meeting and to receive copies of the accounts.

Preference shares:

Preference shares are those which have a fixed

rate or amount of dividend, which has to be paid before any dividend can be paid to

ordinary shareholders. Preference shares may be cumulative in which case any arrear

dividend has to be made up in future years before dividends on ordinary shares can be

resumed. Non-cumulative preference shares on the other hand do not pay arrears.

Preference shares can also be participating. It means that they participate in a given

proportion of the dividends paid on ordinary shares over and above their fixed rate of

dividend.

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Another type of preference share is: Redeemable preference shares may be redeemed

for cash at either a fixed or determinable date or at the discretion of the issuing

company.

Preference shares can also be of convertible form, which is capable of being

converted into ordinary shares at a future date.

6.2 Advantages of holding shares:

Keeping Shares has certain advantages such as:

Dividends:

Dividend is a payment that is made to shareholders out of company

profits. But not all profit is paid out in dividends. Some is reinvested in the company

(sometimes all). If profits are ploughed back into the company, the company may

grow and in turn mean increased value of the shares

Capital Growth:

Another merit is of Capital growth, which occurs when a rise

in the share price gives the investor the opportunity to sell his shares at a profit.

Capital Loss also occurs if there is fall in share prices.

6.3 Reasons for the issue of Shares by Companies:

The major question now arises that why would the founders of the companies

share the profits with thousands of people when they could keep profits to

themselves? And the basic reason is that at some point every company needs to

"raise money".

To do this, companies can either borrow it from somebody or raise it

by selling part of the company, which is known as issuing stock.

A company can borrow by taking a loan from a bank or by issuing

bonds. Both methods come under "debt financing".

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Another method is of issuing stock also known “equity financing”.

Issuing stock is advantageous for the company as it does not require the

company to pay back the money or make interest payments along the

way.

DEMAT

ACCOUNT

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7. Meaning of Demat Account:

Demat is the abbreviation of Demateriazation. A DMAT or DEMAT account is an

account which is needed for buying or selling shares of a company or stocks and other

equities in electronic form. Just as bank accounts hold money, Demat accounts hold

equities. Earlier investors used to hold shares in paper format. Nowadays they are

stored electronically in the Demat account. The document of shares that is in paper

form is demated and is kept electronically in an account.

Demat Account dematerializes paper-based physical stock shares. The dematerialized

account is used to avoid holding physical shares. The market regulator, the Securities

and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be

settled in physical form, nobody wants physical shares any more as it is time taking

procedure. So a Demat account is a must for trading and investing. As it is more

convenient to trade electronically.

Number of shares needed to open a Demat Account:

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When one opens a Bank Account, one needs to have a minimum balance. But not so

with a Demat account. A Demat account can be opened with no balance of shares.

And there is no minimum balance to be maintained either. One can have a zero cash

balance even in one’s Trading Account.

7.1 Depository Participant (DP):

Depository:

They are the custodians of securities. It helps for shorter settlement cycles and

immediate transfer of title of securities.

The main work of Depository is of keeping stocks of investors in electronics form.

A depository is an organisation which holds securities, like shares, debentures,

bonds, government securities, mutual fund units etc. of the investors in electronic

form at the request of the investors through a registered Depository Participant.

Services related to transactions in securities are also provided by the Depository.

There are two main depositories in India namely:

NSDL (National Securities Depository Ltd) and

CDSL (Central Depository Services Ltd).

Depository Participant (DP) is an agent of the depository through which it

interfaces with the investor and provides depository services to the investors.

As per the requirements prescribed by SEBI the following can also be registered as

DP; Public financial institutions, scheduled commercial banks, foreign banks

operating in India with the approval of the Reserve Bank of India, state financial

corporations, custodians, stock-brokers, clearing corporations /clearing houses,

NBFCs and Registrar to an Issue or Share Transfer Agent.

7.2 Online Trading Account:

When a share trader opens a De-mat Account in any Company an Online Trading

Account is also opened at the same time, as Demat Account contains all the Shares of

a customer similarly a Trading Account is maintained to keep cash which assist in

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buying of shares and other charges. The online mode of investing largely eliminates

all the major difficulties of investing:

It provides relevant of information, analysis and tools that enables the investors to

take more informed decisions, virtually no paperwork involved as all transaction

records are online and statements available in digital form, as such an investor can

invest anytime and from anywhere at his time and convenience.

To begin investing online one needs to register as a member for an integrated 3-in-1

online trading account with any of the service providers.

Annual Maintenance Charges are taken from the customers for maintaining their

Demat Account, Trading Account and for providing other services.

Every Broking Firm now specifies for opening of three accounts by their investor or

the Share Trader. These are:

Trading account, which enables the trader to transact online.

A bank account, which is Internet enabled, for online money transfers

through Internet and

A demat account, where the shares are to be deposited.

There are certain factors which are to be considered while opening an Online Trading

Account, these are:

Credibility and credentials: There should be the backing of a reputed bank

or financial institution, which provides that additional safety.

Which investments can be made online: The investor has to find out

whether he is allowed to invest in equity shares, mutual funds and IPOs fully

through the online route or in only one of them?

Quality of information and content: Ensure that one is getting the best of

information, research support and tools, which is provided to investor or trader

in an easy and reader friendly manner.

Speed of order execution: Are the share traders able to place their equity

orders and receive quick order confirmations during peak hours?

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Choice of products to choose from: Some service providers provide a

choice of products - from the basic (classic) account to more advanced trading

platforms with live and streaming market information on equity markets.

Safety: Check for the security features inbuilt into the system to ensure

security in transaction.

Customer care: to ensure whether the service provider have a dedicated

customer care cell to take care of the queries and problem of the customers.

Besides the above, many additional features offered may be looked into, like

Ability to sell shares next day before receiving delivery,

SMS alerts,

Intraday trading in equities, etc based on the investing needs.

7.3 Required Documents for Demat Account:

A canceled check for getting MICR number,

Proof of Identification,

Proof of Address, Ration Card, Driving License, light bill, bank passbook etc

Proof of Pan card, this is the mandatory document for opening Demat

Account,

Recent photographs.

7.4 TYPES OF TRADING:

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There are two things one can do with the shares or stock or equities that one buys:

Intraday Trading:

1. The trader can sell the shares on the same day itself. Such buying and selling

of shares on the same days is called intraday trading. The brokerage of the

intraday trading is always lower than the delivery trading. Intraday trading is

typically completed within a day that means you have sell the stocks that you

have purchased that day before the closing of the exchange. Even if you do not

sell the stocks by yourself, they will automatically square off before the

closing of the exchange.

One of the disadvantages of Intraday Trading is that the trader has

to sell the shares within a day even when the share price is down.

Delivery Trading:

2. The trader can choose to keep some shares in their Demat account to be sold at

a later date in their discretion. Such a trade would be called "Delivery". The

brokerage charged for delivery trades is usually more than that charged for

intraday trades.

With Delivery Trading the trader can hold Shares till it reaches its expected

price, as long term investment can always reap good dividend. The trader can

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INTRADAYTRADING DELIVERY

FUTURES OPTIONS

MARGINS

also benefit from Split Shares, Bonus Shares and other benefits that the

company announces for the share holders.

T+2 rule:

It’s a rule in Delivery Trading that once a delivery order is placed for shares with the

broker or on one’s Online Trading Account they are not immediately deposited in the

Demat account of the trader. They will only be deposited on the 3rd business day. T in

T+2 refers to trade or the day on which trade has taken place.

Futures:

3. Futures on individual stock were launched in November 2001. They are

transferable specific delivery forward contracts .They are agreement between

two counterparties to fix the terms of exchange or lock-in the price today of an

exchange that will take place between them at some fixed future date. The

future trading has effective safeguards against defaults in the form of clearing

corporation guarantees for trades and the daily cash adjustment to the accounts

of trading members, based on daily price change.

Options:

4. Options are the contract that give the holder the right to buy or sell securities

at a predetermined price within or at the end of specific period. There can be

options on commodities, currencies, securities, stock index, individual stocks

and even on futures . In order to acquire the right of option , the option buyer

pays the option seller an option premium ,which is the price paid for the right

7.5 CONSIDERATIONS FOR OPENING A DEMAT ACCOUNT:

The following are the points that one should consider before choosing or opening a

DEMAT Accounts are:

Price:

28

One may incur the following costs while operating a Demat Account. Though

there are many charges but these matter the most:

Demat Account Opening Charges

Demat Account Maintenance Charges

Charges for Buy/Sell Trades.

Quality

Ease of Access of the Demat Account: It means to access Demat Account

Information online.

Customer Service: This would play a role if one decides to buy/sell shares

directly through the Depository Participant/DP or if one likes to keep shares in

paper form.

7.6 Benefits of Demat Account:

It is safe and convenient way to hold securities or shares.

It reduces paperwork that is involved in transfer of securities.

Reduction in transaction cost while trading

Nomination facility is also available.

The transmission of securities/ shares is done by DP (Depository Participant)

eliminating correspondence with companies.

It enables holding investments in equity and debt instruments in a single

account.

Table 1 Details of statutory / Regulatory Charges:

Charges Cash / DeliveryTransactions

Margin / Margin Plus transactions

Futures / Future plus

Options

Service Tax 12.36% on Total Value of

12.36% on Total Value of

12.36% on Total Value of

12.36% on Total Value of

29

brokerage brokerage brokerage brokerageSecurities Transactions Tax

0.125 on Turnover

0.025% on Turnover (Sell Transaction)

0.017%(Trade value in case of SELL trades )

0.017% on Option Premium in case of SELL trades and 0.125% on settlement value where Option contracts are exercised

Transaction charges

.0034% of traded value in BSE and 0.0035% of traded value in NSE

0.0034% of traded value in BSE and 0.0035% of traded value in NSE

0.002% (Trade value each side)

0.05% (on premium amount each side)

SEBI Turnover Charges

NA NA 0.0002%(Trade value and closeout)

0.0002% (On Premium and Notional value for Exercise /Assignment)

Stamp Duty 0.01% of Turnover

0.002% of Turnover

0.002%(Trade value and closeout)

0.002% (On Premium and Notional value for Exercise /Assignment)

30

Table 2 SBI BANK: GOVERNMENT SECTOR:

SCHEDULE OF DEMAT ACCOUNT CHARGES

SERIAL NO CHARGE HEAD STANDARD CHARGES

1 DEMAT ACCOUNT OPENING

CHARGES

Rs. 100/-

2 ONLINE TRADING ACCOUNT

OPENING CHARGES

Rs. 400/-

3 ACCOUNT MAINTAINANCE

CHARGES

Rs. 400/-

(Rs.350/- for customer

receiving statements by e-

mail

4 BUY-MARKET AND OFF-MARKET NIL

5 SELL-MARLET AND OFF-MARKET NIL

6 REJECTION/ FAIL Rs. 10/- per failed

transaction

7. DEMATERIALIZATION

FOR EACH REQUEST

EXTRA FOR EACH

CERTIFICATE

Rs. 35/-

Rs. 2/-

8. REMATERIALIZATION

(for each request)

Rs. 25/-

9. ADDITIONAL ACCOUNT

STATEMENT

By Courier

By email

Rs. 30/-

NIL

Conditions:

1) NSDL /CDSL* charges are chargeable extra at actuals as applicable from time to

time.

2) Service tax is required to be paid on the entire fee charged to the customer.

3) Any service that is not indicated above will be charged separately as per the rates

applicable from time to time.

31

4) If the Demat Account is closed during the year, no pro-rata refund of Annual

Service Charge will be made.

Table 3 SCHEDULES OF BROKERAGE CHARGES – ONLINE

TRADING

ACCOUNT OF SBI (Government Sector):

DELIVERY BROKERAGES

Turnover per month Brokerage Rates

0-5 Lakh 0.50%

5-10 Lakh 0.45%

10-25 Lakh 0.40%

25-50 Lakh 0.35%

50-75 Lakh 0.30%

75-2 Crore 0.25%

>2 Crore 0.15%

Table 4:

INTRADAY BROKERAGES

Turnover per month Brokerage rates

<25 Lakh 0.15%

25 – 50 Lakh 0.12%

50 – 1.5 Crore 0.10%

1.5 – 3 Crore 0.08%

3 – 6 Crore 0.07%

6 – 10 Crore 0.06%

Above 10 Crore 0.05%

7.7 BASIS OF COMPARISON:

32

Account Opening Charges

Account Maintenance Charges

Dematerialization Charges

Rematerialization Charges

Additional Statement Charges

Account Closing Charges

Brokerage charges for Intraday Trading

Brokerage charges for Delivery Trading

Features of the Broking Houses preferred the most by the customers.

33

BROKING HOUSES

UNDER STUDY.

34

8.

Sharekhan is online stock trading company of SSKI Group, provider of India-based

investment banking and corporate finance service. ShareKhan is one of the largest

stock broking houses in the country.

Sharekhan's equity related services include trade execution on BSE, NSE,

Derivatives, commodities, depository services, online trading and investment advice.

Trading is available in BSE and NSE. Along with Sharekhan.com website, ShareKhan

has around 510 offices (share shops) in 170 cities around the country.

Share khan has one of the best state of art web portal providing fundamental and

statistical information across equity, mutual funds and IPOs. You can surf across

5,500 companies for in-depth information, details about more than 1,500 mutual fund

schemes and IPO data. You can also access other market related details such as board

meetings, result announcements, FII transactions, buying/selling by mutual funds and

much more.

Trade In: BSE and NSE

Table 5

SHAREKHAN DEMAT ACCOUNT CHARGES:

Demat Account Opening Charges Rs.750/-

Demat Account Maintenance Charges Rs. 250/- per annum

35

Account Closing Charges Rs. 100/-

Buy 0.02% (minimum Rs. 15/-)

Buy (Off Market from other DP) NIL

Sell 0.05 (minimum RS.15/-)

Dematerialization Charges Rs. 3/- per certificate or Rs 15/- per

request whichever is higher.

Rematerialization Charges Rs 15/- per certificate or 0.12% of the

value of the securities requested for

rematerialization, whichever is higher.

Custody Fees NIL

Request foe freezing or defreezing

Account

Rs. 25/- per request

Pledge Creation/ Closure 0.02% (minimum Rs.15/-)

Advantages of Sharekhan:

1. Sharekhan’s online trading is very user friendly and one doesn't need any

software to access.

2. A good quality of customer services like daily SMS alerts, mail alerts, stock

recommendations etc are provided to its customers.

3. Its ability to transfer funds from most banks makes it different. Unlike ICICI

Direct, HDFC Sec, etc., so investor not really needs to open an account with a

particular bank as it can establish link with most modern banks for their

trading transactions.

36

Disadvantages of Sharekhan:

1. Sharekhan charges minimum brokerage of 10 paisa per stock would not let

you trade stocks below 20 Rs. If one trade, you will loose majority of your

money in brokerage).

2. There are lots of hidden rules and charges in Sharekhan.

3. To book limit order trades during after-hours is not provided by them.

4. The holders of Classic account cannot trade commodities.

5. The customers cannot purchase mutual funds online.

9.

A subsidiary of Kotak Mahindra Bank, Kotak Securities is a stock broking and

distribution arm of Kotak Mahindra Bank and was set up in 1994. It is a corporate

member of both Bombay Stock Exchange (BSE) and National Stock Exchange

(NSE).

Kotak securities online trading is the online trading portal of the Kotak Securities Ltd,

the leading stock broking house of India. The online division of Kotak Securities

Limited provides services like internet broking services, online IPO and mutual fund

investments.

Trade In : BSE and NSE

37

Brokerage and Account opening fees:

A trading account in Kotak requires you to have a minimum of Rs.1000 to start with,

the bank account to have a minimum of Rs.2500.

Brokerage:

1. For Intra-day trading, Kotak charges brokerage of 0.03%.

2. For delivery trading, Kotak charges brokerage of 0.05%.

Advantages of Kotak Securities Limited:

1. Kotak provides a Call & Trade facility to its customers wherein they can place

and track their orders through phone when they are away from home.

2. They provide daily SMS alerts, market pointers, periodical research reports,

stock recommendations etc.

3. Kotak provides exclusive online tool to monitor what is happening in the

market and also investor can view gains/losses in real-time.

Disadvantages of Kotak Securities Limited:

1. In online trading sometimes delay comes. So it can be frustrating.

Table 6: Demat Account Charges: Kotak Securities:

Fee Heads Charges

Account Opening Charges Rs. 750/-

Account Maintenance Charges Rs. 30/- pm, Rs. 360/- pa

Demat Rs. 3/- per certificate plus Rs.25 per

request

Remat Individual .04% of the values of the

securities, Minimum payable Rs. 15/-

38

10.

Reliance Money, A Reliance Capital Limited Company, is the financial services

division of Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is

among top 3 business houses in India with wide range of presence across various

sectors. Group’s major interests ranges from communications (Reliance

Communications) and financial services (Reliance Capital Ltd), to generation,

transmission and distribution of power (Reliance Energy), infrastructure and

entertainment.

Reliance Money has over 22 lakhs customers and more then 10'000 branches in

around 5000 cities in India. Company is among the largest broking and distribution

house of financial products and having share of more then 3% of total stock market

volume at BSE & NSE.

RelianceMoney.com is the web based investment portal (with Online Stock Trading)

from Reliance Money. This website enables its customer to invest & manage most of

the services provided by Reliance Money including Equity (Stock) Trading,

Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life

Insurances, General insurances, Money Transfer, Forex exchange, Gold Coins and

Credit Cards Services. Company recently entered in to Wealth Management with

tools like investment in equity-linked portfolio management services, structured

products, insurance and mutual funds.

The Reliance Money stock trading websites uses special security features ‘security

token', which makes your online trading experience more secure without complexity.

Stock Trading through RelianceMoney.com is available for BSE and NSE stock

exchanges. Offline trading is also available through Reliance Money partners in more

than 5000 city across India and through phone.

39

Trading Platforms:

Reliance Money provides 3 different trading platforms for equity trading:

1. Insta Trade

2. Fast Trade

3. Easy trade

Table 7 Trading Fee Plan of Reliance MoneyLtd.

ACCESS FEE

(Rs)

VALIDITY

(WHICHEVER

IS EARLIER)

VALIDITY

(WHICHEVER

IS EARLIER)

TURNOVER

LIMIT

TURNOVER

LIMIT

BROKERAGE

(Rs)

TIME

VALIDITY

TURNOVER

VALIDITY

NON-

DELIVERY

TURNOVER

DELIVERY

TURNOVER

500 1 year Rs. 2 lakh Rs. 2 lakh Rs. 2 lakh

1000 2 months Rs. 1 Cr Rs. 90 lakh Rs. 10 lakh

2500 6 months Rs. 3 Cr Rs. 2.7 Cr Rs. 30 lakh

5000 12 months Rs. 7 Cr Rs. 6.3 Cr Rs. 70 lakh

10000 12 months Rs. 20 Cr Rs. 18 Cr Rs. 2 Cr

Table 8 Demat Account Charges: Reliance Money Ltd.

Fee Head DP Charges

Annual Services Charges - For Individuals / HUFs / Trust Rs. 50/-

Annual Services Charges - For NRIs / Foreign Nationals, Corporate /

Others

Rs. 1000/-

Transaction Charges - SELL (Market & Off Market)

For instructions given in physical form.

Rs. 25/-

Transaction Charges - SELL (Market & Off Market)

For instructions received through Internet/ online trading through

Reliance Securities Ltd.

Rs. 12/-

Account Maintenance Charges Rs. 200/- pa

40

Account Opening Charges Rs. 750/-

Advantages of Reliance Money:

1. Extra security features with 'security token', which is the most secure and

tested technology in computer world.

2. Simple, easy and fast online stock trading.

3. Almost all investment options are available under one account including

Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and

Insurance. Branches are available in all major cities and the number is

growing.

11.

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along

with stock trading and trading in derivatives in BSE and NSE, it also provides facility

to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.

Trade In: BSE and NSE

Brokerage and fees:

Account opening fees : Rs 750/- (One time non-refundable)

Brokerage: ICICIDirect.com brokerages vary on volume of trade and

inclusive of demat transaction charges, service taxes and courier charges for

contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to

0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

41

Table 9 DEMAT FEE SCHEDULE W.E.F OCTOBER 1 st 2005

ICICIdirect:

FEE HEAD DP CHARGES

Account Opening Charges Rs. 750/-

Annual Service Charges Rs. 500/-

Dematerialization

For each request form

Extra for each certificate

Rs. 35/-

Rs. 2/-

Rematerialisation

For each request formRs. 20/-

Transaction charges

Market BUY

Market SELL

Off-Market Buy

Off-Market SELL

NIL for trades done on ICICIdirect.com

NIL for trades done on ICICIdirect.com

NIL

(% of transaction value of each ISIN)

Additional Account Statement Rs. 20/- per statement

Closure Account Statements NIL

Table 10 Brokerage Structure: ICICIdirect.

Cash Transactions and BTST

Total Eligible

Turnover (Value of

Transaction) Slabs

Brokerage (% of

Transaction value)

First Leg

Brokerage ( for

Squared off Order)

Second Leg

Effective

Brokerage(for

squared off orders)

Orders

42

Above Rs. 5 Crores 0.25% Nil 0.125%

Rs. 2 Crores to 5

Crores

0.30% Nil 0.15%

Rs. 50 Lakhs to Rs.

1 Crores

0.45% Nil 0.225%

Rs. 1 Crores to Rs.

2 Crores

0.35% Nil 0.175%

Rs. 25 Lakhs to 50

Lakhs

0.55% Nil 0.275%

Rs.10 Lakhs to

25 Lakhs

0.70% Nil 0.35%

Less than Rs 10

Lakhs

0.75% Nil 0.375%

Advantages of ICICIDirect:

1. 3-in-1 account integrates your banking, broking and Demat accounts. All

accounts are from ICICI and very well integrated. This feature makes ICICI

the most interesting player in online trading facility. There is absolutely no

manual interfere require. This is truly online trading environment.

2. Unlike most of the online trading companies in India which require

transferring money to the broker's pool or towards deposits, at ICICIdirect you

can manage your own demat and bank accounts through ICICIdirect.com.

Money from selling stock is available in ICICI bank account as soon as the

ICICIdirect receive it.

3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings

Schemes all from one website. General Insurance is also available from ICICI

Lombard.

4. Trading is available in both BSE and NSE.

43

Disadvantages of ICICIdirect:

1. Getting access to ICICIDirect.com website during market session can be

frustrating.

2. ICICIdirect brokerage is high and not negotiable. Not all stocks are available

under Margin Plus.

12.

Religare Enterprises Limited is financial product and service provider and is

promoted by Ranbaxy Laboratories Limited. Religare provides its services in three

different segments including Retail, Wealth management and the Institutional

spectrum. It offers wide range of services including equities, commodities, insurance

broking, wealth advisory, portfolio management services, personal finance services,

Investment banking and institutional broking services. Religare retail network spreads

across more than 900 locations across more than 300 cities and towns in India.

Religare Securities Limited is a subsidiary company of Religare Enterprises Ltd and

involves in equity related services include online trading at BSE and NSE,

Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional

broking services.“Religare” word came from, it's a Latin word meaning 'to bind

together'.

Brokerage and Account opening fees:

Religare offers three kinds of accounts; these are the software which could be

provided to the trader on their request. The details about fees and activation charges

for each account are as follows:

1. R-ACE

Account activation charges Rs.299/-.

Minimum margin of Rs.5000/- required.

44

2. R-ACE Lite

Account activation charges Rs.499/-.

Minimum margin of Rs.5000/- required.

3. R-ACE Pro

Account activation charges Rs.750/-.

Minimum margin of Rs.10,000/- required.

4. All the account comes with free annual maintenance charge.

5. All account comes with free DP account.

6. Brokerage at Religare

On the basis of volume and frequency of trading, Religare provides different

options for brokerages for its customers. On the broader way they divided into

three categories:

o Classic Account

Intraday brokerage varies from 0.3% to 0.5%.

Delivery brokerage varies from 0.30% to 0.50%.

Derivatives brokerage varies from 0.3% to 0.5%.

o Freedom Account

In this payment scheme, investor has to pay a fix amount in advance

for Monthly (Rs 500/-), Quarterly (Rs.1400), Half-yearly (Rs 2500) or

Annual Subscription (Rs 4000). This one time payment enable account

holder to trade for Rs. 3, 00,000 intraday & derivative trading and Rs.

40,000 of delivery based trading for zero brokerage.

o Trump Account

Trump account has two payment options, Trump Plus and Trump

Super plan:

1. Trump Plus has annual subscription fees of Rs 2,500, Brokerage on

Delivery Trades of 0.25% and Brokerage on Intraday Trades & F&O

Trades of 0.025%.

2. Trump Super has annual subscription fees of Rs. 15,000, Brokerage

on Delivery Trades of 0.15% and Brokerage on Intraday Trades &

F&O Trades of 0.015%.

45

Advantages of Religare:

1. Religare has the provision of giving interest on unutilized cash when investor

is waiting to make next trade or online investment.

2. Religare allows their investor to trade without having to worry about cash

margin. Investor can get exposure (on cash segment) as high as 20 times for

intraday trades.

3. They provide intraday reports and historical charting.

4. Lifetime free DP account.

5. Varity of fee structure to fulfill need of different type of investors.

Table 11 Demat Account Charges Of Religare:

Account Opening Charges Rs. 500/-

Advance Deposit Rs. 500/-

Account Maintenance Charges Rs.250/-

Demat Rs.2/- per certificate + Rs.30/- Courier

Charges

Remat Rs. 20/- per certificate + Rs. 30/- per

Courier Charges.

13.

COMPARATIVE

ANALYSIS

46

OF DEMAT ACCOUNTS

AND ITS

INTERPRETATIONS

THE ANALYSIS:

The Research Report is done on the Comparative Analysis of Demat

Accounts of:

Globe Capital Market Ltd.

Reliance Money Ltd.

ICICIdirect

Religare

Sharekhan

Kotak Securities Ltd.

The result has been derived from the survey done in the region of New Delhi.

The Questionnaires are filled in by 51 respondents, mainly those who are already

trading in shares and those who are interested in trading in stock market.

The Graphical Representation of the Primary data collected is done with the use of

SPSS Software and Microsoft Office Excel.

Do you know about Demat account?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 43 84.3 84.3 84.3

No 8 15.7 15.7 100.0

Total 51 100.0 100.0

47

84%

16%

YESNO

Interpretation:

As mentioned earlier that a “Demat Account” holds shares in electronic form, which

had been a breakthrough in the long era of shares which were traded in Paper Form.

Demat Account has made trading convenient with detailed information about the

shares rate and Stock Market condition indicated through Sensex and ofcourse a every

transaction at the click of a mouse.!

Our Stock Market, which witnessed a steep fall upto 8000 early in year 2009, and

gradually regained with Sensex going above 15000, made people to regain their trust

in trading in Stock Market.

As shown in the above graph, as high as 84% people are aware of Demat Account as

these people are into share trading and have done Rematerialization of Share

Certificates, easy accessibility for online trading etc.

Only a few people here 16 % are not aware of it because of the reasons like, not

interested in share trading, still finding shares in paper form much more convenient,

not being able to access the online facility provided for trading because of lack of

technological updation, people who are risk assertive, lack of knowledge about the

trading done through Demat Account

48

Do you intend to open a demat account?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 17 33.3 33.3 33.3

Already have 34 66.7 66.7 100.0

Total 51 100.0 100.0

YES33%

ALREADY HAVE67%

Interpretation:

As seen in the above graph, out of the 51 people surveyed 67% are already having a

Demat Account and others here 33% who were not having a Demat Account showed

their interest in opening up a Demat Account.

The reason for putting up this question was to find out those people who were

interested in share trading but did not know the online facility of share trading done

through Demat Account, and were looking forward to investment avenues in stock

market which could give them good returns.

When asked about the reasons the respondents put forward the benefits of share

trading though they mentioned the risk factor being high in this volatile market, but

with the stability coming back to its place gradually the people looked forward to

investing in equities and even trading safe.

Do you wish to do online trading of shares?

49

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 51 100.0 100.0 100.0

YES NO0%

20%

40%

60%

80%

100%

120%

Interpretation:

As per the Graphical Representation of data collected for knowing the willingness of

the people to do online trading of shares a 100%, positive response was obtained. As

per the fact of increase in profit by share traders, the ability to take risk in the current

market to earn profit and the stock market regaining its stability, most of the people

showed their eagerness to do online trading of shares. They were interested in the

result of Comparative Analysis of Demat Accounts of the various Broking Firms that

were under study.

Though the survey was to find those customers who were satisfied with the

Dematerialization of the share for doing share trading keeping in view the time and

risk factors. Since most of the Broking Firms have option of trading in shares of BSE,

NSE and/ or Futures and Options, it enhanced the option of doing online trading of

Shares.

How frequently do you trade?

50

Frequency Percent Valid Percent

Cumulative

Percent

Valid Daily 11 21.6 21.6 21.6

Weekly 12 23.5 23.5 45.1

Fortnightly 12 23.5 23.5 68.6

Monthly 13 25.5 25.5 94.1

None 3 5.9 5.9 100.0

Total 51 100.0 100.0

Daily Weekly Fortnightly Monthly None0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Interpretation:

As per the above graph, there is a slight difference in the percentage of people who preferred trading Daily, Weekly, Fortnightly and monthly.

As time is one of the main factors apart from risk while doing share trading, most of the people with financial resources at their disposal refer playing it safe with the current market conditions.

As the time of the survey was done during the month of May- June, when the stock market had come to a bullish effect people had started investing in shares. Daily trading, which is referred to as Intraday trading where shares are bought and sold at the same day. The physcology of traders was squaring off the shares while the market is showing bullish trend and thus earning a something which is better than earning less if the market falls again! Such people covered about 21.6% the survey.

With the option of ATST that is Acquired today and sell tomorrow, most of the people purchased shares and waited to a better opportunity to sell them off. This time duration is Weekly, Fortnightly, Monthly and sometimes the risk assertive people also kept their shares for years to earn a big share in their investment pie.!

51

Weekly and fortnightly share traders covered 23.5 % each of the survey and Monthly traders were 25.5%. There is always a 50 % chance of share price going up or down, but people consider it safe to wait for the present moment and observing the market. With the Congress Government coming into power many respondents believed that the market would further show a rising phase and therefore considered it safe to keep time factor in their pockets and waiting patiently.

There were about 5.9% of people who did not do share trading but were interested in doing so in the future days. As people are aware of the fact that there is money in the stock market, in the private sector as compared to government sector they are willing to purchase shares of private and public sector both to balance the recessionary effect in the market and trading in NSE and BSE.

How many Demat accounts do you have?

Frequency Percent Valid Percent

Cumulative

Percent

Valid One 22 43.1 43.1 43.1

Two 18 35.3 35.3 78.4

Three 3 5.9 5.9 84.3

More than three 8 15.7 15.7 100.0

Total 51 100.0 100.0

One43%

Two35%

Three6%

More than

three16%

Interpretation:

52

As from the previous graphical representations it got clear that people were aware

about the online trading of shares and also the benefits of using Demat Account for

share trading. Therefore the next question was that “How many Demat Accounts did

the respondents have?”

So according to the Graphical Representation of the result it was clear that major

section of the people under survey had at least One Demat Account with them, they

were 43% of the 51 people surveyed.

There were others who were having more than one Demat Accounts, with 35%

having two Demat Accounts, 6% having more than three Demat Accounts and 16%

having More than three Demat Accounts.

The basic reason for opening of more than one Demat Accounts was the attractive

feature available in Demat Account services of other Broking House. These could be

ranging from low brokerage charges, speed in transaction and less or negligible

hanging of the trading software, improved customer services, trading done through

other firms being more user friendly.

Now a days people have many options for opening up a Demat Account with many

Broking firms coming into notice with attractive feature in their Account opening

scheme and apparently less charge is deducted for even disclosure of an account, so

people find it convenient to switch over from one broking firm to other.

Do you use Demat Account of any one of them?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Kotak Securities ltd. 16 31 31 31

Reliance Money Ltd. 11 21 21 52

ICICI direct 10 20 20 72

Religare 3 6 6 78

Sharekhan

Globe Capital Mkt ltd

4

7

8

14

8

14

86

100

Total 51 100.0 100.0

53

31%

22%

20%

6%

8%

14%

Kotak Securities Ltd.Reliance Money Ltd.ICICI directReligareSharekhanGlobe Capital Mkt. ltd.

Interpretation:

The Comparative Analysis of Demat Accounts includes the study of five different

Broking Houses in the region of New Delhi. These were: Globe Capital Market Ltd.,

Kotak Securities Ltd., Reliance Money Ltd., ICICI direct, Sharekhan and Religare.

So the research included those respondents who used the Demat Accounts of these

broking Firms.

As per the Graphical Representation of the number of people using the Demat

Account facility of these Firms the highest percentage of users were of “Kotak

Securities Ltd.” with 31% as the broking house was more popular in New Delhi, the

next was “Reliance Money Ltd.” with 21%, ICICI direct covering 20 %, Sharekhan

going with 8% and 6% people had their accounts with “Religare”. Globe Capital

Market Ltd. is having a percentage share of 14%.

54

What is your first priority while opening a demat account?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brokerage 26 51.0 51.0 51.0

Customer service 10 19.6 19.6 70.6

Demat account opening

charges

1 2.0 2.0 72.5

Security in transaction 7 13.7 13.7 86.3

Convenience 7 13.7 13.7 100.0

Total 51 100.0 100.0

Brokerage51%

Customer service20%

Demat account opening charges

2%

Security in transaction

14%

Convenience14%

Interpretation:

Demat Account enables a user to electronically trade in share market, since it is a

better option than trading in shares in paper form. Therefore people look for certain

consideration while opening a Demat Account in any of the Broking Houses. The

result obtained through the respondents highlighted the fact that they consider five

factors amongst their priority list. These were brokerage charges, security in

transaction, customer services, Demat Account opening charges and convenience.

As per the Graph out of the 51 respondents who already have a Demat Account and

who intended to open a Demat Account, most of them that is 51% voted for

“Brokerage charges” as their first priority. They stated that for every share a certain

percentage of brokerage, fees or commission is charged. So if the brokerage charge

55

itself is very high those who do less of trading in a period would undergo heavy

deduction from their Trading Account. Though it is a compulsory part of trading

charges the traders look for those Broking Houses which charge less percentage of

Brokerage for each purchase and sale of shares.

Another set of high percentage priority was witnessed for the feature of “Customer

Services” about 19%. It includes factors like time taken to open a Demat Account,

Sms alerts made available to the customers, additional account statements made

available, telephonic help made available, even trading on behalf of the customer if

they are unable to access online facility, mailing the per day transactions to the

customers and many more customer related services.

Next priority was a tie up of “Security in transaction” and “Convenience” at 14%

each. Since trading is done as a serious business, to earn side income in the form of

dividend, bonus etc, and involves a huge sum of money therefore security in

transaction is a must for every trade done. In any case the right numbers of shares are

credited to and or debited from a trader’s Demat Account and likewise accurate

amount is credited to in case of selling of shares an debited from in case of purchase

of shares from a traders Trading Account.

The feature of “Convenience” includes user friendly portal of the Broking Houses.

The Software like “Keat” and “Oding” which enhances the speed of transaction with

share prices being highlighted within 2 to 5 seconds in the portal of the customer so

that trading could be done at a convenient price level of the shares.

t Demat Account opening charges were of least consideration for most of the

respondents. Only 2% took it among their priority list, though most of the Broking

Firms have a standard rate for opening demat account.

56

Do you operate demat account by yourself or through an agent?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 39 76.5 76.5 76.5

No 12 23.5 23.5 100.0

Total 51 100.0 100.0

Yes77%

No23%

Interpretation:As per the graph most of the customers here about 77% did trading by themselves.

Most of the Broking Houses have come up with the Demat Accounts as per the

instruction of SEBI, for online trading of shares. Initially the beginners used the help

of the agents for their trading but with the instructions of the business news channels

and the convenience provided to them by the broking houses they started trading by

themselves. Just for acquiring of the knowledge of trend of the stock market, the

beginners used to take help of the experts who gave advices in different media

channels likes of NDTV ,CNBC and the newspaper.

About 23% of people still used the help of agents due to their lack of knowledge

about the online trading of shares.

57

Which type of trading do you do?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Delivery 40 78.4 78.4 78.4

Intraday 7 13.7 13.7 92.2

Futures 2 3.9 3.9 96.1

Options 1 2.0 2.0 98.0

Margin 1 2.0 2.0 100.0

Total 51 100.0 100.0

Delivery Intraday Futures Options Margin

Series1 0.784 0.137 0.039 0.02 0.02

5.00%

15.00%

25.00%

35.00%

45.00%

55.00%

65.00%

75.00%

85.00%

Interpretation:

The traders are given the options of doing Delivery trading, Intraday Trading, Futures

and Options and also at Margin.

As per the Graph about 78.40% people preferred doing “Delivery” trading. Their

reason for preference was that it reduces risk to an extent and the trader can sell off

their shares at a time of their choice. It gives them the chance of waiting for the

highest price of the shares where they could sell off their shares at a maximum price.

Such type of trading is usually done by anyone with more or less finance at their

disposal, and also if they are risk assertive.

About 13.70% of people preferred doing “Intraday Trading”. Its gives the trader the

chance of selling off their shares on the same day of purchase of share. The risk under

58

this type of trading is that even at a price less than of the purchase price of the shares

the trader has to sell it off and thus incurring loss in a day and vice versa in case the

Sensex rises as showed a rise in price of the shares.

As per the graph “Futures Option and Margin” covers a less percentage of 3.90%,

2% and 2% respectively.

What is your trading volume?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Less than Rs. 10 Lakhs 31 60.8 60.8 60.8

Rs. 10 lakhs - Rs. 50 lakhs 14 27.5 27.5 88.2

Rs.50 lakhs - Rs. 1Crores 4 7.8 7.8 96.1

Rs. 1Crores - Rs. 5Crores 2 3.9 3.9 100.0

Total 51 100.0 100.0

Less than Rs. 10 Lakhs

Rs. 10 lakhs - Rs. 50 lakhs

Rs.50 lakhs - Rs. 1Crores

Rs. 1Crores - Rs. 5Crores

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Interpretation:

The 51 people under study showed that about 60% of them had a trading volume is

less than Rs. 10 lakhs, the research was responded by people who did safe trading in

the stock market and did wise investments in equities with less of exposure to risk.

59

While about 28% of them did trading worth Rs. 10 lakhs- Rs. 50 lakhs and about

7.8% had a trade volume of RS. 50 Lakhs-Rs.1Crores and about 3.9% of the 51

people surveyed deal with share trading volume of Rs. 1Crores- Rs.5 Crores.

From the following the services of which broking house is on your top list?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Reliance Money Ltd. 10 19.6 19.6 19.6

Kotak Securities 17 33.3 33.3 52.9

ICICI Direct 5 9.8 9.8 62.7

Religare 4 7.9 7.9 70.6

Sharekhan

Globe Capital Mkt.

Ltd.

6

9

11.8

17.6

11.8

17.6

82.4

100

Total 51 100.0 100.0

Relian

ce Money

Ltd.

Kotak Se

curiti

es

ICICI Dire

ct

Religa

re

Share

khan

Globe Cap

ital M

kt. Lt

d.0

5

10

15

20

25

30

35

FrequencyPercent

Interpretation:

60

The Survey conducted in the city of New Delhi showed that the people there were

rating “Kotak Securities” at their top priority for share trading. They constitute to

about 33.3% of the respondents. The reasons for top listing were of the less

Brokerage Charges charged by the firm and also the special feature of “Offline

trading” being provided to the customers for trading. The follow up of the customers

by Kotak Securities Ltd. also made them maintain a line of customers.

“Reliance Money Ltd.” was given a second preference in the share Trading Facility

with a percentage of 19.6% “Globe Capital Mkt. Ltd” was rated in the third place

as their services are good. It constituted about 17.6% of the total survey.

11.8% of the respondent favoured “Sharekhan” on the feature of its user

friendliness.

About 7. 9% of the respondents listed “Religare”

Therefore the analysis favoured Kotak Securities Ltd. ahead of the other Broking

firms, because the main focus of Kotak Securities is to build the customer through

providing of better service over all broking firms, hence has a chain of loyal customer

with them, who preferred and referred it in comparison to other of the Broking Firms.

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Which feature of Reliance Money Ltd. Demat Account you find the best?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brokerage charges 23 45.1 45.1 45.1

Security in transaction 21 41.2 41.2 86.3

Customer service 3 5.9 5.9 92.2

Convenience 4 7.8 7.8 100.0

Total 51 100.0 100.0

Brokerage charges

45%Security in transaction

41%

Customer service6%

Convenience8%

Interpretation:

There are certain features that are highlighted of any Broking Firm that makes it

different from other. As per the Graphical Representation of the survey the

respondents favoured the feature of “Brokerage Charges” as a top consideration for

opening and maintaining a Demat Account in “Reliance Money Ltd”. They

constitute to about 45% of the response.

As per this feature the Charges Slab in the previous part showed that trading done in

Reliance Money Ltd. was the most Cost-effective as it chares comparatively low

transaction fees and cuts the trading cost by upto 90%. Just with the access fees of Rs.

500/- for a turnover of Rs. 2 lakhs it gives Brokerage charge of Rs.1 per trading.

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For Delivery based trading its 0.075% and for Intraday trading it is 0.02%

Apart from the low Brokerage Charges feature, another feature that most of the

respondents highlighted was its “Security in Transaction”.

Reliance Money Ltd. provides extra security feature with “Security Token” which is

the most secure and tested technology in the computer world. Its security feature

obtained 45% of the positive reponse.the Accounts are safe guarded with unoque

security number which changes every 32 seconds. This number works as a dynamic

password to keep the account extra safe and therefore found a next place to the feature

of Brokerage Charges.

Next comes its “Convenience” feature which was attended by 8% of the people

under study. Reliance Money offers a simple, easy and fast online stock trading and

has branches available in almost all major cities, which adds to the convenience. Even

the online Portal of Reliance Money Ltd. is easy to operate.

Its Convenient in the fact that its services are through Internet, Transaction Kiosks

and also over phone. It offers a single window access to all financial products too.

These features gave it a good stand in comparison to the other Broking Firms.

It also provides a 3 in 1 facility of Banking, Trading and Demat Account through a

single window and transfer funds across accounts seamlessly.

Though “Customer Service” showed a low rating of 6% out of the 51 respondents.

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Which feature of Kotak Securities Demat Account you find the best?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brokerage charges 11 21.6 21.6 21.6

Security in transaction 11 21.6 21.6 43.1

Customer service 21 41.2 41.2 84.3

Convenience 6 11.8 11.8 96.1

Off line trading 2 3.9 3.9 100.0

Total 51 100.0 100.0

Brokerage ch

arges

Securit

y in tr

ansacti

on

Customer s

ervice

Convenience

Off line tr

ading0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Interpretation:

There are certain features that are highlighted of any Broking Firm that makes it

different from other. As per the Graphical Representation of the survey the

respondents favoured the feature of “Customer Service” as a top consideration for

opening and maintaining a Demat Account in “Kotak Securities ”. They constitute to

about 41.2% of the response. In Kotak Securities , there are fund managers who

manage the fund of the investor of both the client (Offline or Online client ) but those

who has the knowledge of share trading they can do trading on their own with the

software which Kotak Securities is providing to their customer and in case any

suggestion they want to take from the broker of Kotak Securities, the customer can

take at any time by dialing online or offline number and it’s a toll free number which

64

adds to its customer service. But for those customers who do not have the knowledge

about share trading, the fund managers are there for managing their fund. That is why,

respondents have pointed out customer service as the best feature for the Kotak

securities.

But apart from the customer service, Brokerage charges and security in transaction is

another feature which were rated equally by the respondents .They constitute to about

26.2% each .Brokerage charges can be reduced with the mutual consent of broker .It

depends on the trading volume of any trader. If the trader trading volume is

somewhere around 1,00,000 to 2,00,000 ,then the brokerage charges can be reduced

by .02 paise .The brokerage charges of delivery trading is .05 of per Rs .1000

and .03% in Intraday .

Next feature is “Convenience” constituting to about 11.8% by the respondents. In Kotak Securities, software likes of KEAT and ODING is provided for the online customer .ODING software is provided for those customer whose trading volume is somewhere above 5,00,000. ODING software is very costly and has the capability to connect from terminal to user within 2 second.

Last is the Offline trading, “Offline trading” constitute to about 3.9% .Offline trading is for those who do not have the knowledge about the share market; here the broker manages the whole fund of investors.

65

Which feature of Religare Demat Account you find the best?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brokerage charges 16 31.4 31.4 31.4

Security in transaction 14 27.5 27.5 58.8

Customer services 11 21.6 21.6 80.4

Convenience 10 19.6 19.6 100.0

Total 51 100.0 100.0

Brokerage charges

Security in transaction

Customer services Convenience

31.40%27.50%

21.60% 19.60%

Interpretation:

“Religare” is preferred for its “Brokerage charges” as about 31% respondents favoured this feature. It has a range of Brokerage charges according to the convenience of the traders. With Intraday trading brokerage ranging from 0.3% to 0.5% and for Delivery trading its 0.30% to 0.50%. This feature is put on first in its services. As such there are varieties of fee structure to fulfill the needs of different types of investors.

“Convenience” and “Customer Services” show an appreciation by about 21% and 20% of the respondents. It’s because of the Lifetime Free DP Account provided to the customers of Religare.

Another add on feature is that it provides interest on unutilized cash when investor is waiting to make next trade or online investment.

66

Which feature of ICICIdirect Demat Account you find the best?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brokerage charges 9 17.6 17.6 17.6

Security in transaction 13 25.5 25.5 43.1

Customer services 16 31.4 31.4 74.5

Convenience 13 25.5 25.5 100.0

Total 51 100.0 100.0

Brokerage charges

Security in transaction

Customer services Convenience

17.60%

25.50%31.40%

25.50%

Interpretation:

ICICI direct got a big 31.40% in its “Customer Service”. The feature of “Investor Empowerment Program” gave it a positive point. As a part of their Investor Empowerment Program they arrange Customer Education Sessions every month to help the investors with different investment options. The feature explained by the respondents were about the Comprehensive Demo and also Live site Demo, which helps to use the ICICI direct site more effectively to make the investments and also learn about placing orders in Cash, Margins, BTST.

Another feature of “Security in transaction” and “Convenience” showed an equal share of 25.50% the reasons were the Paperless Share Trading as such the customer do not need to write cheques and TIFDs for settling his trades.

The feature of Invest anytime facility that is placing orders anytime of the day even during non-trading hours and holidays adds to the Convenience factor of ICICI direct.

67

CallNTrade allows the investors to call a local number in any city and trade on telephone through the Customer Sales Executive. This facility is available across India.

“Brokerage Charges” of ICICI Direct got a 17.60% of peoples approval as its good feature though the firm states its Broking Charges as reasonable and inclusive of Demat Transaction Charges.

Which feature of Sharekhan do you find the best?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brokerage charges 8 15.7 15.7 15.7

Security in transaction 5 9.8 9.8 25.5

Customer services 18 35.3 35.3 60.8

Convenience 20 39.2 39.2 100.0

Total 51 100.0 100.0

Interpretation:

The feature which gives a plus point to “Sharekhan” is its “Convenience” factor; this is rated at 39.20% by most of the Demat Account users of Sharekhan. Online trading is very user friendly and the customers need not access any software and provide sms alerts, mail alerts, stock recommendations. Another feature which adds

68

Brokerage charges

Security in transaction

Customer ser-vices

Convenience

Series1 0.157 0.0980000000000002

0.353 0.392000000000004

2.50%

7.50%

12.50%

17.50%

22.50%

27.50%

32.50%

37.50%

42.50%

on to its convenience factor is its ability to transfer funds from most of the banks as such the traders need not open any account with a particular bank as it can establish links with most of the banks.

What is your occupation?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Businessman 14 27.5 27.5 27.5

Government service 19 37.3 37.3 64.7

Student 12 23.5 23.5 88.2

Home maker 6 11.8 11.8 100.0

Total 51 100.0 100.0

27%

37%

23%

12%

businessman government service student home maker

As per the graph which shows the occupation of the respondents who did share trading included Businessman, Government Service, Students, Home maker.

Out of the 51 respondents an amazing of 37% were government employees, which states that they are also interested in share market and are likely to handle risk in stock market unlike the earlier trend. Even though they invested a less portion in share market and mostly did Delivery Trading that constitutes a major portion in the stock market.

69

Around 27% of the respondents were Businessmen. They mostly did a high volume of trading as for having more of finance at their disposal. They indulged in Intraday and Delivery trading in most of the cases.

Another section of the society, the third Generation is also into share trading, since they are more of risk takers and even consider it as a side income generating business. As such they star off early with age of 24 years and above. The “Students” covered about 24% of the people under survey.

About 12% of the homemakers were interested in share market, and dealt with Delivery kind of trading and Commodity Trading.

Comparison of the Broking Firms on the basis of their “Account Maintenance Charges”:

Reliance Money Ltd.

Kotak ICICI Direct Religare Sharekhan Globe Capital Market Ltd.

0

100

200

300

400

500

600

Maintenance Charges(in Rs.)

Interpretation:

The above graph shows that the Account Maintenance Charges of the Broking Firms under Study. This is one of the important charges charged and paid by the firm and the customer respectively. Globe Capital charges Rs.350 per annum.The graph shows that ICICIdirect charges the highest AMC, of Rs. 500/- and as such is high, in comparison to the firms like Reliance Money which charges only Rs. 200 and Sharekhan and Religare which charges only Rs. 250 each per annum. Kotak charges an AMC of Rs.30 per month which amounts to Rs. 360 per annum.

70

Comparison of the Broking Charges on the basis of “Account Opening Charges”

Relian

ce Money

Ltd.

Kotak

ICICI Dire

ct

Religa

re

Share

khan

Globe Cap

ital M

arket

Ltd.

0100200300400500600700800

Series1

Interpretation:

Account opening charges are the charges which are required to open a Demat Account.Globe Capital opens demat account free of cost. The above graph shows that the Reliance Money, Kotak Securities, ICICIdirect and Sharekhan, have the same charges i.e. Rs.750. But in Kotak securities, if a trader gives a margin of Less than Rs.50000 then the investor has to pay Rs.1250 for the Account Opening Charges and if a trader gives a margin of more than Rs.50000 then the investor has to pay Rs. 750 for the account opening charges .Religare charges low Rs.500 for the account opening charges. Account opening charges does not make any impact in the mind of trader. It’s the customer security, speed in trading, convenience and brokerage that matters the most.

71

12. CONCLUSION AND RECOMMENDATIONS

The report has covered in a comprehensive way the features that are mostly

considered by the customers for their investment in stock market, especially through

trading in shares with the assistance of various Broking Firms.

To trade online and to keep shares in electronic form SEBI has made it mandatory for

the share traders to hold a Demat Account. Since there are many Broking Firms both

in Public and Private sectors, the customers now have option to open Demat Account

in any of the Houses that gives them an overall cost effectiveness.

The research was conducted in the City of New Delhi surveying 51 people. The major

findings of the research are as follows:

1. For opening up a Demat Account the first consideration for any

customer or online trader is the Firms Brokerage charges. Since share

trading is in the present a serious source of income and trading is done

in high volume ranging from thousands of rupees to crores of rupees

and thousand numbers of Shares. Therefore for every share traded

people prefer less of brokerage to be charged rather reasonable charges

to be deducted.

2. Another finding was that the traders, who are the customers for the

Broking Houses, want customer delight as per the customer services

imparted by the broking houses. It covered the quick online trading

procedure. The speed with which the share orders are placed and

executed.

3. The customers are aware of the different facilities provided by the

other Broking Houses, as such they compare the cost and services

before going for a particular firms Demat Account.

4. The most important aspect had been about security in transaction. It

means the surety on part of the trader that their trade transactions are

safe and might not be hacked by any other person. Just the accurate

amount and Shares are Debited and or Credited from the Trading and

Demat Account.

5. On comparing the six Broking Firms the conclusion drawn was that,

72

for the feature of “Customer Service” “Kotak Securities” was

ahead of the other firms,

for the feature of “ Brokerage Charges” and “Security in

Transaction” “Reliance Money Ltd” and “Globe Capital

Market Ltd.” was as the top preferred Broking house,

For the feature of “Convenience” “Sharekhan”, “Religare” and

“ICICIdirect” was preferred by many of the respondents.

The Dematerisation and Rematerialisation charges are the

Broking Firms were within the acceptable standards, less of the

people go for Remat option of their shares, that ic converting

their shares from electronic form to paper form.

6. There are certain recommendations which are necessary for the

increase in customer base of the Broking Firms under study and also to

become more cost effective. These are:

The Convenience Factor of Kotak Securities Ltd as per the

Software used in trade transaction was preferred less by the

customers; as such it should enhance its speed of transactions.

The Brokerage Charges of ICICIdirect has been a bit high as

compared to other firms as such cost effectiveness is to be

established.

73

15. BIBLIOGRAPHY

Books:

Khan.Y.M (2004), Financial Services, Tata McGraw- Hill Publishing Company Ltd.

Chandra Prasanna, (2005), Investment Analysis, Tata McGraw- Hill Publishing

Company Ltd.

Reddy Suradsana.G, Financial management (2008).

Internet:

www.ncfm.com , http://www.nse-india.com/content/ncfm/ncfm_modules.htm#002

www.globecapital.com

www.reliancemoney.com

www.kotaksecurities.com

www.sharekhan.com

www.icicidirect.com

www.religare.com

Magazine:

Outlook

Business World

Company Brochures:

Account Opening Forms: Application kit of :

Globe Capital Market Ltd.,Reliance Money Ltd., Kotak Securities, ICICI direct,

Sharekhan,Religare

74

17.

ANEXXURE

75

COMPARATIVE ANALYSIS OF DEMAT ACCOUNTS OF VARIOUS BROKING FIRMS:

1) Do you know about Demat Account?

a) Yes b) No

2) Do you intend to open a Demat Account?

a) Yes b) No c) already have

3) Do you do or wish to do online trading of shares?

a) Yes b) No

4) How frequently do you trade?

a) Daily

b) Weekly

c) Fortnightly

d) Monthly

e) None

5) How many Demat accounts do you have?

a) One b) two c) three d) more than three

6) Do you use Demat Account of any one of them?

a) Globe Capital Mkt. Ltd.

b) Reliance Money Ltd.

c) Kotak Securities

d) ICICI Direct

e) Religare

f) Sharekhan

7) What is your first priority while opening a Demat account?

a) Brokerage

b) Customer Services

c) Demat Account Opening Charges

d) Security in transaction

e) Convenience

8) Do you operate the Demat account by yourself or through a agent?

a) Yes b) No

9) Which type of trading do you do?

a) Delivery

76

b) Intra day

c) Futures

d) Options

e) Margin

10) What is your trading volume in a month?

a) Less than Rs. 10 lakhs

b) Rs.10 lakhs – Rs.50 lakhs

c) Rs.50 lakhs – Rs.1 Crores

d) Rs. 1 Crores – Rs. 5 Crores

e) More than Rs. 5 Crores

11) From the following, the services of which broking house is on your top

list?

a) Globe Capital Mkt Ltd.

b) Reliance Money Ltd.

c) Kotak Securities Ltd.

d) ICICI Direct

e) Religare

f) Sharekhan

12) Which feature of Reliance Money Ltd. Demat Account you find the best?

a) Brokerage charges

b) Security in Transaction

c) Customer Service

d) Convenience

13) Which feature of Kotak Securities Demat Account you find the best?

a) Brokerage Charges

b) Security in Transaction

c) Customer Services

d) Convenience

e) Off line Trading

14) Which feature of Religare Demat Account you find the best?

a) Brokerage Charges

b) Security in transaction

c) Customer Services

77

d) Convenience

15) Which feature of ICICIdirect Demat Account you find the best?

a) Brokerage Charges

b) Security in transaction

c) Customer Services

d) Convenience

16) Which feature of Globe Capital Mkt. Ltd. do you find the best?

a) Brokerage Charges

b) Security in transaction

c) Customer Services

d) User Friendly

17) Name……………………………………..

18) Occupation:

a) Business

b) Government Service

c) Student

d) Home maker

19) Contact no:

“THANK YOU FOR YOUR TIME AND COOPERATION”

78