SUMMER TRAINING REPORT ON

“CUSTOMER STUDY ON SECURITY TRADING”

India Infoline Ltd.

Summer Training Project Report Submitted Towards The Partial Fulfillment For Award Of The Degree Of Master of

Business Administration(2009-2011)

COLLEGE OF SCIENCE & ENGINEERING, JHANSI (U.P)

UNDER THE GUIDANCE OFMR. PARAS CHAUDA

(Relationship Manager)

Submitted To: Submitted by: MR. MANOJ KUMAR SHARMA JEETENDRA PARSERIAHead Of Business Administration MBA-3rd Sem ROLL NO:-0914570023

1

DECLARATION

I do hereby declare that the Project work entitled “A Customer Study On Security Trading”

submitted for the partial fulfilment for the award of Master’s Of Business Administration of

College Of Science & Engineering , Ambabai, Jhansi (U.P) is my original work and has not

previously formed the basis for the award of any degree, diploma, associate ship, fellowship or

other similar title or recognition.

JEETENDRA

PARSERIA

2

ROLL NO:- 0914570023

ACKNOWLEDGEMENT

I would like to express My sincere thanks to India Infoline Ltd, Noida for giving me the

opportunity to carry out the Summer Internship Program in their organization.

I express my gratitude to Mr. Paras Chauda (Relationship Manager) & Mr. Divyadeep

Arora (Sales Manager) India Infoline Ltd, for their support and guidance during the training

period.

I am very thankful to Mr. Manoj Kumar Sharma, Head Of Business Administration,

College of Science & Engineering, Jhansi (U.P), for giving me the opportunity to complete

my training in India Infoline Ltd and giving me the guidance and interest evinced throughout

the preparation of this project.

I also extend my heartfelt gratitude and thanks to Mr. Ajay Gangele, Assistant Professor,

Master’s Of Business Administration.

I would like to express my note of gratitude towards my Project Mentor Ms. Ruchi Khanna,

Senior Lecturer, Master’s Of Business Administration and all other faculty member of

CSE, Jhansi, my thanks to those who encourage me and give values and moral support to

complete my summer training successfully.

I take this opportunity, also to express My love and sincere thanks to My family members and

friends for their support and advice during various stage of work.

Last but not the least I thank God almighty for giving me the support for the completion of the

task.

JEETENDRA PARSERIA

3

ROLL NO :- 0914570023

PREFACE

No professional curriculum is considered complete without work experience. It is well evident

that work experience is an indispensable part of every professional course. In the same manner

practical work in any organization is must for each an every individual, who is undergoing

management course. Without the practical exposure one cannot consider himself as a qualified

capable manager.

Entering in the organization is like stepping into altogether a new world. At first, everything

seems strange and unheard but as the time passes one can understands the concept and

working of the organization and thereby develop professional relationship. Initially it is felt

that as if classroom study was irrelevant and it is useless in any concern working. But

gradually it is realize that all fundamental basic concepts studied are linked in one or other

ways to the organization. But how and what can be done with fundamentals depends upon the

intellectual and applicability of an individual.

4

ABSTRACT

Indian capital market has seen unprecedented boom in its activity in the last 15

years in terms of number of stock exchanges, listed companies, trade volumes,

market intermediaries, investor population, etc. However, this surge in activity

has brought with it numerous problems that threaten the very survival of the

capital markets in the long run, most of which are due to the large volume of

paper work involved and paper based trading, clearing and settlement.

Until the late eighties, the common man kept away from capital market and

thus the quantum of funds mobilized through the market was meager. A major

problem, however, continued to plague the market. The Indian markets were

drowned in shares in the form of paper and hence it was problematic to handle

them. Fake and stolen shares, fake signatures and signature mismatch,

duplication and mutilation of shares, transfer problems, etc. The investors

were scared and were under compensated for the risk borne by them. The

century old system of trading and settlement requires handling of huge

volumes of paper work. This has made the investors, both retail and

institutional, wary of entering the capital market. However, lack of

modernization become a hindrance to growth and resulted in creation of

cumbersome procedures and paper work.

However, the real growth and change occurred from mid-eighties in the wake

of liberalization initiatives of the Government. The reforms in the financial

sector were envisaged in the banking sector, capital market, securities market

regulation, mutual funds, foreign investments and Government control. These

5

institutions and stock exchanges experienced that the certificates are the main

cause of investors` disputes and arbitration cases.

LITERATURE REVIEW

Investing in equities in a market like India is speculative and involves risk that may be greater

than other types of investment strategies. Before investing an Investor should be careful enough

about him investment decision to avoid erosion of wealth. As seen in the recent times the

volatility of market is more detrimental to the retail investors as it seems to be lucrative for

speculative gains of short duration of time. Hence an investor has to evaluate his options

carefully for a prudent investment, keeping long-term horizon in mind.

The report has tried to bring out the parameters those are of paramount importance to

general public dealing in an equity trading on Intra Day and delivery base trading. The working

methodology has been discussed i.e. the data collection methods, sampling methods and the

survey questionnaire methods. Questionnaire prepared is designed so as to cover a wide range of

customer “touch points”. The report given a view about the investors perception that what they

think while making investments in shares.

A sample of 100 people was selected randomly and survey was done as per the

parameters of the questionnaire. The results of every parameter have been included in this

report and shown graphically (Pie Charts, bar graphs etc.) A complete structure of the research

design has been included.

Apart from above discussed points the brief history of India Infoline Securities Ltd, its business

diversification and a brief introduction about the concept of share trading.

The two largest stock exchanges in India are the Bombay Stock Exchange and the National

Stock Exchange of India. The Indian economy has grown rapidly in the last ten to fifteen years,

6

and both of these exchanges have continued to reactively construct new stock market indexes in

order to more accurately represent the overall Indian market.

The Bombay Stock Exchange (BSE) created the BSE 500 stock market index. This index of 500

stocks is designed to better portray the changing nature of the Indian economy, and represents

nearly 93 percent of the market capitalization of the BSE (BSE). Consequently, the BSE 500 is

generally considered representative of the Indian stock market.

India Index Services and Products Limited (IISL) was created in 1998 to provide a variety of

stock market indexes to the National Stock Exchange of India (NSE). IISL has a consulting and

licensing agreement with Standard and Poor’s (NSE website).The NSE S&P CNX 500 (NSE

500), a broad-based index of 500 stocks, was created . According to the NSE, this index

represents approximately 93 percent of the exchange’s market capitalization and approximately

87 percent of NSE turnover, and is therefore representative of

the overall Indian stock market.

We collected values for each index for the last trading day of each month. Data for last trading

day of the month for each index were available from June 1999 to June 2010, so that we have

ninety-six monthly return observations, i.e. from July 1999 to June 2010 for each index. Since

each index represents over ninety percent of the market capitalization of its respective exchange

and each index is representative of the overall Indian stock market, we expect similar results for

our analysis of each of the two data sets over the sample period.

Adoption of the Internet might be an indicator of changes in the society and adopters and non-

adopters might be differentiated according to the demographics (Al-Ashban and Burney, 2001;

Karjaluoto et al., 2002; Sathye, 1999) and attitude towards the use of Internet for trading. In

recent studies, demographic variables such as age, educational level, and income contributed

significantly in discriminating between innovators and early adopters from others (LaBay and

7

Kinnear, 1981; Gatignon and Robertson, 1985; Martinez et al., 1998). Doherty et al. (2003)

and (Akinci et al., 2004) found that male and

young customers were most likely to adopt the internet for stock trading. The young, educated,

and affluent embraced the advent of personal computer as the new wave in digital technology

(Lin, 1998; Atkin et al., 1998; Karjaluoto et al., 2002; Mattila et al., 2003; Sathye, 1999).

Another study observed that age and education of the respondents did not discriminate between

Internet users and the non-users of e-banking (Sohail and Shanmugham, 2003).

Attitude is defined as an individual's degree to respond in a favorable or unfavorable way with

respect to a psychological object (Ajzen and Fisherbein, 2000). In the field of Internet stock

trading, the more positive the attitude an individual had towards the object, the more likely was

the behavioral intention to adopt the same (Gopi and Ramayah, 2007). Many studies had

shown the significant effect of the attitude towards intention to adopt the innovation

(Mathieson, 1991; Lu et al., 2003; Shih and Fang, 2004; Ramayahet al., 2003; Teo and

Pok, 2003; Ramayah et al., 2004; Eri, 2004; Ramayah et al., 2005; Ramayah and Suki,

2006). Another study revealed that attitude and social factors significantly influenced the

investors’ intention towards adopting Internet stock trading as they find themselves secure in

this trading.(Lee and Ho, 2003). Majer (2010) attempted to examine 100 investors’ opinion on

issues ranging from Internet security to their willingness to adopt an Internet-based stock

exchange in Canada. It was concluded that Internet stock exchanges would soon catch a

valuable niche market in the area of electronic commerce.

“Patel and Evans (2003)” investigated seasonal patterns in the stock markets of the seven

most industrialized..

8

A period of good returns also boost the investor’s self confidence reducing his

psychological risk.(Tversky , A. & Kanheman, D .(1974), Judgement under uncertainity :

Heuristics and Biases, Science.

OBJECTIVE OF THE STUDY

1) To study investor’s behavior towards different Factors and service quality

such as Convenience, Privacy, Timesaving, User-friendly etc. of

investment in Equities.

2) To study the issues and challenges that investor’s face while making

investment in share market.

3) To study the preferences and perceptions of investors regarding various

financial products from the stable of India Infoline Securities Ltd. so that

the firm can benefit from the findings of the report in launching any new

investment product in future.

4) To study the customer behavior in respect of investment in shares.

5) To understand the satisfaction level of clients with India Infoline regarding

service provided by staff.

6) To understand the satisfaction level of clients with India Infoline regarding

trade confirmation.

7) To understand the what type of trading should be provided to the

customers.

8) To learn about the different aspects of the customers.

9) To study the satisfaction level of brokerage.

9

10) To understand the satisfaction level of clients with India Infoline regarding

tips.

11) To study the satisfaction level of flexibility provided by India Infoline.

12) To study the overall satisfaction level.

10

TABLE OF CONTENTS

11

CHAPTER TITLE PAGE NO

1 Introduction 12 - 13 1.1 History Of India Infoline 14 - 16 1.2 Company Profile 17 - 22 1.3 The Management Team 23 - 25 1.4 Marketing Strategies Of IIFL 26 - 36 1.5 About Demat Account 37 - 45 1.6 Competitors Details 46 - 48 1.7 History Of Stock Exchange 49 - 54 1.8 Products & Services 55 - 61 1.9 Types Of Account 62 - 692 Research Methodology 70 - 71 2.1 Objectives Of The Research 72 - 73 2.2 Limitations Of The Study 74 - 753 Data Analysis & Interpretation 76 - 106 3.1 Testing Of Hypothesis 107 - 1124 Conclusion 113 - 114 4.1 Recommendations 115 - 118 4.2 Questionnaire 119 - 130 5 My Experience During Training Period 131 - 1326 Bibliography 133 - 1387 Annexure 139

12

CHAPTER 1 INTRODUCTION

13

INTRODUCTION AND CONCEPT OF SHARE

TRADING

Trading in shares is old phenomena its regulation had been started when securities contract act

had been formed in 1956. Transfer of resources from those with idle resources to others who

have a productive need for them is most efficiently achieved through the securities market. It

provides a channel for reallocation of savings to investments.

14

CHAPTER 1.1HISTORY OF THE COMPANY

15

HISTORY OF THE COMPANY

India Infoline was originally incorporated on October 18, 1995 as Probity Research and

Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11

93797. India Infoline commenced operations as an independent provider of information,

analysis and research covering Indian businesses, financial markets and economy, to

institutional customers. India Infoline became a public limited company on April 28, 2000 and

the name of the Company was changed to “Probity Research and Services Limited”. The name

of the Company was changed to “India Infoline.com Limited” on May 23, 2000 and later to

“India Infoline Limited” on March 23, 2001.

In 1999, India Infoline.com identified the potential of the Internet to cater to a mass retail

segment and transformed our business model from providing information services to

institutional customers to retail customers. Hence India Infoline launched Internet portal,

16

www.indiainfoline.com in May 1999 and started providing news and market information,

independent research, interviews with business leaders and other specialized features.

In May 2000, the name of India Infoline was changed to India Infoline.com Limited to reflect

the transformation of our business. Over a period of time, India Infoline.com has emerged as

one of the leading business and financial information services provider in India.

In the year 2000, India Infoline leveraged its position as a provider of

financial information and analysis by diversifying into transactional services, primarily for

online trading in shares and securities and online as well as offline distribution of personal

financial products, like mutual funds and RBI Bonds. These activities were carried on by our

wholly owned subsidiaries.

India Infoline broking services was launched under the brand name of

5paisa.com through our subsidiary, India Infoline Securities Private Limited and

www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It

combined competitive brokerage rates and research, supported by Internet technology besides

investment advice from an experienced team of research analysts, India Infoline also offer real

time stock quotes, market news and price charts with

multiple tools for technical analysis.

Facilities

India Infoline’s main offices are located in approximately 4,000 square feet of office space

located in Mumbai, India. India Infoline Branches collectively occupy an additional 10,000

square feet of office space located throughout India, As on March 31, 2005, India Infoline has

73 branches across 36 locations in India.

Terminals

17

Almost 52% of the terminals in the sample are based in the Western region of India, followed

by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum

representation from the West, Chennai from the South, New Delhi from the North and Kolkata

from the East.

CHAPTER 1.2

18

COMPANY PROFILE

Industry Profile

India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Bombay

Stock Exchange, (BSE) and the National Stock Exchange (NSE). The India Infoline group,

comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire

19

financial services space with offerings ranging from Equity research, Equities and derivatives

trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life

Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products

and Investment banking. India Infoline also owns and manages the websites,

www.indiainfoline.com and www.5paisa.com .

India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board

of India). It undertakes equities research which is acknowledged by none other than Forbes

as ‘Best of the Web’ and ‘…a must read for investors in Asia’. India Infoline’s research is

available not just over the internet but also on international wire services like Bloomberg

(Code: IILL), Thomson First Call and Internet Securities where it is amongst the most read

Indian brokers.

Its various subsidiaries are in different lines of business and hence are governed by different

regulators. The subsidiaries of India Infoline Ltd are:

India Infoline Securities Pvt Ltd

India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged

in the businesses of Equities broking and Portfolio Management Services. It holds

memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai

(BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and

Derivatives segments of the NSE as well as the Cash segment of the BSE.

20

A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients.

These services are offered to clients as different schemes, which are based on differing

investment strategies made to reflect the varied risk-return preferences of clients.

India Infoline Commodities Pvt Ltd

India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is

engaged in the business of commodities broking. Our experience in securities broking

empowered us with the requisite skills and technologies to allow us offer commodities

broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the

MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired

21

membership of DGCX. We have a multi-channel delivery model, making it among the select

few to online as well as offline trading facilities.

India Infoline Distribution Co Ltd (IILD)

India Infoline.com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is

engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other

small savings products. It is one of the largest ‘vendor-independent’ distribution houses and

has a wide pan-India footprint of over 232 branches coupled with a huge number of ‘feet-on-

street’, which help source and service customers across the length and breadth of India.

Its unique proposition of free doorstep expert advice coupled with free pick-up and delivery

of cheques has been met with an enthusiastic response from customers and fund houses alike.

Our business has expanded to include the online distribution of mutual funds, wherein users

can view and compare different product offerings and download application forms which

they can later submit to the product provider.

Mortgages & Loans IILD has also entered the business of distribution of mortgages and loan

products during the year 2005-2006. The business is still in the investing phase and We plan

to roll the business out across its pan-Indian network to provide it with a truly national scale

in operations.

India Infoline Insurance Services Ltd

India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline Ltd and is a

registered Corporate Agent with the Insurance Regulatory and Development Authority

(IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which

is India’s largest private Life Insurance Company.

22

India Infoline Investment Services Ltd

India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It has

an NBFC license from the Reserve Bank of India (RBI) and offers margin-funding facility to

the broking customers.

India Infoline Insurance Brokers Ltd

India Infoline Insurance Brokers Ltd is a 100% subsidiary of India Infoline Ltd and is a

newly formed subsidiary which will carry out the business of Insurance broking. We have

applied to IRDA for the insurance broking license and the clearance for the same is awaited.

India Infoline is India's leading retail financial services company with over 177 locations in

more than 19 states. While our size and strong balance sheet allow us to provide you with

varied products and services at very attractive prices, our over 4400 Client Relationship

Managers are dedicated to serving your unique needs.

India Infoline is lead by a highly regarded management team that has invested crores of

rupees into a world class Infrastructure that provides our clients with real-time service & 24/7

access to all information and products. Our India Infoline Network offers real-time prices,

detailed data and news, intelligent analytics, and electronic trading capabilities, right at your

finger-tips. This powerful technology is complemented by our knowledgeable and customer

focused Relationship Managers. India Infoline offers a full range of financial services and

products ranging from Equities to Insurance to enhance your wealth and hence, achieve your

financial goals. India Infoline Client Relationship Managers are available to you to help with

your financial planning and investment needs. To provide the highest possible quality of

service, India Infoline provides full access to all our products and services through multi-

channels.

23

24

CHAPTER 1.3THE MANAGEMENT

TEAM

THE MANAGEMENT TEAM

Mr. Nirmal Jain

Nirmal Jain is the Founder and Chairman of India Infoline Ltd. He holds an MBA degree

from IIM Ahmedabad, and is a Chartered Accountant (All India Rank 2) and a Cost

Accountant. He has had an impeccable professional and academic track record. He started his

25

career in 1989 with Hindustan Lever Limited. During his stint with Hindustan Lever, he

handled a variety of responsibilities, including exports and trading in agro-commodities with

Rs3bn annual turnover. He then joined hands with two local brokers to set up their equity

research division, Inquire, in 1994. His work set new standards for equity research in India. In

1995, he founded his own independent financial research company, now known as India

Infoline Ltd.

Mr. R Venkataraman

R Venkataraman is the Co-Promoter and Executive Director of India Infoline Ltd. He

holds a B. Tech degree in Electronics and Electrical Communications Engineering from IIT

Kharagpur and an MBA degree from IIM Bangalore. He has held senior managerial positions

in various divisions of ICICI Limited, including ICICI Securities Limited, their investment

banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation

Limited. He has also held the position of Assistant Vice President with G E Capital Services

India Limited in their private equity division. He has varied experience of more than 14 years

in the financial services sector.

VISION OF THE COMPANY

“Our vision is to be the most respected company in the financial services space.”

WHERE INDIA INFOLINE STAND IN THE MARKET

26

INDIA INFOLINE one of the leading financial intermediaries and India's most

popular website for business and investment. Its Website has been rated as 'Best of

the Web' by Forbes, under the Asia Investing category.

Besides providing up-to-date and comprehensive information on business and

industry, It is also a leading investment intermediary for Mutual Funds, Bonds, ICICI

/ IDBI Bonds, Govt. Relief Bonds, Insurance, IPOs and Fixed Deposits in India.

India Infoline is direct brokers/ agents with leading financial institutions like RBI,

UTI, LIC, GIC, ICICI, IDBI and other private mutual fund like HDFC, Alliance,

Prudential ICICI, Templeton, TATA, HSBC, Standard & Chartered, Sun F&C, Birla,

DSP Merrill Lynch, Kotak, IL&FS, Sundaram, Zurich and Reliance.

The company has more than 500 Investor points in all the leading cities across

India, with a team of trained and qualified investment advisors and 1500+associates

(sub brokers). Company e-broking web site 5paisa.com, which deals in shares,

provides you fast, secure and easy to use trading facilities combined with a wealth of

outstanding products and features. Thus, we are uniquely placed with both online and

offline presence to maximize customer satisfaction.

India Infoline is a growing organization, which is an ideal place for individuals with high

ambitions. The working atmosphere is highly charged with a young and energetic team of

qualified professionals.

27

CHAPTER 1.4MARKETING

STRATEGIES OF IIFL

MARKETING STRATEGY OF INDIA INFOLINE

Market Positioning:

Market positioning statements of India Infoline are “At India Infoline we give

you single window service” and “We also ensure your comfort”. So, India Infoline

28

focus on the consumers who prefer almost all investment activities at same place by

providing number of various financial services. At India Infoline a person can

purchase or sell shares, debentures etc. and at the same place also demat it. India

Infoline also provides other investment option to the same person at same place like

Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the person in

designing his portfolio. By this way India Infoline provides comfort to its customers.

Target Market:

India Infoline uses demographic segmentation strategy and segment people

based on their occupation. India Infoline uses selective specialization strategy for

market targeting. Target person for the India Infoline Stock Broking and India

Infoline Investment Service are persons who can work as sub-broker for the

companies. Companies focus on Advisors of Insurance and post office, Tax

consultants and CAs for making sub-broker.

Marketing channel System:

India Infoline uses one level marketing channel for investment product

distribution. Sub-brokers work as intermediary between consumer and company.

Company has both forward and backward flow of activity through channel. Company

distributes stationery, brokerage, and information forward to its sub-broker. The sub brokers

send filled forms, queries, amount of investment etc. back to the company.

29

Training Channel Members:

India Infoline provides training to the sub-brokers because they will be viewed

as the company by the investors. The executives of India Infoline explain various

new schemes of investment to the sub-brokers with its objective, risk factors and

expected return. Company also periodically arrange seminar to guide sub-brokers.

Advertising and Promotion:

The objective of advertising of India Infoline is to create awareness about

services of India Infoline among investors and sub-brokers.

India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.

KEY COMPETETIVE STRENGHTHS

Diverse Branch Network

Since Company inception in FY 2000 Company and its subsidiaries have grown from a single

location to a nationwide network spread over 177 Offices in 19 states. They have a pan India

30

distribution networks for the purpose of distribution of financial products and services. Such a

diverse and integrated network provides a centralized platform to there clients.

Bouquet of financial products and services

Company and its subsidiaries offer various financial services and products ranging from

equity, F & O and wholesale debt, mutual fund, insurance and IPO distribution, equity

research analysis, depository services to cater to the specific needs of the retail and

institutional investors thus providing all these services in a single platform.

Advanced Technology team that delivers market leading product innovation

There ongoing investment in technology is a key element in expanding there product and

service offerings, enhancing there delivery systems, providing fast and consistent client

service, reducing processing costs, and facilitating there ability to handle significant increases

in client activity without a corresponding rise in risk and staff.

Strong Sales and Marketing Teams with continuous reinvestment and

training

Company’s relationship manager channel (through a team of 4400 Relationship Managers)

offers a single point contact to retail customers whereby their high net worth clients have

separate relationship managers catering to them. These managers offer personalized services to

the customers helping build strong and continuing relationships with them. Also, our

marketing associate channel helps Company and its subsidiaries in client acquisitions at

31

minimal costs with client loyalty. The marketing associate’s channel also helps Company and

its subsidiaries in increasing their penetration in smaller town and cities.

Strong cross Selling Opportunities

With 177 branches spread over 19 states all over India and variety of financial products and

offerings coupled with online, relationship manager & marketing associate channels, Company

and its subsidiaries have strong cross product selling opportunities thus providing a multi-

channel delivery systems to there diverse client base of 3,25,000 clients.

Strong Team of Experienced Promoters

India Infoline has a strong team of promoters who are Managers from Indian Institute of

Management and have several years’ experience in financial services industry.

Leading Product innovation and marketing strategies

Management is innovative and nimble and has historically introduced many new and

innovative products to the market place that have played a significant role in their growth.

Company’s relationship manager model has introduced private banking experience to the

clients.

32

The relationship managers are trained and incentives to work with their client base and

enhance ability to cross sell and leverage the large client base.

India Infoline have launched marketing associate model.

Strong market presence and increased market share leads to virtuous cycle

of growth and profitability

They’re growing client base and market share have increased their market presence, brand

recognition enhanced their profitability and increased the available credit facilities from the

banks further strengthening its strong balance sheet.

KEY BUSINESS STRATEGIES

Their focus on the client has allowed Company and its subsidiaries to offer a range of services

that have changed the investing landscape and created a new model of financial services that

melds people and technology to provide an integrated human assisted technology interface

service for investors who range from self-directed full-time active investor to those who prefer

to deal with through a marketing associate in smaller towns and cities. Their key strategies

include:

33

Defend and maintain their differentiation as the firm that delivers

ethical and useful services

Build and expand “Investing Insight” through product offerings

such as Equity Analysis which is objective.

Uncomplicated and not driven by commission.

Give clients new levels of choice tailored to their desire for help,

tools for investing their assets, their willingness to pay for additional

services and the level of business they can do with the company.

Provide clients with tools, relationship managers and choices that

support their desired investment outcomes. India Infoline has

developed a client specific approach as a core element of its business

strategy and are constantly focusing on acquiring new clients and

expanding their customer base. They believe that the strong secular

growth of the Indian financial Markets, due to increased household

penetration of financial assets; increasing liquidity and market

capitalization of Indian Markets, led by the listing of many public

sector entities; and the increasing affluence of Indian households and

savers provides an impetus to the growth perspective.

They believe that this diversification and growth strategy will continue to produce results and

allow Company and its subsidiaries to grow business at a rapid pace irrespective of market

conditions. In addition, management believes that the growth of the Indian financial markets,

due to increased household penetration of financial assets; increasing liquidity and market

capitalization of Indian markets, led by the listing of many public sector entities; and the

increasing affluence of Indian households and savers, favors our long term growth outlook.

34

The core pillars of our business strategy are discussed below:

Increase the number of Client Relationships

They are focused on increasing the number of client relationships through a wide network of

offices throughout India and having more number of relationship managers to service these

relationships. They plan to grow their business by growing the number of client relationships.

35

During a downturn of the markets they believe that increased number of client relationships

will add stability to their earnings.

Multiple Channels – Enhance Customer Experience and Opportunities to

interact with us

Company’s clients can access their products and services through 177 offices spread across 19

states; through operator assisted call Centers; or through their website www.India

Infoline.com; or through their respective relationship managers or through marketing

Associates. These multiple channels provide flexibility to the clients and allow them to utilize

their existing business Relationship with them through any channel from any part of India.

Company’s strategy is to provide the most convenient, efficient and value added channel to the

client at the lowest possible cost, and allow the clients with choice and varied access points.

India Infoline believe that their multiple channel strategy has been particularly effective in the

affluent segment where many sophisticated clients like to have a close-by office they can

access and yet have the flexibility of Internet account management, transactions and electronic

funds transfer and settlement.

Relationship Manager driven sales model, provide high quality service and

exploit cross-sell opportunities

Company’s clients benefit from the personal attention and advice of the trained and motivated

relationship managers. All its relationship managers are qualified and educated professionals,

who have been extensively trained in-house to provide the products and services to the clients.

These relationship managers are encouraged to develop long-term relationships with the

36

clients and can access a variety of resources within the Company, such as insurance specialists,

research services and others to add value to their clients. Most of the clients have dedicated

relationship managers irrespective of the channel they use.

Brokerage Offering

Company’s retail equity business primarily covers secondary market equity broking. It caters

to the needs of individual Indian and Non-resident Indian (NRI) investors. They offer broker

assisted trade execution and automated online investing and trading facilities to their

customers. Automated online investing and trading includes automated order placement and

execution of market and limit equity orders; and advanced trading platforms for active traders.

All investors have full access to real – time quotes, personalized portfolio tracking, charting

and quote applications, real-time market commentary, real-time quotes and news.

Online Automated Channel

Automated Online Business contributes more than 34.6% of its overall revenues. They control

more than 20% market share in the online business. Clients are able to obtain financial

information and execute trades on an automated basis through their online channel using

product offerings like Power India Infoline and India Infoline Market Trader. Online

37

channels include the India Infoline Group Professional Network that provides access via their

web-site www.India Infoline.com to information and trading service on the Internet.

This covers the Equity, Debt & Derivatives segment in the Indian;

Some of the unique features are:

i. Trading via branch network, telephones and Internet account. That is

Both online and offline (by telephone).

ii. Automated Extended Margin Trading Facility.

iii. Integrated Trading and Depositary Account.

iv. Technology transforming desktop into NEAT like terminal for

Internet trading.

v. One Screen for both Cash and Derivatives Trading.

vi. Facility to Buy Today & Sell Tomorrow itself.

vii. Equity Research Department which studies the market and provides

information.

viii. Up-to-date news, data and analysis via India Infoline.com.

ix. Equity Analysis Report to support your investment decisions.

38

CHAPTER 1.5DEMAT ACCOUNT

ABOUT DEMAT ACCOUNT

39

The term Demat, in India, refers to a dematerialized account. For individual Indian citizens to

trade in listed stocks or debentures. The Securities Exchange Board of India (SEBI) requires

the investor to maintain a Demat account. In a demat account shares and securities are held in

electronic form instead of taking actual possession of certificates. A Demat Account is opened

by the investor while registering with an investment broker (or sub broker). The Demat

account number which is quoted for all transactions to enable electronic settlements of trades

to take place.

Access to the demat account requires an internet password and a transaction password as well

as initiating and confirming transfers or purchases of securities. Purchases and sales of

securities on the Demat account are automatically made once transactions are executed and

completed.

40

DEMAT OPTIONS

Banks score over others Around 200 “depository participants” (DPs) offer the

demat account facility. A comparison of the fees charged by different DPs is

detailed below. But there are three distinct advantages of having a demat

account with a bank — quick processing, accessibility and online transaction.

Generally, banks credit your demat account with shares in case of purchase, or

credit your savings accounts with the proceeds of a sale on the third day.

Banks are also advantageous because of the number of branches they have.

Some banks give the option of opening a demat account in any branch, while

others restrict themselves to a select set of branches. Some private banks also

provide online access to the demat account. So, you can check on your

holdings, transactions and status of requests through the net banking facility.

A broker who acts as a DP may not be able to provide these services.

FEES INVOLVED

There are four major charges usually levied on a demat account: Account

opening fee, annual maintenance fee, custodian fee and transaction fee. All the

charges vary from DP to DP.

41

ACCOUNT OPENING FEE

Depending on the DP, there may or may not be an opening account fee.

Private banks, such as HDFC Bank and UTI Bank, do not have one. However,

players such as ICICI Bank, Globe Capital, Karvy Consultants and the State

Bank of India to do so. But most players levy this when you re-open a demat

account, though the Stock Holding Corporation offers a lifetime account

opening fee, which allows you to hold on to your demat account over a long

period. This fee is refundable.

ANNUAL MAINTENANCE FEE

This is also known as folio maintenance charges, and is generally levied in

advance.

CUSTODIAN FEE

This fee is charged monthly and depends on the number of securities

(international securities identification numbers — ISIN) held in the account. It

generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not

charge custody fee for ISIN on which the companies have paid one-time

custody charges to the depository.

42

TRANSACTION FEE

The transaction fee is charged for crediting/debiting securities to and from the

account on a monthly basis. While some DPs, such as SBI, charge a flat fee

per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction

value, subject to a minimum amount. The fee also differs based on the kind of

transaction (buying or selling). Some DPs charge only for debiting the

securities while others charge for both. The DPs also charge if your instruction

to buy/sell fails or is rejected. In addition, service tax is also charged by the

DPs.

In addition to the other fees, the DP also charges a fee for converting the

shares from the physical to the electronic form or vice-versa. This fee varies

for both demat and remat requests. For demat, some DPs charge a flat fee per

request in addition to the variable fee per certificate, while others charge only

the variable fee.

For instance, Stock Holding Corporation charges Rs 25 as the request fee and

Rs 3 per certificate as the variable fee. However, SBI charges only the variable

fee, which is Rs 3 per certificate. Remat requests also have charges akin to that

of demat. However, variable charges for remat are generally higher than

demat. Some of the additional features (usually offered by banks) are as

follows. Some DPs offer a frequent trader account, where they charge frequent

traders at lower rates than the standard charges. Demat account holders are

generally required to pay the DP an advance fee for each account which will

be adjusted against the various service charges. The account holder needs to

raise the balance when it falls below a certain amount prescribed by the DP.

43

However, if you also hold a savings account with the DP you can provide a

debit authorization to the DP for paying this charge. Finally, once you choose

your DP, it will be prudent to keep all your accounts with that DP, so that

tracking your capital gains liability is easier. This is because, for calculating

capital gains tax, the period of holding will be determined by the DP and

different DPs follow different methods. For instance, ICICI Bank uses the first

in first out (FIFO) method to compute the period of holding. The proof of the

cost of acquisition will be the contract note. The computation of capital gains

is done account-wise.

44

OPENING A DEMAT ACCOUNT

Steps involved in opening a demat account First an investor has to approach a DP and fill up

an account opening form. The account opening form must be supported by copies of any one

of the approved documents to serve as proof of identity (POI) and proof of address (POA) as

specified by SEBI. Besides, production of PAN card in original at the time of opening of

account has been made mandatory effective from April 1, 2006.

All applicants should carry original documents for verification by an authorized official of the

depository participant, under his signature. Further, the investor has to sign an agreement with

DP in a depository prescribed standard format, which details rights and duties of investor and

DP. DP should provide the investor with a copy of the agreement and schedule of charges for

their future reference. The DP will open the account in the system and give an account

number, which is also called BO ID (Beneficiary Owner Identification number). The DP may

revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure

for dematerialization by removing account opening charges, transaction charges for credit of

securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide

circular dated November 9, 2005 advised that with effect from January 9, 2006, no charges

shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO)

when a BO transfers all the securities lying in his account to another branch of the same DP or

to another DP of the same depository or another depository, provided the BO Account/s at

transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case

the BO Account at transferor DP is a joint account, the BO Account at transferee DP should

also be a joint account in the same sequence of ownership.

45

ADVANTAGES OF DEMAT ACCOUNT

The benefits are enumerated as follows:

1) It’s a safe and convenient way to hold securities.

2) Immediate transfer of securities is there.

3) There is no stamp duty on transfer of securities.

4) Elimination of risks associated with physical certificates such as bad

delivery, fake securities, delays, thefts etc.

5) There is a major reduction in paperwork involved in transfer of securities,

reduction in transaction cost etc.

6) Change in address recorded with DP gets registered with all companies in

which investor holds securities electronically eliminating the need to

correspond with each of them separately.

7) Transmission of securities is done by DP eliminating correspondence with

companies.

8) Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

9) Holding investments in equity and debt instruments in a single account.

46

DISADVANTAGES OF DEMAT ACCOUNT

The disadvantages of dematerialization of securities can be summarized as follows:

1) Trading in securities may become uncontrolled in case of dematerialized

securities.

2) It is incumbent upon the capital market regulator to keep a close watch on

the trading in dematerialized securities and see to it that trading does not

act as a detriment to investors.

3) The role of key market players in case of dematerialized securities, such as

stock-brokers, needs to be supervised as they have the capability of

manipulating the market.

4) Multiple regulatory frameworks have to be confirmed to, including the

Depositories Act, Regulations and the various By-Laws of various

depositories.

5) Additionally, agreements are entered at various levels in the process of

dematerialization. These may cause anxiety to the investor desirous of

simplicity in terms of transactions in dematerialized securities.

6) However, the advantages of dematerialization outweigh its disadvantages

and the changes ushered in by SEBI and the Central Government in terms

of compulsory dematerialization of securities is important for developing

the securities market to a degree of advancement. Freely traded securities

47

are an essential component of such an advanced market and

dematerialization addresses such issues and is a step towards the

advancement of the market.

CHAPTER 1.6

COMPETITORS DETAILS

48

COMPETITORS DETAILS

KARVY

KARVY is a premier integrated financial services provider, and ranked among

the top five in the country in all its business segments, services over 16 million

individual investors in various capacities, and provides investor services to over 300

corporate, comprising the who is who of Corporate India. Karvy has a professional

management team and ranks among the best in technology, operations and research

of various industrial segments.

ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein

after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank

Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and

established an online trading service on the Website.

HDFC SECURITY

49

HDFC security is the subsidiary of HDFC (Housing Development Financial

Corporation). 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 present web site (www.hdfcsec.com)

contains features of services that they offer/propose to offer in due course. The

launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE & BSE.

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private

Limited on June 9, 1995. The name of the company was changed to Orbis Securities

Private Limited on December 15, 1995 to change the profile of the company and

subsequently due to the conversion of the company into a public limited company;

the name was further changed to Orbis Securities Limited on January 5, 2004. The

name of the company was again changed to Indiabulls Securities Limited on

February 16, 2004 so as to capitalize on the brand image of the term “Indiabulls” in

the company name. ISL is a corporate member of capital market & derivative

segment of The National Stock Exchange of India Ltd. At present, ISL accounts for

approximately 3% of the total daily turnover of the Exchange with 32,359 client

relationships and 70 branches spread across the country as of April 30, 2004.

50

CHAPTER 1.7HISTORY OF STOCK

EXCHANGE

51

52

HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19th century were those of Bombay set up in 1875

and Ahmadabad set up in 1894. These were organized as voluntary non-profit making

organization of brokers to regulate and protect their interests. Before the control on securities

trading became a central subject under the constitution in 1950, it was a state subject and the

Bombay securities contract (CONTROL) Act of 1952 used to regulate trading in securities.

Under this Act, the Bombay stock exchanges in 1927 and Ahmadabad in 1937.

During the war boom, a number of stock exchanges were organized in Bombay, Ahmadabad

and other centers, but they were not recognized. Soon after it became a central subject, central

legislation was proposed and a committee headed by A.D. Gorwala went into the bill for

securities regulation. On the basis of committee’s recommendations and public discussions the

securities contracts (regulations) Act became law in 1956.

53

DEFINITION OF STOCK EXCHANGE

“Stock exchange means anybody or individuals whether incorporated or not, constituted for

the purpose of assisting, regulation or controlling the business of buying, selling or dealing in

securities.” It is an association of member brokers for the purpose of self regulation and

protecting the internets of its members. It can operate only if it is recognized by the Govt.

under the securities contract (regulation) Act, 1956 the recognition is granted under section 3

of Act by the Central Govt. ministry of finance.

REGULATION OF STOCK EXCHANGE

The securities contract (regulation) is the basis of the stock exchange in India. No exchange

can operate legally without the Govt. permission or recognition. Stock exchanges are given

monopoly in certain areas under section 19 of the above Act to ensure that the control and

regulation are facilitated. Recognition can be granted to a stock exchange provided certain

condition are satisfied and the necessary information is supplied to the government.

Recognition can also be withdrawn, if necessary. Where there are no stock exchanges, the

government can license some of the brokers to perform the function of stock exchange in its

absence.

54

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

SEBI was setup as an autonomous regulatory authority by the Government of India in 1988 “to

perform the interest of investors in the securities and to promote the development of, and to

regulate the securities market and for matters connected therewith or incidental thereto.” It is

empowered by two Acts namely the SEBI act, 1992 and the securities contract (regulation) Act

1956 to perform the function of protecting investor’s right and regulating the capital market.

Bombay Stock Exchange

The stock exchange, Mumbai, popularly known as “BSE” was established in 1875 as “The

Native share and stock broker association”, as a voluntary non-profit making association. It

has an evolved over the year into its present status as the premiere stock exchange in the

country. It may be noted that the stock exchanges the oldest one in the Asia, even older than

the Tokyo Stock Exchange, which was founded in 1878.

The Exchange, while providing an effective and transparent market for trading in securities,

uphold the interest of the investors and ensure redressed of their grievances, whether against

the companies or its own member brokers. It also strives to educate and enlighten the investors

by making available necessary informative inputs and conducting investor education

programmes.

A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public

representatives and an executive director is the apex body, which decides the policies and

regulates the affairs of the exchanges.

55

The executive director as the chief executive officer is responsible for the day today

administration of the exchange. The average daily turnover of the exchange during the year

2008-09 (April-March) was Rs. 6984.19 crores and average number of daily trades 15.69

lakhs.

Sensex is calculated using a market capitalization weighted method. As per this methodology,

the level of the index reflects the total market value of all 30-component stocks form different

industries related to particular base period. The total market value of a company is determined

by multiplying the price of its stock by the number of shares outstanding. Statisticians call an

index of a set of combined variables (such as price and number of shares) a composite Index.

An Indexed number is used to represent the results of this calculation is order to make the

value easier to work with the track over a time. It is much easier to graph a chart based on

Indexed values than one based on actual values world over majority of the well-known Indices

are constructed using “Market capitalization weighted method”.

In practice, the daily calculation of SENSEX is done dividing the aggregate market value of

the 30 companies in the Index Divisor. The keeps the Index comparable over a period or time

and if the reference point for the entire Index maintenance adjustments. SENSEX is widely

used to describe the mood in the Indian Stock Markets. Base year average is changed as per

the formula new base year average = old base year average* (new market value/old market

value).

56

National Stock Exchange

The NSE was incorporated in Now 1992 with an equity capital of Rs. 25 crores. The

international securities consultancy (ISE) of Hong Kong has helped in setting up NSE. ISE

has prepared the detailed business plans and installation of hardware and software systems.

The promotions for NSE were financial institutions, insurance companies, banks an SEBI

capital market ltd., Infrastructure leasing and financial services ltd. and stock holding

corporation ltd.

It has been set up to strengthen the move towards professionalization of the capital market as

well as provide nation wide securities trading facilities to investors.

NSE is not an exchange in the traditional sense where brokers own and mange the exchange.

A two tier administrative set up involving a company board and a governing abroad of the

exchange is envisaged.

NSE is a national market for share PSU bonds, debentures and government securities since

infrastructure and trading facilities are provided.

The base period for the close of prices on Nov 3, 1995, which makes one year of completion of

operation of NSE’s capital market segment. The base value of the Index has been set at 1000.

At present, there are 24 stock exchanges recognized under the securities contact (regulation)

Act, 1956.

57

CHAPTER 1.8PRODUCTS &

SERVICES

58

FUNCTIONAL AREAS OF INDIA INFOLINE

The product range offered by India Infoline includes

A. Equities

B. Portfolio Management Service

C. Research

D. Commodities

E. Mortgages

F. Invest Online

G. Insurance

A) EQUITIES

India Infoline provided the prospect of researched investing to its clients, which was hitherto

restricted only to the institutions. Research for the retail investor did not exist prior to India

59

Infoline. India Infoline leveraged technology to bring the convenience of trading to the

investor’s location of preference (residence or office) through computerized access.

B) PORTFOLIO MANAGEMENT SERVICE

Our Portfolio Management Service is a product wherein an equity investment portfolio is

created to suit the investment objectives of a client. We at India Infoline invest your resources

into stocks from different sectors, depending on your risk-return profile. This service is

particularly advisable for investors who cannot afford to give time or don't have that expertise

for day-to-day management of their equity portfolio.

C) RESEARCH

Sound investment decisions depend upon reliable fundamental data and stock selection

techniques. India Infoline Equity Research is proud of its reputation for, and we want you to

find the facts that you need. Equity investment professionals routinely use our research and

models as integral tools in their work. They choose Ford Equity Research when they can clear

your doubts.

60

D) COMMODITIES

India Infoline’s extension into commodities trading reconciles its strategic intent to emerge as

a one-stop solutions financial intermediary. Its experience in securities broking has empowered

it with requisite skills and technologies. The Company’s commodities business provides a

contra-cyclical alternative to equities broking. The Company was among the first to offer the

facility of commodities trading in India’s young commodities market (the MCX commenced

operations only in 2003). Average monthly turnover on the commodity exchanges increased

from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different

and non-correlated cycles. On the whole, the business is fairly insulated against cyclical

gyrations in the business.

E) MORTGAGES

During the year under review, India Infoline acquired a 75% stake in Moneytree Consultancy

Services to mark its foray into the business of mortgages and other loan products distribution.

The business is still in the investing phase and at the time of the acquisition was present only

in the cities of Mumbai and Pune. The Company brings on board expertise in the loans

business coupled with existing relationships across a number of principals in the mortgage and

personal loans businesses. India Infoline now has plans to roll the business out across its pan-

Indian network to provide it with a truly national scale in operations.

F) INVEST ONLINE

India Infoline has made investing in Mutual funds and primary market so effortless. All you

have to do is register with us and that’s all. No paperwork no queues and No registration

charges

61

G ) INSURANCE

An entry into this segment helped complete the client’s product basket; concurrently, it

graduated the Company into a one-stop retail financial solutions provider. To ensure maximum

reach to customers across India, we have employed a multi pronged approach and reach out to

customers via our Network, Direct and Affiliate channels. Following the opening of the sector

in 1999-2000, a number of private sector insurance service providers commenced operations

aggressively and helped grow the market. The Company’s entry into the insurance sector

derisked the Company from a predominant dependence on broking and equity-linked revenues.

The annuity based income generated from insurance intermediation result in solid core

revenues across the tenure of the policy.

62

FUNDAMENTAL INFORMATION

Under this parameter the company’s share is compared with the industry and market which is

based on the following parameters:

Revenue: Income generated from sales of the product.

Market Capital : Number of shares * market price.

Price/Sales: Stock's current price / revenue per share

SCHEDULE OF CHARGES

NSDL

CDSL

Documents required:

1) Residence Proof

2) Identity Proof

3) Bank A/C Proof

63

D. EQUITY & DERIVATIVE

Equity Business caters:

Needs of independent investors.

Active traders.

Non-Resident Indian (NRI) investors.

India Infoline offers:

Broker assisted trade execution.

Automated online investing.

Access to all IPO's.

India Infoline offers the purchase and sale of securities, which includes

Equity, Derivatives and Commodities Instruments listed on National

Stock Exchange of India Ltd (NSEIL), The Stock Exchange, Mumbai

(BSE) and NCDEX.

64

CHAPTER 1.9TYPES OF ACCOUNT

65

TYPES OF ACCOUNTS

Investor Terminal : Investors/ Students

Trade Terminal : Day Trader/ HNI’s

All of this comes to you backed by your Relationship Manager available to you 24x7.

India Infoline is one of India's leading retail financial services

company with 177 locations spread across 19 States.

Over 4400 Client Relationship Managers are dedicated to serving

your unique needs.

Is complemented by our knowledgeable and customer focussed

Relationship Managers.

Provides our clients with real-time service & 24/7 access to all

information and products.

66

PRICING FOR RETAIL CLIENTS

Investor Terminal

•De-mat A/C Opening Charge: Rs5500 + Rs 250 For life time.

• Margin Money: Rs 250

•Min Margin Retainable: Rs 1000

•Brokerage:

Trading 0.05% each side + ST

Delivery 0.50% each side + ST

67

PRICING FOR HNI CLIENTS

Trader Terminal

De-mat A/C opening charge: Rs5500

•Initial Margin: Rs 100000 (Compulsory)

•Brokerage:

Trading 0.05% each side + ST

Delivery 0.50% each side + ST

(Negotiable to 0.05% each side & 0.50%)

•Account Access Charges

NIL

•Min Account Balance

Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active.

This can be withdrawn only on closure of account.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

68

SEBI is a regulatory governing body of security market. The SEBI Act 1992 was enacted to

empower SEBI with statutory powers for:

a) Protecting the interests of investors in securities.

b) Promoting the development of the securities market.

c) Regulating the securities market.

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

securities. It has powers to register and regulate all the market all market intermediaries and

also to penalize them in case of violations of the provisions of the ACT, rules and regulations

made there under. SEBI has a full autonomy and authority to regulate and develop an orderly

securities market.

\

Financial market can be divided into following four

sub-markets

69

Financial Market

Money Market Capital Market

Primary Capital Secondary Capital

Market Market Market Market

70

Primary Market

It provides opportunity to issuers of securities government as well as corporate to raise

resources to meet their requirements of investments. In this market companies issue fresh

security sin exchange of funds through public issues or private placements. The market design

for primary market is provided in the provision of Companies Act, 1956 which deals with

issues, listing and allotment of securities. The investors have to apply the shares by filling the

application form issue by the company along with the application money.

Company can issue shares at face value, at premium or at discount. Another method of pricing

which is now days common is issuing the securities through online system of the stock

exchange. The company is required to enter in to an agreement with the stock exchanges

which have the requisite system for online offer of securities.

The advantages for this new system are:-

(a) The investors part with money only after allotment.

(b) It eliminates refunds except in case of direct applications.

(c) It reduces the time taken for issue process.

Secondary Market

Secondary market is the place for sale and purchase of existing securities. It enables an

investor to adjust his holdings of securities in response to changes in his assessment about risk

and return. It essentially comprises of the stock exchanges which provide platform for trading

of securities and a host of intermediaries who assist in trading of securities and clearing and

settlement of trades.

71

What is an Index?

To understand the use and functioning of the index derivatives markets, it is necessary to

understand the underlying index. A stock index represents the change in value of a set of

stocks, which constitute the index. A market index is very important for the market players as

it acts as a barometer for market behavior and as an underlying in derivative instruments such

as index futures.

The Sensex and Nifty

In India the most popular indices have been the BSE Sensex and S&P CNX Nifty. The BSE

Sensex has 30 stocks comprising the index which are selected based on market capitalization,

industry representation, trading frequency etc. It represents 30 large well-established and

financially sound companies. The Sensex represents a broad spectrum of companies in a

variety of industries. It represents 14 major industry groups. Then there is a BSE national

index and BSE 200. However, trading in index futures has only commenced on the BSE

Sensex. While the BSE Sensex was the first stock market index in the country, Nifty was

launched by the National Stock Exchange in April 1996 taking the base of November 3, 1995.

The Nifty index consists of shares of 50 companies with each having a market capitalization of

more than Rs 500 crore.

72

CHAPTER 2 RESEARCH METHODOLOGY

73

RESEARCH METHODOLOGY

Topic: “Customer Study On Security Trading”

Objective: To study the satisfaction level while security trading.

Hypothesis:

H1: Recommendation to friend is dependent on the service quality.

H2: More the frequency of trading higher is the percentage of earning traded.

H3: Higher the Respondent higher is the investment on trading.

H4: Higher the service quality higher the satisfaction level.

Research Design: Descriptive

Sampling Design : Convenience

Sample Size : 100

Sample Unit : Individual involved in Security Trading.

Data Collection Method : Primary Survey, Questionnaire Method.

Survey Area : Noida.(NCR)

Data Analysis : Using SPSS (12 version) for f-test & testing

hypothesis.

74

CHAPTER 2.1OBJECTIVES OF RESEARCH

75

OBJECTIVES OF THE RESEARCH1) To study investor’s behavior towards different Factors and service

quality such as Convenience, Privacy, Timesaving, User- friendly

etc. of investment in Equities.

2) To study the issues and challenges that investor’s face while making

investment in share market.

3) To study the preferences and perceptions of investors regarding

various financial products from the stable of India Infoline Securities

Ltd. so that the firm can benefit from the findings of the report in

launching any new investment product in future.

4) To study the customer behavior in respect of investment in shares.

5) To understand the satisfaction level of clients with India Infoline

regarding

service provided by staff.

6) To understand the satisfaction level of clients with India Infoline

regarding

trade confirmation.

7) To understand the what type of trading should be provided to the

customers.

8) To learn about the different aspects of the customers.

9) To study the satisfaction level of brokerage.

76

10) To understand the satisfaction level of clients with India Infoline

regarding

tips.

11) To understand the satisfaction level of clients with India Infoline

regarding

trade confirmation.

12) To study the satisfaction level of flexibility provided by India

Infoline.

CHAPTER 2.2LIMITATIONS OF

THE STUDY

77

LIMITATIONS OF THE STUDY1) To study share market is a very vast topic and the search is just limited to a

small portion.

2) Due to the reluctant nature of the respondents it was not an easy task to

collect relevant information from them.

3) Sometime it was difficult to make the respondents understand the purpose

of the survey.

4) Busy schedule of the respondents was also a major hindrance to establish a

contact with them.

5) It may be possible the information provided by them is not true.

78

CHAPTER 3DATA ANALYSIS & INTERPRETATION

79

DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF FREQUENCIES:

1). Investment trading:

Investment Preference

Freque

ncy PercentValid

Percent

Cumulative

PercentValid strongly

disagree10 10.0 10.0 10.0

Disagree 23 23.0 23.0 33.0 Agree 37 37.0 37.0 70.0 strongly

agree30 30.0 30.0 100.0

Total 100 100.0 100.0

80

Interpretation: out of 100 respondents surveyed 67% people believe that

they do prefer most of investment in security trading.

81

2) Convenience Preference

Convenience Preference

Freque

ncy PercentValid

Percent

Cumulative

PercentValid not

important

11 11.0 11.0 11.0

partially important

11 11.0 11.0 22.0

Important

35 35.0 35.0 57.0

most important

43 43.0 43.0 100.0

Total 100 100.0 100.0

Interpretation: Out of 100 respondent surveyed 78%peopel believe that

convenience is the important factor for security trading, while rest 22%

believes that it is not an important factor.

82

3) Privacy Preference

Privacy Preference

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

22 22.0 22.0 22.0

partially important

18 18.0 18.0 40.0

Important 20 20.0 20.0 60.0most important

40 40.0 40.0 100.0

Total 100 100.0 100.0

Interpretation: in the question of privacy preference 60% of the

respondent believe that they need privacy in their transactions, while

other 40% differ from them.

83

4) Time Saving Preference

Time Saving Preference

Frequency Percent

Valid Percent

Cumulative

PercentValid not

important8 8.0 8.0 8.0

partially important

23 23.0 23.0 31.0

Important 39 39.0 39.0 70.0 Most

important30 30.0 30.0 100.0

Total 100 100.0 100.0

Interpretation: 69% of the respondent favor this factor that time saving is

important for their security trading, while 23% says that it is partially

important for security trading.

84

5) User Friendly Preference

User Friendly Preference

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

7 7.0 7.0 7.0

partially important

24 24.0 24.0 31.0

Important 40 40.0 40.0 71.0most important

29 29.0 29.0 100.0

Total 100 100.0 100.0

85

Interpretation: in the factor of user friendliness 69% respondent mark

that it is important factor in security trading, mean while 24% and 7%

tick the mark on partially and not important.

6) Brokerage Preferring

Brokerage Preferring

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

7 7.0 7.0 7.0

partially important

19 19.0 19.0 26.0

Important 28 28.0 28.0 54.0most important

46 46.0 46.0 100.0

Total 100 100.0 100.0

Interpretation: brokerage is the factor which highest response of

importance i.e. 74% while got only 24%.86

87

7) Exposure Preferring

Exposure Preferring

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

2 2.0 2.0 2.0

partially important

22 22.0 22.0 24.0

Important 38 38.0 38.0 62.0most important

38 38.0 38.0 100.0

Total 100 100.0 100.0

Interpretation: Out of 100 respondent surveyed 76% people believe that

exposure is the important factor for security trading, while rest 22%

believes that it is not an important factor.

88

8) Guidance Preferring

Guidance Preferring

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

11 11.0 11.0 11.0

partially important

26 26.0 26.0 37.0

Important 41 41.0 41.0 78.0most important

22 22.0 22.0 100.0

Total 100 100.0 100.0

Interpretation: in the factor of guidance 63% respondent mark that it is

important factor in security trading, mean while 26% and 11% tick the

mark on partially and not important.

89

9) Research Report Preferring

Research Report Preferring

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

5 5.0 5.0 5.0

partially important

23 23.0 23.0 28.0

Important 45 45.0 45.0 73.0most important

27 27.0 27.0 100.0

Total 100 100.0 100.0

Interpretation: under the various service factors, research reports got

72% importance out of 100.

90

10) Dial Up Trade Preferring

Dial Up Facility Preferring

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

15 15.0 15.0 15.0

partially important

34 34.0 34.0 49.0

Important 32 32.0 32.0 81.0Important 19 19.0 19.0 100.0Total 100 100.0 100.0

Interpretation: 49% people says that dial up facility is not or partially

important for them while rest 51% says that it is important for them.

91

11) Trading Information Preferring

Trading Information Preferring

Frequen

cy PercentValid

PercentCumulative Percent

Valid not important

10 10.0 10.0 10.0

partially important

25 25.0 25.0 35.0

Important 34 34.0 34.0 69.0most important

31 31.0 31.0 100.0

Total 100 100.0 100.0

Interpretation: trading information is important for 65% out of 100%

respondents while other 25% and 10% says it is partially and not

important for them.

92

12) Convenience Rating

Convenience Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 6 6.0 6.0 6.0Fair 18 18.0 18.0 24.0Good 47 47.0 47.0 71.0Excellent

29 29.0 29.0 100.0

Total 100 100.0 100.0

Interpretation: 47%% people says that convenience of their existing

security trading firm is good, 29% says its excellent, mean while rest says

its fair or poor.

93

13) Privacy Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 3 3.0 3.0 3.0Fair 28 28.0 28.0 31.0Good 48 48.0 48.0 79.0Excellent

21 21.0 21.0 100.0

Total 100 100.0 100.0

Interpretation: privacy level is good says by 48% respondent, of their

existing security trading firm, 21% says it’s excellent, while 28% says it

fair and rest says its poor.

94

14) Time Saving Rating

Time Saving Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 7 7.0 7.0 7.0Fair 30 30.0 30.0 37.0Good 40 40.0 40.0 77.0Excellent

23 23.0 23.0 100.0

Total 100 100.0 100.0

Interpretation: privacy level is good says by 40% respondent, of their

existing security trading firm, 23% says it’s excellent, while 30% says it

fair and rest says its poor.

95

15) Brokerage Service Rating

Brokerage Service Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 1 1.0 1.0 1.0Fair 13 13.0 13.0 14.0Good 37 37.0 37.0 51.0Excellent

49 49.0 49.0 100.0

Total 100 100.0 100.0

96

Interpretation: brokerage service is excellent says by 49% respondent, of

their existing security trading firm, 37% says it’s good, while 13% says it

fair and rest says its poor.

16) Exposure Rating

Exposure Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 3 3.0 3.0 3.0Fair 21 21.0 21.0 24.0Good 42 42.0 42.0 66.0Excellent

34 34.0 34.0 100.0

Total 100 100.0 100.0

Interpretation: exposure is good says by 42% respondent, of their existing

security trading firm, 34% says it’s excellent, while 21% says it fair and

rest says its poor.

97

98

17) Guidance Rating

Guidance Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 2 2.0 2.0 2.0Fair 17 17.0 17.0 19.0Good 44 44.0 44.0 63.0Excellent

37 37.0 37.0 100.0

Total 100 100.0 100.0

Interpretation: privacy level is good says by 44% respondent, of their

existing security trading firm, 37% says it’s excellent, while 17% says it

fair and rest says its poor.

99

18) Research Rating

Research Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 7 7.0 7.0 7.0Fair 33 33.0 33.0 40.0Good 34 34.0 34.0 74.0Excellent

26 26.0 26.0 100.0

Total 100 100.0 100.0

Interpretation: privacy level is good and excellent says by 60%

respondent, of their existing security trading firm, 40% says it’s fair and

poor.

100

19) Dial Up Facility Rating

Dial Up Facility Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 19 19.0 19.0 19.0Fair 30 30.0 30.0 49.0Good 32 32.0 32.0 81.0Excellent

19 19.0 19.0 100.0

Total 100 100.0 100.0

Interpretation: privacy level is good and excellent says by 51%

respondent, of their existing security trading firm, 49% says it’s fair and

poor.

101

20) Trading Information Rating

Trading Information Rating

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 22 22.0 22.0 22.0Fair 15 15.0 15.0 37.0Good 49 49.0 49.0 86.0Excellent

14 14.0 14.0 100.0

Total 100 100.0 100.0

Interpretation: exposure is good says by 49% respondent, of their existing

security trading firm, 14% says it’s excellent, while 22% says it poor.

102

21) OftenYou Trade

Often You Trade

Frequen

cy PercentValid

PercentCumulative Percent

Valid Occasionally

12 12.0 12.0 12.0

once a week

22 22.0 22.0 34.0

2-3 times/week

36 36.0 36.0 70.0

every day 30 30.0 30.0 100.0Total 100 100.0 100.0

Interpretation: 36% people says that they trade 2-3 times in week, and

30% says they trade daily, while 22% and 12% says they trade once a

week or occasionally.

103

22) Invest Of Trading

Invest Of Earning

Frequen

cy PercentValid

PercentCumulative Percent

Valid up to 5%

22 22.0 22.0 22.0

5-10% 42 42.0 42.0 64.010-15%

29 29.0 29.0 93.0

>15% 7 7.0 7.0 100.0Total 100 100.0 100.0

Interpretation: most of the people say that they invest 5-15% their

earning in security trading, while 22% say they invest only up to 5% and

only 7% says they can invest more than 15%.

104

23) Service Quality

Service Quality

Frequen

cy PercentValid

PercentCumulative Percent

Valid Poor 8 8.0 8.0 8.0Fair 30 30.0 30.0 38.0Good 44 44.0 44.0 82.0Excellent

18 18.0 18.0 100.0

Total 100 100.0 100.0

Interpretation: service quality is good says by 44% respondent, of their

existing security trading firm, 18% says it’s excellent, while 30% says it

fair and rest says its poor.

105

24) Satisfaction Level

Satisfaction Level

Frequen

cy PercentValid

PercentCumulative Percent

Valid Dissatisfied 6 6.0 6.0 6.0somewhat satisfied

33 33.0 33.0 39.0

Satisfied 46 46.0 46.0 85.0highly satisfied

15 15.0 15.0 100.0

Total 100 100.0 100.0

Interpretation: 46% respondent are satisfied with their service provider

and 33% says they are somewhat satisfied.

106

25) Recommend To Friend

Recommend To Friend

Frequen

cy PercentValid

PercentCumulative Percent

Valid No 35 35.0 35.0 35.0Yes 65 65.0 65.0 100.0Total 100 100.0 100.0

Interpretation: 65% respondent says they will recommend this trading

firm to their friends and relatives.

107

26) Gender Of Respondent

Gender Of Respondent

Frequen

cy PercentValid

PercentCumulative Percent

Valid Male 78 78.0 78.0 78.0Female

22 22.0 22.0 100.0

Total 100 100.0 100.0

Interpretation: 78% of the respondents are male.

108

26) Age Of Respondent

Age Of Respondent

Frequen

cy PercentValid

PercentCumulative Percent

Valid 20-34 years

45 45.0 45.0 45.0

35-49 years

33 33.0 33.0 78.0

50-64 years

18 18.0 18.0 96.0

>65 years

4 4.0 4.0 100.0

Total 100 100.0 100.0

Interpretation: 78% of the respondents of age between 20 to 49 do invest

in shares.

109

27) Education Of Respondent

Education Of Respondent

Frequen

cy PercentValid

PercentCumulative Percent

Valid High school

4 4.0 4.0 4.0

under grad

2 2.0 2.0 6.0

Grad 39 39.0 39.0 45.0pg/professional

55 55.0 55.0 100.0

Total 100 100.0 100.0

Interpretation: 94% of the respondents are highly educated.

110

111

28) Occupation Of Respondent

Occupation Of Respondent

Frequen

cy PercentValid

PercentCumulative Percent

Valid Govt service

11 11.0 11.0 11.0

private service

45 45.0 45.0 56.0

business 28 28.0 28.0 84.0Retired 16 16.0 16.0 100.0Total 100 100.0 100.0

Interpretation: 73% of the respondents are from private sector and

business.

112

29) Income Of Respondent

Income Of Respondent

Frequen

cy PercentValid

PercentCumulative Percent

Valid up to 15000

28 28.0 28.0 28.0

15001-30000

38 38.0 38.0 66.0

30001-45000

29 29.0 29.0 95.0

>45000 5 5.0 5.0 100.0Total 100 100.0 100.0

Interpretation: 95% of the respondents are of income level less than

45000/-

113

CHAPTER 3.1TESTING OF HYPOTHESIS

114

TESTING OF HYPOTHESIS

1) Recommendation to friends to depended on the service quality offered

by company.

CrosstabsCase Processing Summary

Cases Valid Missing Total

N Percent NPercen

t N Percentabove and below mean values of service quality * recommend to friend

100 100.0% 0 .0% 100 100.0%

Above and Below mean values of service quality * recommend to friend Crosstabulation

Recommend to friend

TotalNo Yesabove and below mean values of service quality

1.00 Count 18 20 38% within above and below mean values of service quality

47.4% 52.6% 100.0%

2.00 Count 17 45 62% within above and below mean values of service quality

27.4% 72.6% 100.0%

Total Count 35 65 100% within above and below mean values of service quality

35.0% 65.0% 100.0%

115

Chi-Square Tests

Value Df

Asymp.

Sig. (2-

sided)

Exact

Sig. (2-

sided)

Exact

Sig. (1-

sided)

Pearson Chi-

Square4.121(b) 1 .042

Continuity

Correction(a)3.291 1 .070

Likelihood Ratio 4.080 1 .043

Fisher's Exact

Test.053 .035

Linear-by-Linear

Association4.080 1 .043

N of Valid Cases 100

a Computed only for a 2x2 table

b 0 cells (.0%) have expected count less than 5. The minimum expected count

is 13.30.

H1: The above hypothesis is accepted at the significance level of 0.042

(p=4.121).Thus recommendation for security trading depends on service

quality offered by the company.

116

2) More the frequency of trading higher is the percentage of earning

traded.

Correlations

Invest of

earning

Often You

trade

Invest of earning Pearson

Correlation1 .368(**)

Sig. (2-tailed) . .000

N 100 100

often u trade Pearson

Correlation.368(**) 1

Sig. (2-tailed) .000 .

N 100 100

**Correlation is significant at the 0.01 level (2-tailed).

H2: The above hypothesis is accepted at the significance level of 0.000

(p=0.368).thus higher the frequency of trading higher is the investment on

trading.

117

3) Higher the no. of respondent higher will be the investment on trading.

Correlations

Invest of

earning

Income of

responden

t

Invest of earning Pearson

Correlation1 .395(**)

Sig. (2-tailed) . .000

N 100 100

income of

respondent

Pearson

Correlation.395(**) 1

Sig. (2-tailed) .000 .

N 100 100

** Correlation is significant at the 0.01 level (2-tailed).

H3: The above hypothesis is accepted at the significance level of 0.000

(p=0.395). The correlation of 0.395 can be attributed as moderate and thus it is

believed that higher the no. of respondent higher will be the investment on

trading.

118

4) Higher the service quality higher the satisfaction level .

Correlations

Service

quality

Satisfactio

n level

service quality Pearson

Correlation1 .721(**)

Sig. (2-tailed) . .000

N 100 100

satisfaction level Pearson

Correlation.721(**) 1

Sig. (2-tailed) .000 .

N 100 100

**Correlation is significant at the 0.01 level (2-tailed).

H4: The above hypothesis is accepted at 0.00 level of significance (p=0.721).

A high degree of correlation is found at 0.721 which shows that higher the

service quality, higher will be the satisfaction level.

119

CHAPTER 4 CONCLUSION

120

CONCLUSION

The perception of people about the share market is relatively weak but they can be influenced

by giving them appropriate information about how to invest, when to invest, so that there

confidence will build up.

There is a lot of scope for trading companies in respect of investment they get from their

client, which can be improved by giving them better service facilities, which will not only

increase their investment but also would result in their recommendation about investing

through their company in share market.

Those who are already trading do not have complete information about the basic terms related

to the market which opens up the gate for the companies to increase their awareness by giving

them full information about the market through seminars or conference.

121

CHAPTER 4.1RECOMMENDATION

122

RECOMMENDATIONS

INTRODUCTION PROGRAMS must be held for the sales teams

before letting them go into the field. In these induction classes the

experienced sales staff employees should share their valuable live

experiences and knowledge, which they have experienced while in

field.

Weekly magazines must be published and distributed to the investors

that can help them for making better investments.

Sales team must be fully equipped with latest technology such as using

Laptop that can be used for making presentation to the customers

especially to the corporate clients about their product and services

provided by them.

Make your site user friendly so that more and more people know about

trading and do the same also.

Advertisement through Canopy, help to generate leads.

Company should advertise with a concern that has a brand name in the

market.

123

Other Recommendations

1. Strong Need Of Brand Building

2. Promotional Strategies

3. Solid Network Required To Develop The Business Further

4. Make The Branch Self Informative

5. The RM should provide an in depth demonstration of the software and

client should be assisted regularly.

6. Provision of a manual for online clients for ease of operation.

7. Time lag between the complaints put and follow up should be reduced.

8. Database should be verified properly, so that repeated entries do not

occur. This will reduce inconvenience to the clients, who complained

about multiple calls received.

124

Promotional Strategies

Press publicity:

Outdoor publicity:

Press Publicity:

Paper inserts.

Advertisements in newspaper (local and national).

Interest cards distribution.

Mailers/personal invitations to selective section of the society.

Leaflets

Outdoor Publicity:

Banners in commercial areas and prime sites.

Air balloons at shopping complex.

Bus stands shelters.

Off site ATM for developing business

125

CHAPTER 4.2 QUESTIONAIRRE

126

QUESTIONAIRRE

Customer Study on Security Trading

Tick all relevant boxes.

1. I prefer

to do most of

my

investments

in securities?

127

Agree Satisfied Disagree No Need

2. The Trading firm you own a D-Mat A/c.

The A/c you prefer to use mostly ___________________

Trading Firm D-Mat A/cIndia BullsIndia InfolineICICI DirectKotak Securities ShareKhan 128

129

3. How

important is

each of the

following in

your

preference

130

for security

trading?

FACTORS Most

Important

Important Partially

Important

Not

Important

Convenience

Privacy

Time saving

User friendly

131

132

4. How Important are each of the following services for preferring a

particular security trading company?

SERVICES Most

Important

Important Partially

Important

Not

Important

Brokerage

Exposure

Guidance

Research Report

Dial up trade facility

Information about

Trading

133

5. How do

you rate

each of the

following

facilities

provided by

134

your

security-

trading

firm?

FACTORS Excellent Good Fair Poor

Convenience

Privacy

Time saving

User friendly

135

136

6. How do you rate each of the following services provided by your

trading company?

SERVICES Excellent Good Fair Poor

Brokerage

Exposure

Guidance

Research Report

Dial up trade facility

Information about

Trading

137

7. How often

do you trade?

Every

day

2-3

times/week

Once a

week

Occasionally

138

8. What percentage of your earnings do you invest in share trading?

Up to 5% 5-10% 10-15% 15-20% or

more

139

9. How do you rate the service quality of your security-trading firm?

Excellent Good Fair Poor

140

10. To what extent are you satisfied by the services offered by your security-trading firm?

Highly Satisfied

Satisfied Somewhat Satisfied

Dissatisfied

141

11. Would you like to recommend your trading firm to your friends

and relatives?

Yes No

142

CHAPTER 5MY EXPERIENCE DURING TRAINING PERIOD

143

MY EXPERIENCE DURING TRAINING PERIOD

The 14th of June2010, I was introduced to senior officials, at India Infoline and from the very

first day I was believed to be Sincere and Responsible. I along with other trainees underwent a

theoretical training for a day in which I was made aware of India Infoline Ltd- as a Share

Trading and Broking company, its history and formation and its financial products. I along

with the other trainee was taught what is a De-mat Account, why an individual should have an

account, and last but not the least how to open a De-mat Account. After that I was also given a

demo session of telecalling to equip our self for cold calling. The very next day I was very

much comfortable with the environment and products of India Infoline and I was also given

the responsibility to make some cold and reference calls, in order to do telephonic marketing

of De-mat Account after a week.

During this project, I was then given practical exposure by gaining an opportunity to sit in

front of the trading terminal and watch and learn how online trading is done and various

aspects related to it. It was a wonderful experience to observe how market behaves and also

how the jobbers react in response to the fluctuations in the market in order to benefit both the

company as well as the customers.

After observing how the market is performing and gaining knowledge about key terms related

to this field like- limit, exposure, margin call, circuit(upper and lower), brokerage charges, put

144

and call options, I was given somewhat more practical exposure as I was sent to a lead call

with one of my seniors to observe and learn how the deal gets finalized and what sort of

questions a client can ask and in which manner we should response. But even though first few

days at India Infoline was really a struggle period for me and then gradually as I kept on

gaining knowledge and experience about its financial products I started performing well and

soon I was able to develop a network of some prospective clients for my company.

CHAPTER 6 BIBLIOGRAPHY

145

BIBLIOGRAPHY

1) Tversky , A & Kahneman , D.(1974). “Judgement under uncertainity:

heuristics and biases”.

2) Taleb , Nassim Nicholaas (2008). Fooled by Randomness: The Hidden

Role of Chance in life and in the Markets, 2nd edition Random House.

3) Hagstrom , Robert G (2001). The Essential Buffett: Timeless

Principles for the New Economy. New York : John Wiley & Sons.

4) Mandelbrot , Benoit & Hudson , Richard L. (2006). The Misbehaviour

of Markets: A Fractal View of Financial Turbulance, Annot Edition.

5) Cutler, D. Poterba, J. & Summers, L.(1991). “ Speculative dynamics”.

Review of Economics Studies 58.

6) Murray Sayle, “Japan Goes Dutch”, London Review of books xxiii.7.

April 5,2001.

7) Ortega, Edgar, and Yalman Onaran.”UBS, Goldman Threaten NYSE,

Nasdaq With Rival Stock Markets.” Bloomberg , 4 December 2006.

8) Stephen Morris and Hyun Song Shin, Oxford Review of Economic

Policy, vol 15, no 3, 1999.

9) Sergey Perminov, Trendocracy and Stock Market Manipulations

(2008, ISBN 9781435752443).

146

10) Shiller, Robert (2005).Irrational Exuberance (2nd Edition).Princeton

University Press.

11) Finance.(2009). In Encyclopedia Britannica. Retrieved June 23, 2009,

from Encyclopedia Britannica Online: Finance.

12) Govt, P .et al .1961. Finance. Webster’s Third New International

Dictionary of the English Language Unabridged. Springfield,

Massachusetts: G & C.Merriam Company.

13) NCFM W. Breen,” Low Price-Earnings Ratio & Industry Relatives”,

Financial Analysts’ Journal, July-February 1968.

14) W. Breen & Savage J.” Portfolio Distribution & Security Selection

Models”, Journal of Finance, December 1968.

15) S. Basu, ”Investment Performance of Common stocks in Relation to

Their Price Earning Ratios: A Test of the Efficient Market Hypothesis

“, Journal of Finance, June 1977.

16) Basu, Sanjoy, “ The Relationship between Earnings Yield, market

Value and Return for NYSE Common stocks: Further Evidence.”

Journal of Financial Economics 12 (1983).

17) Carney, John (June 26, 2009). “UBS Accuses Three Quant Traders Of

Stealing Its Secret Code”.

18) Geoffrey Rogow, Rise of the (Market) Machines, The Wall Street

Journal, June 19, 2009.

19) Enter algorithmic trading systems race or lose returns warns, Financial

Times, October 2, 2006.

20) The Associated Press, July 2, 2007 Citigroup to expand electronic

trading capabilities by buying Automated Trading Desk, accessed July

4, 2007.

147

21) C Fieldler, design high frequency system (algorithmic trading

system),dbcoretech .com, June. 2010.

22) Pleasures and pains of Cutting-Edge Technology Mar 19, 2007.

23) “LSE leads race for quicker trades” by Alister MacDonald The Wall

Street Journal Europe , June 19, 2007.

24) Miners superfast shares warning BBC News, Tuesday 3 November

2009.

25) The Financial Times, April 16, 2007.

26) Citigroup to expand electronic trading capabilities by buying

Automated Trading Desk” , The Associated Press, July 2 , 2007.

27) Rob Curren, Watch Out for Sharks in Dark Pools, The Wall Street

Journal, August 19, 2008.

28) Artificial Intelligence applied heavily to picking stocks by Charles

Duhigg, November 23, 2006.

29) “Trading with the help of ‘guerrillas’ and ‘snipers’, Financial Times,

March 19, 2007.

30) “Opalesque Exclusive: High frequency trading under the microscope”

by Opalesque , 4 August 2009.

31) “Hurrying into the Next Panic” , New York Times: by Wilmott &

Paul , July 29, 2009.

32) Critical Market Crashes by Sornette , August 13, 2003.

33) A London Hedge Fund That Opts for Engineers, Not MBA.’s By

Heather Timmons ,August 18 , 2006.

34) “Algorithmic Trading, Ahead of the tape”, By The Economist , June 23

, 2007.

148

35) Moving markets Shifts in trading patterns are making technology ever

more important by Economist , February 2 , 2006.

36) The Real Story of trading Software Espionage By Rob Iati, July 10 ,

2009.

37) “ A Relationship Approach , 2nd Edition By Svend Hollenson March

23, 2010.

38) Marketing in the public sector By Nancy Lee & Philip Kotler March

23 , 2010.

39) International Marketing & Export Management, 2nd Edition , By

Gerald Albaum, Edwin Duerr , May 10, 2008.

40) (About The India Infoline Company) www.indiainfoline.com

41) (About The National Stock Exchange) www.nseindia.com

42) (About Bombay Stock Exchange) www.bseindia.com

43) (About Security Exchange Board Of India) www.sebi.gov.in

44) (About Money Controlling at Trading) www.moneycontrole.com

45) Magazine Business Today 2nd Edition July 23 , 2000

46) Newspaper Economic Times Of India September 11, 2001

47) India Infoline Brochures and Mannuals June 22 , 2002

48) http://www.seekingalpha.com

49) http://www.CIA.gov

50) http://www.investopedia.com

51) http://www.belgiumview.com

52) http://www.charitytimes.com

149

53) http://www.ncfm.com

54) http://www.economist.com

55) http://www.opalesque.com

56) http://www.tempelhove.de/en/scientific.in

57) http://www.nytimes.com

58) http://www.ftknowledge.com

59) http://www.amazon.com

60) http://www.businessinsider.com

61) http://www.iht.com

62) http://www.afajof.org/afa/forthcoming/.pdf

63) http://www.economics.com

64) http://www.sciencedirect.com

65) http://www.business world.com

66) http://www.5paisa.com

67) http://www.scribed.com

68) http://www.googlescholar.com

69) http://www.wikipedia.com

70) http://www.google.com

71) http://www.mbafantasy.com

72) http://www.indiabulls.com

73) http://www.karby.com

74) http://www.sharekhan.com150

75) http://www.publicradio.org

76) http://www.cnbc.com

77) http://www.webcitation.org

78) http://www.advancetrading.com

79) http://www.business.timesonline.co.uk

80) http://www.reuters.com

81) http://www.bis.org

CHAPTER 7 ANNEXURE

151

ANNEXURE

Please fill the following particulars

1) Name ________________________ Phone

No______________Gender

2) Age (in Years)

3) EducationHigh

School Under Grad.

Grad. PG/ Professional

4) Occupation Govt.

Service Private Service

Business Retired

5) Income (in Rs. per Month)

Up to 15000

15001- 30000

30001-45000

Above 45000

Male Female

20-34 years

35-49 years

50-64 years

65+

152

President - Insurance

153