1

A PROJECT

REPORT ON

“COMPETITION MAPPING OF KOTAK SECURITIES LTD. UDAIPUR”

2013-14

In the partial fulfillment of

Master of Business Administration

(2012-2014)

SHRINATHJI INSTITUTES OF TECHNOLOGY AND ENGNEERING

(Department of Management Studies)

Upali Oden, Nathdwara, Rajasmand (Raj.)

Supervised By: Submitted By:

Manish Sharma Monika Sanadhya

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Acknowledgement

We take immense pleasure in thanking Mr. Ashok Parikh, Managing Director, and

Dr. Deepti Bhargava, our beloved Principal for having permitted us to carry out this

project work.

We wish to express our deep sense of gratitude to my project Guide, Manish

Sharma, Prof., Shrinathji Group of Institutes, Department of Management, for

his able guidance and useful suggestions, which helped us in completing the project

work, in time.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved

parents for their blessings, my friends/classmates for their help and wishes for the

successful completion of this project.

Monika sanadhya

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IndexChapterNo.

Topic

1. INTRODUCTION & SCOPE OF TOPIC UNDER STUDY

2. COMPANY‘S PRODUCTS, OTHER RELEVANT

DETAILS & COMPETITORS DETAIL

3. RESEARCH METHODOLOGY

4.RESEARCH ANALYSIS

5.FINDINGS & CONCLUSION

BIBLIOGRAPHY

ANNEXURE

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CHAPTER -1

INTRODUCTION OF TOPIC UNDER STUDY

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INTRODUCTION:

Competition Mapping

Competition mapping offers a quick and easy visual guide of nearby competitors to a

selected site. A retailer looking to open a location in a new area should take competitor

data into account when analyzing specific locations. If you were looking to open a

pizza shop, you probably would not want to do so in a building that has 6 other

competing pizza shops within a 2 block radius. You would more than likely want to be

located in an area where there are few competing businesses.

According to the S B A ( U . S . S ma ll B u si n e ss A dm i n istratio n ) , one of the e ss e n ti a l

e leme n ts o f a g oo d bu sin e ss p l a n is a market analysis which includes research on your

business industry, the market, and your competitors.

A competitor analysis can include identifying who your competition is, where they are

located, the types of products and services they offer, hours of operation, marketing

tactics they use, etc. Knowing where your competition is located can be a primary

factor in the market you target and site that you choose.

A more in-depth approach to competition mapping is what is known as a g a p

ana l y sis. A gap analysis is a report that is compiled from competitor data and market

information on a specific location or target area to determine whether there is a

surplus

or shortage (known as ―gaps‖) of a product or service.

While competition mapping is quick and easy and gives you a visual understanding

of where your competitors are located, a gap analysis can include much more:

Overall market/location information

Resident lifestyle and shopping habits

Business and workforce mix

General demographics such as population and income

Competition data

Market gaps

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Competition mapping and gap analysis can be used to help effectively market

properties to potential buyers/lessees. For example, an owner of a shopping center

seeking new tenants for vacant spaces can use a gap analysis to determine what

types of products or services are needed their center. A gap analysis can be

used to determine what types of tenants to look for and as a way to entice those

tenants to

lease spaces. This type of strategy could help reduce ―hap-hazardous marketing plans‖

that can be costly and ineffective.

Overall, the keys to any successful business venture are to know your market and

use your tools and resources wisely.

Customer satisfaction, a term frequently used in ma rk e ti n g , is a measure of how

products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing

managers, 71 percent responded that they found a customer satisfaction metric very

useful in managing and monitoring their businesses

It is seen as a key performance indicator within business and is often part of a

B a la n c e d Sc o rec a r d . In a competitive marketplace where businesses compete for

customers, customer satisfaction is seen as a key differentiator and increasingly has

become a key element of business strategy

"Within organizations, customer satisfaction ratings can have powerful effects. They

focus employees on the importance of fulfilling customers‘ expectations.

Furthermore, when these ratings dip, they warn of problems that can affect sales and

profitability. . . . These metrics quantify an important dynamic. When a brand has

loyal customers, it

gains positive word-of-mouth marketing, which is both free and highly effective.

Therefore, it is essential for businesses to effectively manage customer satisfaction.

To be able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or

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service has met or exceeded expectations. Thus, expectations are a key factor

behind

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satisfaction. When customers have high expectations and the reality falls short, they

will be disappointed and will likely rate their experience as less than satisfying. For

this reason, a luxury resort, for example, might receive a lower satisfaction rating

than a

budget motel—even though its facilities and service would be deemed superior in

'absolute' terms.

The importance of customer satisfaction diminishes when a firm has

increased ba r g a ini n g po w e r . For example, c e ll p h on e plan providers, such

as A T & T an d V e r i z o n , participate in an industry that is an o l ig opo l y , where only a few

suppliers of a certain product or service exist. As such, many cell phone plan contracts

have a lot of f i n e p r i n t with provisions that they would never get away if there were,

say, a hundred cell phone plan providers, because customer satisfaction would be

way too low, and customers would easily have the option of leaving for a better contract

offer.

There is a substantial body of empirical literature that establishes the benefits

of customer satisfaction for firms.

Purpose

A business ideally is continually seeking feedback to improve customer satisfaction.

"Customer satisfaction provides a leading indicator of consumer purchase intentions

and loyalty." "Customer satisfaction data are among the most frequently

collected indicators of market perceptions. Their principal use is twofold:"

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1. "Within organizations, the collection, analysis and dissemination of these data

send a message about the importance of tending to customers and ensuring

that

they have a positive experience with the company‘s goods and services."

2. "Although sales or market share can indicate how well a firm is

performing currently, satisfaction is perhaps the best indicator of how likely it

is

that the firm‘s customers will make further purchases in the future. Much

research has focused on the relationship between customer satisfaction and

retention. Studies indicate that the ramifications of satisfaction are most

strongly realized at the extremes." On a five-point scale, "individuals who

rate their satisfaction level as '5' are likely to become return customers and

might even evangelize for the firm. (A second important metric related to

satisfaction is willingness to recommend. This metric is defined as "The

percentage of surveyed customers who indicate that they would

recommend a brand to friends." When a customer is satisfied with a

product, he or she might recommend it to friends, relatives and

colleagues. This can be a powerful marketing advantage.) "Individuals who

rate their satisfaction level as ' by contrast, are unlikely to return. Further,

they can hurt the firm by making negative comments about it to prospective

customers. W i l l in g ne ss to re c o m me n d is a key metric relating to customer

satisfaction."

Construction

Organizations need to retain existing customers while targeting non-customers.

Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace.

"Customer satisfaction is measured at the individual level, but it is almost always

reported at an aggregate level. It can be, and often is, measured along various

dimensions. A hotel, for example, might ask customers to rate their experience with its

front desk and check-in service, with the room, with the amenities in the room, with

the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask

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about overall satisfaction 'with your stay.'

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As research on consumption experiences grows, evidence suggests that consumers

purchase goods and services for a combination of two types of benefits: hedonic

and utilitarian. Hedonic benefits are associated with the sensory and experiential

attributes of the product. Utilitarian benefits of a product are associated with the more

instrumental and functional attributes of the product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and

product/service to product/service. The state of satisfaction depends on a number of

both psychological and physical variables which correlate with satisfaction behaviors

such as return and recommend rate. The level of satisfaction can also vary depending

on other options the customer may have and other products against which the

customer can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and

1988 provides the basis for the measurement of customer satisfaction with a service by

using the gap between the customer's expectation of performance and their

perceived experience of performance. This provides the measurer with a satisfaction

"gap" which is objective and quantitative in nature. Work done by Cronin and Taylor

propose the "confirmation/disconfirmation" theory of combining the "gap" described by

Parasuraman, Zeithaml and Berry as two different measures (perception and

expectation of performance) into a single measurement of performance according to

expectation.

The usual measures of customer satisfaction involve a s u r v e y w ith a set of

statements using a L ikert Tec h n i q u e o r scale. The customer is asked to evaluate

each statement and in term of their perception and expectation of performance of the

organization being measured. Their satisfaction is generally measured on a five-point

scale.

"Customer satisfaction data can also be collected on a 10-point scale.

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"Regardless of the scale used, the objective is to measure customers‘

perceived

satisfaction with their experience of a firm‘s offerings." It is essential

for firms to

effectively manage customer satisfaction. To be able do this, we need

accurate measurement of satisfaction.

Good quality measures need to have high satisfaction loadings, good reliability, and low

error variances. In an empirical study comparing commonly used satisfaction measures

it was found that two multi-item s e m a n tic d i f fe re n ti a l s cales performed best across

both hedonic and utilitarian service consumption contexts. According to studies by

Wirtz & Lee (2003) they identified a six-item 7-point s em a n tic d i f fe re n t i a l s cale (e.g.,

Oliver and Swan 1983), which is a six-item 7-point bipolar scale, that consistently

performed best across both hedonic and utilitarian services. It loaded most highly on

satisfaction, had the highest item reliability, and had by far the lowest error variance

across both studies.

In the study, the six items asked respondents‘ evaluation of their most recent

experience with ATM services, along seven points within these six items:

―please me - displeased me‖, ―contented with - disgusted with‖, ―very satisfied with -

very dissatisfied

with‖, ―did a good job for me - did a poor job for me‖, ―wise choice - poor choice‖

and

―happy with - unhappy

with‖.

A s e ma n tic d i f fe re n ti a l (4 items) scale (e.g., Eroglu and Machleit 1990), which is a

four- item 7-point bipolar scale, was the second best performing measure, which was

again consistent across both contexts. In the study, respondents were asked to

evaluate their experiencewith both products, along seven points

withinthese four items:

―satisfied to dissatisfied‖, ―favorable to unfavorable‖, ―pleasant to unpleasant‖ and ―I like

it very much to I didn‘t like it at

all‖

The third best scale was single-item percentage measure, a one-item 7-point bipolar

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scale (e.g., Westbrook 1980). Again, the respondents were asked to evaluate their

experience on both ATM services and ice cream restaurants, along seven points

within

―delighted to terrible‖

It seems that dependent on a trade-off between length of the questionnaire and quality

of satisfaction measure, these scales seem to be good options for measuring

customer satisfaction in academic and applied studies research alike. All other

measures tested

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consistently performed worse than the top three measures, and/or their performance

varied significantly across the two service contexts in their study. These results suggest

that more careful pretesting would be prudent should these measures be used.

Finally, all measures captured both affective and cognitive aspects of satisfaction, independent of their scale anchors. Affective measures capture a consumer‘s attitude

(liking/disliking) towards a product, which can result from any product information or

experience. On the other hand, cognitive element is defined as an appraisal

or

conclusion on how the product‘s performance compared against expectations (or

exceeded or fell short of expectations), was useful (or not useful), fit the situation (or

did not fit), exceeded the requirements of the situation (or did not exceed).

Methodologies:

A me r i c a n Cus t o me r S a ti s f a ct i o n I n de x (ACSI) is a scientific standard of customer

satisfaction. Academic research has shown that the national ACSI score is a strong

predictor of Gross D o me stic Pro d u ct (G DP) growth, and an even stronger predictor

of P e r s ona l C o n s u m p ti o n E x pe n d it u re (P CE) growth. On the m ic r oe c o n o m ic le vel,

academic studies have shown that ACSI data is related to a firm's financial performance

in terms of r e t u rn o n in v e stme n t ( ROI), sales, long-term firm value (T o b in's q) , c a sh

f lo w , cash flow volatility, hum a n c ap it a l performance, po r t f o l i o ret urns, d e b t financing,

risk, and consumer spending Increasing ACSI scores has been shown to predict loyalty,

word-of-mouth recommendations, and purchase behavior. The ACSI measures

customer satisfaction annually for more than 200 companies in 43 industries and 10

economic sectors. In addition to quarterly reports, the ACSI methodology can be applied

to private sector companies and government agencies in order to improve loyalty

and purchase intent. Two companies have been licensed to apply the methodology

of the ACSI for both the private and public sector: CFI Gro up , I n c. and F o res e e Res u lts

a pply the ACSI to websites and other online initiatives. ASCI scores have also

been calculated by independent researchers, for example, for

the mobile phones

sector,[ 1 3 ] h igher education,[ 1 4 ] a nd e lec t r o n ic ma i l .

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The K an o m o de l is a theory of product development and customer satisfaction

developed in the 1980s by Professor Nor i a ki K a n o t hat classifies customer

preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent,

Reverse. The Kano model offers some insight into the product attributes which are

perceived to be important to customers.

SERVQUAL or RATER is a service-quality framework that has been incorporated

into customer-satisfaction surveys (e.g., the revised Norwegian Customer

Satisfaction Barometer to indicate the gap between customer expectations and

experience.

J.D. P o w e r an d Ass o c ia te s p rovides another measure of customer satisfaction, known

for its top-box approach and automotive industry rankings. J.D. Power and

Associates' marketing research consists primarily of consumer surveys and is publicly

known for the value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well.

These include A . T . K ea r n e y's Customer Satisfaction Audit process, which

incorporates the

Stages of Excellence framework and which helps define a company‘s status against

eight critically identified dimensions.

For Business to Business (B2B) surveys there is the Info Quest box. This has been

used internationally since 1989 on more than 110,000 surveys (Nov '09) with an

average response rate of 72.74%. The box is targeted at "the most important"

customers and avoids the need for a blanket survey.

In the European Union member states, many methods for measuring impact and

satisfaction of e -g o v ernm e n t s ervices are in use, which the e G o v M o Net p roject

sought to compare and harmonize.

These customer satisfaction methodologies have not been independently audited by

the M a rk e ti n g Acc oun t ab i l ity St anda rds B oa r d ( M ASB) a ccording to MM AP ( M a rketing

M e tric A ud it Prot o c o l ) .

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CHAPTER-2

COMPANY‟S INTRODUCTION,

PRODUCTS, OTHER RELEVANT

DETAILS & COMPETITORS

DETAIL

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Kotak Securities Pvt. Ltd.

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra

Bank, which services more than 7.4 lakh customers. The firm has a wide network of

more than 1400 branches, franchisees representative offices, and satellite offices

across 448 cities in India and offices in New York, London, Dubai, Mauritius and

Singapore. We process more than 400000 trades a day which is much higher than

some of the renowned international brokers.

The company is a corporate member of both The Bombay Stock Exchange (BSE)

and The National Stock Exchange of India (NSE). Our operations include stock

broking services for trading in stock markets through branches & internet and

distribution of various financial products including investments in IPOs, Mutual Funds

and Currency Derivatives. Currently, Kotak Securities is one of the largest broking

houses in India with substantial geographical reach to Asia Pacific, Europe, Middle

East and America. Kotak Securities Limited has Rs. 1,202 crore of Assets Under

Management (AUM) as of

31st Dec, 2011.

Innovators:

We have been the pioneers in providing many products and services which have

now become industry standards for stock broking in India. Some of them include:

Mobile stock trading application to keep track of your investments even on the go

Facility of Margin Finance to the customers for online stock trading

Investing in IPOs and Mutual Funds on the phone

SMS alerts before execution of depository transactions

Auto Invest - A systematic investing plan in Equities and Mutual funds

Provision of margin against securities automatically against shares in your

Demat account

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Research Expertise:

We specialize in Fundamental and Technical analysis backed by a team of highly

trained and qualified individuals. Our full-fledged research division is involved in

Macro Economic studies, Sectorial research and Company Specific Equity Research

which publishes in-depth stock market analysis. This is combined with a strong

and well networked sales force which helps deliver current and up to date market

information and news.

We are also a depository participant with National Securities Depository Limited (NSDL)

and Central Depository Services Limited (CDSL). By being a stock broker and

depositary participant, we provide dual benefit in our services wherein the investors

can avail our stock broking services for executing the transactions and the

depository services for settling them. Our Portfolio Management Service comes as

an answer to those who would like to grow exponentially on the crest of the stock

market, with the backing of an expert.

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Equity

Kotak Securities caters to both primary and secondary market under the equity

segment. The primary market provides the channel for creation and sale of new

securities, while the secondary market deals in securities previously issued. The Stock

market or Equities market is where listed securities are traded in the secondary

market. Currently more than 1300 securities are available for trading on the National

Stock Exchange (NSE) and over 6000 on Bombay Stock Exchange (BSE).

Why Equity?

Many people are afraid of stock market investment due to the fear that a fall in stock

market might jeopardize their financial security. However, we're aware that there's an

element of risk in all investments. Holding cash in our bank accounts is considered to

be very safe, but historically it has not always provided an adequate hedge against

inflation. So, cash cannot be considered as the most effective for long-term

investment. Clearly, Equity investment can provide excellent long-term returns,

illustrated by the chart below:

The key to successful stock market investment lies in appreciating the long-term

nature of the returns and keeping away from worries of day-to-day uncertainties.

Volatility is the reality of the stock market. A disciplined and informed approach will

always help in taking control of your money. Kotak Securities always strives to keep

its customers

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informed of all the stock market events to help you make an informed decision.

What instruments are supported by Kotak Securities Platform?

Following are the various instruments that are available to trade through Kotak

Securities:

Shares

- Equity Shares

- Preference Shares

Debentures

- Partly Convertible Debentures

- Fully Convertible Debentures

- Non-Convertible Debentures

- Warrants / Coupons / Secured Premium Notes/ other Hybrids

- Bonds

Units of Mutual Funds

What are you? An investor or a trader?

You can make money in equity market by investing or trading or both. However, to

avoid disappointment of losing money, customers should make very prudent and

informed decisions.

"Investors" put their money into stocks for a long term. This is under the principle

that over time, the underlying investment will increase in value, and the investment will

be profitable.

On the other hand "traders" take a proactive approach to their investing. They follow

or predict a trend in the stock and use strategies like buy-low, sell-high and make

profits. Though there is really no right or wrong type of stock trading, it is necessary for

you to identify which type of trading is right for you. You can make a great amount of

money either way; however, you must consider your time frame, risk, and how much

work you want to put into it.

While traders can make more money much faster, they are required to do more work

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and monitoring than the typical investor. Determine what type of trader you want to

be, and then make sure that the people you take guidance from have the same goals

as you.

Ways you can buy Equity on Kotak Securities platform:

Normal Order:

All buy orders are normal orders. Sell orders placed without having shares in your

demat account can be placed under normal. These are short sale orders and can

be placed if sufficient limits are available in the account.

Limit Order:

The order refers to a buy or sells order with a limit price. The investor specifies the

price while placing the order.

Market Order:

The market order means buying or selling at the current market price

Stop Loss Order:

A Stop Loss Order is placed to minimize the losses. It allows the trading member to

place an order, which gets activated only when the last traded price (LTP) of the

share is reached or crosses a threshold price known as the trigger price. The trigger

price will be quoted as per the risk you are ready to bear.

AMO:

AMO stands for After Market Order. It is a facility that Kotak Securities extends to its

customers whereby they can place orders even after the trading hours of a particular

day. There is a 10% price band for placing AMOs. This facility is available in the time

slots mentioned below:

Anytime between 3.30 p.m. to 1.00 a.m.

Anytime between 4.30 a.m. to 9.00 a.m.

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BNST:

Kotak Securities has introduced service of BNST i.e. Buy Now Sell Tomorrow where

client will be allowed to sell the entire BUY quantity but the responsibility of any

short fall in delivery will be clients' as it is not guaranteed by Kotak Securities.

E.g. for BNST: Suppose you have bought 100 shares of EIH on T Day. The

settlement day for this buy transaction is T+2 Day. You can sell these 100 shares of

EIH under BNST either on T+1 Day or on T+2 Day. As this scrip is not in specified list

of BNST, Kotak Securities doesn't guarantee the delivery of these shares.

Initial Public Offering (IPO)

An initial public offering, or IPO, is the first sale of stock by a company to the public.

A company can raise money by issuing either debt or equity. If the company has

never issued equity to the public, it's known as an IPO.

Investing in IPOs is not complex anymore, Kotak Securities has made buying IPOs

very simple. All you have to do is make one phone call, and that's all. No IPO

application forms, no queues, simply pick the phone or log on to

ww w .k o t a ks e c u r i ti e s.c o m and place your IPO order within seconds.

We also provide with you with information on IPO News, forthcoming IPOs in India

and a lots more. To start investing in IPOs, all you need to do is open an online trading

account. Choose from our wide range of accounts that suits your investment needs.

Right Investment Partner

We see investing from your perspective, and make recommendations based on your

needs. One of our important goals is to simplify investing for you; along with this we

also provide long term values to our customers.

We have a million reasons for you to choose us. Listed below are a few:

Stability: We are a subsidiary of Kotak Mahindra Bank and one of the oldest and largest

stock broking firms in the Industry. We have been the first and only NBFC to receive

the license to be converted into a bank.

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Innovators in the Industry: We have been the first in providing many products

and services which have now become industry standards.

First to provide Margin Financing to the customers

First to enable investing in IPOs and Mutual Funds on the phone

Providing SMS alerts before execution of depository transactions

Launching of Mobile application to track portfolio

AutoInvest - A systematic investing plan in Equities and Mutual fund

Provision of margin against securities automatically against shares in your Demat

account

Value: Whether you are a customer with a small or large wallet size, you can expect

us to bring value to you in every form.

Quality Research

Quick trade execution

Low brokerages

Accounts that suit your investment profile

Risk Profiler

Superior Customer Service

Service: We believe in high standards of service and that's precisely what we offer.

It's an honour to be awarded the most customer responsive company award in the

Financial Institution sector by AVAYA GlobalConnect Award both in 2006 and 2007

Robust Technology: We have developed our own proprietary trading platform which

is robust and among the best in the industry. We have more than 150 technology

professionals constantly working on upgrading and speeding up all our systems.

Centralised Risk Management System: Unlike many other players we have a

centralised risk management system. This allows us to offer the same levels of

service to customers across all locations.

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Exceptional Research: Unlike most other competitors we have our own in house

research team. Our in house research team is among the best in the industry and

they have years of experience in the financial markets. They scan through the

plethora of stocks and find the scrips that have high potential of providing you good

returns.

Our investors get research Technical, Fundamental, Derivatives, Macro-economic

and mutual fund research.

Large Presence: We are present in 447 cities with 1420 outlets all over the country.

Our employee strength extends beyond 3800.

Multiple Share Trading Platforms

We understand your trading needs. If you're an Online Customer, Kotak Securities

offers multiple mechanisms to place your trade. Be it a wi fi-zone or a cybercafé or

a

3G connection or GPRS handset or a completely aloof from internet zone, you'll

always have access to trade through Kotak Securities. We are one of the brokers

to have the highest number of trading platforms to serve your trading needs.

Mode ApplicationType of

ApplicationSatisfying Need

Internet Website Web Access all the features on the web

Desktop KE A T ProX .EXE based

application

Ultra high speed experience with

advanced features. Exe based

application.

Desktop FASTLANE Java applet

KEATProX like experience when your

office premises do not allow

application installations

MobileM ob i l e St o ck

T ra d e r

Mobile

Application

High speed trading experience on a

Mobile

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Mobile /

ComputerXtralite Web

When you have a weak internet

connectivity

PhoneCall and

Trade- When you're not in an Internet zone

PhoneBranch

Advisory- When you're not in an Internet zone

Share Market Education

When it comes to online trading, lack of certainty leads to inaction. One needs to be

completely informed about the markets, online trading applications, processes and

basics of investing. Kotak Securities has created several programs to help you

learn everything about the stock market investing. This initiative has helped several

customers learn stock markets and online trading and become successful traders.

Below are few of our programs and demos under the customer education initiative:

Kotak Securities Academy: An online initiative that depicts our relentless commitment

to educate on the basics of investing, with a collection on Equities, Derivatives and

Mutual Funds.

Smart Start: An inspiring storyboard for young investors to understand the importance

of saving and investing for the future.

Webinars: As a customer of Kotak Securities, you'll be invited to all our

educative webinars from time to time. You'll get to learn online trading methods

with Kotak Securities and tactics of stock market investing.

Horizon: A fortnightly newsletter that educates you on various asset-classes

and updates you on the markets.

Research Reports: Be informed of every investment you make by referring to

our various detailed reports. You'll have an access to

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Industry-level reports

Company specific reports

Mutual Fund recommendation reports

Currency derivatives reports

Research Seminars: We conduct workshops and tutorial seminars at frequent

intervals across the country. As a customer of Kotak Securities, you shall have the

privilege to get invited for all such events.

Research and Educative Conference-calls: Our regular con-calls educate you on our

how to use our various platforms for online trading and also would update you on

the markets.

Books: It has been our constant endeavour to come out with handy books that you

can use to increase your financial literacy. Few books that we have published are:

1. A guide to Derivatives: Get this book for free when you open an account with us

2. Everything you wanted to know about stock market investing: In collaboration

with CNBC TV 18, this book will help you understand the all the market nuances.

3. Everything you wanted to know about Investing: In collaboration with CNBC TV

18, this book helps you understand every bit of the investment world.

Social Media: Think about it, it was only approximately 20 some odd years ago that the

average person was beginning to become associated with the internet. Prior to that,

the internet was mostly reserved for academia and various government agencies.

Today, we have not only the internet, but we have social media tied in there as well.

We know that you're already there or will be there soon and made our presence noted.

Following are our pages on various social media sites where you can follow us, learn

and be up to date:

Slideshare: Find presentations on the various financial concepts that we wish

you to learn.

Y ou t ub e : We regularly upload our views on the market here.

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T w itt e r: Follow us to get market updates and latest happening.

Faceb oo k: W e have a dedicated page here with lots of activities.

Value Added Trading Services

Going above and beyond your basic need of of transactions in equities, we offer you

a plethora of Value Added Services. When you choose any of Kotak Securities

T ra d ing a cc o u n t s , the combination of our research, tra d i n g p la t f o r m s a nd

communication channels enable us to deliver a higher value to you.

Our specialized services like Trade Smart, Res ea rch o n SMS and E-mail subscription

constantly gives you stock ideas that you can benefit from. Our services ensure that

your end-to-end trading needs are satisfied.

Below are the various Value Added Services we have for you:

Supe r Mu ltip le

T win Ad van ta ge

BNST

Po rtf o lio T racke r

SMS A lert Sub scrip tion

T rade Sma rt

S e c u r i ty Ke y

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Capital Market

A capital market is a ma rket f or s e c u r i ti e s ( d eb t o r e q u it y ), where business enterprises

(c om p an ie s ) and g o v e rn m e n ts c an raise long-term funds. It is defined as a market in

which money is provided for periods longer than a year, as the raising of short-term

funds takes place on other markets (e.g., the m o n e y ma rke t ). The capital market

includes the st o ck m a rket (e quity securities) and the bo n d ma r k e t (d ebt). Financial

regulators, such as the UK's Financial Services Authority (FSA) or the U.S.

S e c u r i ti e s an d E x c han g e C o mm iss i o n (SEC), oversee the capital markets in their

designated jurisdictions to ensure that investors are protected against fraud, among

other duties. Capital markets may be classified as p r i ma ry ma rk e ts a nd s e c on d a ry

ma rket s . In primary markets, new stock or bond issues are sold to investors via a

mechanism known as un d e r w r i ti n g . In the secondary markets, existing securities

are sold and bought among investors or traders, usually on a s e c u r i ti e s e x c han g e ,

o v e r - t he - c oun t e r . The market where investment f u n d s l ike bonds, equities and

mortgages are traded is known as the capital market. The primal role of the capital

market is to channelize investments from investors who have surplus funds to the

ones who are running a deficit. The capital market offers both long term and

overnight funds. The financial instruments that have short or medium

term maturity periods are dealtin the m o ne y ma rk e t w hereas the

financial instruments that have long maturity periods are dealt in the capital market.

The different types of financial instruments that are traded in the capital

markets are equity instruments, credit market

instruments, ins u r a n ce instruments, foreign exchange instruments, hybrid instruments

and derivative instruments.

Types of investment options

A derivative is a financial instrument - or more simply, an agreement between two

people or two parties - that has a value determined by the price of something else

(called the underlying). It is a financial contract with a value linked to the expected future

price movements of the asset it is linked to - such as a share or a currency. There

are many kinds of derivatives, with the most notable being swaps, futures, and

options.

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However, since a derivative can be placed on any sort of s e c u r i t y , the scope of all

derivatives possible is nearly endless.

Thus, the real definition of a derivative is an agreement between two parties that is

contingent on a future outcome of the underlying.

An investor has numerous investment options to choose from, depending on his risk

profile and expectation of returns. Different investment options represent a different

risk- reward tra d e o ff. Low risk investments are those that offer assured, but lower

returns, while high risk investments provide the potential to earn greater returns.

Hence, an

investor‘s risk tolerance plays a key role in choosing the most suitable investment.

Banks today provide a range of investment options, including international investing,

investing in commodities, stocks, bonds, precious metals and investment funds.

Other options for in v e sti n g include certificates of deposit, futures and investment clubs.

All investment options have their inherent risk and benefits. For instance,

international investing is prone to social, political,

e c o n o m ic a nd currency risks, while fixed in c o m e in vesting is prone to interest

risks

Futures & Options

Cash

Fixed Interest:Termed as conservative investments or ―low risk/low return investments,‖

these provide assured returns. However, the shortfall is their exposure to inflation.

That is, the returns could be completely wiped out owing to the erosive impact of

inflation on money.

I n v e sti n g in c ash or money market funds may get you higher returns.

Bonds:

Bonds represent money that an investor lends to a bond issuer. The issuer may be

the government or corporate bodies. While c o r p o rate bo n d s t ypically offer greater

returns, they also represent higher risk. In case the company declares

bankruptcy, the bondholders may not be repaid the principal invested. Hence,

those with low risk appetites should opt for government bonds, which offer assured

30

returns and regular income.

31

Equities or Shares:

The st o ck m a rket o ffers the opportunity to enjoy very high returns. However, it also

exposes investors to high risk. Having a long-term horizon can minimize the risk,

since the stock market is volatile in the short term. Investors can either invest in

individual companies or across different companies through equity mutual funds,

which are managed by professionals and do not require an investor to

conduct extensive research.

Diversifying your investment p o r t f o l i o to include the main asset classes (bank

deposits, bonds, shares and property) can give an investor a better risk-returns

profile. An investor can hire the services of a professional investment manager to

organize his investments and update the portfolio.

Here are six commonly asked questions regarding it.

What is settlement?

After you have bought or sold shares through your broker, the trade has to be

settled. Meaning, the buyer has to receive his shares and the seller has to receive his

money. Settlement is just the process whereby payment is made by all those who

have made purchases and shares are delivered by all those who have made sales.

How T+2 settlement cycle will work

SEBI had introduced T+5 rolling settlement in equity market from July 2001 and

subsequently shortened the settlement cycle to T+3 from April 2002. After

having gained experience of T+3 rolling settlement and also taking further steps

such as introduction of STP, it is now felt appropriate to further reduce the

settlement cycle to T+2 thereby reducing the risk in the market and to protect the

interest of investors.

The shortening of settlement cycle to T+2 needed co-operation, co-ordination and

active support of various entities and intermediaries in the market such as stock

exchanges, clearing corporations/houses, depositories and depository participants,

FIIs, custodians, fund managers, brokers, etc. SEBI had held several rounds of

consultation with all the market participants and based on the consensus, decided

to introduce T+2 rolling

32

settlement in Indian equity market from 1st April 2003. The calendar of events /

activities in T+2 rolling settlement would be as follows:

* Confirmation of the institutional trades by the custodians latest by 11.00 a.m. on T+1.

A provision of an exception window would be available for late confirmations. The

time limit and the additional charges for the exception window would be decided by

the exchanges.

* The exchanges / Clearing House / Clearing Corporation would process and download

the obligation files to the brokers' terminals latest by 1.30 p.m. on T+1.

* DPs shall accept instructions for pay-in of securities by the investors in physical form

at least up to 4 p.m. and in electronic form by 6 p.m. on T+1.

* The depositories would accept the requests from DPs till 8:00 p.m. for `same day

processing'.

* The depositories would accept the requests from DPs till 8:00 p.m. for `same day

processing'.

* The Depository would permit the downloading of the pay-in files of securities and

funds till 10:30 a.m. on T+2 from the broker pool accounts.

* The Depository would process the pay-in requests and transfer the consolidated pay-

in files to the Clearing House / Clearing Corporation by 11:00 a.m. on T+2.

* The Exchanges / Clearing House / Clearing Corporation would execute the pay-out of

securities and funds latest by 1:30 p.m. on T+2 to the Depositories and Clearing Banks

and the Depositories and the Clearing Banks would in turn complete the process by

2:00 p.m. on T+2.

SEBI would be issuing the necessary administrative instructions to market participants,

intermediaries and exchanges shortly. We are also initiating various steps in the

interim to ensure smooth transition into T+2 rolling settlement and these include

widening of scope of STP, wider use of electronic fund transfer facility and issue

of electronic contract notes.

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Circuit breakers

Circuit breakers are the price put by SEBI on the Company Share Price in order to curb

the fluctuation & protect the interest of the investors.

Roll-overs

A rollover occurs when you move your money from a qualified retirement plan, such

as an employer-sponsored 401(k) plan, into a Traditional IRA or another

qualified retirement plan. Typically, you are eligible for a rollover only when you are

eligible to receive a distribution from a qualified plan. Such situations would include:

Retiring. You've been saving for years and years...and now it's finally time to

enjoy your hard-earned savings. Many people find that consolidating their

retirement assets into a Traditional IRA makes it easier to manage and monitor

their money.

Changing jobs. When people change jobs, they often have money in a

qualified retirement plan sponsored by their employer. A rollover lets them

move this money into a Traditional IRA of their own choosing.

Between jobs or switching careers. Perhaps you're taking advantage of

opportunities to explore a new profession. Or maybe you're simply spending time

away from the work force to raise a family or go back to school. Whatever your

situation, you may wish to simplify your finances by transferring the money from

a previous employer's plan to a Traditional IRA.

Open interest

2nd Open Interest:

Open interest (also known as open contracts or open commitments) denotes the

total number of derivative contracts, such as futures and options, that are currently

active on:

That is, the total contracts for a specific strike price and expiration date, that have

been traded, but have not yet expired, have not yet been closed through a

closing transaction, or have not yet been terminated via early exercise. A closing

transaction occurs when a counterparty that is long the contract sells, or,

conversely, when counterparty that is short the

contract buys. For example, in a stock option to buy 100

shares of Nokia at EUR 50 in September

34

2006, the underlying is a Nokia share. In a futures contract to buy EUR 10 million 10

year German Government Bonds, the underlying are the German Government

bonds. Other examples are stock market indices such as the Dow Jones Industrial

Average and Nikkei fixed-income derivatives are an example of derivatives whose

underlying is also a derivative. For example, Euro-Bund options (OGBL) are traded

on Eurex and their underlying is the Euro-Bund futures contract (FGBL)

Call Option

An agreement that gives an investor the right (but not the obligation) to buy a stock,

bond, commodity, or other instrument at a specified price within a specific time period.

Price bands

The Securities and Exchange Board of India (SEBI) proposes to relax the price band on

200 stocks from 8 per cent to 12 per cent.

What is a price band and why is it used? A price band is essentially the price range

within which a stock is permitted to trade during a day.

Take, for instance, HDFC. If it closes on Wednesday at Rs. 400 and the price band is 8

per cent, HDFC can trade between Rs. 368 and Rs. 432 on Thursday. If HDFC hits Rs.

432 (Rs. 368), one cannot buy/sell the stock above (below) that price on that day.

Often, trading comes to a halt when stocks hit the upper or the lower price band.

Why?

It is normally heavy demand that pushes a stock towards the upper price band.

Realizing the market's appetite for the stock, sellers ask for a higher price.

The upper price band, however, caps the sellers' ask price for the stock. The result?

There would be no sellers for the stock leading to a trading halt.

By the same logic, stocks that hit the lower price band will experience trading halts as

there would be no buyers at that level. This is in-so-far as the working of price band

is concerned. But why have a price band? Because the market either over-reacts or

under-reacts to rumors and information.

Rumors. for instance, of a 1:1 bonus by Company X would drive people to buy that

stock, pushing up its price to very high levels.

Likewise, rumors or information of a negative development may push a stock to

levels far lower than warranted.

35

And, therein lies the problem. If the market realizes its folly, a stock that was pushed

to low levels would start rising while that driven to high levels would move downs.

Such price swings are harmful to the market; they may prompt sellers and buyers to

default on their obligations. They may also keep nervous investors away from the

market. It is to prevent such happenings that stock exchanges impose a price band.

Different types of orders that can be placed in Kotak Securities.com

1. Normal orders: When u sell shares without making delivery it is treated as a short

sale and would be executed if there are sufficient funds available to execute the

transactions.

2. Delivery mark orders: This intimates the system to take delivery for the order placed.You need not mark delivery for a buy order, because if you don‘t

square-off the transaction, the system automatically takes delivery .In case you

mark delivery for a

sell order, then it is not reckoned as a utilization of limits and hence

your ―utilized

margin‖ will remain unchanged on execution of these transactions. The

system will

check your demat stock availability and the transaction will go through only if the

stock is available in your demat account.

3. Margin finance orders: A margin finance order can be placed only if you have

registered for margin funding. Using this facility you can buy shares at 50%

margin, the balance 50% is provided by Kotak Securities.com at a nominal interest

rate.

4. Market orders: An order placed for execution at the prevailing market price. To

place a market order type 0 as the price column or the price displayed by default is

taken as market order.

5. Limit orders: An order placed with a specific price that we want is a limit order.

In such a case we may replace the market price with a price of our own.

6. Stop loss orders: An order placed, which gets activated only when the market price

of the relevant scrip reaches or crosses a threshold price, which is trigger price.

Until then the order does not enter the market but sits with the NSE.

7. Disclosed order quantity: The order quantity to be placed in the market can be any

number with a minimum quantity of one share. In case of large quantity orders,

there is an option of disclosing smaller quantity i.e., in lots of 10% of the total

quantity .As

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and when the lot is executed, the next lot will be pushed into the market

automatically foe execution till the quantity is filled.

8. Multiple orders: It is facility provided by Kotak Securities.com which allows you to

place an order in 5 scripts with a single click.

Cover order: It is a facility provided by Kotak Securities.com wherein two orders will be

accepted at the same time, one being a normal order and second a stop loss order

with a trigger price. Eg- if you place an order to buy 200 shares of SBI AT 886, You

can simultaneous, place a sell order at 880 to restrict your losses. In case SBI does

not reach 880, this order will be automatically cancelled at the end of the trading day.

You need to mention the trigger price at which stop loss will be released in the system.

Com peti tors

Systematic Capital Services Pvt. Ltd.

Systematic Capital Services Pvt. Ltd, the Investment Banking arm of the Group, provides financing solutions to the clients of Systematic group. The company‘s core

operating activity is raising funds (equity & debt) for large and mid-sized corporates

with a minimum requirement of USD 5 million and above through modes at very

attractive terms and the shortest possible time. Other services include business

consulting, corporate restructuring, corporate finance, structuring of funding,

amalgamations, mergers, and acquisitions. The company also offers

consulting on emerging opportunities in India on a global

perspective. Our Team constituted by experienced professionals has entrenched

knowledge and proven credentials in the business with cross product knowledge. The

key strengths of the team are:

expertise in industry sectors

deep understanding of the capital markets

strong networking with buy side institutions

ability to structure transaction and products suitable to needs of the clients

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Approach: Our Approach is characterized by High quality financial advice resulting in

outstanding execution through:

Understanding client's businesses and needs and associated risk implications

Adding value in valuation assumptions, structuring, negotiating, and

Long term commitment and strong relationships

Our team provides full fledged support to strong growth oriented companies raise

Capital through:

Preparation of Business and Financial Plans.

Preparation of the Information Memorandum.

Discussions and Negotiations with prospective investors.

Deal closure and Execution.

Systematix has exponentially expanded pan‐India in a very short span of time

with a presence at 600 plus locations via branches & franchisees servicing

around 60,000 clients with around 1000 terminals spread across 20 states and

150 plus cities targeting a strong client base across India. We have around 400

employees of which over 35% are professional. Mission "To enhance the

economic value of our client‘s business by providing integrated financial &

investment services and products" Vision "To be amongst the most admired

financial institutions in India with a reputation built on strong ethics and trust."

38

Systematix Shares and Stocks (I) Ltd (SSSIL)

Offers personalized broking services to its institutional, corporate and

individual clients

Strong pan-india presence, it has more than 42 branches and over 332

franchisees nationwide and is expanding rapidly across the nation to increase its

customer reach.

SSSL is a member of BSE (Capital) segment, NSE (Capital and Futures &

Options) segment and is also a depository participant of CDSL.

SSSL is also clearing and trading member of derivatives.

Strong research team of competent and experienced professionals.

State of art infrastructure in order to provide smooth and hassle free trading.

Latest front office and back office software to ensure error free nonstop

services to the customers.

All offices are interconnected through state-of-art Database Management

Systems for providing speedy service and optimising the operational efficiency.

Services Offered

39

i. Broking

ii. High Net worth Individuals

iii. Research

iv. Retail

v. Corporate

vi. Institutions

vii. Depository Participant of CDSL

viii. Cash

ix. Futures & Options

Activities undertaken by SSSL: Broking business is divided into the following

broad segments:

Wealth Management including PCG & PMS

Institutional Broking

Full-fee Brokerage Services through its Branch and Franchisee Network

Internet based Trading Platform to reach Professionals, Medium size customersand where company don‘t have its branch network

Distribution of Mutual Funds and IPO

Presently SSSL has established its Branch network to only high potential

geographies to cater Full-fee brokerage services and PCG Desk

SSSL Client Base

i. DP Clients : 25000

ii. Equity

iii. BSE : 25000

iv. NSE : 20000

Wealth Management is Systematix‟s dedicated approach to cater its clients.

Systematix provides the full spectrum of wealth management solutions to you. At

Systematix Wealth Management we assume nothing about your requirements or the

level of involvement you are seeking. That is why we have a full range of

personalized services to meet your needs. A wide range of expertise and experience

supports every

40

aspect of your wealth management. Our admired wealth management advises are

credential of the combination of insightful research, winning strategies and

most

important management‘s close connectivity with the industry which provide easy access

for first hand information. At Systematix Wealth Management, we have extensiveexperience working with Corporates and Marquis Who‘s Who wealthy individuals,

families and promoter groups throughout India. Not limited to that, we also provide

wealth management solutions to Wealth Managers. While every investor of this

category is unique, the knowledge we have accumulated helps us to foresee situations

and needs that even our clients and their families might not anticipate. Our multi-

disciplinary team of advisors is trained to identify issues and propose solutions

appropriate to their specific situation.

Systematix Wealth Management has a dual structure where Private Client Group

offers personalized advisory services, on the other side Portfolio Management

Services offers personalized asset management services. Private Client Group

(PCG)

41

We believe that the key to a successful investment relationship is a full understanding of our client‘s short and long term goals, attitude towards risk and investment horizon.

Diversification among desired assets need special attention which is why we aim to

develop innovative and customized investment strategies to meet the specific needs

of our clients.

Our team of investment advisory specialists strive to cater to the needs of investors

who choose to be highly active in their investment decision-making. They use their

expertise in asset allocation and investment selection to provide clients with appropriate

choices, whether they are aiming for more aggressive strategies to capture immediate

market trends, or seeking advice on conservative hedging strategies. Our advisors

provide customized investment opportunities in equity, fixed income & liquidity

management (through MFs), derivatives, currency, commodities and innovative

structured

instruments (through third party products), that seek to meet specific investment

objectives. Our innovative mindset, unparalleled research, agile sales teams, and

intensive execution systems have enabled us to relentlessly service our clients in

newer and different ways. Portfolio Management Services (PMS) Those clients who

may not have the time or expertise to manage their wealth, and prefer to delegate the

management of their portfolio, our discretionary investment service is an ideal approach

to achieve your financial goals. Our Portfolio Managers work with clients to design an

individual investment strategy in accordance with their objectives, risk tolerance, and

liquidity needs and draw upon the best suited portfolio.

In a nut shell, based on our holistic investment approach and innovative product

capabilities we offer you very active multi asset class portfolio advisory &

management services with personalized attention and active participation of

Systematix's management.

Merchant Banking: We have a decade experience in the capital markets public

offering and maintain a close relationship with local & Global investment banking firms

that can

provide initial public offerings (IPOs) and other secondary and follow –on registered

offerings. Systematix Group maintains active relationships and provides services

with numerous institutional investors including major venture capital fund, private

equity

42

funds, leveraged buyout funds, regional & money center commercial banks

and insurance companies.

Systematix Shares & Stocks (I) Limited provides depository services to investors as a

Depository Participant with Central Depository Services Ltd (CDSL). Dematerialisation

and trading in the demat mode is the safer and faster alternative to the physical

existence of securities. Demat as a parallel solution offers freedom from delays,

thefts, forgeries, settlement risks and paper work.

Our customer centric account schemes have been designed keeping in mind the

investment psychology. With a competent team of skilled professionals, we have a

dedicated Customer Care Centre, exclusively trained to handle queries from our

customers. With our country wide network of branches, you are never far from

SSSIL depository services.

At SSSIL, our commitment is to provide a complete demat solution which is simple,

safe and secure. Your DP account with us takes care of your depository needs like

dematerialization, rematerialisation, transfer and pledging of shares, stock lending

and borrowing etc. Your demat account is safe and absolutely secure in our hands,

every debit instruction is executed only after its authenticity is established.

We offer our customers:

Quick account opening

Electronic Credit against Corporate Actions

Pledging / Unpledging of shares

Dematerialization of shares

Rematerialisation of shares

Monthly statements of Holding / Transaction

Updating the account based on investors' instructions

Other related services

43

E-Broking: Internet Trading - The Internet revolution has been changing the

fundamentals of our society. It shapes the way we communicate and the way we do

business. It brings us closer and closer to vital sources of information. Today,

investors can use revolutionary Internet Client-Server technology to buy and sell

stocks nearly

anywhere, anytime… You can place online trades for virtually any stock listed on NSE &

BSE. We offer plenty of powerful ways to place stock orders ... along with the trading

tools and services that help you move quickly and conveniently to trade stocks. In

Online Trading, you can access our website through your internet-enabled PC and

place orders through our internet-based trading engine. These orders are routed to the

Stock Exchange without manual intervention and executed thereon in a matter of a

few seconds.

Online trading portal of Systematix Group is a single gateway for your

multiple investment needs.

With us you can trade in equities, derivatives, commodities & currency at just click

of your mouse button. We deliver state-of-the-art technology, efficient customer

care service, competitive pricing & entire product basket to make your trading

journey smooth.

PRODUCTS:

Equity: You can trade on maximum stocks available on NSE & BSE. We offer

various options to place stock orders.

Delivery Based Trading:

You can place delivery based orders on maximum stocks available on NSE & BSE.

Intraday trading:

Trade in intraday segment up to 3-7 times of your available funds. This facility is

available for selected scripts on NSE & BSE.

44

Derivatives: Wide range of futures & options trading strategies available with speed

and ease. Currency Derivatives: Currency Derivatives are standardized foreign

exchange contracts traded on an exchange to buy or sell one currency against

another on a specified future date. The contracts will be traded online through the

order-driven market mechanism, quite similar to equity derivatives.

Commodities: Trade in commodities (both MCX& NCDEX) through Systematix online

trading platform.

Trading Platforms:

1. Wealth Trade

ADD-ON-WEALTH

EXPRESS-WEALTH

2. ODIN

INET.NET

DIET

Value added services:

Customer care desk :

Dedicated customer service desk to handle your query related to password;

transaction reports & other day to day support required

Call n trade :

Dedicated call n trade desk for placing your order thru phone

Back Office Access :

Download your all reports like daily contract note, ledger, trade summary etc

Why Systematix : In an endeavor to offer you nothing less than best, we at Systematix

Shares & Stocks (I) Ltd brings you freedom to trade thru our 3 in 1 account

With 3 in 1 account we offer you integration between trading, banking & demat account.

45

Bank account offered will be from an option of Axis & ICICI bank, whereas trading &

demat account will be with Systematix Shares & Stocks (I) Ltd.

Online transfer from your linked bank account to your trading account & vice

versa

128 bit encryption SSL certificate for Online trading which makes it a fool

proof system for trading

Instant update on status of purchase/sale orders.

Automated pay-in of shares and pay-out of funds/shares to and from your

DP/bank account.

Invest/trade online in multiple products - equity and derivatives trading, IPO, GOI

bonds and mutual funds

You can place orders online or through the Phone-2-Trade facility.

Offering of Systematix PMS

Systematix PMS offers a range of portfolios to help meet the varied needs of client

requirements that provide further customization and flexibility.

ICICI Sec uri ties Ltd.

ICICI Securities Ltd is an integrated securities firm offering a wide range of services

including investment banking, institutional broking, retail broking, private wealth

management, and financial product distribution.

ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the

Nation' for its diversified set of client that include corporates, financial institutions,

high net-worth individuals and retail investors.

Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in

India and global offices in Singapore and New York.

ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a

member of the Financial Industry Regulatory Authority ( F INRA) / Securities Investors

Protection Corporation (SI P C ) . ICICI Securities Inc. activities include Dealing in

Securities and Corporate Advisory Services in the United States. ICICI Securities Inc.

is

46

also registered with the Monetary Authority of Singapore ( M AS) and operates a

branch office in Singapore.

ICICI Securities empowers over 2 million Indians to seamlessly access the capital market

with ICICIdirect.com, an award winning and pioneering online broking platform. The platform not

only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but

also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance

are available. ICICIdirect.com offers a convenient and easy to use platform to invest in equity

and various other financial products using its unique 3-in-1 account which integrates customer's

saving, trading and demat accounts.

Apart from convenience, ICICIdirect.com also offers access to comprehensive research

information, stock picks and mutual fund recommendations among other offerings.

Tailored services and tra d ing stra te g ies a re available to different types of customers;

long term investors, day traders, high-volume traders and derivatives traders to name

some. ICICIdirect.com uses the most advanced commercially available 128-bit

encryption technology enabled Secure Socket Layer (SSL), to ensure that the

information transmitted between the client and ICICIdirect.com across the internet is

safe and cannot be accessed by any third party. ICICIdirect.com is the first broker in

India to introduce `Digitally Signed Contract Note' to its customers. As a result, the

process of generating contract notes has been automated and the same would be

instantly available to its customers in a safe and secure manner through the website.

Distribution Channel

ICICI Securities has set-up neighbourhood financial stores which offer a variety of

financial products and services under one roof. It is a one-stop shop that facilitates

existing and potential customers to speak to our team and understand their financial

plans and goals. ICICI Securities has 250 stores across 66 cities in India.

Another unique concept called the ICICIdirect Money Kitchen, was launched in late

2009. An extension of the superstore model, the money kitchen is an

innovative financial store where visitors can create their profiles to not only

analyze their investment strategy by using various financial tools but also monitor it

from time-to-time.

47

To enable our customers to maximize their returns and plan for their future,

ICICIdirect has also started financial planning services at these stores. Customized

financial plans can be created for our customers by dedicated Relationship

Managers who will understand the customer's requirements and future goals.

Based on this information, the Relationship Manager works on creating a

comprehensive and easy-to-read financial plan. This enables ICICIdirect to move from

just a transactional based relationship to a meaningful and value-added long-

term relationship with our customers. ICICIdirects services and offerings evolves

according to the customer's ever changing requirements and goals.

Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1

online trading account, equities, mutual funds, IPO, Life and General insurance,

Fixed Deposits and many other financial products. The stores also conduct periodic

training sessions on markets and demo sessions of the trading website.

Research

ICICI Securities understands the need for insightful research to make the right

investment decision. An independent equity research team provides strong and timely

updates to ensure that customer can avail of market opportunities. The research team

focuses on both large cap as well as small and mid-cap. Large cap companies

provide an overview of industry environments, while small and mid-cap companies are

chosen

'bottom-up', providing a unique perspective to a generally under-researched end of

the market. The focus is on identifying companies, which we believe are likely to

generate wealth for investors on a sustained basis through in-depth fundamental

research.

We cater to the entire gamut of investment and return horizon requirements of an

investor through our flagship offerings like Detailed Company Report, Pick of the

Week, Model Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day calls,

Daily, Weekly & Monthly Technicals with a regular update on the performance of our

calls.

48

Trading in shares:

Cash Trading : This is a delivery based trading system, which is generally done

with the intention of taking delivery of shares or monies.

Margin Trading : You can also do an intra-settlement trading upto 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the

intention of squaring off the position within the same day settlement cycle.

MarginPLUS Trading : Through MarginPLUS you can do an intra-settlement

trading upto 25 times your available funds, wherein you take long buy/ short sell

positions in stocks with the intention of squaring off the position within the same day

settlement

cycle. MarginPLUS will give a much higher leverage in your account against your limits.

CallNTrade® : CallNTrade® allows you to call on a local number in your city & trade

on the telephone through our Customer Service Executives. This facility is currently

available in over 11 major states across India.

Trading on NSE/BSE : Through ICICIdirect.com, you can trade on NSE as well as

BSE.

Market Order : You could trade by placing market orders during market hours that

allows you to trade at the best obtainable price in the market at the time of execution

of the order.

Limit Order : Allows you to place a buy/sell order at a price defined by you. The

execution can happen at a price more favorable than the price, which is defined by

you, limit orders can be placed by you during holidays & non market hours too.

India I nf oline Fi nance Lt d.

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:INDIAINFO, BSE: 532636) and its subsidiaries, is one of India‘s premier

providers of financial services.

IIFL offers advice and execution platform for the entire range of financial

services covering products ranging from Equities and derivatives, Commodities,

Wealth management, Asset management, Insurance, Fixed deposits, Loans,

Investment

49

Banking, Gold bonds and other small savings instruments.

We have a presence in:

Equities our core offering, gives us a leading market share in both retail and

institutional segments. Over a million retail customers rely on our research, as

do leading FIIs and MFs that invest billions.

Private Wealth Management services cater to over 2500 families who have trusted

us with close to Rs 25,000 crores ($ 5bn) of assets for advice.

Investment Banking services are for corporates looking to raise capital. Our forte is

Equity Capital Markets, where we have executed several marquee transactions.

Credit & Finance focuses on secured mortgages and consumer loans. Our high

quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong capital

adequacy of approximately 20%.

IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty

ETF. Other products include Fixed Maturity Plans.

Life Insurance, Pension and other Financial Products, on open architecture

complete our product suite to help customers build a balanced portfolio.

IIFL has received membership of the Colombo Stock Exchange becoming the first

foreign broker to enter Sri Lanka. IIFL owns and manages the website, which is one

of

India‘s leading online destinations for personal finance, stock markets, economy and

business. IIFL has been awarded the „Best Broker, India‟ by FinanceAsia and

the

„Most improved brokerage, India‟ in the AsiaMoney polls. India

Infoline was also adjudged as „Fastest Growing Equity Broking

House - Large firms‟ by Dun &

Bradstreet. A forerunner in the field of equity research, IIFL‘s research is

acknowledged

by none other than Forbes as „Best of the Web‟ and ‗…a must read for

investors in

Asia‟.

50

Our research is available not just over the Internet but also on international wire

services like Bloomberg, Thomson First Call and Internet Securities besides

others where it is amongst one of the most read Indian brokers.

51

IIFL is a listed company with a consolidated group networth of about Rs 1,800

crores. The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs. 2.1 bn

respectively.

The Group has a consistent and uninterrupted track record of profits and dividends

since its listing in 2005. The company is listed on both Exchanges and also trades in

the derivatives segment.

IIFL‘s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+)

respectively. For long term, IIFL has been rated ICRA(AA-) by ICRA and CRISIL AA-

/Stable by CRISIL indicating high degree of safety for timely servicing of

financial obligations.

IIFL is near you physically: we are present in every nook and cranny of the country, with

over 3,000 business locations across 500 cities in India. You can reach us in a variety

of ways, online, over the phone and through our branches. All our offices are connected

with the corporate office in Mumbai with cutting edge networking technology. The group

caters to a customer base of about a million customers.

Our physical presence in key global markets includes subsidiaries in Colombo, Dubai,

New York, Mauritius, London, Singapore and Hong Kong.

Karv y Stoc k Brok i ng Li mi ted

Karvy Stock Broking Limited is a member of the National Stock Exchange of India and

The Stock Exchange Mumbai. We rank among the top 5 brokers on the NSEI, with over

130,000 trades per day. We began with the aim of serving the small investors today we

have over 3,50,000 clients trading through us. We are uniquely positioned to offer the

best to you, with over 575 branches, one is located near your office / home. If you

prefer to trade from the comfort of your home or office, our online platform provides the

ideal way to trade. Our laser focused approach to serving the retail investors remains

the cornerstone to our success over the last two decades.

If you are looking for an easy and convenient channel to trade in the stock markets…KARVY is your trusted trading services partner. To start trading in equities, you need

to register as a client with us, and you are ready to trade on the premier exchanges of

52

India

KARVY offers you feature-rich trading accounts with options to trade through any of our

branches or by yourself using our proprietary online trading platform. Our friendly and

qualified staff can assist you in putting through the trades at the branches. Our advise

is backed by a top notch research team. Our 40 strong research team, based in

Mumbai and Hyderabad, generate up to date and dynamic Research Call for our

customers and affiliates in various market segments (Cash and Futures / Options). The

calls are issued on multiple verticals and can be Intra Day Recommendations,

Positional Calls and hedge / arbitrage strategies

DEPOSITORY SERVICES

KARVY Stock Broking Limited provides depository services to investors as a Depository

Participant with the National Securities Depository Limited (NSDL) and Central

Depository Services (India) Limited (CDSL). The Depository system in India links

Issuers, National level Depositories, Depository Participants and Clearing Houses /

Clearing Corporation of Stock Exchanges. Our demat services are accessible through

any of our network of over 575 branches / investor service centers located in over 375

cities and towns across the country.

Our demat services business has the distinction of having all its operations ISO 9001:

2000 certified with state-of-the-art technology and operations capabilities. Our demat

services has innovated over time and we provide online access to account

statements and transaction alerts through SMS to its clients.

KARVY‘s Demat services offer you a secure, convenient and paperless way to keep

track of your investments in shares and other security instruments over time, without

the hassle of handling paper based transcripts.

We provide the following services

Dematerialization of Shares

Rematerialization of Shares

Transfer of Shares

Pledging of Shares

53

Electronic Custodial Services

Maintenance of Beneficial Holdings

Electronic Credit Against Corporate Actions

INTERNATIONAL INVESTOR SERVICES

Karvy Stock Broking Limited is a member of the National Stock Exchange of India

Limited and The Stock Exchange, Mumbai (BSE), in both the Equities and Futures

segment. We are also registered as a Depositary Participant with National Securities

Depositary Limited and Central Depositary Services Limited. We offer the

convenience of trading through any of our 575 branches or online from the comfort of

your home. Karvy Stock Broking Limited is also registered as a Corporate Agent with

the Association of Mutual Funds of India.

We have more than 3,50,000 customers trading though us and we service more than

6,00,000 investors who maintain their Depositary accounts with us. Over

10,00,000 clients have invested through us in some of the best Mutual Funds in

India.

Backed by a top-notch research team that tracks both the global and domestic markets,

we advise our clients on achieving both their short term and long-term goals.

KARVY Stock Broking Limited has a special business services unit to support Non-

Resident Indians (NRIs) who are interested in investing in the Indian equity markets.

India is one of the fastest growing and emerging financial markets in the world and a

preferred destination for investments among the global investors. Persons of Indian

Origin (PIO) across the world can invest in the Indian markets through any of the

following channels:

Equity Trading on NSE & BSE

Derivatives Trading on the NSE

Initial Public Offers

Portfolio Management Services

Investments in Mutual Funds

54

KARVY has also offices in New York, USA (KARVY Inc.) and Dubai, UAE (KARVY

Stock Broking Limited) who can assist you in your investments in India. Please contact

us in case of any queries at .

INSTITUTIONAL BROKING

The institutional broking arm of KARVY Stock Broking offers corporate houses and

institutions dealing capabilities on India leading stock exchanges (NSE and BSE) in

the cash and derivatives segments. This unit has devised a process driven approach

to address the needs of institutional investors who have unique and specialized

investment needs.

The institutional broking services desk is a specialized business unit at KARVY that

operates out of Mumbai, the financial capital of India and is staffed with best-of-

industry equity market professionals and highly skilled dealers. KARVY also supports

institutional traders through their institutional sales and research teams with

information and insightful reports on stocks, sectors and industry verticals.

KARVY's institutional broking clientele include some major domestic Mutual Funds,

Insurance Companies, Banks and FII's in India.

EQUITY & DERIVATIVE RESEARCH―It pays well to be informed and stay connected‖ – a philosophy that drives the

research team at KARVY to produce and deliver in-depth and incisive market research

to you. All

of KARVY‘s businesses are backed by a dedicated research unit which strives

to keep

investors abreast with news, information, events and conditions of markets. Penetrative

and investigative research techniques unearth a wealth of information that empowers

investors in their investment decisions.

The KARVY research team creates the following reports and publications for

consumption by investors in the Indian equity markets. These include the following

55

CHAPTER-3

RESEARCH METHODOLOGY

56

Title of the study: COMPETITION MAPPING OF KOTAK SECURITIES LTD.,

UDAIPUR

Objective of study:

A. To study the Investors satisfaction regarding the services provided by Kotak

Securities Ltd. and its competitors.

B. To study the preferences of the Investors of Kotak securities Ltd. and

its competitors.

C. To analyse the Investors satisfaction of Kotak securities Ltd., HDFC securities,

Anand Rathi securities, Reliance securities., Angle Broking and Emkay shares &

securities Ltd.

Scope of the study

This study helps in understanding consumer behavior towards Financial

instruments.

This research describes consumer perception about these services.

This study describes influence factor of customers.

This study measure the customer loyalty in Financial avenues.

This study helps the organization to understand their competitor

Type of research: Descriptive Research

Descriptive research, also known as statistical research, describes data &

characteristics about the population or phenomenon being studied. Descriptive research

answers the question who, what, where, when, & how.

Although the data description is factual, accurate & systematic, the research cannot

describe what caused a situation thus descriptive research cannot be used to create

a casual relationship where one variable affects another. In other words

descriptive research can be said to have a low requirement for internal validly.

The description is used for frequencies, averages & other statistical calculation. often

the best approach prior to writing descriptive research is to conduct a survey

investigation. Qualitative research often has a aim of description & researchers may

57

follow up with examination of why the observation exists & what the implication of

the findings are.

The main goal of this type of research is to describe the data & characteristics

about what is being studied. The idea behind this type of research is to study

frequencies, averages, & other statistical calculations. Although this research is highly

accurate, it does not gather the causes behind the situation.

Research Design:

Research design specifies methods and procedures for study.

Sufficient thought have been given to frame research question and data types to be

collected & procedures to be used for the study among consumers. However it was

exclusively personal interview. To solve the purpose of the study separate

questionnaire for consumers were made.

Data Collection:

This report was prepared after collecting data from the consumers and past data

was arranged from the various studies conducted in last few years.

Primary Data:

These data were collected by personal interview with consumer. For this

purpose questionnaire was prepared in such that all necessary data would be collected.

Secondary Data:

Information regarding the project, secondary data was also required. These data

were collected from various past studies and other sources of the company.

Research Tools:

Questionnaire

Journals

Internet

Google Docs

Sample size:- 60

There were 300 questionnaire distributed among service users & investors.

Only investors in financial instruments were selected, so they were selected for the

study.

Katak securities Ltd

Systematic capital service pvt ltd.

Icici securities ltd

India infoline finance ltd

Karvya stock broking limited.

Methods of selecting sample- convenient sampling

Convenient Sampling

A sample is a subject chosen from a population for investigation. A convenient

sampling is one chosen by a method involving an unpredictable component. convenient

sampling can also refer to taking a number of independent observations without

involving any real population. A probability sample is one in which each item has a

known probability of being in the sample.

I have taken sample according my convenient of Kotak securities Ltd. and its

competitors.

Analysis of Data

The real task was started, after the data was collected. The analysis of data

required operations such as establishment of categories, the application of these

categories , the application of these categories to raw data through coding, tabulation

and then drawing statistical inference. The unwieldy data was condensed into a few

manageable groups and tables for further analysis .Then classification of data into

purposeful and usable category. Coding, editing and tabulation was done

simultaneously a then analysis was based on computation of various percentages.

CHAPTER-4

RESEARCH ANALYSIS

AN AL YS IS

Table-1

FrequenciesBrokerage House

Frequency PercentValidPercent

CumulativePercent

Valid

KotakSecuritiesLtd.

10 16.7 16.7 16.7

SystematicCapital Services Pvt Ltd.

10 16.7 16.7 33.3

SharekhanStoke Broking House

10 16.7 16.7 50.0

ICICISecuritiesLtd.

10 16.7 16.7 66.7

India InfolineFinance Ltd. 10 16.7 16.7 83.3

Karvy StockBrokingLimited

10 16.7 16.7 100.0

Total 60 100.0 100.0

Table-2Type of Investment

TotalDerivatives Cash Both

BrokerageHouse

KotakSecurities Ltd.

3 2 5 10

SystematicCapitalServices PvtLtd.

3 4 3 10

SharekhanStock BrokingHouse

6 4 0 10

ICICI SecuritiesLtd.

2 6 2 10

India InfolineFinance Ltd. 2 8 0 10

Karvy StockBroking Limited 0 6 4 10

Total 16 30 14 60

Data Interpretation-

In this study, I tried to find out what was the type of investment in which the investors invested in the securities market.

I found that Kotak Securities Ltd. Had the maximum number of investors who traded in both Cash as well as Derivatives whereas. Sharekhan Stock Broking House had the maximum number of traders who traded in Derivatives and India Infoline Finance Ltd. had the maximum number of traders who traded in Cash.

8

7

6

5

4 Derivatives

3 Cash

2 Both

1

0Kotak

Securities Ltd.

Systematic Capital

Services Pvt Ltd.

Sharekhan Stock

Broking House

ICICI Securities

Ltd.

India Infoline Finance

Ltd.

Karvy Stock Broking Limited

Table-3Time Frame

TotalShortterm

Longterm Both

BrokerageHouse

KotakSecurities Ltd.

0 2 8 10

SystematicCapitalServices PvtLtd.

3 2 5 10

SharekhanStock BrokingHouse

4 2 4 10

ICICISecurities Ltd.

2 3 5 10

India InfolineFinance Ltd. 3 0 7 10

Karvy StockBrokingLimited

5 1 4 10

Total 17 10 33 60

Data Interpretation-

In this table, I have tried to find out the time frame for which the investors invest in the securities market. Kotak Securities Ltd. have the maximum investors for both Long term & Short term whereas ICICI Securities Ltd. has the maximum number of Long term investors and Karvy Stock Broking Ltd. Has the maximum Short term investors.

876543210

Kotak Securities

Ltd.

Systematic Capital

Services Pvt Ltd.

Sharekhan Stock

Broking House

ICICI Securities

Ltd.

India Infoline Finance

Ltd.

Karvy Stock

Broking Limited

Short term

Long term

Both

Table-4Mode of Investment

TotalOn-Line Off-line Both

BrokerageHouse

KotakSecuritiesLtd.

4 0 6 10

SystematicCapital Services Pvt Ltd.

3 3 4 10

Sharekhan Stock BrokingHouse

5 3 2 10

ICICI Securities Ltd.

1 3 6 10

India InfolineFinance Ltd. 5 2 3 10

Karvy StockBrokingLimited

2 3 5 10

Total 20 14 26 60

Data Interpretation-

In this table, I have interpreted that Kotak Securities Ltd. & ICICI Securities Ltd. Holds the maximum number of both online as well as offline customers whereas Sharekhan Stock Broking House& India Infoline Finance Ltd. hold the maximum online customers.

6

5

4

3 On-Line

Off-line2

Both

1

0Kotak

Securities Ltd.

Systematic Capital

Services Pvt Ltd.

Sharekhan Stock

Broking House

ICICI Securities

Ltd.

India Infoline

Finance Ltd.

Karvy Stock Broking Limited

Table-5Satisfaction Level fromSoftware

TotalNeutral SatisfiedHighly-satisfied

BrokerageHouse

KotakSecuritiesLtd.

0 0 10 10

SystematicCapital Services Pvt Ltd.

2 5 3 10

SharekhanStokck Broking House

3 5 2 10

ICICISecuritiesLtd.

4 4 2 10

India InfolineFinance Ltd. 1 5 4 10

Karvy StockBrokingLimited

2 3 5 10

Total 12 22 26 60

Data Interpretation-

In this table, I have analysed that investors investing in Kotak Securities Ltd. were highly satisfied with the software provided to them by their broking house whereas some investors were satisfied with the software provided to them by their broking house or were neutral with the view when asked about the satisfaction with the software provided to them by their broking house.

109876543210 Highly-satisfied

SatisfiedNeutral

Neutral

Satisfied

Highly-satisfied

Table-6factors considered most important before choosing an

investment option

Speedy increas e in wealth

Steady & stable growt h

Assured fixed monthl y income

Safety of fund investme nt

Previous experien ce

Total

Brokerag e House

KotakSecuritiesLtd.

0 10 0 8 5 23

Systemati c Capital Services Pvt Ltd.

7 0 5 6 4 22

Sharekhan Stock Broking House

3 5 5 8 8 29

ICICISecuritiesLtd.

7 0 7 1 0 15

IndiaInfoline Finance Ltd.

3 4 6 8 0 21

KarvyStock Broking Limited

7 4 5 3 3 22

Total 27 23 28 34 20 132

Data Interpretation-

In this table, I studied the factors considered important by the investors before choosing an investment option.

The investors of Kotak Securities Ltd. were mainly focused on the steady & stable growth.

The investors of Systematic Capital Services Pvt. Ltd. were mainly focused on the speedy increase in wealth and fixed monthly income.

4

The investors of Sharekhan were mainly focused on the Safety of fund Investment and previous experience.

The investors of ICICI Securities Ltd. were mainly focused on the speedy increase in wealth & assured fixed monthly income.

The investors of India Infoline finance Ltd. were mainly focused on the SafetyInvestment of Fund.

10987 Kotak Securities Ltd.65

Systematic Capital Services Pvt

3 Ltd.2 Sharekhan Stock Broking House10

ICICI Securities Ltd.

India Infoline Finance Ltd.

Karvy Stock Broking Limited

Table-7(A)

Satisfaction with Brokerage Rates

TotalHighlydissatisfied Neutral Satisfied

Highly-satisfied

BrokerageHouse

KotakSecuritiesLtd.

0 0 4 6 10

SystematicCapital Services Pvt Ltd.

0 5 4 1 10

SharekhanStock Broking House

0 1 7 2 10

ICICISecuritiesLtd.

0 3 6 1 10

India InfolineFinance Ltd. 0 1 6 3 10

Karvy StockBrokingLimited

1 1 6 2 10

Total 1 11 33 15 60

Data Interpretation-

In this table, I have analysed that the investors of Kotak Securities Ltd. were highly satisfied with the brokerage rates whereas the investors of other broking houses were satisfied with the brokerage rates provided to them by their broking houses.

7

6

5

4

3

2 Highly dissatisfied1

Neutral0

Satisfied

Highly-satisfied

Ho: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

H1 : There is significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-7(B)

Chi-SquareTests

CalculatedValue(Chi-Square)

40.357

Degree of Freedom 15

TabulatedValue(Chi-Square)

24.996

Accept/Reject Rejected

Here I have applied Chi-Square Test and in my test I found that the

Calculated Value > Tabulated Value

Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-8(A)

Dealer's Input

TotalNeutral SatisfiedHighly-satisfied

BrokerageHouse

Kotak SecuritiesLtd.

0 4 6 10

Systematic CapitalServices Pvt Ltd.

3 5 2 10

Sharekhan StockBroking House

1 9 0 10

ICICI SecuritiesLtd.

6 2 2 10

India InfolineFinance Ltd. 0 8 2 10

Karvy StockBroking Limited 3 5 2 10

Total 13 33 14 60

Data Interpretation-

In this table, I have found that the investors investing with Kotak Securities were highlysatisfied with the dealers‘ input whereas the investors dealing with the competitivebroking houses were satisfied or were neutral in their views when asked about thesatisfaction from dealers‘ input.

9876543210

Kotak Systematic Sharekhan ICICI India Karvy

Neutral

Satisfied

Highly-satisfied

SecuritiesLtd.

Capital Services Pvt Ltd.

Stock Broking House

SecuritiesLtd.

Infoline Finance

Ltd.

Stock Broking Limited

Ho: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

H1: There is significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors

Table-8(B)

Chi- Square Tests

Calculated Value(Chi-Square)

53.351

Degree of Freedom 10

Tabulated Value(Chi-Square)

18.307

Accept/Reject Rejected

Here I have applied Chi-Square Test and in my test I found that the

Calculated Value > Tabulated Value

Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors

Table-9(A)

Company's Research Advise

TotalNeutral SatisfiedHighly-satisfied

BrokerageHouse

KotakSecuritiesLtd.

0 3 7 10

Systematic Capital Services Pvt Ltd.

5 4 1 10

SharekhanStock Broking House

6 3 1 10

ICICISecuritiesLtd.

3 7 0 10

India InfolineFinance Ltd. 6 4 0 10

Karvy StockBrokingLimited

3 3 4 10

Total 23 24 13 60

Data Interpretation-

Here, in this table I have analysed that the customers of Kotak Securities Ltd werehighly satisfied with the research advice provided to them by the Company‘s Researchteam whereas the customers of other competitive broking houses were satisfied or wereneutral in their views when asked about the satisfaction from their company‘s researchadvice.

8

7

6

5

4Neutral

3 Satisfied

2 Highly-satisfied

1

0Kotak

Securities Ltd.

Systematic Capital

Services Pvt Ltd.

Sharekhan Stock

Broking House

ICICI Securities

Ltd.

India Infoline

Finance Ltd.

Karvy Stock Broking Limited

Ho1: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-9(B)

Chi- Square Tests

Calculated Value(Chi-Square)

39.164

Degree of Freedom 10

Tabulated Value(Chi-Square)

18.307

Accept/Reject Rejected

Here I have applied Chi-Square Test and in my test I found that the

Calculated Value > Tabulated Value

Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-10(A)

Relation Manager's Input

TotalDis-satisfied Neutral Satisfied

Highly-satisfied

BrokerageHouse

KotakSecuritiesLtd.

0 0 0 10 10

SystematicCapital Services Pvt Ltd.

0 5 5 0 10

SharekhanStock Broking House

0 1 7 2 10

ICICISecuritiesLtd.

1 2 6 1 10

India InfolineFinance Ltd. 0 2 7 1 10

Karvy StockBrokingLimited

0 6 2 2 10

Total 1 16 27 16 60

Data Interpretation-

In this table, I have found that the investors of Kotak Securities Ltd were highly satisfiedwith the Relationship Manager‘s input whereas the investors dealing with thecompetitive broking houses were satisfied or were neutral in their views when asked about the satisfaction from their Relationship Manager‘s input.

10

9

8

7

6

5

4

3

2

1

0Kotak

Securities Ltd.

Systematic Capital

Services Pvt Ltd.

Sharekhan Stock

Broking House

ICICI Securities

Ltd.

India Infoline Finance

Ltd.

Karvy Stock

Broking Limited

Dis-satisfied

Neutral

Satisfied

Highly-satisfied

Ho1: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-10(B)

Chi-SquareTests

Calculated Value(Chi-Square)

49.883

Degree of Freedom 15

Tabulated Value(Chi- Square)

24.996

Accept/Reject Rejected

Here I have applied Chi-Square Test and in my test I found that the

Calculated Value > Tabulated Value

Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-11(A)

Profitability of Investment in EquityMarket

TotalDis- satisfied Neutral Satisfied

Highly- satisfied

BrokerageHouse

KotakSecuritiesLtd.

0 1 3 6 10

SystematicCapital Services Pvt Ltd.

0 1 4 5 10

SharekhanStock Broking House

5 5 0 0 10

ICICISecuritiesLtd.

0 5 3 2 10

India InfolineFinance Ltd. 1 6 1 2 10

Karvy StockBrokingLimited

2 3 4 1 10

Total 8 21 15 16 60

Data Interpretation-

Here, I analysed the investors whether they felt it to be profitable in investing in the securities market or not.

In my findings I analysed that the investors of Kotak Securities Ltd. were highly satisfied with the fact that it was profitable in investing in the securities market whereas other investors investing in some other broking houses were satisfied/neutral/dissatisfied with this fact.

6

5

4

3Dis-satisfied

Neutral

2 Satisfied

Highly-satisfied1

0Kotak

Securities Ltd.

Systematic Capital

Services Pvt Ltd.

Sharekhan Stock

Broking House

ICICI Securities

Ltd.

India Infoline Finance

Ltd.

Karvy Stock

Broking Limited

Ho1: There is no significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

Table-11(B)

Chi-SquareTests

Calculated Value(Chi-Square)

45.678

Degree ofFreedom

15

Tabulated Value(Chi-Square)

24.996

Accept/Reject Rejected

Here I have applied Chi-Square Test and in my test I found that the

Calculated Value > Tabulated Value Therefore, the Hypotheses is rejected. Hence, there is a significance difference between the customer satisfaction of the customers of Kotak Securities Ltd. and its competitors.

CHAPTER-5

FINDINGS & Conclusion

Conclu sion & FINDIN GS

1. I found that Kotak Securities Ltd. Had the maximum number of investors who

traded in both Cash as well as Derivatives whereas. Sharekhan Stock Broking

House had the maximum number of traders who traded in Derivatives and

India Infoline Finance Ltd. had the maximum number of traders who traded in

Cash.

2. Kotak Securities Ltd. have the maximum investors for both Long term & Short

term whereas ICICI Securities Ltd. has the maximum number of Long term

investors and Karvy Stock Broking Ltd. Has the maximum Short term investors.

3. I have interpreted that Kotak Securities Ltd. & ICICI Securities Ltd. holds the

maximum number of both online as well as offline customers whereas Sharekhan

Stock Broking House& India Infoline Finance Ltd. hold the maximum online

customers.

4. I have analysed that investors investing in Kotak Securities Ltd. were highly

satisfied with the software provided to them by their broking house whereas

some investors were satisfied with the software provided to them by their

broking house or were neutral with the view when asked about the satisfaction

with the software provided to them by their broking house.

5. The investors of Kotak Securities Ltd. were mainly focused on the steady &

stable growth.

The investors of Systematic Capital Services Pvt. Ltd. were mainly focused on

the speedy increase in wealth and fixed monthly income.

The investors of Sharekhan were mainly focused on the Safety of fund

Investment and previous experience.

The investors of ICICI Securities Ltd. were mainly focused on the speedy

increase in wealth & assured fixed monthly income.

The investors of India Infoline finance Ltd. were mainly focused on the Safety

Investment of Fund.

6. I have analysed that the investors of Kotak Securities Ltd. were highly

satisfied with the brokerage rates whereas the investors of other broking

houses were satisfied with the brokerage rates provided to them by their broking

houses.

7. I have found that the investors investing with Kotak Securities were highlysatisfied with the dealers‘ input whereas the investors dealing with the

competitive broking houses were satisfied or were neutral in their views whenasked about the satisfaction from dealers‘ input.

8. I have analysed that the customers of Kotak Securities Ltd were highly satisfiedwith the research advice provided to them by the Company‘s

Research team whereas the customers of other competitive broking houses

were satisfied or were neutral in their views when asked about the

satisfaction from their

company‘s research advice.

9. I have found that the investors of Kotak Securities Ltd were highly satisfied withthe Relationship Manager‘s input whereas the investors dealing

with the competitive broking houses were satisfied or were neutral in their

views when

asked about the satisfaction from their Relationship

Manager‘s input.

10. I analyzed that the investors of Kotak Securities Ltd. were highly satisfied with

the fact that it was profitable in investing in the securities market whereas other

investors investing in some other broking houses were

satisfied/neutral/dissatisfied with this fact.

ANNEXURE

Questionna ire

Name:-

Age :-

o Below 18 yearso 18-30 years o 30-50 years o 50-60 years o 60 & above

Occupation:-

o Studento Businesso Professiono Servicemano Others

Gender:-

o Maleo Female

Marital Status:-

o Marriedo Unmarried1) Do you trade in derivatives/cash /both?

o Derivativeso Casho Both

2) Do you like to trade on short-term basis or on long-term basis?o Short –termo Long-termo Both

3) Do you trade on online mode/ offline mode?o Onlineo Offline

If on online mode, are you satisfied with the software provided to you by the broking company?

Highly dissatisfied Highly Satisfied

4) Which factor would you consider as most important before choosing an investment option?

o Speedy increase in wealtho Steady & stable growtho Assured fixed monthly incomeo Safety of funds investedo Previous experience

5) Are you satisfied with the brokerage rates provided to you by your broking house?

Highly dissatisfied ooooo Highly Satisfied

6) Does your dealer satisfy you at the level you want him regarding updates &knowledge?

Highly dissatisfied ooooo Highly Satisfied

7) Do you get advisory from the company‘s researchers?

Highly dissatisfied ooooo Highly Satisfied

8) Are you satisfied with the RM‘s work and the information provided by him to

you?

Highly dissatisfied ooooo Highly Satisfied

9) Do you think it is profitable to invest in the equity market ?

Highly dissatisfied ooooo Highly Satisfied

10)Do you Suggest your friends & relatives to trade with the Broking house withwhich you are attached?

o Yeso No

BIBLIOGRAPHY

Books and Articles: -

i. Reilly/Brown (2007), ―Investment Analysis and Portfolio Management,

Eight Edition, University of dame, Thomson Publication: Haryana, pp

1042-1050.

ii. Donald E. Fischer and Ronald J. Jordan (2003), Security Analysis and

portfolio management, sixth edition, University of Texas, PHI: New

Delhi, pp 672-677.

iii. Sharp, William F. ―Mutual fund performance‖, Journal of business 39

(1966): 119-138.iv. Treynor, Jack L., ―How to rate management of

investment funds‖

Harvard Business review, 43(1965):pp 63-75v. Jensen, Michael C., ―The performance of mutual fund in the

period

1945-1964‖, Journal of finance, 23(1968):

pp389-416.

vi. Sarkar, A.K., ― Performance Evaluation of Mutual funds‖,

Management

Accountant,9(1991): pp 691-693vii. Magnus Dahlquis, and Soderlind Paul,‖ Evaluating Portfolio

Performance with Stochastic DiscountFactors‖, Journal of

Business,3(1999): pp381-412viii. Bollen, P.B. Nicolas and Jeffrey A. Busse; ― On The Timing

Ability ofMutual Fund Managers‖, Journal Of Finance, 3(1999): p 481

ix. Dutta. A (2007), ―Mutual Funds In India‖, First Edition,

Wisdom

Publication: New Delhi, pp 177-183x. Friend, Irwin, Brown, F.E., Herman Edward S. and Vicker

Douglas. , ―A

study Of Mutual Funds: Investment policy and Investment Policyperformance‖, Elements of Investment: Selected Readings,

ed. By Hsik-Kwang Wu, Alan, J.Zakon Holt, Rinehart and winstor,

inc(1965): pp371-385

Internet:-

i. http/ w w w . ea s y m f .c o m

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