CONTENTS

Chapter No. Name of the concept Page No.

I

Introduction

Need of the study

Objectives of the study

Scope of the study

Methodology of the study

Limitations of the study

II Review of Literature

III Industry Profile

IV Company Profile

V Data analysis and interpretation

VI Findings, Suggestions and Conclusion

VII Bibliography

CHAPTER I - INTRODUCTION

INTRODUCTION

“Customer Satisfaction” means depends on a product’s perceived performance in

delivering value relative to a buyer’s expectations. If the product performance falls

short of the customer’s expectations, the buyer is dissatisfied.

If performance matches expectations, the buyer is satisfied.

If performance exceeds expectations, the buyer is delighted.

Outstanding marketing companies go out of their way to keep their customers satisfied.

Satisfied customers make repeat purchases, and they tell others about their good

experiences with the product. The key is to match customer’s expectations with the

company performance.

Marketers alone cannot deliver superior customer value and satisfaction. Although it

plays a leading role, marketing can be only a partner in attracting, keeping and growing

customers.

Customer satisfaction is closely linked to quality, which has direct impact on product

performance. Henceforth, majority of the companies have adopted total quality

management (TQM) programs in the recent years to constantly improve the quality of

their products, services, and marketing processes. Thus, the fundamental aim of today's

total quality movement has become total Customer Satisfaction.

There are three phases in the customer satisfaction process:

1. Pre-sales: During this stage the customer’s experience are developed through the

various information sources like advertising, word of mouth & so on

2. During sales: When the customer is engaged in experiencing on how to deal with

inquires and sells the products.

3. The after sales period: This refers to the period when the customer has started

during the product. Thus customer’s expectations & their experience will together

determine the level of satisfaction.

NEED OF THE STUDY

Customer satisfaction is an important element in the evaluation stage, where in

satisfaction refers to the buyer’s state of being adequately rewarded in a buying

situation. Once the customers purchase and use the product they may then either be

satisfy or dissatisfied. Today’s market is a highly competitive market with respect to all

of its prospects like company could not sell their products/services at an attractive price

and sales promotion strategies. Today’s market is buyer oriented where the customer is

considered the king. He has full power to choose the desired product according to his

needs and wants. His preference is most important. Because of the huge competition,

every stock broker wants to survive in the market and earn profit. This is possible only

when the products/services offered are according to the preferences of the customers

and meet their expectations. Different customers have different perceptions because no

two customers have similar wants and needs. Hence a company needs to analyze the

customer satisfactions, which helps in retaining them.

In present scenario there exists a severe competition among the various Broking

Companies. In this environment of immense competition, Customer Satisfaction

plays a major role for attracting investors/customers by the stock broking

companies. So, from the above said statement, there is a need to study the

satisfaction of customers/investors who decide the fate of any business

organization.

In the Indian scenario the phrase “Customer is the king” has much value and it

is important for every company to satisfy the customer. Until and unless the

customer is satisfied, one can’t be loyal towards the company. He in turn

publicizes the company’s product.

OBJECTIVES OF THE STUDY

This study is under taken to analyze the customer’s satisfaction with respect to IIFL Ltd

Objectives

To know the customer satisfaction at IIFL Ltd

To identify the factors influencing in using the trading account of the customers

To know the customer preference towards new online software’s & Brokerage

plans of IIFL Ltd services

To know the customer satisfaction levels with respect to the brand name,

coverage, quality in the service etc.

To the customer satisfaction levels through the recent complaints handled by the

IIFL Ltd

To know suitable solutions for improving the market of the company.

RESEARCH METHODOLOGY

For the purpose of study, both primary and secondary data has been collected. The

observational method and survey research method is used to collect the primary data.

The survey research method is used to gain insight into the knowledge about the

opinions of the customers towards the reliance services. The main research instruments

used the required data is a well-structured questionnaire. A detailed questionnaire has

been prepared to reflect the opinions of the customers towards the IIFL Ltd services

and administered to the same.

The necessary data has also been collected from official records and other published

sources. The collected data is classified, tabulated, analyzed and interpreted. Finally

conclusion is draw based on the study and suggestions are offered for improving the

market efficiency of IIFL Ltd

SAMPLE DESIGN:

For ascertaining the customer satisfaction towards the IIFL Ltd Stock broking Service

50 customers have been randomly selected from the Hyderabad city only.

DATA COLLECTION:

There are two types of data collection

1. Primary data

2. Secondary data

Primary data

Primary data is personally developed data and it gives latest information and

offers much greater accuracy and reliability.

There are various sources for obtaining primary data i.e., Mail survey, personal

interview,

Field survey, panel research and observation approach etc.

The study to maximum extent dependent on primary data, which is collected by

way of structures personal interview with customers.

Secondary data

Secondary data is the published data. It is already available for using and its saves time.

The mail source of secondary data are published market surveys, government

publications advertising research report and internal source such as sales, sales records

orders, customers complaints and other business record etc. the study has also depended

on secondary data to little extent, which is collected through internal source.

For this survey personal interview method was used for collecting primary data. This

survey was conducted by face to face interview customers and found to be best suited

to collect the primary data for this project.

SCOPE OF THE STUDY

The study is carried out by taking the feedback of 50 customers of IIFL Ltd in

comparison with the below mentioned companies:

1. Sharekhan

2. Durga Prasad & Co

3. Indiabulls

The customer satisfaction study is carried out in Dilsukhnagar franchisee of

Hyderabad

The survey conducted will provide the details about the customer satisfaction

levels responding to the products and services provided by IIFL Ltd

This study is aimed at providing feedback to the management of IIFL Ltd to

give an idea on the satisfaction of their customers towards their online trading

services.

LIMITATIONS

The objective of the study is to understand the satisfaction levels prevailing

among customers of IIFL Ltd

The study covers the Hyderabad only and due to the limited sample size, the

facts relabeled in the study may not generalize.

While calculating the percentages, approximations are made to the nearest

figures, for convenience in understanding.

The analysis is based on customer’s opinion at the time of survey.

Due to time constraint the detailed information cannot be collected, but many

efforts are taken to collect the actual information.

CHAPTER II - REVIEW OF LITERATURE

Marketing is a societal process by which individuals & groups obtain what they need

and want through creating, offering and freely exchanging the products and services of

value with others.

Marketing has often been described as the art of selling products. The aim of

Marketing is to know and understand the customers so well that the product or service

fits him and sell it-self. Marketing is typically seen as the task of creating, promoting

and delivering the goods and services to the customers & businesses.

Marketing people are involved in marketing the goods, services, experiences, events,

persons, places, properties, organizations, information and ideas.

The American Marketing Association defined the marketing management as the

process of planning and executing the conception, pricing, promotion and distribution

of ideas, goods and services to create exchanges that satisfy individual and

organizations goals.

Marketing includes Marketing Environment, Marketing Philosophy, Marketing Mix,

Market Segmentation, Market Targeting and Market Positioning etc.

1. Marketing Environment: is the actor and force outside the marketing that affects

marketing management ability to build and maintain successful relationships

with target customers.

2. Marketing Philosophy: is the competing concept under which organizations

conduct marketing activities. They are:

A. Production Concept.

B. Product Concept.

C. Selling Concept.

D. Marketing Concept and

E. Societal Marketing Concept.

3. Marketing Mix : is the set of controllable and tactical marketing tools which are

used by the firm to gain the customers. It is also referred as 4 Ps. These include

A. Product.

B. Price.

C. Place.

D. Promotion.

4. Market Segmentation: means dividing a market in to distinct group of buyers

with distinct needs, characteristics or behavior who might require separate

products or marketing mix.

5. Target Marketing: is the process of evaluating each market segment’s

attractiveness and selecting one or more to enter.

6. Market Positioning: is creating a clear and distinct image of products in the

minds of the target customers relating to the competing products.

Customer Satisfaction

According to PETER DRUCKER “Marketing is so basic that it cannot be

considered a separate function.” It is the whole business seen from the point of view its

final results, that is from the consumers point of view business success is not

determined by the producers but by the consumers.

The definition of marketing management as approved by the American

Marketing Association in 1985 is “Marketing Management is the process of planning

and executing the conception, pricing, promotion and distribution of goods and services

and ideas to create exchange with target group that satisfy consumer and conditional

objectives.

The definition recognize that marketing management is a process involving

analysis, planning implementation and control that it covers goods, services and ideas

that it rests in the notion of exchange and that the goods is to produce satisfaction for

the parties involved.

The buyer forms a judgment of volume and acts. Whether the buyer is satisfied

after purchase depends upon the offers performance in relation to the buyers

expectations. According to PHILLIP KOTLER, the definition of customer satisfaction

is the level of a persons felt state resulting from comparing a product perceived

performance (or outcome) in relation to the persons expectations.

Thus the satisfaction level is a function of the difference between perceived

performance and expectations. A consumer could experience may be three broad levels

of satisfaction. It the performance falls short of expectations. If the performance

matches the expectations, the consumer is satisfied. It the performance exceeds

expectations; the consumer is highly satisfied, pleased or delighted.

Companies are aiming high because who are just satisfied with still find it easy

to switch supplies when a better offer comes along. The fact is that high satisfaction or

delight creates an emotional affinity with the brand not just a rational preference, and

they create high consumer loyalty.

The challenge is to create a company culture such that everyone within the

company aims to delight the consumer. Companies seeking to win in today’s markets

must track their consumers expectations perceived company performance and

consumable satisfaction that need to monitor this for their competitors as well.

For consumer centered companies, customer satisfaction is both a goal and a

marketing tool. Companies that achieve high customer satisfaction ratings make sure

that their customer satisfaction ratings make sure that their target market knows it.

Although the consumer centered firm seeks to create high consumer satisfaction. It is

not all to maximum consumer satisfaction. First, the company can increase customer

satisfaction by lowering its price or increasing its services, but his may result in lower

profits. Second, the company might be able to increase it profitability in other ways,

such as by improving its manufacturing or invest in more in R & D. Third, the

company has many stock holders including employees, dealers, supplier and stock

holders. Spending more to increase customer satisfaction of other “partners”

Ultimately the company must operate on the philosophy that it is trying to deliver a

high level of customer satisfaction subject delivering at lest acceptable levels of

satisfaction to other stock holders within the constraints of its total resources.

Importance of the Customer Satisfaction

Company’s primary task is “to create customers” But today’s customers face a

vast array of product and brand choices, prices and suppliers. How do customers make

their choices?

We believe that customers estimate which offer will deliver the most value.

Customers are value- maximizes, within the bounds of search costs and limited

knowledge, mobility, and income. They form and expectation of value and act on it.

Then they learn whether the offer lived up to the value expectation and this affects their

satisfaction and their repurchase probability.

Customer Value

Customer delivered value is the difference between total customer value and

total customer cost. And total customer value is the bundle of benefits customers

expects from a given product or service.

Customer Satisfaction

Satisfaction is the level of a person’s felt state resulting from comparing a

product’s performance in relation to the person’s expectations. The satisfaction level is

a function of the difference between perceived performance and expectations.

A customer could experience one of three broad levels of satisfactions. If the

performance falls short of expectation, the customer is dissatisfied. If the performance

matches the expectations, the customer is satisfied. If the performance exceeds

expectations, the customer is highly satisfied, pleased, or delighted.

Companies are aiming high because customers who are just satisfied will still

find it easy to switch suppliers when a better offer comes along. In one consumer

packaged-goods category, 44% of those reporting satisfaction subsequently switched

brands. Those who are highly satisfied are much less ready to switch.

One study showed that 75% of Toyota buyers were highly satisfied and about

75% said they intended to buy a Toyota again. The fact is that high satisfaction or

delight creates and emotional affinity with the brand, not just a rational preference, and

this creates high customer loyalty.

The challenge is to create a company culture such that everyone within the

company aims to delight the customer. Unisys, the computer company, recently

introduced the term “customize” in its ads, and defined it as follows: “To make a

company more responsive to its customers and better able to attract new ones.” Unisys

sees this as a matter of extending information’s system capabilities to field locations

and other points of customer contact and support. But “customizing” a company calls

for more than providing good information to customer contact employees. The

company’s staff must be “converted” to practicing a strong customer orientation.

Company’s staff must be “converted” to practicing a strong customer orientation. Anita

Roddick, founder of the Body Shop, wisely observes: “Our people (employees) are my

first line of customers.

Companies seeking to win to today’s markets must track their customer’s

expectations, perceived company performance, and customer satisfaction. They need to

monitor this for their competitors as well. Consider the following.

For customer-centered companies, customer satisfaction is both a goal and a

marketing tool. Companies that achieve high customer satisfaction ratings make sure

that their target market knows it.

Although the customer-centered firm seeks to create high customer satisfaction,

it is not out to maximize customer satisfaction. First, the company can increase

customer satisfaction by lowering its price or increasing its services, but this may result

in lower profits. Second, the company might be able to increase its profitability in other

ways, such as by improving its manufacturing or investing more in R & D. Third; the

company has many stakeholders including employees, dealers, suppliers, and

stockholders. Spending more to increase customer satisfaction would divert funds from

increasing the satisfaction of other “partners” Ultimately, the company must operate on

the philosophy that it is trying to deliver a high level of customer satisfaction subject to

delivering at least acceptable levels of satisfaction to the other stakeholders within the

constraints of its total resources.

Complaint and Suggestion Systems:

A customer – centered organization would make it easy for its customer to

deliver suggestions and complaints. Many restaurants and hotels provide forms for

guests to report their like and dislikes. A hospital could place suggestion boxes in the

corridors, supply comment bikes ads to existing patients, and hire a patient advocate to

handle patient grievances. Some customer-centered companies- P & G, general

Electric, Whirlpool-establish “ customer hot lines” to maximize the ease with which

customers can inquire, make suggestions or complain.

Some Cautions in Measuring Customers Satisfaction:

When customers rate their satisfaction with an element of the company’s

performance, say delivery, we need to recognize that customers will vary in how they

define good delivery. It could mean early delivery, on-time delivery, order

competences, and so on. Yet if the company had to spell our every element in detail,

customers would face a huge questionnaire. We must also recognize that two customers

can report being “highly satisfied” for different reasons. One may be easily satisfied

most of the time and the other might he hared to pleasure but was pleased on this

occasion.

Observations on Customer Satisfaction:

Customer satisfaction will be lower in industries where the industry offers a

homogeneous product to a heterogeneous market. On the other hand, industries that

supply a high- quality homogeneous product to a homogeneous market will register

high satisfaction.

Customer satisfaction is lower in industries where repeat buyers face high

switching costs. They have to buy from the supplier even though their satisfaction is

low.

Industries which depend upon repeat business generally create a higher level of

customer satisfaction. As a company increases its market share, customer satisfaction

can fall. This is because more customers with heterogeneous demands are drawn into

buying a fairly homogeneous product.

Delivering Customer Value and Satisfaction:

Given the importance of customer value and satisfaction, what does it take to

produce and deliver it? To answer this, we need to introduce the concepts of a value

chain and value-delivery systems.

Value Chain:

New product realization process: all the activities involved in identifying,

researching, developing, and successfully laughing new products with speed, high

quality, and target cost attainment. Inventory management process: all the activities

involved in developing and managing the right inventory locations of raw materials,

semi finished materials, and finished goods so that adequate supplies are available

while avoiding the costs of high overstocks.

Order-to-remittance process: all the activities involved in receiving orders,

approving them, shipping the goods on time, and collecting payment.

Customer service process: all the activities involved in receiving orders,

approving them, shipping the goods on time, and collecting payment.

Customer service process: all the activities involved in making it easy for

customers to reach the right parties within the company and receive quick and

satisfactory service, answers, and resolutions of problems.

Retaining Customers:

Companies are not only seeking to improve their relations with their partners in

the supply chain. Today they are intent on developing stronger bonds and loyalty with

their ultimate customers. In the past, many alternative suppliers were just as deficient in

quality and service, or the market was growing so facts that the company did not worry

about fully satisfying its customers. The company could lose 100 customers a week and

gain another 100 customers and consider its sales to be satisfactory. But this is a

condition of high customer churn and it involves a higher cost than if the company

retained all 100 customers and acquired no new ones. Such a company is operating on a

“leaky bucket” theory of its business, namely that there will always be enough

customers to replace the defecting ones.

Methods of Tracking Customer Satisfaction

A company’s tools for tracking and measuring customer satisfaction range from

the primitive to the sophisticated. Companies use the following methods to measure

how much customer satisfaction they are creating.

Complaint and Suggestions Systems

A consumer-centered organization would make it easy for its consumer to

deliver suggestions and companies with many good ideas and enable them to act more

rapidly to resolve problems.

Customer Satisfaction Surveys

A company must not conclude that it can get a full picture of customer

satisfaction and dissatisfaction by simply running a complaint and suggestion system

consumer may feel stupid, or that no remedy will be offered. Most consumers will buy

less or switch rather tan complain. The result is that the company as needlessly lost

consumers.

Therefore, companies cannot use complaint levels as a measure of consumer

satisfaction. Responsive companies obtain as direct measure of customer satisfaction

by conducting periodic surveys. They send questionnaires or make telephone calls to

random sample to their recent consumers to find all how they feel about various aspects

of the company performance. They will also solicit buyers views on their competitors

performance.

Consumer’s satisfaction can be measured in a number of ways. It can be

measured directly by asking. “Indicate how stratified you are with service X on the

following scale; highly dissatisfied, indifferent, satisfied, highly satisfied, (directly

reported satisfaction) respondents can be asked as well to rate how much they expected

of a certain attribute and also how much they experienced (derived dissatisfaction). Still

another method is to ask respondents to list any problems they have had with the offer

and to list any improvements they could suggest (problem analysis) finally, companies

could ask respondents to rate various elements of the offer in terms of the importance of

each element and how well the organiza5tion performed each element (importance

performance ratings). This last method helps the company to know it is under

performing on relatively unimportant elements. While collecting consumers

satisfaction data, it would also be useful to ask additional questions to measure

consumers repurchase intention. This will normally be high, if the customer

satisfaction is high. A highly positive word of month score indicates that the company

is producing high consumer satisfaction.

Ghost Shopping

Another useful way to gather a picture of customer satisfaction is to hire persons

to pose as potential buyers to report their findings on strong and weak points they

experienced in buying the companies and competitors products. These ghost shoppers

can even pose certain problem to test whether the company’s sales personnel handle the

situation well.

Lost Consumer Analysis

Companies should contact consumers who have stopped buying or two have

switched to another supplier to learn why this happened. They mount a through effort

to learn where they failed – is their price too high, their service deficient, their products

unreliable and so on.

Observations on Customer Satisfaction

The measured value of industrial output is not necessarily a measure of

customer satisfaction with that output. Here are some of Professor Fornells’ findings

on the industrial level;

Customer satisfaction will be lower in industries where the industry offers a

homogeneous product to a heterogeneous market. On the other hand, industries

that supply a high quantity homogeneous product to a heterogeneous market

will register high satisfaction.

Customer satisfaction is lower in industries where repeat buyers force high

switching costs. They have to buy from the supplier even thought their

satisfaction is low.

Industries, which depend upon repeat business generally, create a high level of

consumer satisfaction.

As a company increases its market share, customer satisfaction can fall. This is

because more consumers with heterogeneous demands are drawn into buying a

fairly homogeneous product.

CHAPTER III - INDUSTRY PROFILE

Financial Markets

Finance is the pre-requisite for modern business and financial institutions play a vital

role in the economic system. It is through financial markets and institutions that the

financial system of an economy works. Financial markets refer to the institutional

arrangements for dealing in financial assets and credit instruments of different types

such as currency, cheques, bank deposits, bills, bonds, equities, etc.

Financial market is a broad term describing any marketplace where buyers and sellers

participate in the trade of assets such as equities, bonds, currencies and derivatives.

They are typically defined by having transparent pricing, basic regulations on trading,

costs and fees and market forces determining the prices of securities that trade.

Generally, there is no specific place or location to indicate a financial market. Wherever

a financial transaction takes place, it is deemed to have taken place in the financial

market. Hence financial markets are pervasive in nature since financial transactions are

themselves very pervasive throughout the economic system. For instance, issue of

equity shares, granting of loan by term lending institutions, deposit of money into a

bank, purchase of debentures, sale of shares and so on.

In a nutshell, financial markets are the credit markets catering to the various needs of

the individuals, firms and institutions by facilitating buying and selling of financial

assets, claims and services.

Classification of Financial Markets:

Financial markets

Organized markets Unorganized markets

Capital Markets Money Markets

Industrial Securities Market

Government Securities Market

Long-term loan market

Primary Market

Secondary market

Call Money Market

Commercial Bill Market

Treasury Bill Market

Money Lenders, Indigenuos Bankers

Capital Market:

The capital market is a market for financial assets which have a long or indefinite

maturity. Generally, it deals with long term securities which have a period of above one

year. In the widest sense, it consists of a series of channels through which the savings

of the community are made available for industrial and commercial enterprises and

public authorities. As a whole, capital market facilitates raising of capital.

The major functions performed by a capital market are:

1. Mobilization of financial resources on a nation-wide scale.

2. Securing the foreign capital and know-how to fill up deficit in the required

resources for economic growth at a faster rate.

3. Effective allocation of the mobilized financial resources, by directing the same

to projects yielding highest yield or to the projects needed to promote balanced

economic development.

Capital market consists of primary market and secondary market.

Primary market :

Primary market is a market for new issues or new financial claims. Hence it is also

called as New Issue Market. It basically deals with those securities which are issued to

the public for the first time. The market, therefore, makes available a new block of

securities for public subscription. In other words, it deals with raising of fresh capital

by companies either for cash or for consideration other than cash. The best example

could be Initial Public Offering (IPO) where a firm offers shares to the public for the

first time.

Secondary market:

Secondary market is a market where existing securities are traded. In other words,

securities which have already passed through new issue market are traded in this

market. Generally, such securities are quoted in the stock exchange and it provides a

continuous and regular market for buying and selling of securities. This market consists

of all stock exchanges recognized by the government of India.

Money Market:

Money markets are the markets for short-term, highly liquid debt securities. Money

market securities are generally very safe investments which return relatively low

interest rate that is most appropriate for temporary cash storage or short term time

needs. It consists of a number of sub-markets which collectively constitute the money

market namely call money market, commercial bills market, acceptance market, and

Treasury bill market.

Derivatives Market:

The derivatives market is the financial market for derivatives, financial instruments like

futures contracts or options, which are derived from other forms of assets. A derivative

is a security whose price is dependent upon or derived from one or more underlying

assets. The derivative itself is merely a contract between two or more parties. Its value

is determined by fluctuations in the underlying asset. The most common underlying

assets include stocks, bonds, commodities, currencies, interest rates and market

indexes. The important financial derivatives are the following:

Forwards: Forwards are the oldest of all the derivatives. A forward contract

refers to an agreement between two parties to exchange an agreed quantity of an

asset for cash at a certain date in future at a predetermined price specified in that

agreement. The promised asset may be currency, commodity, instrument etc.

Futures: Future contract is very similar to a forward contract in all respects

excepting the fact that it is completely a standardized one. It is nothing but a

standardized forward contract which is legally enforceable and always traded on

an organized exchange.

Options: A financial derivative that represents a contract sold by one party

(option writer) to another party (option holder). The contract offers the buyer

the right, but not the obligation, to buy (call) or sell (put) a security or other

financial asset at an agreed-upon price (the strike price) during a certain period

of time or on a specific date (exercise date). Call options give the option to buy

at certain price, so the buyer would want the stock to go up. Put options give the

option to sell at a certain price, so the buyer would want the stock to go down.

Swaps: It is yet another exciting trading instrument. Infact, it is the combination

of forwards by two counterparties. It is arranged to reap the benefits arising

from the fluctuations in the market – either currency market or interest rate

market or any other market for that matter.

Foreign Exchange Market:

It is a market in which participants are able to buy, sell, exchange and speculate on

currencies. Foreign exchange markets are made up of banks, commercial companies,

central banks, investment management firms, hedge funds, and retail forex brokers and

investors. The forex market is considered to be the largest financial market in the

world. It is a worldwide decentralized over-the-counter financial market for the trading

of currencies. Because the currency markets are large and liquid, they are believed to be

the most efficient financial markets. It is important to realize that the foreign exchange

market is not a single exchange, but is constructed of a global network of computers

that connects participants from all parts of the world.

Commodities Market:

It is a physical or virtual marketplace for buying, selling and trading raw or primary

products. For investors' purposes there are currently about 50 major commodity

markets worldwide that facilitate investment trade in nearly 100 primary

commodities. Commodities are split into two types: hard and soft commodities. Hard

commodities are typically natural resources that must be mined or extracted (gold,

rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn,

wheat, coffee, sugar, soybeans, pork, etc.)

Indian Financial Markets:

India Financial market is one of the oldest in the world and is considered to be the

fastest growing and best among all the markets of the emerging economies.

The history of Indian capital markets dates back 200 years toward the end of the 18th

century when India was under the rule of the East India Company. The development of

the capital market in India concentrated around Mumbai where no less than 200 to 250

securities brokers were active during the second half of the 19th century.

The financial market in India today is more developed than many other sectors because

it was organized long before with the securities exchanges of Mumbai, Ahmadabad and

Kolkata were established as early as the 19th century.

By the early 1960s the total number of securities exchanges in India rose to eight,

including Mumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi,

Bangalore and Pune. Today there are 21 regional securities exchanges in India in

addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the

Counter Exchange of India).

However the stock markets in India remained stagnant due to stringent controls on the

market economy that allowed only a handful of monopolies to dominate their

respective sectors. The corporate sector wasn't allowed into many industry segments,

which were dominated by the state controlled public sector resulting in stagnation of

the economy right up to the early 1990s. Thereafter when the Indian economy began

liberalizing and the controls began to be dismantled or eased out; the securities markets

witnessed a flurry of IPO’s that were launched. This resulted in many new companies

across different industry segments to come up with newer products and services.

A remarkable feature of the growth of the Indian economy in recent years has been the

role played by its securities markets in assisting and fuelling that growth with money

rose within the economy. This was in marked contrast to the initial phase of growth in

many of the fast growing economies of East Asia that witnessed huge doses of FDI

(Foreign Direct Investment) spurring growth in their initial days of market decontrol.

During this phase in India much of the organized sector has been affected by high

growth as the financial markets played an all-inclusive role in sustaining financial

resource mobilization. Many PSUs (Public Sector Undertakings) that decided to offload

part of their equity were also helped by the well-organized securities market in India.

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter

Exchange of India) during the mid 1990s by the government of India was meant to

usher in an easier and more transparent form of trading in securities. The NSE was

conceived as the market for trading in the securities of companies from the large-scale

sector and the OTCEI for those from the small-scale sector. While the NSE has not just

done well to grow and evolve into the virtual backbone of capital markets in India the

OTCEI struggled and is yet to show any sign of growth and development. The

integration of IT into the capital market infrastructure has been particularly smooth in

India due to the country’s world class IT industry. This has pushed up the operational

efficiency of the Indian stock market to global standards and as a result the country has

been able to capitalize on its high growth and attract foreign capital like never before.

The regulating authority for capital markets in India is the SEBI (Securities and

Exchange Board of India). SEBI came into prominence in the 1990s after the capital

markets experienced some turbulence. It had to take drastic measures to plug many

loopholes that were exploited by certain market forces to advance their vested interests.

After this initial phase of struggle SEBI has grown in strength as the regulator of

India’s capital markets and as one of the country’s most important institutions.

Financial Market Regulations:

Regulations are an absolute necessity in the face of the growing importance of capital

markets throughout the world. The development of a market economy is dependent on

the development of the capital market. The regulation of a capital market involves the

regulation of securities; these rules enable the capital market to function more

efficiently and impartially.

A well regulated market has the potential to encourage additional investors to partake,

and contribute in, furthering the development of the economy. The chief capital market

regulatory authority is Securities and Exchange Board of India (SEBI).

SEBI is the regulator for the securities market in India. It is the apex body to develop

and regulate the stock market in India It was formed officially by the Government of

India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C

B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla

complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices

in New Delhi, Kolkata, Chennai and Ahmedabad. In place of Government Control, a

statutory and autonomous regulatory board with defined responsibilities, to cover both

development & regulation of the market, and independent powers has been set up.

The basic objectives of the Board were identified as:

To protect the interests of investors in securities;

To promote the development of Securities Market;

To regulate the securities market and

For matters connected therewith or incidental thereto.

Since its inception SEBI has been working targeting the securities and is attending to

the fulfillment of its objectives with commendable zeal and dexterity. The

improvements in the securities markets like capitalization requirements, margining,

establishment of clearing corporations etc. reduced the risk of credit and also reduced

the market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration

norms, the eligibility criteria, the code of obligations and the code of conduct for

different intermediaries like, bankers to issue, merchant bankers, brokers and sub-

brokers, registrars, portfolio managers, credit rating agencies, underwriters and others.

It has framed bye-laws, risk identification and risk management systems for Clearing

houses of stock exchanges, surveillance system etc. which has made dealing in

securities both safe and transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P CNX

Nifty & Sensex) in 2000. A market Index is a convenient and effective product because

of the following reasons:

It acts as a barometer for market behavior;

It is used to benchmark portfolio performance;

It is used in derivative instruments like index futures and index options;

It can be used for passive fund management as in case of Index Funds.

Two broad approaches of SEBI is to integrate the securities market at the national level,

and also to diversify the trading products, so that there is an increase in number of

traders including banks, financial institutions, insurance companies, mutual funds,

primary dealers etc. to transact through the Exchanges. In this context the introduction

of derivatives trading through Indian Stock Exchanges permitted by SEBI in 2000 AD

is a real landmark.

SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and

successively (e.g. the quick movement towards making the markets electronic and

paperless rolling settlement on T+2 bases). SEBI has been active in setting up the

regulations as required under law.

Stock Exchanges in India

Stock Exchanges are an organized marketplace, either corporation or mutual

organization, where members of the organization gather to trade company stocks or

other securities. The members may act either as agents for their customers, or as

principals for their own accounts.

As per the Securities Contracts Regulation Act, 1956 a stock exchange is an

association, organization or body of individuals whether incorporated or not,

established for the purpose of assisting, regulating and controlling business in buying,

selling and dealing in securities.

Stock exchanges facilitate for the issue and redemption of securities and other financial

instruments including the payment of income and dividends. The record keeping is

central but trade is linked to such physical place because modern markets are

computerized. The trade on an exchange is only by members and stock broker do have

a seat on the exchange.

List of Stock Exchanges in India

Bombay Stock Exchange

National Stock Exchange

OTC Exchange of India

Regional Stock Exchanges

1. Ahmedabad

2. Bangalore

3. Bhubaneswar

4. Calcutta

5. Cochin

6. Coimbatore

7. Delhi

8. Guwahati

9. Hyderabad

10. Jaipur

11. Ludhiana

12. Madhya Pradesh

13. Madras

14. Magadh

15. Mangalore

16. Meerut

17. Pune

18. Saurashtra Kutch

19. Uttar Pradesh

20. Vadodara

Bombay Stock Exchange (BSE)

A very common name for all traders in the stock market, BSE, stands for Bombay

Stock Exchange. It is the oldest market not only in the country, but also in Asia. In

the early days, BSE was known as "The Native Share & Stock Brokers Association."

It was established in the year 1875 and became the first stock exchange in the country

to be recognized by the government. In 1956, BSE obtained a permanent recognition

from the Government of India under the Securities Contracts (Regulation) Act, 1956.

In the past and even now, it plays a pivotal role in the development of the country's

capital market. This is recognized worldwide and its index, SENSEX, is also tracked

worldwide. Earlier it was an Association of Persons (AOP), but now it is a

demutualised and corporatised entity incorporated under the provisions of the

Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization)

Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

BSE Vision

The vision of the Bombay Stock Exchange is to "Emerge as the premier Indian stock

exchange by establishing global benchmarks."

BSE Management

Bombay Stock Exchange is managed professionally by Board of Directors. It

comprises of eminent professionals, representatives of Trading Members and the

Managing Director. The Board is an inclusive one and is shaped to benefit from the

market intermediaries participation.

The Board exercises complete control and formulates larger policy issues. The day-

to-day operations of BSE are managed by the Managing Director and its school of

professional as a management team.

BSE Network

The Exchange reaches physically to 417 cities and towns in the country. The

framework of it has been designed to safeguard market integrity and to operate with

transparency. It provides an efficient market for the trading in equity, debt

instruments and derivatives. Its online trading system, popularly known as BOLT, is a

proprietary system and it is BS 7799-2-2002 certified. The BOLT network was

expanded, nationwide, in 1997. The surveillance and clearing & settlement functions

of the Exchange are ISO 9001:2000 certified.

BSE Facts

BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is

the benchmark equity index that reflects the robustness of the economy and finance. It

was the –

First in India to introduce Equity Derivatives

First in India to launch a Free Float Index

First in India to launch US$ version of BSE Sensex

First in India to launch Exchange Enabled Internet Trading Platform

First in India to obtain ISO certification for Surveillance, Clearing &

Settlement

'BSE On-Line Trading System’ (BOLT) has been awarded the globally

recognized the Information Security Management System standard

BS7799-2:2002.

First to have an exclusive facility for financial training

Moved from Open Outcry to Electronic Trading within just 50 days

BSE with its long history of capital market development is fully geared to continue its

contributions to further the growth of the securities markets of the country, thus

helping India increases its sphere of influence in international financial markets.

National Stock Exchange of India Limited (NSE)

The National Stock Exchange of India Limited (NSE) has genesis in the report of the

High Powered Study Group on Establishment of New Stock Exchanges, which

recommended promotion of a National Stock Exchange by financial institutions (FI’s)

to provide access to investors from all across the country on an equal footing. Based

on the recommendations, NSE was promoted by leading Financial Institutions at the

behest of the Government of India and was incorporated in November 1992 as a tax-

paying company unlike other stock Exchange in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation)

Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market

(WDM) segment in June 1994. The Capital Market (Equities) segment commenced

operations in November 1994 and operations in Derivatives segment commenced in

June 2000.

NSE GROUP

National Securities Clearing Corporation Ltd. (NSCCL)

It is a wholly owned subsidiary, which was incorporated in August 1995 and

commenced clearing operations in April 1996. It was formed to build confidence in

clearing and settlement of securities, to promote and maintain the short and consistent

settlement cycles, to provide a counter-party risk guarantee and to operate a tight risk

containment system.

NSE.IT Ltd.

It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the NSE is

uniquely positioned to provide products, services and solutions for the securities

industry. NSE.IT primarily focuses on in the area of trading, broker front-end and

back-office, clearing and settlement, web-based, insurance, etc. Along with this, it

also provides consultancy and implementation services in Data Warehousing,

Business Continuity Plans, Site Maintenance and Backups, Stratus Mainframe

Facility Management, Real Time Market Analysis & Financial News.

India Index Services & Products Ltd. (IISL)

It is a joint venture between NSE and CRISIL Ltd. to provide a variety of indices and

index related services and products for the Indian Capital markets. It was set up in

May 1998. IISL has a consulting and licensing agreement with the Standard and

Poor's (S&P), world's leading provider of equity indices, for co-branding equity

indices.

National Securities Depository Ltd. (NSDL)

NSE joined hands with IDBI and UTI to promote dematerialization of securities. This

step was taken to solve problems related to trading in physical securities. It

commenced operations in November 1996.

NSE Facts

It uses satellite communication technology to energize participation from

around 400 cities in India.

NSE can handle up to 1 million trades per day.

It is one of the largest interactive VSAT based stock exchanges in the world.

The NSE- network is the largest private wide area network in India and the

first extended C- Band VSAT network in the world.

Presently more than 9000 users are trading on the real time-online NSE

application.

Today, NSE is one of the largest exchanges in the world and still forging ahead. At

NSE, we are constantly working towards creating a more transparent, vibrant and

innovative capital market.

Over the Counter Exchange of India (OTCEI)

OTCEI was incorporated in 1990 as a section 25 company under the companies Act

1956 and is recognized as a stock exchange under section 4 of the securities Contracts

Regulation Act, 1956. The exchange was set up to aid enterprising promotes in

raising finance for new projects in a cost effective manner and to provide investors

with a transparent and efficient mode of trading Modeled along the lines of the

NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian

capital markets such as screen-based nationwide trading, sponsorship of companies,

market making and scrip less trading. As a measure of success of these efforts, the

Exchange today has 115 listings and has assisted in providing capital for enterprises

that have gone on to build successful brands for themselves like VIP Advanta, Sonora

Tiles & Brilliant mineral water, etc.

Need for OTCEI:

Studies by NASSCOM, software technology parks of India, the venture capitals funds

and the government’s IT tasks Force, as well as rising interest in IT, Pharmaceutical,

Biotechnology and Media shares have repeatedly emphasized the need for a national

stock market for innovation and high growth companies. Innovative companies are

critical to developing economics like India, which is undergoing a major

technological revolution. With their abilities to generate employment opportunities

and contribute to the economy, it is essential that these companies not only expand

existing operations but also set up new units. The key issue for these companies is

raising timely, cost effective and long term capital to sustain their operations and

enhance growth. Such companies, particularly those that have been in operation for a

short time, are unable to raise funds through the traditional financing methods,

because they have not yet been evaluated by the financial world.

CHAPTER IV - COMPANY PROFILE

INDIA INFOLINE LIMITED

India Infoline is a one-stop financial services shop, most respected for quality

of its information, personalized service and cutting-edge technology.

Vision

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

India Infoline Group

The India Infoline group, comprising the holding company, India Infoline

Limited and its wholly-owned subsidiaries, include the entire financial

services space with offerings ranging from Equity research, Equities and

derivatives trading, Commodities trading, Portfolio Management Services,

Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small

savings instruments to loan products and Investment banking.

India Infoline also owns and manages the websites www.indiainfoline.com

and www.5paisa.com. The company has a network of over 2100 business

locations (branches and sub-brokers) spread across more than 450 cities and

towns. The group caters to approximately a million customers.

Founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an

independent business research and information provider, the company

gradually evolved into a one-stop financial services solutions provider.

India Infoline received registration for a housing finance company from the

National Housing Bank and received the ‘Fastest growing Equity Broking

House - Large firms’ in India by Dun & Bradstreet in 2009. It also received

the Insurance broking license from IRDA; received the venture capital license;

received in principle approval to sponsor a mutual fund; received ‘Best

broker- India’ award from Finance Asia; ‘Most Improved Brokerage- India’

award from Asia money.

COMPANY STRUCTURE

India Infoline Limited is listed on both the leading stock exchanges in India,

viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange

(NSE) and is also a member of both the exchanges. It is engaged in the

businesses of Equities broking, Wealth Advisory Services and Portfolio

Management Services. It offers broking services in the Cash and Derivatives

segments of the NSE as well as the Cash segment of the BSE. It is registered

with NSDL as well as CDSL as a depository participant, providing a one-stop

solution for clients trading in the equities market. It has recently launched its

Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management

Services to clients. These services are offered to clients as different schemes,

which are based on differing investment strategies made to reflect the varied

risk-return preferences of clients.

India Infoline Media and Research Services Limited

The services represent a strong support that drives the broking, commodities,

mutual fund and portfolio management services businesses. It undertakes

equities research which is acknowledged by none other than Forbes as 'Best of

the Web' and '…a must read for investors in Asia'. India Infoline's research is

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

Bloomberg (Code: IILL), Thomson First Call and Internet Securities where

India Infoline is amongst the most read Indian brokers.

India Infoline Commodities Limited.

India Infoline Commodities Pvt Limited is engaged in the business of

commodities broking. Their experience in securities broking empowered them

with the requisite skills and technologies to allow them to offer commodities

broking as a contra-cyclical alternative to equities broking. It enjoys

memberships with the MCX and NCDEX, two leading Indian commodities

exchanges, and recently acquired membership of DGCX. It has a multi-

channel delivery model, making it among the select few to offer online as well

as offline trading facilities.

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of

India Infoline Insurance Services Limited and India Infoline Insurance

Brokers Limited.

India Infoline Insurance Services Limited is a registered Corporate

Agent with the Insurance Regulatory and Development Authority

(IRDA). It is the largest Corporate Agent for ICICI Prudential Life

Insurance Co Limited, which is India's largest private Life Insurance

Company. India Infoline was the first corporate agent to get licensed

by IRDA in early 2001.

India Infoline Insurance Brokers Limited India Infoline Insurance

Brokers Limited is a newly formed subsidiary which will carry out the

business of Insurance broking.

India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans

and financing activities under one subsidiary. Recently, Orient Global, a

Singapore-based investment institution invested USD 76.7 million for a

22.5% stake in India Infoline Investment Services. This will help focused

expansion and capital raising in the said subsidiaries for various lending

businesses like loans against securities, SME financing, distribution of retail

loan products, consumer finance business and housing finance business. India

Infoline Investment Services Private Limited consists of the following step-

down subsidiaries.

India Infoline Distribution Company Limited (distribution of retail

loan products)

Moneyline Credit Limited (consumer finance)

India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Private Limited

IIFL (Asia) Private Limited is wholly owned subsidiary which has been

incorporated in Singapore to pursue financial sector activities in other Asian

markets. Further to obtaining the necessary regulatory approvals, the company

has been initially capitalized at 1 million Singapore dollars.

IIFL MANAGEMENT

THE MANAGEMENT TEAM

Mr. Nirmal Jain, Chairman & Managing Director

Nirmal Jain, MBA (IIM, Ahmadabad) and a Chartered and Cost Accountant,

founded India’s leading financial services company India

Infoline Ltd. in 1995, providing globally acclaimed financial

services in equities and commodities broking, life insurance and mutual funds

distribution, among others.

Mr. R Venkataraman, Executive Director

R Venkataraman, co-promoter and Executive Director of India

Infoline Ltd., is a B. Tech (Electronics and Electrical

Communications Engineering, IIT Kharagpur) and an MBA

(IIM Bangalore). He joined the India Infoline board in July 1999.

THE BOARD OF DIRECTORS

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India

Infoline Ltd. comprises:

Mr. Nilesh Vikamsey, Independent Director

Mr. Vikamsey, Board member since February 2005 - a practicing Chartered

Accountant and partner (Khimji Kunverji & Co., Chartered

Accountants), a member firm of HLB International, headed the audit

department till 1990 and thereafter also handles financial services,

consultancy, investigations, mergers and acquisitions, valuations etc

Mr Sat Pal Khattar, Non Executive Director

Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council

of Minority Rights member, Chairman of the Board of Trustee

of Singapore Business Federation, is also a life trustee of

SINDA, a non profit body, helping the under-privileged Indians in Singapore.

He joined the India Infoline board in April 2001.

Mr Kranti Sinha, Independent Director

Mr. Kranti Sinha — Board member since January 2005 —

completed his masters from the Agra University and started his

career as a Class I officer with Life Insurance Corporation of

India.

Mr Arun K. Purvar, Independent Director

Mr. A.K. Purvar – Board member since March 2008 –

completed his Masters degree in commerce from Allahabad

University in 1966 and a diploma in Business Administration

in 1967.

PRODUCTS & SERVICES

Equities

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

which was hitherto restricted only to the institutions. Research for the retail

investor did not exist prior to India Infoline. India Infoline leveraged

technology to bring the convenience of trading to the investor’s location of

preference (residence or office) through computerized access. India Infoline

made it possible for clients to view transaction costs and ledger updates in real

time. The Company is among the few financial intermediaries in India to offer

a complement of online and offline broking. The Companies network of

branches also allows customers to place orders on phone or visit our branches

for trading.

Commodities

India Infoline’s extension into commodities trading reconciles its strategic

intent to emerge as a one stop solutions financial intermediary. Its experience

in securities broking has empowered it with requisite skills and technologies.

The Companies commodities business provides a contra-cyclical alternative to

equities broking. The Company was among the first to offer the facility of

commodities trading in India’s young commodities market (the MCX

commenced operations in 2003). Average monthly turnover on the commodity

exchanges increased from Rs 0.34 bn to Rs 20.02 bn.

Insurance

An entry into this segment helped complete the client's product basket;

concurrently, it graduated the Company into a one stop retail financial

solutions provider. To ensure maximum reach to customers across India, it has

employed a multi pronged approach and reaches out to customers via our

Network, Direct and Affiliate channels. India Infoline was the first corporate

in India to get the agency license in early 2001.

Invest Online

India Infoline has made investing in Mutual funds and primary market so

effortless. Only registration is needed. No paperwork no queues and No

registration charges. India Infoline offers a host of mutual fund choices under

one roof, backed by in-depth research and advice from research house and

tools configured as investor friendly.

Wealth Management

The key to achieving a successful Investment Portfolio is to have a carefully

planned financial strategy based on a thorough understanding of the client's

investment needs and risk appetite. The IIFL Private Wealth Management

Team of financial experts will recommend an appropriate financial strategy to

effectively meet customer’s investment requirements.

Asset Management

India Infoline is a leading pan-India mutual fund distribution house associated

with leading asset management companies. It operates primarily in the retail

segment leveraging its existing distribution network to reach prospective

clients. It has received the in-principle approval to set up a mutual fund.

Portfolio Management

IIFL Portfolio Management Service is a product wherein an equity investment

portfolio is created to suit the investment objectives of a client. India Infoline

invests the client’s resources into stocks from different sectors, depending on

client’s risk-return profile. This service is particularly advisable for investors

who cannot afford to give time or don't have that expertise for day-to-day

management of their equity portfolio.

CHAPTER V

DATA ANALYSIS & INTERPRETATIONS

1. From how long your Demat account is in operation in IIFL Ltd?

Table 1: IIFL Ltd, Customer’s Demat Account In Operation

S.No. Years No. of Respondents Percentage (%)

1 0-1 Year 10 20%

2 2-3 Years 23 46%

3 4-5 Years 8 16%

4 5 Years & Above 9 18%

Total 50 100%Source: Primary Data

Figure 1: IIFL Ltd, Demat Account Holders’ Status

23

8 910

18%

46%

16%20%

0

6

12

18

24

30

0-1 Year 2-3 Years 4-5 Years 5 Years & Above

Years

No.

of

Acc

ount

Hol

ders

0%

10%

20%

30%

40%

50%

Percentage (%

)

No. of Respondents Percentage (%)

Source: Primary Data

Interpretation

The above graph illustrates that IIFL Ltd is maintaining strong customer’s relationships

with its investors ranging between 0-3 years. 20% of the respondents are maintianing a

demat account in IIFL Ltd from 0-1 years, while 23 respondents, reperesenting 46%, are

running the account since 2-3years. Addtionally, IIFL Ltd need to focus more on

maintaing its relationships on a longer term, as the graph depicts that most of investors are

moving/withdrawing their demat accounts with the company. Only 16% and 18% of the

respondents are managing their demat accounts in the company from 4-5 year and 5 years

& above respectively.

2. Have you maintained/used any Demat account before this?

Table 2: Usage of Demat Account Prior to IIFL Ltd

S.No. Option No. of Respondents Percentage (%)

1 Yes 10 20%

2 No 40 80%

Total 50 100%Source: Primary Data

Figure 2: Usage of Demat Account Prior to IIFL Ltd

No80%

Yes20%

Source: Primary Data

Interpretation

The above graph illustrates that 80% of IIFL Ltd’s customers have not used/maintained

any demat account prior to this. Only 20% have maintained a demat account prior opening

an account in IIFL Ltd So, it can be concluded that most of the respondents are not aware

of demat account earlier.

3. Which stock broking company provided maximum satisfactory services with regard to the Demat account held by you?

Table 3: IIFL Ltd vis-à-vis Competitors, Customer Satisfaction

S.No. Company Name No. of Respondents Percentage (%)

1 IIFL Ltd 12 24%

2 Sharekhan 9 18%

3 Durga Prasad & Co. 15 30%

4 Indiabulls 14 28%

Total 50 100%Source: Primary Data

Figure 3: IIFL Ltd vis-à-vis Competitors, Customer Satisfaction

Sharekhan18%

Indiabulls28%

Durga Prasad & Co.24%

India Infoline30%

Source: Primary Data

Interpretation

The above graph depicts that 15 of the total 50 respondents have satisfied with the services provided by India Infoline, representing 30%. Indiabulls followed next with 28% and IIFL Ltd with 24%. So, it can be concluded that IIFL Ltd have to increase its after the sales service to move ahead of its competitors.

4. Are you satisfied with the present services of IIFL Ltd?

Table 4: Customer Satisfaction Towards IIFL Ltd Services

S.No. Option No. of Respondents Percentage (%)

1 Yes 37 74%

2 No 13 26%

Total 50 100%Source: Primary Data

Figure 4: Customer Satisfaction Towards IIFL Ltd Services

No26%

Yes74%

Source: Primary Data

Interpretation

The above graph indicates that 74% of the respondents are satisfied with the demat

services provided by IIFL Ltd, and only 26% of the respondents are not satisfied with the

services. It is suggested that IIFL Ltd need to take precautionary measures for improving

its services, thereby enabling the company to withhold its customers going forward.

5. Are IIFL Ltd’s services better than its competitors?

Table 5: IIFL Ltd’s Services When Compared To Competitors

S.No. Option No. of Respondents Percentage (%)

1 Yes 37 74%

2 No 13 26%

Total 50 100%Source: Primary Data

Figure 5: IIFL Ltd’s Services When Compared To Competitors

Yes74%

No26%

Source: Primary Data

Interpretation

The above graph indicates that 74% of the respondents voted in favor of the services provided by IIFL Ltd as the best, when compared to its competitors. Only 26% of the respondents were not satisfied with the demat services provided by the company.

6. How does the customer care respond to your queries? Are you pretty much satisfied?

Table 6: IIFL Ltd Customer Care Service

S.No. Company Name No. of Respondents Percentage (%)

1 Bad 12 18%

2 Average 9 24%

3 Good 15 58%

Total 50 100%Source: Primary Data

Figure 6: IIFL Ltd Customer Care Service

Bad18%

Average24%

Good58%

Source: Primary Data

Interpretation

The above graph illustrates that majority of the customers (58%) of IIFL Ltd are satisfied

with the customer care services. IIFL Ltd now need to concentrate more on improving its

cusrtomer care services to grab the remaining 42% share of the pie.

7. Are the brokerage charges reasonable for the Demat account held in IIFL Ltd?

Table 7: IIFL Ltd, Satisfaction Towards Brokerage Charges

S.No. Option No. of Respondents Percentage (%)

1 Yes 42 84%

2 No 8 16%

Total 50 100%Source: Primary Data

Figure 7: IIFL Ltd, Satisfaction Towards Brokerage Charges

No16%

Yes84%

Source: Primary Data

Interpretation

The above graph indicates that 84% of the respondents are satisfied with the brokerage

charges of the IIFL Ltd as better. Only 16% of the respondents were not satisfied by the

charges collected by the company for demat accounts.

8. Which type of service do you prefer in IIFL Ltd - offline or online?

Table 8: IIFL Ltd, Customer Preferred Services, Online or Offline

S.No. Preferred Mode No. of Respondents Percentage (%)

1 Offline 32 64%

2 Online 18 36%

Total 50 100%Source: Primary Data

Figure 8: IIFL Ltd, Customer Preferred Services, Online or Offline

Offline64%

Online36%

Source: Primary Data

Interpretation

The above graph indicates that 64% of IIFL Ltd’s customers are interested in managing

their demat account on offline mode, i.e. either through telephone or mail. Only 36% of

the respondents are interested in managing their account through online.

9. Are the brokerage schemes and plans of IIFL Ltd better?

Table 9: IIFL Ltd Brokerage Schemes And Plans

S.No. Option No. of Respondents Percentage (%)

1 No 8 16%

2 To Some Extent 18 36%

3 Yes 24 48%

Total 50 100%Source: Primary Data

Figure 9: IIFL Ltd Brokerage Schemes And Plans

To Some Extent36%

Yes48%

No16%

Source: Primary Data

Interpretation

The above graph illustrates 48% of the respondents were satisfied with the brokerage

schemes and plans of IIFL Ltd However, only 16% of the existing customers of the

company were dis-satisfied with the schemes and plans of the company.

10. According to you, which company is providing the best stock broking service?

Table 10: IIFL Ltd Stock Broking Services vis-à-vis Competitors

S.No. Company Name No. of Respondents Percentage (%)

1 IIFL Ltd 15 30%

2 Sharekhan 9 18%

3 Durga Prasad & Co 12 24%

4 Indiabulls 14 28%

Total 50 100%Source: Primary Data

Figure 10: IIFL Ltd Stock Broking Services vis-à-vis Competitors

Sharekhan18%

Indiabulls28%

IIFL30%

Durga Prasad & Co

24%

Source: Primary Data

Interpretation

The above graph indicates that the stock broking services provided by IIFL Ltd were far

better when compared to its competitors, grabbing majority portion of the cake. Overall,

30% of the respondents, representing 15 customers, were pretty much satisfied with the

stock broking services of the company.

11. Did you face any interruption/problem while trading your account?

Table 11: IIFL Ltd, Problems Encountered While Trading Demat Account

S.No. Option No. of Respondents Percentage (%)

1 Yes 17 34%

2 No 33 66%

Total 50 100%Source: Primary Data

Figure 11: IIFL Ltd, Problems Encountered While Trading Demat Account

Yes34%

No66%

Source: Primary Data

Interpretation

The above graph indicates that 66% of customers did not encounter any problem while

trading with their demat account in IIFL Ltd. Only 34% of the respondents reported that

they faced problems while trading their accounts.

12. Are you getting any benefits/services from other Demat accounts which IIFL Ltd is not providing?

Table 12: IIFL Ltd vis-à-vis Benefits/Services of its Competitors

S.No. Option No. of Respondents Percentage (%)

1 Yes 14 28%

2 No 36 72%

Total 50 100%Source: Primary Data

Figure 12: IIFL Ltd vis-à-vis Benefits/Services of its Competitors

No72%

Yes28%

Source: Primary Data

Interpretation

From the above graph, 72% of the respondents said that did not find any new

benefit/service which IIFL Ltd is offering to its customers, when compared to its

competitors.

13. Is the toll-free service facility of IIFL Ltd good?

Table 13: IIFL Ltd Toll-Free Services Facility

S.No. Option No. of Respondents Percentage (%)

1 Bad 3 6%

2 Average 7 14%

3 Good 15 30%

4 Excellent 25 50%

Total 50 100%Source: Primary Data

Figure 13: IIFL Ltd Toll-Free Services Facility

Good30%

Average14%

Bad6%

Excellent50%

Source: Primary Data

Interpretation

The above graph shows that toll free service facility provided by IIFL Ltd is excellent,

accounting for 50% of the share. Only 6% of the respondents reported the service facility

of the company as bad.

CHAPTER VI

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS

IIFL Ltd is maintaining strong customer’s relationships with its investors

ranging between 0-3 years. Over 46% of the respondents are running the

account in the company since 2 years

74% of the respondents are satisfied with the Demat services provided by the

company

74% of the respondents voted in favor of the services provided by IIFL Ltd as

the best, when compared to its competitors

Customer care services seems to be good with 58% respondents favoring the

company

84% of the respondents are satisfied with the brokerage charges of the IIFL

Ltd as better

64% of IIFL Ltd’s customers are interested in managing their demat account

on offline mode

48% of the respondents were satisfied with the brokerage schemes and plans

of IIFL Ltd

66% of customers did not encounter any problem while trading with their

demat account in IIFL Ltd

72% of the respondents said that did not find any new benefit/service which

IIFL Ltd is offering to its customers

SUGGESTIONS

IIFL Ltd should focus on retaining its customers for a longer term by initiating

more products and services to its customers. This is signified by the fact the

only 16% - 18% of the customers are managing their demat accounts in the

company over 5 years & above respectively.

IIFL Ltd should need to take precautionary measures for improving its

services, thereby enabling it withhold its customers going forward, with the

fact that majority of the customers were satisfied by the services provided by

its competitors, namely India Infoline, to an extent.

IIFL Ltd need to concentrate more on improving its customer care services to

grab the remaining 42% share

Brokerage schemes and plans should be improved by the company as 16% of

the existing customers showed dis-satisfaction

CONCLUSION

A survey of the customers has been conducted to know the customer satisfaction

towards the different online trading firms available in the market with special

reference to India Infoline. It is observed that overall people like to use India Infoline

compared to other trading firms. It is concluded that mostly people prefer India

Infoline due to its competitive brokerage structures, fast trading platform, prompt

online response apart from tips and guidance from the company. It is thus concluded

from the facts collected that mostly people prefer to use top brands like India Infoline

compared to smaller online trading firms.

Customer’s Satisfaction In IIFL Ltd

Customer Name: Age: Occupation: Income: Address:

1) From how long your Demat account is in operation in IIFL Ltd? [ ]

a) 0-1 years b) 2-3 years c) 4-5 years d) 5 years & above

2) Have you maintained/used any Demat account before this? [ ]

a) Yes b) No

3) Which stock broking company provided maximum satisfactory services with regard to the Demat account held by you? [ ] a) IIFL Ltd b) Sharekhan c) Durga Prasad & Co. d) Indiabulls

4) Are you satisfied with the present services of IIFL Ltd? [ ]

a) Yes b) No

5) Does IIFL Ltd’s services are better than its competitors? [ ]

a) Yes b) No

6) How does the customer care respond to your queries? Are you pretty much satisfied? [ ]

a) Good b) Bad c) Average

7) Are the brokerage charges reasonable for the Demat account held in IIFL Ltd? [ ]

a) Yes b) No

8) Which type of service do you prefer in IIFL Ltd - offline or online? [ ]

a) Offline b) Online

9) Are the brokerage schemes and plans of IIFL Ltd better? [ ]

a) No b) Yes c) To Some Extent

10) According to you, which company is providing the best stock broking service? [ ]

a) IIFL Ltd b) Sharekhan c) Durga Prasad & Co. d) Indiabulls

11) Did you face any interruption/problem while trading your account? [ ]

a) Yes b) No

12) Are you getting any benefits/services from other Demat accounts which IIFL Ltd is not providing? [ ]

a) Yes b) No

13) Is the toll-free service facility of IIFL Ltd good? [ ]

a) Yes b) No

BIBLIOGRAPHY

MARKETING MANAGEMENT : Phillip Kotler

MARKETING MANAGEMENT : V.S. Ramaswamy

BUSINESS RESEACH METHODOLOGY : C.R. Kothari

MARKETING A MANAGERIAL INTRODUCTION : J.C. GANDHI