INDUSTRY OVERVIEW

INTRODUCTION

Stock exchanges to some extent play an important role as indicators,

reflecting the performance of the country’s economic state of health. Stock market

is a place where securities are bought and sold. It is exposed to a high degree of

volatility; prices fluctuate within minutes and are determined by the demand and

supply of stocks at a given time. Stockbrokers are the ones who buys and sells

securities on behalf of individuals and institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized body,

which regulates the operations of stock exchanges, banks and other financial

institutions. The past performances in the capital markets especially the securities

scam by ‘Hasrshad Mehta’ has led to tightening of the operations by SEBI. In

addition the international trading and investment exposure has made it imperative

to better operational efficiency. With the view to improve, discipline and bring

greater transparency in this sector, constant efforts are being made and to a certain

extent improvements have been made.

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HISTORY

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

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DEVELOPMENT

An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers’ Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchanges to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahemdabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock Exchange), papularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange , accounting for the bulk of the business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged position, they are subject to governmental supervision and control. The rules of a recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government. The Securities Contracts (Regulation) Act vests the government with the power to make enquiries into the affairs of a recognized stock exchange and its business, withdraw the recognition the task of regulating the stock exchange to the Securities Exchanges Board of India.

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BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956.

The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education program and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

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NSE(NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.

NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, Products , technology and service standards have become industry benchmarks and are being replicated by other market participants. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.

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NCDEXNATIONAL COMMODITIES AND DERIVATIVES

EXCHANGE

NCDEX started working on 15th December, 2003. This exchange provides

facilities to their trading and clearing member at different 130 centers for contract.

In commodity market the main participants are speculators, hedgers and

arbitrageurs.

Promoters of NCDEX are

National Stock Exchange(NSE)

ICICI bank

Life Insurance Corporation(LIC)

National Bank for Agricultural and Rural Development (NABARD)

IFFICO

Punjab National Bank (PNB)

CRISIL

WHY NCDEX? NCDEX is nationalized screen based system which is providing transparent,

private and easy services.

NCDEX is one of the traditional media which gives online information

NCDEX is one of the Indian commodity exchange, constructed on the basis

of the current national institutes the exchange has been established with the

coloration of leading institutes like NABARD, LIC, NSI etc….

In India NCDEX has maximum settlement guarantee fund.

NCDEX has appointed two exports for checking quality at the time of

delivery.

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FACILITIES PROVIDED BY NCDEX NCDEX has developed facility for checking of commodity and also

provides a wear house facility

By collaborating with industrial partners, industrial companies, news

agencies, banks and developers of kiosk network NCDEX is able to provide

current rates and contracts rate.

To prepare guidelines related to special products of securitization NCDEX

works with bank.

To avail farmers from risk of fluctuation in prices NCDEX provides special

services for agricultural.

NCDEX is working with tax officer to make clear different types of sales

and service taxes.

NCDEX is providing attractive products like “weather derivatives”

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MCX0.LTI COMMODITY EXCHANGE

‘MULTI COMMODITY EXCHANGE’ of India limited is a new order exchange with a mandate for setting up a nationwide, online multi-commodity marketplace, offering unlimited growth opportunities to commodities market participants. As a true neutral market, MCX has taken several initiatives for users In a new generation commodities futures market in the process, become the country’s premier exchange.MCX, an independent and a de-mutualized exchange since inception, is all set up to introduce a state of the art, online digital exchange for commodities futures trading in the country and has accordingly initiated several steps to translate this vision into reality.Market Watch:

The market watch window is used to view the market details for a particular or group of contracts and for a particular instrument type. This window displays the following details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price, sell qty, last traded price, D.P.R, volume (in 000’s), value (in lac),% change, average trade price, high, low, open, close & open interest.

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Basics of stock Market

Corporations issue official-looking sheets of paper that represent ownership of the company. These are called stock certificates, and each certificate represents a set number of shares. The total number of shares will vary from one company to another, as each makes its own choice about how many pieces of ownership to divide the corporation into. One corporation may have only 2,500 shares, while another, such as IBM or the Ford Motor Company, may issue over a billion shares.

Companies sell stock (pieces of ownership) to raise money and provide funding for the expansion and growth of the business. The business founders give up part of their ownership in exchange for this needed cash. The expectation is that even though the owners have surrendered a portion of the company to the public, their remaining share of stock will become increasingly valuable as the business grows.

Corporations are not allowed to sell shares of stock on the open stock market without the approval of the Securities and Exchange Commission (SEC). This transition from a privately held corporation to a publicly traded one is called going public, and this first sale of stock to the public is called an initial public offering, or IPO.

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Why do people invest in the stock market?

When you buy stock in a corporation, you own part of that company. This gives you a vote at annual shareholder meetings, and a right to a share of future profits.

When a company pays out profits to the shareholder, the money received is called a "Dividend". The corporation's board of directors choose when to declare a dividend and how much to pay. Most older and larger companies pay a regular dividend, most newer and smaller companies do not.

The average investor buys stock hoping that the stock's price will rise, so the shares can be sold at a profit. This will happen if more investors want to buy stock in a company than wish to sell. The potential of a small dividend check is of little concern.

What is usually responsible for increased interest in a company's stock is the prospect of the company's sales and profits going up.

A company who is a leader in a hot industry will usually see its share price rise dramatically.

Investors take the risk of the price falling because they hope to make more money in the market than they can with safe investments such as bank CD's or government bonds.

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How does one buy stocks?

Buying stocks is not as simple as walking into a stockbroker's office and buying shares like you would a pair of shoes from a store. You are required to open an account with the brokerage, like opening an account at a bank.

Some brokers will allow you to open an account with very little money. The firm will then hold this money in an interest earning cash account, awaiting your orders to buy or sell stock, or other securities such as bonds or mutual funds. When you buy or sell, you pay a commission, which is deducted, from your account. When a stock is purchased, the ownership of the shares may be listed in one of two ways. "Listed" means how the corporation tracks the ownership of their stock.

If you choose to have the stock listed in your name, you will receive the actual stock certificates. Most investors choose to have the ownership listed in the broker's name, called "held in street name", with the broker keeping track of whose trading account the stock actually belongs to. The benefits are reduced paperwork, consolidated portfolio statements, no concerns about storing and processing the paper certificates, and the ability to instantly sell and transfer the shares. Either way, any dividends are credited to your account. Stocks held in street name are insured up to $500,000 by the federal government against fraud or financial failure of the brokerage company.

Why do people sell their stock?

The reasons people sell their stock are more complex. A person may just need the money. He or she may have watched the price go up, and have a hunch this is a good time to lock in their profit and sell some or all their shares.

Bad news concerning a company or its industry, or a disappointing earnings report is sure to prompt heavy selling.

An investor may see better opportunities in another company, and so sell his stocks that aren't moving up. But usually, investors sell because they've watched the price fall, and just want to get out before they lose even more.

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Secondary Market Intermediaries Stock brokers, sub-brokers, portfolio managers, custodians, share transfer

agents constitute the important intermediaries in the Secondary Market.

A stock broker plays a very important role in the secondary market helping both the seller and the buyer of the securities to enter into a transaction. The buyer and seller may be either a broker or a client. The transaction entered cannot be annulled except in the case of fraud, willful misrepresentation or upon prima-facie evidence of a material mistake in the transaction, in the judgment of the existing authorities. If a member of the stock exchange (broker) has orders to buy and to sell the same kind of securities, he may complete the transaction between his clients concerned.

When executing an order the stock may on behalf of his client buy or sell securities from his own account i.e. as principal or act as an agent. For each transaction he has to issue necessary contract note indicating whether he as principal or as an agent for another has entered into the transaction. While buying pr selling securities as a principal, the stock broker has to obtain the consent of his client and the prices charged should be fair and justified by the conditions of the market.

A sub-broker is one who works along with the main broker and is not directly registered with the stock exchange as a member. He acts on behalf of the stockbroker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stockbrokers.

No stockbrokers or sub-brokers shall buy, sell or deal in securities unless he holds a certificate of registration granted by SEBI under the Regulations made by SEBI ion relation to them.

The Central Government has notified SEBI (Stock Brokers & Sub-Brokers) Rules, 1992 in exercise of the powers conferred by section 29 of SEBI Act, 1992. These rules came into effect on 20th August, 1992.

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Ten Golden rules for Investing Warren Buffet has suggested ten golden rules for investing which proves to be immense use to the investors who want a better investment in stock markets, ShareKhan follows these rules which are as described below:

1. Never invest in a business you cannot understand.

2. Risk can be reduced by concentrating on a few holdings.

3. Stop trying to predict the direction of the stock market, the economy, interestrates, or elections.

4. Buy companies with strong histories of profitability and with a dominantbusiness franchisee.

5. Be fearful when others are greedy and greedy when others are fearful.

6. Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.

7. Do not take yearly results too seriously. Instead, focus on four or five year averages.

8. Focus on return on equity, not earnings per share (EPS).

9. Calculate "owner earnings" to get a true reflection of value. Look for companies with high profit margins.

10. Always invest for the long term. Does the business have favorable long-term prospects?

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INTERNET TRADING IN INDIA:

In the past, investors had no option but to contact their broker to get real time access to market data. The Net brings data to the investor on line and net broking enables him to trade on a click. Now information has become easily accessible to both retail as well as big investors.

The development of broking in India can be categorized in 3 phases:

1. Stock brokers offering on their sites features such as live portfolio manager, live quotes, market research and news to attract more investors.

2. Brokers offering on line broking and relationship management by providing

and offering analysis and information to investors during broking and non-broking hours based on their profile and needs, that is, customized services.

3. Brokers (now e-brokers) will offer value management or services such as initial public offerings on line, asset allocation, portfolio management, financial planning, tax planning, insurance services and enable the investors to take better and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line broking market is expected to be of $8 billions and is likely to raise five fold by 2002. In India, presently Internet trading can take place through the order routing system, which will route client orders to exchanges trading systems for execution of trades on stock exchanges (NSE and BSE). This will also require interface with banks to facilitate instant cash debit or credit and the depository system for debit or credit of securities.

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OBJECTIVES OF INTERNET TRADING:

Increase transparency in the markets.

Enhance market quality through improved liquidity, by increasing quote

continuity and market depth.

Reduce settlement risks due to open trades, by elimination of mismatches.

Provide management information system (MIS).

Introduce flexibility in system, to handle growing volumes easily and to

support nationwide expansion of market activity.

Besides, through Internet trading three fundamental objectives of securities

regulation can be easily achieved, these are: Investor protection, creation of

a fair and efficient market and, reduction of the systematic risks.

PROCEDURE FOR INTERNET TRADING:

Step-1: Those investors interested in doing the trading over internet system,

that is, NEAT-ISX, should approach the brokers and register with the Stock

Broker.

Step-2: After registration, the broker will provide to them a login name,

password and a personal identification number (PIN).

Step-3: Actual placement of an order. An order can then be placed by using

the place order window as under:

o First by entering the symbol and series of stock and other parameters

such as quantity and price of the scrip on the place order window.

o Second, fill in the symbol, series and the default quantity.

Step-4: It is the process of review. Thus, the investor has to review the

order placed by clicking the review option. He may also re-set to clear the

values.

Step-5: After the review has been satisfactory; the order has to be sent by

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Step-6: The investor will receive an ``Order Confirmation'' message along

with the order number and the value of the order.

Step-7: In case the order is rejected by the Broker or the Stock Exchange

for certain reasons such as invalid price limit, an appropriate message will

appear at the bottom of the screen. At present, a time lag of about ten

seconds is there in executing the trade.

Step-8: It is regarding charging payment, for which there are different

modes. Some brokers will take some advance payment from the investors

and will fix their trading limits. When the trade is executed, the broker will

ask the investor for transfer of funds by the investor to his account.

The above figure shows how the Internet trading procedure.

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Brief Introduction to SHAREKHAN

Sharekhan is an equities focused organization tracing its lineage to SSKI(Shripal Sevantilal Kantilal Ishwarlal), a veteran equities solutions company with over 8 decades of experience in the Indian stock markets.

Sharekhan is 80 years old company which is started online in the year 2000 & it is the first company who started online in 1984 they ventured into institutional broking& corporate finance. They having more then 80 branches, 400 franchises and also having 588 shops in 213 cities. In Rajkot branch daily dealing Rs.16 crore & 400 crore daily dealing all over India. Almost 4000 employees and 100000 trading customers.

If you experience our language, presentation style, content or for that matter the online trading facility, you'll find a common thread; one that helps you make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about!

Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for you!

To sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares.

Those of you who feel comfortable dealing with a human being and would rather visit a brick-and-mortar outlet than talk to a PC, you'd be glad to know that Sharekhan offers you the facility to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs India's largest chain of share shops with over hundred outlets in more than 80 cities! What's a share shop? How do you locate a share shop in your city?

To find the answers of these questions, you must visit Sharekhan. hi other words Sharekhan is a company that provides you an outstanding trading facility with a wide variety of products and acts as an investment consultant to manage your portfolio and secure a high rate of return on your investments in the securities market.

SSKI has been voted the best domestic brokerage in India by Asiamoney Polls’ 2004. Also SSKI is being rated as No. 1 Financial Researcher by Business Today, in the Survey conducted on Lead Managers of all the Mutual Funds.

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Basically, the company is a market leader in providing brokering services and has a top turnover in trading and the high turnover makes it the no.l in the market. The main difference is the services that they provide to the investors who really need it. The services are discussed in more detail in the marketing activities. The clients are managed with a friendly corporate culture to give him more benefited investment ideas and motivate him whenever he needs. The company is providing as many tips to the clients (pre-market, online and post-market) for more and more trading ideas and the manager helps each client to concentrate on a few scripts so that he can manage the profit/loss.

In short, Sharekhan is currently having a good position in the market with the highest no of transactions and also the highest turnover (buying & selling) in India and a leader in providing better services to the investors. Sharekhan, India's leading stock broker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. That's why Sharekhan has the trading products, which are having one of the highest success rates in the industry the largest chain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MFs on priority basis but wants to grow in it.

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What is all about Sharekhan?

GENERAL INFORMATION

NAME : S. S. KANTILAL ISHWARLAL

SECURITEIS PVT. LTD.

HEAD OFFICE : SHAREKHAN LTD.

A – 206, PHOENIH HOUSE,

PHOENIH MILL COPUND,

SENAPATI, BAPTA MARG,

LOWER PAREL,

MUMBAI – 400013

TYPE OF BUSINESS : Pvt. Ltd.

PH NO : 1800 - 22 7500 , 3970 75 00

E-MAIL : shrinivasb@branch.sharekhan.com

WEB SITE : www.sharekhan.com

CHIEF EXECUTIVE OFFICER : TARUN SHAH

BRANCH OFFICES : 100 BRANCHES

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SSKI Group - Corporate Structure

Integrated Equity Solutions Provider

• Among the top 3 branded retail service providers

• Multi-channel access to clients

• Tailor made research and products

• Depository Services

• Derivatives

• Innovative products for enhanced performance

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Owns 50.5% of

SSKI Corporate Finance Pvt. Ltd.

Investment Banking arm of the groupShareholding pattern

50.5% SSKI Securities Pvt. Ltd.49.5 % Morakhia family

SSKI Investor Services Pvt. Ltd.

Retail broking arm of the groupShareholding pattern

56% Morakhia family (promoters) 18.5% HSBC Private Equity

Management, Mauritius18.5% First Carlyle Ventures, Mauritius7% Intel Pacific Inc.

SSKI Securities Pvt. Ltd.Morakhia Family & Associates

Owns 56% of

• Best research team in the world

About Sharekhan

SSKI named its online division as SHARE KHAN and it is into retail

Broking

The business of the company overhauled 6 years ago on February 8,

2000.

It acts as a discount brokerage house to a full service investment

solutions provider

It has a 150 member strong team.

It has specialized research product for the small investors and day

traders

Largest chain of share shops which is 588 share shop in 213 city , 103

Franchisees & over 80 Branches across India.

It has $25m/trades every day.

Leading player today with 20% market share

Over 8000 online clients

The site was also launched on February 8, 2000 and named it as

www.sharekhan.com

The SpeedTrade account of share khan is the next generation technology

product launched on April 17, 2002

SpeedTradePlus was launched on October 28, 2002 for trading in

Derivatives

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It offers its customers with the trade execution facilities on the NSE, for

cash as well as derivatives, depository services

VISIONTo empower the investor with quality advice and superior service to help him take

better investment decisions. We believe that our growth depends on client

satisfaction.

MISSION To provide the best customer service and product innovation tuned to

diverse needs of clientele

Continuous up-gradation with changing technology, while maintaining

human values.

Respond to progressive globalization and achieving international standard.

Efficiency and effectiveness built on ethical practices.

CORE VALUE Customer satisfaction through

Providing quality service effectively and efficiently

“Smile, it enhances your face value ” is a service quality stressed on

periodic customer service Audits

Maximization of stakeholder value

Success through Teamwork, integrity and People

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SWOT AnalysisDuring this training at Sharekhan, we had come to know the Strengths –

Weaknesses – Opportunities – Threats for the company and it is very useful for a

company to analyze them. Therefore, the SWOT analysis is presented here and the

suggestions for maintaining strengths and removing weaknesses are explained.

Strengths: Well-maintained infrastructure.

Dedicated, Intelligent and Loyal staff.

On-line Trading products.

Lowest brokerage and other charges w.r.t. Competitors.

The best investment advice correct up to 70-90 % through dedicated

research and reports.

Wide product range to enable the clients to choose the best alternative.

One of the best DPs in India.

A positive image in the existing clients.

Weaknesses: Less awareness in the market.

Time consuming process for account opening, resolving the problems of the

customers, etc.

Service quality is not maintained accordingly how they are promoted.- 24 -

Opportunities: Large primary market to sit as a book runner for the other companies just

like Kotak securities ltd. that runs the books of share holdings for many

companies

Slope of stock market towards delivery based transactions.

Large potential market for delivery and intra-day transactions.

Open interest of the people to enter in stock market for investing.

Attract the customers who are dissatisfied with other brokers & DPs.

An indirect opportunity generated by the market from its bullishness.

Threats: Decreasing rates of brokerage in the market.

Increasing competition against other brokers & DPs.

Poor marketing activities for making the company known among the

customers.

A threat of loosing clients for any kind of weakness of the company.

Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s

clients would lead them to go for other broker/DP.

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MARKET COVERAGE

Winner of Chip magazine’s ‘Best Financial Website Award’

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Ground Network –Largest in India 122 Franchisees and Above 80 branches in IndiaCovers 213 cities in 17 states across IndiaTrade execution facility on BSE and NSE for Cash as well as DerivativesDepository/Demat account servicesPersonalized Sharekhan research adviceUniform service standards

MAJOR PLAYERS OF THE INDUSTRY

S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com):Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers

you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. That’s why Sharekhan has the trading products, which are having one of the highest success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the largest chain of retail share shops in India is of Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MF (Mutual Funds) on priority basis but wants to grow in it.

ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-in-1 to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares.

ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.

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5Paisa.com:5paisa is the trade name of India Infoline Securities Private Limited

(5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, India’s leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e-broking space in India.

The company’s brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are available across the country.

India Infoline was founded by a group of professionals in 1995. Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds.

KOTAK SECURITIES LIMITED (kotakstreet.com): Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra

Bank and Goldman Sachs (holding 25% - one of the world’s leading investment banks and brokerage firms) is India’s leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004.

Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

- 28 -

India Bulls:Indiabulls is India's leading retail financial services company with 77

locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers.

Indiabulls offers a full range of financial services and products ranging from Equities, Derivatives, Demat services and Insurance to enhance wealth and to achieve the financial goals.

MOTILAL OSWAL SECURITIES LTD. (MOSt): One of the top-3 stock-broking houses in India, with a dominant position in

both institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team.

The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs.

The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004.

In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best - 29 -

Domestic Research House- Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.HDFC SECURITIES LTD (HDFCsec):

HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. The services comprise online buying and selling of equity shares on the National Stock Exchange (NSE). Buying and selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase. In a few months, they will also start offering the following online trading services on the BSE and NSE:

1. Buying and selling of shares on the BSE2. Arbitrage between NSE & BSE3. Trading in Derivatives on the NSE4. Margin trading products.

They are also planning to include buying and selling of Mutual Funds, IPO subscriptions, Right issues, purchase of Insurance policies and asset financing.

PRICE COMPARISION WITH OTHER MAJOR PLAYER

Parameters Opening Fee Brokerage InterfaceTrading A/C

Demate A/c

Delivery Square Off

Bank Associated

Sharekhan 750 NIL 0.40 0.08 HDFC,UTI,OBC, IDBI, City Bank

ICICI Direct 750 NIL 0.75 0.18 ICICI Bank

IndiaBulls 250 250 0.40 0.10

5 Paisa 600 NIL 0.20 0.05 ICICI Bank, UTI, OBC, HDFC, City Bank

Kotak Street 500 0.59 0.06 Kotak Bank, City Bank

- 30 -

HDFC Securities 700 NIL 0.50 0.15 HDFC & Other Bank

- 31 -

SHAREKHAN IN ONLINE TRADING

Trading in stock markets through the Internet, which took a dip due to investor apathy because of prolonged bearishness in recent years, is witnessing a revival of interest and is expected to record growth in the coming years.

The retail investors in the capital market are the most neglected lot with no access to research and Sharekhan, one of the oldest members of the BSE, seeks to fill this vacuum felt by retail investors. The company had invested about Rs 13 crore in the last two years in creating the requisite infrastructure by way of branches and for Internet trading. With presence in about 110 cities across the country now, it will seek to consolidate its presence in the current year and focus on expanding its membership.

Sharekhan enjoyed about 20% market share in Web business (Internet trading) in stock markets. Three years ago, Web trading showed lot of promise but with the market witnessing a downturn, there was not much interest among retail customers. The company adds around 1,000 customers a month.

While his company has about 10,000 plus customers, ICICI Securities claimed to have 1.20 lakh customers and there were other players like HDFC too. But the number of active Web traders would be in the 30,000-50,000 region. This number is growing at 5 to 10% a month and this was a segment that could not be ignored. In Sharekhan, Web trading constituted about 1 per cent to 2 per cent of the revenue in 2001-02.

But in 2002-03, when the overall revenue trebled, the share of Web trading constituted 22% of the revenue. As Sharekhan's daily trading volume was over Rs 300 crore, the share of Web trading at about Rs 40 crore a day was substantial and a larger part of the volume was coming from day traders.

The pricing for Web trading are expected to come down and once the investment was made on technology, the scalability would be high and there is minimum involvement of staff in dealing with customers. The crediting of the sale/purchase orders would be fast with no physical handling as the system does every work.

Sharekhan has already obtained license to offer Portfolio Management Services (PMS). It was offering a range of products to suit retail investors and PMS when launched, would cater to the requirements of the high net-worth individuals. The entry-level investment for PMS membership may be around Rs 5 - Rs 10 lakhs, which was needed for having a well-diversified portfolio.

- 32 -

SHAREKHAN DEPOSITORY SERVICES

Dematerialization 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. This system works through depository participants (DPs) who offer demat services and the securities are held in the electronic form for the investor directly by the Depository. Sharekhan Depository Services offers dematerialization services to individual and corporate investors. Sharekhan is a registered Depository Participant (DP) with National Securities Depository Ltd. (NSDL). It has a team of professionals and the latest technological expertise dedicated exclusively to our demat department, apart from a national network of franchisee, making our services quick, convenient and efficient. At Sharekhan, the commitment is to provide a complete demat solution which is simple, safe and secure.

RESEARCH BASED ADVICE

Every investor’s needs and goals are different. To meet these needs, Sharekhan provides a comprehensive set of research reports, so that one can take the right investment decisions regardless of their investing preferences! The Research and Development at Sharekhan is done at its Head office Mumbai.

The R&D department Head Mr. Hemang Jani forwards all the details regarding all stocks and scripts to all the branches through Internet. At the end of each trading day there is a Teleconference, through which the R&D department Head MR. Hemang Jani talks with each Branch heads and discusses about each day’s closing position and shows their predictions about next day’s opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference.

The various publications of Sharekhan viz. Derivatives Digest, Sharekhan’s Valueline, Eagle eye, High Noon, Investor’s Eye, Commodities Buzz, Commodities Beat, Commodity Trader’s corner, Sharekhan Xclusive, etc. are being prepared by the research team of Sharekhan made up of highly experienced people from diverse field. These all publication provides:

In-depth analysis of the markets Analysis Before, During (live market updates) and After

market timings- 33 -

Special sector tracking reports sent regularly

STOCK IDEAS

Stock Ideas is aimed at Sharekhan's trading clients. It presents our best stock picks in today's market. We categorize these companies into six clusters to help you identify the stocks that fit your time horizons and return objectives the best. Each cluster represents a certain profile in terms of business fundamentals as well as the kind of returns you can expect of it over a certain time horizon.

STOCK CLUSTERS

Sharekhan categorise all the scripts that are under coverage into 6 clusters. Each cluster represents a certain profile in terms of business fundamentals as well as the kind of returns you can expect over a certain time horizon. This help in identifying the stocks that fit your time horizons and return objectives best. The six clusters are: Evergreen, Apple Green, Emerging Star, Ugly Duckling, Vulture's Pick and Cannonball.

EVERGREEN

These stocks are steady compounders, churning out steady growth rates year on year. They are typically significant players in their markets, with sound strategies that will help them achieve and sustain market dominance in the long run. They have strong brands, management credentials and a consistent track record of achieving super normal shareholder returns. We expect stocks in this category to compound at between 18-20% per annum for the next five to ten years. Also called ownership stocks, Evergreen stocks are the brightest jewels in any portfolio.

APPLE GREEN

These are stocks that have the potential to be steady compounders and are attempting to move upwards, to turn Evergreen. They rank a shade below the Evergreen companies, only because their potential in the five to ten years' time is still not very clear, although they might grow at rates faster than that of the Evergreen stocks in the next year or two. They could grow at 25-30% per annum over the next two to three years.

- 34 -

EMERGING STAR

These are typically young companies, often in niche businesses, that have the potential to grow and dominate their niches. Even better, they might turn out to be real giants, if their niches explode into full-blown markets in their own rights. These stocks are potential ten-baggers but you need to be patient.

UGLY DUCKLING

These are companies that are trading below their fair value or at values which are at a significant discount to that of their peer group, due to a combination of circumstances. But things are now starting to happen in these companies or in their markets that are likely to cause a re-evaluation of their prospects. These stocks could double in two to three years' time.

VULTURE'S PICK

These are companies with valuable assets or brands that have been trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds its assets undervalued to come along. This could be a long wait but the returns could be startlingly high.

CANNONBALL

Season's favourites! Typically they are fast gainers in a rising market, which could give returns of 20-40% within three months. These are based on a combination of sound market information, technical charts and available fundamentals for investors which are having an appetite for high risk and high reward.

- 35 -

Ensures convenience in trading experience: Share Khan’s trading services are designed to offer an easy, hassle free

trading experience, whether trading is done daily or occasionally. The customer will be entitled to a host of value added services, in the investment process depending on his investing style and frequency. and offers a suite of products and services, providing the customer with a multi-channel access to the stock markets.

It gives advice based on extensive research to its customers and provides them with relevant and updated information to help him make informed about his investment decisions.

Share khan offers its customers the convenience of a broker-DP.

It helps the customer meet his pay-in obligations on time thereby reducing the possibility of auctions. The company believes in flexibility and therefore allows accepting late instructions without any extra charge. And execute the instruction immediately on receiving it and thereafter the customer can view his updated account statement on Internet.

Sharekhan Depository Services offers demat services to individual and corporate investors. It has a team of professionals and the latest technological expertise dedicated exclusively to their demat department. A customer can avail of Demat \ Remat, Repurchase, Pledge, Transmission facilities at any of the Share khan branches and business partners outlets.

- 36 -

Organization structure

TOTAL INVASTMENT IN THE OFFICE

Land…………………………………….. 40,00,000Building………………………………… 5,00,000Furniture………………………………... 2,00,000Machinery and equipment……………… 4,50,000Material………………………………… 50,000Inventory……………………………….. 1,00,000

TOTAL………………………………… 53,00,000

- 37 -

Head Office

Branch Head

Marketing Head

Operation Head

Account Head

Human Resource Head

Assistant Manager

Back Office Staff

H.R. consultant

Executives

PRODUCTS of SHAREKHANSharekhan’s products are basically divided into online and offline products.

Other Services:Dial-n-Trade

Depository Services

Commodity Trading

Derivative Trading

Mutual fund

Portfolio Management Services

Online IPO

Research Based Information Provided

OFFLINE- 38 -

Sharekhan

Off-Line On line

Fast Trade

Classic A/c

Speed Trade

Offline A/c is the A/c for the investors who are not familiar with the use of

computer.

The A/C opening charges Rs.500(One time)

For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.

The various benefits the client gets from the online trading are:

• Freedom from Paperwork: Integrated trading, bank and Demat

account (auto pay-in and pay-out of securities) with digital

contracts removes all paperwork.

• Instant Credit And Transfer: Instant transfer of funds from

bank accounts of client's choice to his/her Sharekhan trading

account.

• Trade Anywhere: Enjoy the ease of trading from any part of the

world in a completely secure environment.

• Dial n Trade: Call Sharekhan on a toll free number to place

orders through sharekhan's telebrokers.

• Timely Advice: Make informed decisions with expert advice,

investment calls and live market commentary.

• Real-Time Portfolio Tracking: Benefit from real-time information

of your investment and current portfolio value.

• After-Hour Orders: The Client can place orders after the market

hours, which get executed as soon as markets open.

ONLINE

- 39 -

A/C Opening Charges Rs.750(onetime Charge).

For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.

Type with 7 banks through which one can transfer or withdraw his fund

online. Which are as follows

1. HDFC Bank

2. IDBI Bank

3. UTI Bank

4. OBC Bank

5. CITY Bank

6. Indusind Bank

7. Union Bank of India

Any one who have A/C either of above banks they can use this facility.Otherwise one has to make fund transfer or withdraw by cheque.

This account enables you to buy and sell shares through our website.

You get features like a) Streaming quotes (using the applet based system)

b) Mutltiple watchlists

c) Integrated Banking, demat and digital contracts

d) Instant credit and transfer

e) Real-time portfolio tracking with price alert and, of course, the assurance of

secure transactions.

Features of Classic Account

that enables you to invest effortlessly- 40 -

Online trading account for investing in Equities and Derivatives via sharekhan.com

Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Make IPO booking You get Instant order and trade confirmations by e-mail Streaming Quotes Personalised Market Scan with your own customized stock ticker! Single screen interface for cash and derivatives Your very own Portfolio Tracker!

SPEEDTRADE

A/C Opening Charges Rs.1000/-(onetime Charge). Monthly charges Rs.500/-(But if Client give Brokerage of Rs.1500/-in a

Quarter, then Rs.1500/-that was charged of a Quarter will be Reimbursed). For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.

Type with 7 banks through which one can transfer or withdraw his fund online. Which are as follows

HDFC Bank

IDBI Bank

UTI Bank

OBC Bank

CITY Bank

Indusind Bank

Union Bank of India

Any one who have A/C either of above banks they can use this facility. Otherwise one has to make fund transfer or withdraw by cheque.

Features of SpeedTradethat enable you to trade effortlessly

- 41 -

Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other relevant

statistics) Hot keys similar to a brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives

OTHER SERVICES1. Dial- n -Trade

Trade in Equity by using your phone!

Free with your Sharekhan Classic Account, the Dial-n-Trade service

enables you to place orders for buying and selling shares through your telephone.

All you have to do is dial any one of our two dedicated numbers (1-800-22-

7050 or 30307600), enter your TPIN number (which is provided at the time of

opening your account) and on authentication you'll be directed to a telebroker

who will buy and sell shares for you.

Features of Dial- n -Trade

that enable you to trade effortlessly.

- 42 -

TWO dedicated numbers for placing your orders with your cellphone or

landline. Toll free number: 1-800-22-7050. For people with difficulty in

accessing the toll-free number, we also have a Reliance number 30307600

which is charged at Rs. 1.50 per minute for STD calls.

Automtic funds tranfer with phone banking. (for Citibank and HDFC bank customers)

Simple and Secure Interactive Voice Response based system for authentication.

No waiting time. Enter your TPIN to be transferred to our telebrokers. You also get the trusted, professional advice of our telebrokers. After hours order placement facility between 8.00 am and 9.30 am. (timings

to be extended soon) Reliable service, wherever you are.

2.PORTFOLIO MANAGEMENT SYSTEM

With the Sharekhan Team Managing Your Portfolio, you can be assured that your investments are in safe hands!

We follow a multi-disciplined approach incorporating quantitative analysis, fundamental analysis and technical analysis. This multi-pronged approach enables us to provide risk-controlled returns for you.

Right from choosing the combination of stocks most suitable for you based on your risk appetite to monitoring their movements and discussing them with you at special events.

3.MUTUAL FUND

- 43 -

Introduction

Everybody talks about mutual funds, but what exactly are they? Are they like shares in a company, or are they like bonds and fixed deposits? Will I lose all my money in funds or will I become an overnight millionaire? Big questions that get answered in just five minutes.

Meaning

A mutual fund is a pool of money that is invested according to a common investment objective by an asset management company (AMC). The AMC offers to invest the money of hundreds of investors according to a certain objective - to keep money liquid or give a regular income or grow the money long term. Investors buy a scheme if it fits in with their investment goals, like getting a regular income now or letting the money accumulate over the long term. Investors pay a small fraction of their total funds to the AMC each year as investment management fees.

4.SHAREKHAN DEPOSITARY SERVICE

Dematerialization 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. This system works through depository participants (DPs) who offer demat services and hold the securities in the electronic form for the investor Sharekhan Depository services offers dematerialisation services to individual and corporate investors.We have a team of professionals and the latest technological expertise dedicated exclusively to our demat department, apart from a national network of franchisee, making our services quick, convenient and efficient. At Sharekhan, our commitment is to provide a complete demat solution which is simple, safe and secure.5.RESEARCH BASED ADVICE

- 44 -

Every investor’s needs and goals are different. To meet these needs, Sharekhan provides a comprehensive set of research reports, so that one can take the right investment decisions regardless of their investing preferences! The Research and Development at Sharekhan is done at its Head office Mumbai.

The R&D department Head Mr. Hemang Jani forwards all the details regarding all stocks and scripts to all the branches through Internet. At the end of each trading day there is a Teleconference, through which the R&D department Head MR. Hemang Jani talks with each Branch heads and discusses about each day’s closing position and shows their predictions about next day’s opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference.

The various publications of Sharekhan viz. Derivatives Digest, Sharekhan’s Valueline, Eagle eye, High Noon, Investor’s Eye, Commodities Buzz, Commodities Beat, Commodity Trader’s corner, Sharekhan Xclusive, etc. are being prepared by the research team of Sharekhan made up of highly experienced people from diverse field. These all publication provides:

In-depth analysis of the markets

Analysis Before, During (live market updates) and After

market timings

Special sector tracking reports sent regularly

6.ONLINE IPO

Online IPO (Initial Public Offering) is a new service started by Sharekhan for providing the application form of any company’s issues of shares just like the TCS issue can be subscribed by filling an online form to reduce the paper work and the fund transfer facility is also provided to the clients for transferring the funds online. It is given on its web-site for helping the clients who are not able to collect the forms manually and the speed of filling and reducing the risk of misplacing of forms, not reaching in time, etc.

7.COMMADITY TRADING

- 45 -

Organized futures market evolved in India by the setting up of "Bombay Cotton Trade Association Ltd." in 1875. In 1893, following widespread discontent amongst   leading cotton mill owners and merchants over  the  functioning of the Bombay Cotton Trade Association, a separate association by the name "Bombay Cotton Exchange Ltd." was

constituted. Futures trading in oilseeds was organized in  India  for the first time with the setting up of Gujarati Vyapari Mandali  in 1900, which carried on futures trading in groundnut , castor seed  and cotton. Before the Second World War broke out in 1939 several futures markets in oilseeds were functioning in Gujarat and Punjab.

There were booming activities in this market and at one time as many as 110 exchanges were conducting forward trade in various commodities in the country. The securities market was a poor cousin of this market as there were not many papers to be traded at that time.

The year 2003 marked the real turning point in the policy framework for commodity market when the government issued notifications for withdrawing all prohibitions and opening up forward trading in all the commodities. This period also witnessed other reforms, such as, amendments to the Essential Commodities Act, Securities (Contract) Rules, which have reduced bottlenecks in the development and growth of commodity markets. Of the country's total GDP, commodities related (and dependent) industries constitute about roughly 50-60 %, which itself cannot be ignored.

Most of the existing Indian commodity exchanges are single commodity platforms; are regional in nature, run mainly by entities which trade on them resulting in substantial conflict of interests, opaque in their functioning and have not used technology to scale up their operations and reach to bring down their costs. But with the strong emergence of: National Multi-commodity Exchange Ltd., Ahmedabad (NMCE), Multi Commodity Exchange Ltd., Mumbai (MCX), National Commodities and Derivatives Exchange, Mumbai (NCDEX), and National Board of Trade, Indore (NBOT), all these shortcomings will be addressed rapidly. These exchanges are expected to be role model to other exchanges and are likely to compete for trade not only among themselves but also with the existing exchanges.

- 46 -

8.DERIVATE TRADING

The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors.

- 47 -

- 48 -

MARKETING DEPARTMENT

The main aim of marketing activities at Sharekhan is that the customer should get enough guidance to join the company and how he can get the best service than any other stockbroker. There is an officer for handling the marketing activities followed by two executives and it is not limited to them but the other people are also having some responsibilities to increase the no. of clients and retain them by providing them the services needed by them.

There are many services those are designed such that the specific target segments of the customers are covered and the products are positioned in the minds of customers as the best one in India. The services are as given below:

Sharekhan is India's leading national network of stock-broking outlets. It is having the largest retail distribution chain in India. Sharekhan is not only a share-broking firm, but it avails of various services and other financial products to its clients.

1. Offline Trading facility

2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading andNEAT, i.e. National Exchange Automated Trading)

3. Free access to investment advice from Sharekhan's Research team.4. Depository services: Demat and Remat transactions (Sharekhan is registered

withNSDL, i.e. National Securities Depository Ltd., as a Depository Participant)

5. Derivatives trading, i.e. Futures and Options (through NEAT F&O)6. Internet based online trading.7. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc.

- 49 -

Online BSE and NSE Trading

Sharekhan is a registered Stock Broker with the Bombay Stock Exchange and National Stock Exchange to trade on behalf of clients. The screen-based trading is done on BOLT-BSE Online Trading and NEAT- National Exchange Automated Trading, terminals. There are two types of transactions executed on these terminals viz. intra-day and delivery based transactions. Intraday transactions are those, in which the squaring up of deal is done on the same day, while in delivery based transaction the squaring up is not done on the same day, but the stock is to be traded on the basis of rolling settlement i.e. T+2. The Brokerage of Intraday transaction is 0.10% single side, while brokerage on delivery based transactions is 0.50% on both side, i.e. while purchasing as well as selling.

Free Access to Investment Advice through R&D

The Research and Development at Sharekhan is done at its Head office Mumbai. From there it forwards the relevant data and tips on particular shares and scripts at the relevant time. The R&D department Head Mr. Hemang Jani forwards all the details regarding all stocks and scripts to all the branches through Internet. At the end of each trading day there is a Teleconference, through which the R&D department Head MR. Hemang Jani talks with each Branch heads and discusses about each day's closing position and shows their predictions about next day's opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference. The various publications of Sharekhan viz. Derivatives Digest, Sharekhan's Valueline, Eagle eye, High Noon, Investor's Eye, Commodities Buzz, Commodities Beat, Commodity Trader's corner, Sharekhan Exclusive, etc. are being prepared by the research team of Sharekhan made up of highly experienced people from diverse field.

- 50 -

Comparison of Online Trading Products with various company

Cos. / Features Products Offered

Online BSE/NSE

OnlineF&O

Online IPO

OnlineMF

OnlineCommodity

A/c OpeningCharges

Deposits

Share khan

Ground A/c, E-Broking,

Commodity, DP, PMS

Yes Yes Yes No NoClassic 750/-ST 1000/-

10000

Kotakstreet.com

Ground A/c, Online A/c, Commodity,

DPYes Yes Yes Yes No 500 50000

ICICI Direct.com

Online A/c, Mutual Fund Yes Yes No Yes No 750 -----

HDFC E-Broking Yes Yes No No No 600 -----

Motilal Oswal

Ground A/c, Online A/c, Commodity,

DP, PMSYes Yes Yes Yes Yes Upto 400 -----

IndiabullsGround A/c, Online A/c, Commodity,

DP,MFYes Yes Yes No No 250 -----

5-Paisa.com

E-Broking, Insurance Yes Yes No No Yes 500 5000

Angel Broking

Ground A/c, E-Broking Yes No Yes No No 500 50000

IL&FSInsurance, MF,

E-Broking, Ground A/c

Yes Yes Yes Yes Yes 500 ------

Anagram Ground A/c, E-Broking, Mutual

FundYes Yes Yes Yes Yes 780 10000

- 51 -

Sharekhan is a registered Depository Participant (DP) with National Securities Depository Ltd. (NSDL). The participants are required to enter into an agreement with beneficial owners. It is required that separate accounts shall be opened by every participant in the name of each of the beneficial owner and the securities of each beneficial owner shall be segregated and shall not be mixed up with the securities of other beneficial owners or with the participant's own securities. The participants are obliged to reconcile the records with every depository on a daily basis. Participants are required to maintain the following records for a period of five years.

• Records of all the transactions entered into with a depository and with a beneficialowner;

• Details of security dematerialized, rematerialized on behalf of beneficial owners with whom it has entered into an agreement;

• Records of instructions received from beneficial owners and statements of account provided to beneficial owners; and

• Record of approval, notice, entry and cancellation of pledge or hypothecation as the case may be.

Publications of sharekhan- 52 -

Depository Participation

Sharekhan’s Valueline

Derivatives Digest

Eagle Eye

High Noon

Investor’s Eye

Commodities Buzz

Commodities Beat

Commodity Trader’s Corner

Sharekhan Xclusive

- 53 -

Marketing Mix

The marketing mix of Sharekhan is an excellent example we have seen in the industry because no other brokering organization has such products to target the investors of different minds, incomes and aims. There is an objective of satisfying the customer as to make him delighted with affordable prices and convenient services. The fourth P of the marketing mix is the best at Sharekhan in India because the total no. of share shops are widespread all over to have the maximum contacts and awareness about Sharekhan, and we can say that it has achieved that because it is having the maximum turnover than any other broker in India. The Classic, Speedtrade and Speedtradeplus are the trading products, which are one of the bests in the market.

The marketing is done based on leads generated through the web contact, tele-contact and personal contact with the customer and is a planned procedure to find out new customers. The marketing management is carried out in an excellent way at Sharekhan.

- 54 -

SEVEN P’S OF SHAREKHAN

PRODUCT

Product Variety

Share khan offers 3 types of online trading accounts for its customers specially designed according to their volume in share trading. Those 3 varieties are:

Classic- for retail investors

Speed Trade: for high net worth investors with large and active equity

portfolio who need to monitor and action swiftly

Speed trade Plus- for high net worth investors dealing in derivative market.

Quality

User Friendly, attractive & colorful Website.

Design

The website of Share khan namely www.sharekhan.com has been specially designed to facilitate its users to buy and sell shares in an instant at anytime and from anywhere they like. The site is user friendly allowing even a layman to easily operate without any hassles.

Brand Name

The company as a whole in its offline business has named itself as SSKI Securities Pvt. Ltd . shripal Sevantilal Kantilal and Ishwarlal Securities Pvt. Ltd. The company has preferred to name themselves under a Blanket Family Name.

But in its online division started since 1997, the company preferred to name itself as “SHARE KHAN”. The Brand Name “SHARE KHAN” itself suggests the business in which the company is dealing so that the consumer could easily identify the product or service category.

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Services

Share khan offers its customers, depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. The teams of its dedicated analysts are constantly at work to track performance and trends.

Dial-n-trade is also an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the toll free number 1600-22-7050 and on entering the customers TPIN number, the customer will be directed to a telebroker who will buy or sell shares for him.

PRICE List Price

CLASSIC SPEED TRADE SPEED TRADE PLUS

One time Registration fee

750 1000 1500

Minimum brokerage Charges –Quarterly

Nil 1000 1500

Brokerage

Share khan in its online business charges brokerage as follows:

- In equity Market:

On Trading: 0.1% On Delivery: 0.5%

- In Derivative Market

On Trading: 0.12% (Total brokerage) On Delivery: 0.1%

Service Tax 8% on Brokerage.

Turnover tax + Stamp duty

-0.015% (Rs. 15 on every turnover of Rs. 100000)

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Custody ChargeRe. 1 per script held per month.

DiscountsFor investors with High Net worth, there are slabs in brokerage rates.

Payment PeriodThe transaction settlement date in the securities market is T+ 2 days i.e. the payment of the transaction taken place has to be made within two days of its occurrence.

Credit termsShare khan allows its customers to trade up to 4 times i.e. by keeping 1/4th margin with them.

PROMOTION

Online share trading is totally a new concept in Indian Market. Generally investor doesn’t like to come out from conventional way of share trading. Share khan has introduced this product in. The concept and Product are still new in the market. Therefore the company has undertaken extensive promotion campaign to create awareness about the product. Share khan adopts the following tools for promoting the product.

Advertising

Company advertises its product through TV media on channels like CNBC, Print Media-in leading dailies and outdoors media. It advertises itself as an innovative Brand with a cartoon of tiger-called SHERU. Besides attractive and colorful brochures as well as posters are used giving full details about the product.Mails are sent to people logging on to sites like moneycontrol.com and rediff.com.Also, stalls are opened up now and then at places where prospective customers can be approached.

Sales Promotion

The Company offers Rs.500 instead of Rs.750 for corporate accounts (more than 20 accounts).Also, it provides online trading accounts for just Rs.300 for IIM students.

Sales ForceThe Company has an aggressive sales force, which is given incentives, based

on their sales. The sales force is given intensive training continuously.- 57 -

SeminarThe Company also arranges seminar in corporate world for creating awareness

about the product. Recently, it had organized for a seminar in ONGC, IIM.

Direct MarketingCompany emphasizes more on direct marketing, as many people are still not

aware of this new way of smart trading. For this, the company recruits and trains sales representatives so as to explain the product and solve customer queries related to the product. This is the most effective way to communicate the three-in-one concept which company offers.

TelemarketingThis is another promotional tool company is using to boost up its sales. For

this, the company collects the database of the people belonging to different professional segments.

Dematerialization chargesRe. 3 per certificate or Rs.15 per requests whichever is higher.

PLACE Channels

Share khan uses various channel alternatives to reach to its customers through

Internet

Tele Marketing

Retail Share Shops

Franchisee Owners

Power Brokers

Sales Force

CoverageAccess to the website from any part of the globe.

Locations Share khan has the largest chain of retail share shops in India. It has

180 share shops located in 90 cities all over India like Pune, Thane, Chennai, Kolkata, Banglore, Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat, Delhi, Gaziabad, Hydrabad, Allahbad, etc.

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PEOPLE

Employees Selection: Employees are selected on the basis of their

experience and qualification as applicable to the job. Training: Intensive training is provided to the employees till a

week once they join and even at times required after that. Motivation: The employees are motivated through incentives

they are provided.

Research TeamShare khan has a team of dedicated analysts who have years of working

experience in the industries that they track, and a proven track record in using their knowledge of the investment science to deliver results.

CustomersThe heart of sharekhan are really treated loyally like the kings. The

customer care, which comprises of highly trained executives operating from 9:30 to 8:00 p.m.

PHYSICAL EVIDENCE

Locality of the office: In Ahmedabad, two franchise outlets are located in posh areas like

Navrangpura and Maninagar. A new franchise is going to open up in Vastrapur.

Office Environment: The ambience within the office is what can make the customer feel

comfortable in trading. The cordial and friendly atmosphere at office is like a full time motivation for the employees.

Interiors and Infrastructure: The office is well furnished and has 24 computer terminals on which

tick-by-tick price movements of the securities are displayed.

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PROCESS

In this service organization, the ways in which the customers receive delivery of the service constitutes the process. Here, the process involves adding ‘value’ or ‘utility’ so that the customers get full satisfaction for the money spent by them.

Here the process begins from the step when customer wants to open e-invest account and ends when his account is actually activated.

All Indian residents and NRI are eligible to avail this service.

Customers can open a sharekhan e-invest account by filling a single application form.

This form includes 9 agreements like1. Main form with customer details2. Agreement between sharekhan and client in respect of the ONLINE-

INVESTMENT SUPPORT service offered.3. Agreement between the Depository Participant and the client for providing the

transaction statement through Internet.4. Irrevocable power of attorney5. Agreement between the DP and the person seeking to open an account with

the DP.6. Maintenance of client’s account on a running account bases by SSKI.7. Agreemen4 giving the right of lien on the credit balance of client in NSE

trading.

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SERVICE (Product)

Service is an act or performance that one party offers to another for sell and it is not a physical product that you can touch but it is that one can feel. It is not likely to result into the ownership of anything. A service can be a fully service or a mixture of service and physical product.

The trading products of Sharekhan are such a mixture of services like DP service (managing the Demat account), providing reports for investment advice etc. and thus we can define its service mix as a hybrid product mix of different physical products with accompanying services.

Therefore, the two types of accounts offered by Sharekhan i.e., Offline and Online are the two main product lines in the product mix of the company. The offline a/c with Sharekhan is defined as the account having which you can trade anywhere in the share shop of Sharekhan and the online a/c is that you can trade on your PC through the software provided by Sharekhan and it also offers tele-trading in both the cases but the major difference is of the service and prices for opening an account. The product mix is as shown below:

The product mix is showing the products offered by Sharekhan to its customers and it is one type of a tree structure diagram that shows the products of a company. The products are actually services and are at the completion of the second stage of Product-Life-Cycle, i.e., Growth and are entering into maturity stage. So there should be some changes in the marketing strategies of the company.

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SEVEN ‘S’ MODEL

STRUCTURE:- 62 -

Super ordinate Goals goals

Style

System

s

Structure

Strategy

Skills

Staff

Share khan is flexible in terms of making temporary structural changes to

cope up with specific strategic tasks without any hassles. If need arises, the

top management can assign the role to any of its employees which it

considers capable and skillful.

STRATEGY:

Share khan believes not only in developing the strategies but also in its

successful execution.

SYSTEMS:

This constitutes of all the training and development systems, estimating

budgets and the accounting system of Share khan.

STYLE:

Style refers to all the symbolic actions undertaken by top managers of

Share khan and its influence on the subordinates.

STAFF:

Share khan values its employees as its assets and therefore carefully trains

and motivates them by giving them incentives at regular intervals. Talented

employees are assigned as mentors and given real responsibility and

moved into higher positions.

SKILLS:

The term skills refer to those activities organizations do best and for which

they are known. Share khan is known for its timely advice

(suggestions/tips), which it caters to its customers and it boasts of 70-90%

strike rates in booking recommendations.

SUPERORDINATE GOALS:

This refers to guiding concepts, values and aspirations that unite an

organization in some common purpose. It provides the customers the best

service as it believes in customer satisfaction and retention.

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Conversion process The main aim of it is to make profit with customer satisfaction. The

conversion of Inputs works as the Sharekhan earn brokerage from the customers. The profits are generated from getting a higher return on the invested amount of money than the amount payable to the customers. The process is facilitated by a centralized computer system in which the data is stored and recovered for the whole INDIA and it is having the CPU at the H/O in Mumbai. Sharekhan is regulating the brokerage rates all over India by keep watch on each transaction done from the branch office. The data of a customer will be stored in the central computer and all facilities such as bills, credit/debit reports etc. are provided by that computer to all customers on-line on the Internet.

The conversion process is also facilitated by some adjustments to the inputs and then the random fluctuations are also handled in the process and lastly the monitoring of the process is done and a feedback is given to do the adjustments for the process as indicated in the figure given.

Outputs Outputs are those services generated by Sharekhan with the help of the inputs

and using the conversion process. These services are as listed in the figure above.Table Sharekhan.2

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Quality Reliability Flexibility Creditability Dependability Efficiency

Process Capacity Facility Vertical Integration Infrastructure Automation Maximum size, Supplier Plan and structureCentralization possible Location, control, Work force Regulation of serving Focus on Customer Quality controlOperation capability locating serving control, R & D, T & DService centerSpecificity

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Operations Strategy at Sharekhan

Facility Mission

Operation strategy at Sharekhan

Operations strategies are implemented in Sharekhan as shown in the chart given above and the main points of consideration are Efficiency, Dependability, Quality and Flexibility.

The points demand a facility mission that is made up of process, capacity, facilities, vertical integration, and infrastructure facilities provided to get the desired outputs as per the plan.

organization and high level of it is desired outputs with low costs, i.e., productivity with effectiveness. Quality should be high and consistent in delivering services; Flexibility is related with fast introduction of new services and providing a wide range to select an option to the customer. The process of operations, capacity/ability of the organization, competitive advantages, vertical integration and the infrastructure created by the firm facilitate this.

Sharekhan plans the strategies to get a working plan from it and the planning is done from top-to-bottom level, i.e., national level, regional level, divisional level and the branch level planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction that is to facilitate future plans by achieving success in time and create milestones in the industry by making the company driven by values and excellence.

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TRANSACTION CYCLE:

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Placing Order

Settlement of trades

Decision to trade

Trade Execution

Clearing of Trades

Funds or Securities Transaction

Cycle

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FINANCE DEPARTMENT

Like Blood is the most important in our body, in business Finance is the blood of any business. Finance is needed for all the activities like production or services as well as their distribution. The finance department directly influences all the functions of the other departments. Also finance has to give equal importance to all departments. Finance is that administrative area or set of administrative function in an organization, which relate with the arrangements of cash & credit so that they organization may have the means to carry out its objective as satisfactorily as possible. Sharekhan has special accounts department for separate calculation of pay-in and pay-out of funds according to the client's Profit/Loss. Finance management is done at Sharekhan is done by managing the stocks in the Demat accounts and funds in the margin & trading accounts

Finance is the lifeblood of an organization to continue its activities and the finance management at Sharekhan can be divided into two major parts viz. DP (depository participation) and Accounts management, which are shown in the figure given above.

DP is treated as a separate department at Sharekhan and is covered in the back office management in the organization structure. In simple words, DP means providing the facility to the clients for managing the stock bought/sold by them. DP covers two major terminologies viz. settlements and the auctions which is a part of managing Demat account. Settlements as defined by SEBI (Securities Exchange Board of India) are T+2, currently and it means that the Demat account of the clients are prone to be sufficient for selling a script with no debit at all, i.e., the account must have the sold amount of stock to fulfill the settlement after 2 days from trade-day. The settlements for Day-Traders is not needed because they buy/sell stocks in that particular day, only the delivery trades are needed to be settled because if you sell 1000 shares of, say SAIL then your account must have the stock before you sell it or it must be there in your Demat before the next day's trading begins (market opens). Generally, the timings are

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9:30 and 3:00 as a deadline for the client and he must provide the stock for giving a delivery to the buyer. The chart shows the total transaction between two clients:c

The chart shows the process that the request for selling and buying passes through the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange) becomes the controlling intermediary for the delivery of stocks and this process is done in two days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to make the financial market of India to have a maximum speed of transactions just like the other nations in the world and proposing for T+l settlement scheme but the system is not enough competent for that thing. But soon or later we will have such a settlement system in India, as said by Mr. J. N. Bajpai, chairman of SEBI.

The client, if not capable of providing the delivery of say, 1000 shares of SAIL then the Auctions are initiated by the exchanges and the client has to pay for the price prevailing in the market with 4-5% penalty. The penalty can go on maximum to 20% more than the market price of the sold stock. Generally, it is known as a buying auction and a same kind of auction is for selling the stock for which the buyer was proved unable to pay the price is carried out by exchange, known as the selling auction. And a debit or credit note is provided in the respective case of auction to the clients, i.e., for buying auction debit note is given on the T+4 basis and in case of selling auction the credit note is given on T+5 basis. There are two types of auctions called as Internal auctions & Market auctions, the internal auctions are defined as the auctions carried out between the other shops of Sharekhan and market auctions are those as explained earlier, the auction carried out in the market.

This is all about settlements but now switch to funds management or accounts management at Sharekhan. The accounts are different that is the margin a/c for deposits of the client and trading a/c for which Profit/Loss are settled. The collection of funds from the clients who had a debit balance or made a loss are made on the next day of trading and the payments to the profiting traders are made after two days of trading because the cheques are received from H/O and then pay-out

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is done and Pay-in is as explained that amounts to be taken from the clients. In this way, accounts are managed but in case if the client is unable to pay, the deposit from the margin a/c is cut down to the payments and in case if a client is having a credit balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a JV request is sent to H/O for totaling the three balances. The main aim for accounts management is that the clients must have a credit or no debit on the next day.

The DP services provided by Sharekhan are falling under the regulation of NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited), organizations governed by SEBI to regulate the depository services in the interest of the investors. So the financial market in India is governed by Ministry of finance under which two major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP service providers with the brokers to the investors at the lower end of the financial market.

In this way we have gained a meaningful knowledge about India's financial market and its structure from this training at Sharekhan. hi this way, the finance function is carried out at Sharekhan by following the guidelines given by SEBI. And the company is a private limited one with its own policies for disclosing its financial statements, so we are not able to give any figures for showing the financial position of the company.

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MAN POWER AND EMPLOYMENT

Employee 31

Trainee 5

TOTAL 36

Detail of employee

Taretary manager 1

Branch head 1

Ass.Manager 2

Dealer: - On line 3

Off line 3

Commodity 1

F&O 2

BSE& NSE 4

Back office 3

Executives 7

Peon 4

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HUMAN RESOURCE DEPARTMENT

Human resource is the crucial resource that a company can use to grow with the work or the employees. HRM activities at Sharekhan start from induction to the specific job training and are done by H/O at Mumbai. H/O takes a written test and selection interview for filling up vacancies in branches but the recruitment is done by the branch itself and the selection is performed by H/O from the screened applicants.

Any new recruit is firstly inducted to the company and sent to T & D department that is covered under HRD and T & D programmers makes employees aware about all the activities/jobs within the department he/she is to be recruited. Suppose if, I would be recruited for finance department then the finance related employees are known to me with their work profiles, that is, what they really do?

Then the specific job training is provided at H/O and the person has to keep in touch with the concerned department at H/O on internet because he/she has to solve many conflicts arising in the investor's mind and to have an up-to-date information regarding the procedures and any new facilities or policies to resolve the problems of the clients. It is a must for each employee because the employee is the people by whom the company gets its customers and retains them.

HRP (Human Resource Planning), HRIS (Human Resource Information System), Recruitment & Selection, Career planning and development, Assessment & development of employees for Performance appraisal, etc. activities of managing the HR at Sharekhan is maintained in a way to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the people are helpful to each other and eager to get the work done as soon as possible with a cooperative thinking. An additional Rs. 10000 is provided for each outlet of Sharekhan to motivate its employees by performance appraisal and also the heads of each departments and braches has to go through a 3606 performance appraisal for maintaining the consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best managed and used for the continuous growth and development of the company for its future plans to be achieved time-to-time.

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Joining Formalities

Sharekhan welcomes all employees and is confident that this association will be mutually enriching and challenging. It is essential for the HR team to keep record of your personal and professional information to enable speedy processing of information and planning relating to areas such as tax and medical insurance as well as allowing us to assist you in the time

of emergency.

In this regard we request all new employees to please furnish HR with the following information. The documentation needed falls into three primary categories: personal information, joining report and other forms.

Personal Information

For the personal record of the employee the following documents should be submitted to the HR team on the day of joining: Duly completed Application Form Two passport size photographs Proof of date of birth Copy of educational certificates: graduation/post graduation/diplomas/NCFM

certificates (wherever applicable) Relieving certificate from the previous employer, if applicable Proof of last drawn salary Copy of Mapin registration (wherever applicable) Medical examination reports Bank account details Insider Trading Agreement (only for designated employee) Confidentiality Agreement

Joining report

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In addition the employee is required to fill out a Joining Report as per the format attached in the annexure.

Other forms

The following forms/agreements also need to be completed: Medi-claim insurance application form Provident Fund transfer/application form Provident Fund nomination form Gratuity nomination form Accident Insurance nomination form Tax estimate/Savings declaration form Mapin registration

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Confidentiality Agreement On joining Sharekhan it is imperative for all employees

to sign and abide by a confidentialit agreement, which is

legally binding.

It is an agreement stating both during and after employment all data pertaining to any businesses involving Sharekhan is to be kept confidential and protected and not to be shared with anyone. Information relating to the company's business, dealings, methods, appointments, practices, transactions, designs and processes or affairs is of substantial value and shall be treated as being confidential, whether or not it is individually identified as confidential. It is the subject of reasonable efforts to maintain its secrecy and is being provided and disclosed to you solely for use in connection with your employment by the company.

This agreement also binds employees to uphold all ethical practices espoused by the company.

During the course of your employment, you agree that you: Will regard and preserve all trade and proprietary information of the

company as highly confidential. Will not disclose, nor permit to be disclosed, any information to any person

or entity, without written consent and approval from the company. Will not reproduce or duplicate, and will not permit any person to reproduce

or duplicate any information without the company's written consent and approval.

Will not make any use of information for their own benefit or the benefit of any person or entity other than the company.

Will return all information and data to the company immediately upon the request for the same.

Employees who improperly use or disclose proprietary information or confidential business information will be subject to disciplinary action, up to and including immediate termination of employment, even if they do not actually benefit from the disclosed information.

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Induction Induction forms an integral part of Sharekhan's culture.

The induction programme is designed with the following objectives:

Provide an overview of the company's business and product portfolio. Enable the new employee to understand the work culture and

processes/systems. Provide an opportunity to interact with his/her superiors/colleagues and

enable him to understand them better.

During induction, employees are: Provided their own workspace Given a copy of this Employee Handbook Introduced to assignments related to their role

Induction process The function heads along with the HR team designs the induction programme. The duration of the induction programme varies from two days to a week depending upon the role on the new joiner. The induction programme in the company covers three broad areas: I. About Sharekhan

Introduction to Sharekhan: vision, business, products and clientele Organisation structure: key functions and their accountabilities, function

heads IT systems and policies

II. HR philosophy and practices Sharekhan values Overview of HR policies, systems and practices Overview of risk & compliance practices

III. About the job Key responsibilities and expectations of the job Goal setting and performance measurements

SHAREKHAN’S massage to all member

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This handbook has been designed to communicate to our team the various Human Resource (HR) policies/practices that we are trying to institutionalise in our organisation.

This handbook disseminates information on all the SSKI Investor Services Pvt. Ltd (Sharekhan) policies, procedures, benefits and responsibilities of the employees. The policies have been designed with a focus on introducing market aligned HR practices at Sharekhan while meeting the needs of individual employees and addressing their concerns.

This handbook is not an agreement or contract of employment and therefore need not be construed as a contract. The management of Sharekhan reserves the right to modify this handbook from time to time at its sole discretion.

This handbook is for internal circulation only. We would request you to read, understand and comply with all the provisions of this handbook. If you need any clarifications or further information on any aspect of this handbook, you can get in touch with your immediate superior or the HR team.

We welcome you to the Sharekhan family and hope your association with us is mutually EXCITING, FUN FILLING and CHALLENGING!!

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SHAREKHAN’S Belief and Expectations

Our vision at Sharekhan is "to empower the investor to make better investment decisions through quality service and superior advice."

Sharekhan believe in and promote a culture that:

Stimulates the employees' drive to excel Nurture their entrepreneurial spirit by providing them exposure to

challenging work opportunities and imparting autonomy to function effectively

Support the employees to deliver by incorporating practices aimed at o Employee development/skill acquisition o Enhancing transparency and trust, being non-discriminative to any

practice/procedure/system o Establishing norms towards enforcing discipline in the organisation as

regards work etiquettes Promotes collaboration and team spirit amongst the employees Acknowledges and rewards individual and team contribution through

appropriate rewards, recognition and compensation Builds a sense of ownership across the organisation for adherence to risk and

compliance procedures amongst all employees and channel partners.

What Sharekhan Expect from there team?

In our industry, relationships with clients are highly critical. Developing

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customer focused solutions and managing their expectations effectively and delighting them is the key to our success. Sharekhan believe that an Engaged & Committed workforce is indispensable for high quality customer service.

Sharekhan is in an industry that is governed by stringent regulations and non-compliances can lead to financial loss and loss of goodwill. They expect there team to function in tandem with the organisation and support the management to inculcate a strong discipline across the organization

At Sharekhan we believe in having a strong performance-oriented culture. We are convinced that this is the best way to encourage employees to set high performance standards and goals that are tracked, and performance that is evaluated to decide the rewards. Sharekhan strongly believe in employee development and growth. In this competitive environment, Sharekhan expect there employees to be abreast of the external changes and take initiatives to adopt the new changes. As part of there HR initiatives, They will identify training needs, design appropriate training programmes and conduct them on regular basis.

Leave and holiday At SSKI we have established a set of leave rules that are

legally compliant and that provide for reasonable leave requirements of employees, giving them the opportunity to maintain a work-life balance.

Leaves at SSKI SSKI provides the following types of leaves/holidays:

Holidays

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Privilege leave Maternity leave Paternity leave

Leave accounting year The year for calculation of leave would be the same as the financial year—April 1st to March 31st.

Pro rata adjustments will be made to bring entitlements in line with this.

The current leave policy will be valid upto 31st March 2005 and the revised policy that is listed below will be effective 1st April 2005.

Detailed guidelines

A. Holidays The company will declare a list of 12 holidays every year based on the holidays declared by the exchanges, bank holidays and regional festivals. Please contact your function head or branch head for the current list.

B. Classification of leave & eligibility

Leave type No of days (annual)a. Privilege leave 25 working daysb. Paternity leave 2 working daysc. Maternity leave 12 weeks

a. Privilege leave (PL)

Eligibility - All confirmed employees - All employees on probation/trainees will be eligible for one working day leave per   month. On confirmation, the leave balance will be updated on a prorated basis.

Accumulation 15 days per year, up to maximum 45 days

Encashment Privilege leave can be encashed only at the time of retirement or

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resignation. The leave balance up to maximum of 45 days will be encashed as per the basic salary at the time of encashment and all excess leave will lapse.

b. Paternity leave (PL)

Scope For all male employees. Leave taken for the birth of first two children.

Eligibility Two working daysAccumulationNot applicable Encashment Not applicable

Leave planning and application SSKI encourages employees to plan their leave carefully in order to meet the needs of the employees and the company. You must fill out the Leave Application Form when requesting time off, which must be signed and approved by your manager/supervisor. Employees are encouraged to actively communicate leave plans and details to their supervisors so that all team members can adjust their schedules. The company will try at all times to meet any reasonable requests for leave; however consideration of your co-workers and any existing responsibility is essential.

Leave of all types availed in the month must be updated on the leave card. Till leave cards are provided, an e-mail with the approval of leave by the immediate manager must be sent to HR and Payroll for easy tracking and updation in monthly payroll.

Leave between holidays The company does not permit its employees to take leave prefixed and suffixed to the holidays.

For instance if a holiday is on Friday and a weekly off on Sunday, then the employee is not supposed to take leave on Saturday. In case the employee takes

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leave on Saturday, then all three days, ie Friday, Saturday and Sunday, will be considered as leave.

Leave extensions The company does not encourage extensions of leave. They will be granted only if the employee communicates such an intention in writing only in unforeseen circumstances at the discretion of the management.

Leave without pay

Any leave availed in excess of the entitlement will be treated as leave without pay and proportionate salary will be deducted for the same. The company does not encourage employees to take leave without pay. The leave without pay can be waived off only in unforeseen circumstances at the discretion of the management

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Other Benefit and Sharekhan Policy

We at Sharekhan would like to contribute towards enhancing our employees' and their families' life by extending benefits that are of relevance and importance to our employees. In this chapter, we have summarised the benefits that are available to our employees.

I. Employee Marriage Gift Policy

We believe that our employees are part of a large Sharekhan family. Just as employees are an integral part of all the developments and celebrations of Sharekhan, we too would like to be a part of one of the most important event in the life of our employee—Marriage.

The Employee Marriage Gift Policy is instrumental in showering our best wishes on the newly married couple.

Applicability All single employees of Sharekhan.

ProcessThe process and administration of the policy is detailed below:

The manager on receipt of the invitation card will forward the same to the Accounts department for necessary action.

In case the marriage is between two employees, both will receive the gift individually.

Employee marriage gift The employee will be given a token gift of Rs2,500/- by cheque on the wedding day. This gift will be handed over to the couple by his/her immediate manager/supervisor with best compliments.

II. Medi-claim Policy Sharekhan provides Medi-cliam cover to all employees. The detailed information on the policy, relevant processes and the TPA (Third Party Administrator) appointed by the company is attached in the annexure.

Coverage and limits

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The Company bears the cost of insurance premium for all employees as per following limits:

Monthly CTC CoverageUp to Rs25,000 per month Rs100,000Above Rs25,000 per month Rs150,000

Employees have the option of covering their dependents under this policy for any amount not exceeding the limit for the employee; however the cost of the same will have to be borne by individual employees.

III. Term Insurance Policy

Sharekhan provides term insurance cover (death in case) to all employees. The details of the coverage are as mentioned below:

Annual CTC CoverageUp to Rs100,000 Rs200,000Up to Rs300,000 Rs500,000Up to Rs800,000 Rs1,000,000Up to Rs1,500,000 Rs2,000,000Above Rs1,500,000 Rs4,000,000

Term of Employee

Probation

All regular full-time employees will undergo a six-month probation period as specified in the appointment letter. The probation period helps the organization to assess the employee's on-the-job performance and his cultural fit with the organization.

Either party may give 15 days' formal notice of separation of employment at any time during probation.

Confirmation

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Completion of the probationary period should not be construed as confirmation till such time that the confirmation review process is completed.

The employee's immediate superior at the conclusion of the probation period shall conduct a formal performance review for confirmation. The performance review shall include self-feedback, performance review by the managers with specific suggestions for improvement.

An official letter will be issued in case of confirmation. In case the performance is not satisfactory, the probation period can be extended for three months. The confirmation appraisal format is attached in the annexure.

Either party may give a minimum of 30 days' formal notice of separation of employment at any time after confirmation.

Transfer Policy

Transfers become essential in the spate of growing business requirements. To meet them appropriately, the Company may decide to transfer any employee to any location based on the business requirements. With the purpose to facilitate the same, it is essential to have a transfer policy in place. It is necessary for the company to assist employees in this process.

All employees of the organization will be covered under this policy. The employee will be communicated in writing regarding his / her transfer and other relevant information i.e. reporting authority, work responsibilities etc

Mode of travel for self and family Fare for self, spouse and the company on producing the tickets will reimburse two dependent children at actuals. The mode of travel remains the same as per employees’ eligibility in the Travel Policy.

Pre-transfer expenses The company will reimburse 1 pre-transfer trip for self and spouse, not exceeding 5 days in total, to the transferred city for the employee on account of housing, schooling etc. Travel and Hotel expenses will be as per the Travel policy.

Post-transfer expenses

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The employee and his / her family will be eligible for Hotel stay at the new location as per eligibility under the Travel policy. The total period of hotel stay post transfer with family will not exceed 5 days.

Transport of Goods

The employee will be eligible for reimbursement of cost of one truckload of personal belonging on actual from his current location to the transferred location. However, the employee is required to submit quotations from minimum two transporters and needs to have pre-sanction for the expense. Transport allowance will include packing, loading and unloading charges and insurance premium. The insurance premium should not exceed Rs.10,000.

In case of function heads / branch heads / Managers, the company will reimburse additional cost of transportation of one car on actual. However, the employee is required to submit estimated cost and needs to have pre-sanction for the expense

Temporary Transfer

If an employee is deputed to any other location/ office for a minimum period of one month and not exceeding six months, it will be considered a temporary transfer.

An employee on temporary transfer will be eligible for a monthly Deputation Allowance equivalent to 25% of his current CTC and the same will be paid along with the monthly salary.

Any temporary transfer exceeding six months will be considered as permanent transfer and all benefits associated with temporary transfer will cease to be applicable.

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Personal Conduct

Sharekhan’s business is dependent on there reputation and the level of trust that is reposed in us by our customers. However this calls for a very high inclination towards adherence to regulations and being ethical in all our dealings. They believe each and every employee's behaviour needs to reflect our philosophy. The onus is on each and every member to refrain from any illegal, dishonest or unethical conduct and report to the management any incidents of malicious nature occurring around him. Employee responsibilities

The job performance and personal conduct of each employee directly affect the image and reputation of Sharekhan. Employees are required to observe the following guidelines to maintain ethical standards:

Ensure there is no theft, embezzlement, misappropriation of funds, false entries in any book report or statement with intent

To defraud and falsify the expense accounts is a cause for immediate dismissal.

It is the responsibility of each employee to report to the management any knowledge that a crime has been or will be committed. Not reporting is a cause for immediate dismissal.

A client's confidential information must not be divulged to third parties except with proper authority from the client and the immediate superior.

An employee will not discuss nor enter into agreements with competitors concerning Sharekhan's dealings, prices/services etc.

Sharekhan's physical properties, information and influence will not be used for the private advantage of any employee or other person.

Outside activities must be acceptable and compatible with the employee's identity with Sharekhan. This includes the prohibition of business and personal investments, and outside employment, any of which would create a conflict of interest.

Employees must not accept from or give to clients and suppliers personal gifts; or accept bequests, commissions or fees of any nature from clients; or borrow from clients or suppliers.

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WHY THIS STUDY IS CONDUCTED??

In the Rajkot City, Finding for the Sharekhan that where they are invest there Surplus money. For know the how the people are invest there money in Stock Market. Which medium they are Use, they are trading through On line, Off line, Dial n Trade and how much time period they are invest in the market.

There are very few people in Rajkot who are trading in Share Market. So provide them Knowledge about the Share Market and Sharekhan. So Sharekhan can improve his income. While there are immense opportunities for the development of these segments.

Sharekhan as a stock broking company needs to focus on increasing the awareness about Share Market Trading. Because, if trading on these instruments will increase, Sharekhan will also be benefited by earning revenue in term of Brokerage. This was the main reason behind conducting this study.

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RESEARCH OBJECTIVE

The main objective of the study is to check the Investment pattern in Rajkot city. Their potential market among the people of Rajkot City.

Some other secondary objectives are as under:To know the awareness of Stock Trading.

To know the scope for the Sharekhan.

To know the investment habit of the people of Rajkot City.

To know the purpose of investing in Share Market.

To know the influencing force behind the decision making while at a time of

trading.

To find out the medium which is the best suitable for trading in stock market.

To Know the which medium is using for trading in Market in Rajkot City

.

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SAMPLING DESIGN

Sampling design is one of the most important aspects. So in that Sample design we have to look that whatever figure we take that can give truly and fact figure. So where the design must be appropriate in order to have the desired result. Sampling design includes various aspect and they are as follows:

Sampling Area : Rajkot city

Sample Population : 1000

Sample Size : 200

RESEARCH DESIGN:

Data Source : Primary data

Research Method : Survey Method

Research Technique : Questionnaire

Type of Questionnaire : Structured

Type of Questions : Closed & Open endedQuestions

No of Questions : 11

Place : Rajkot city

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Data Collection

The research is conducted with the help of questionnaire therefore the main source of information is the response of the respondents and fill up the structured questionnaire. This can be considered as a primary method of collecting the data.

Limitations

In this Survey there few limitations which are as follow:

Personal Bias:

Individuals may have personal bias towards particular investment option so they may not give correct information and due to which the conclusion may be derived.

Sample Size:

The last limitation is Sample Size, which is of 1000 only; due to which we may not get the proper results.

SOURCES OF DATA

Primary Data:

The data, which is collected directly from the respondents to the base of knowledge and belief of the research, are called primary data.

So far as our research is concerned, primary data is the main source of information. We have collected data through Questionnaire and information from respondent.

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SAMPLING PROCESS

It is very true that it’s very difficult to do the research with the whole universe. As we know that it is not feasible to go for population survey because of the numerous customers and their scattered location. So for this purpose sample size has to be determined well in advance and selection of sample also must be scientific so that it represents the whole universe.

So far as our research is concerned, I have taken sample size of 200 respondents. We have selected Income Earners with savings to invest in Rajkot city.

All the respondents are stratified on the basis of their profession and savings. We have selected the samples as per our convenience.

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Sample universe Rajkot city

Sampling Technique Convenience

Sample size 300 respondents

Sampling Unit:

Professional = convenience

Busi Business Man = convenienceGovernment Employees = convenienceEmployees working in private fir = convenience

General information Gender

Male Female164 36

Findings:

From the total 200 surveyed, there are 164 male and the remaining 36 are female. So this means there are more male people who do invest in wither share market or in any other place.

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Age Group

Findings:

The result of the question reveals that there more younger people who believe that investment should be done and they doing it also regularly.

Because there are around 50% people below the 30 years age who are doing investment. Between 30 – 50years, 35% i.e. 70 out of 200 are there so ultimately this means that there are more younger people who do investment.

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Below 30 30-50 Above 5097 70 33

Education

Findings:

The result shows that more Graduate people as well as Post graduate people interested in the investment in share market. If we see in the total of 200, out of them 178 are graduate or post graduate. So this means that there is a wide scope to increase their market share.

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Under Graduate Graduate Post ate32 107 61

Occupation

Govt. EmployeeNon Govt. Employee Business man Professional

42 62 68 28

Findings:

Almost 20% people are Govt. Employee and then comes Non Govt. Employee and there ratio is 30%. Out of the total while 35% people are doing their own business and remaining are Professional people.

From the result we can say that same number of people are working with Pvt firm or doing their own business. If we look at Pvt firms, there are giving higher pay scale to their employee so overall picture gives the idea that there are enough people ho can be convinced if given proper information about the stock market. In addition to that Govt employee are having fixed income so their surplus amount will be invested somewhere else so for sharekhan, this is a great chance to grab this opportunity and make them convince.

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Q.1 Do you invest Your surplus money in saving Instrument ?

Yes No165 35

Findings:

There are nearly 80% people i.e. 165 out of 200 are regularly investing in various investment options while remaining are not investing.

Recommendation:

As per the result we can say that company has a whole bunch of people who believe that if they invest there money in any of the investment pattern, it is going to grow so to these people if proper information is given to them about the company product and also about share market they may invest in share market.

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Q.2 If Yes, Where do you invest your savings?

Bank F D P.O Insurance M.F Gold EquityDerivative

sCommodity

118 92 69 60 41 86 29 35

Findings:

There are various investment options available where most of the people are investing in Bank FD and their number is 118 and next is 92 in post office. Bu there may be people who may be investing in more than one place. There are less number of people who invest their money in Gold, Derivative and Commodity and their number is respectively 41,29 and 35.

Recommendation:

So from the results we can say there are people who invest their money in fixed return instruments like FD and P.O savings and less in Equity or Mutual Funds. But we all know that there is more return in equity as compared to other investment instruments but the risk will be a little high. But overall if we see they are the emerging markets and therefore there is a great scope of returns.

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Q.3 With which company do you trade?

Share khan

Motilal Oswal Marvadi 5 paisa

Anand Rathi

Kotak Security

HDFC ICICI Direct

74 49 66 36 22 54 31 80

Findings:

This question was put in the questionnaire to know whether people are knowing Sharekhan or not? The resulted figure showed that more people know ICICI very well and than comes is the Sharekhan where 74 people know about it. Kotak security is the next well-known company with 69 people knowing it out of the total. While remaining companies in this – 5 Paisa, Motilal Oswal, HDFC and Anand rathi.

Recommendation:

The recommendation can be given to the company is that although people are knowing the company very well there are competitors of it who are also famous and well known. So the company must continuously carry out activities which leads to more awareness about the company as well as its products and also provide its existing customer good services so that they remain with the company only.

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Q.4 Which medium do you use to invest?

Broker Internet Dial nTrade81 71 48

Findings:

There are many ways to carry out your transactions like through Broker, Internet or Dial n Trade. But when asked to the respondents most of them are interesting to do it with the broker i.e. 81 and 71 people opting for Internet and remaining are with dial n trade.

Recommendation:

Whenever it comes to the sharemarket, Broker is the main person who performs all the activites on behalf of the client and therefore most of the people prefer it. Now a days Internet is the newer medium for trading but still people don’t trust or do not know how to do transaction online but as Sharekhan is providing this facility also, therefore it is a dual benefit for the company. Therefore the company must also market its various services to the people and the benefits of it if they use.

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Q.5 Which type of time period you like to invest?

Daily basis Delievery basis Short term Long term62 50 36 52

Findings:

Whenever one wants to earn more money, it is the tendency that if it is invested for a long time but still more number of people who invest their money on a daily basis and next comes is for long time. In numbers it is around 62 for daily basis and 52 for long-term basis.

Recommendation:

Everybody has their own choice and they follow it regularly. Someone do not believe in long term and some believe only in that and therefore it depends upon the company that how they approach their clients as well as potential customers. If the proper guidance is given about the benefits of trading in different horizons than one may change but overall as the company is providing its customers the daily trading facility as well as for long term it does not make much difference.

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Q.6 Which stock exchange would you prefer to carry out your transactions?

BSE NSE121 79

Findings:

There is not much choice for the investor as there are mainly two main stock exchanges where most of the trading happens. BSE is the most preferred exchange with almost 60% is preferring it and remaining are with NSE.

Recommendation:

For the company who is providing facility to trade with any of the exchanges it does not make any difference except some minor ones. So for Sharekhan it is an advantage.

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Q.7 Which factor plays crucial role when you make decision to invest your money?

Risk reduction Leverage benefit Speculative motive

Arbitrage benefit

82 49 38 31

Findings:

There are many factors, which comes to the mind whenever one wants to invest like Risk, Returns or speculation. People are having the mentality of risk reduction and it is around 40% and some are doing for speculative motive i.e. 20%.

Recommendation:If one has to expand its business it is prime necessity for the company to

make their client understand the envt and various angels which helps to make the decision much more easy. So some wants to have safety and some wants to have return on within a shorter time period i.e with the help of speculation. But the company must guide them in a proper manner so that their hard earned money grow fast.

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Q.8 According to you, which medium is the most reliable for trading in stock market?

Stock broking company Franchises Broker86 61 53

Findings:

There are various ways to incest in stock market but which is the reliable one and also people prefers can be known from this question. Where most of the people rely on Well known stock broking company i.e. 63 people and 61 people rely on local but known broking companies.

Recommendation:

Once again it depends on the company how it handles various people because everybody has different mentality and different viewpoints and they are also correct on their side. But it is always advisable to trade with well known companies because there are other millions of people who are with them so this the company should always tell to its clients.

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Q.9 How do you take decision if you want to invest in stock market?

Independently Broker News channel

News paper

Adive from Friends

Stock broking house

Business Mazagine

Internet

1 5 4 7 3 2 8 6

Findings:

Here the respondents were asked to rank various options according to their preference and 1st preference is given to independent decision, next comes is the advice from well known broking companies and then after broker (local).

Recommendation:

If the company wants to increase their customer base, the marketing of the company’s products should be done in an effective manner so that more and more people come to the broking firm for their investment.

It should also use news channel, newspaper and Internet medium for their product marketing so that they have more scope of expanding their business.

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Q.10 When you invest in commodity, which type of industry do you prefer?

Oil Metal Gold Other59 48 71 22

Findings:

Most of the people prefer to trade in Gold i.e. 71 out of 200. While 59 people prefer oil and 48 metal, remaining prefer other than these options.

Recommendation:

The comparative analysis of the various commodities can be done by the company and overall benefit in terms of money can be presented to the client but it should be done with great accuracy.

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Q.11 In which type of market do you prefer to invest?

When it go up When it go down When its stable97 61 42

Findings:

This question was put in order to know the mentality of the people and it shows that whenever the market goes up, they will invest at that time and when it is stable, 62 people believe that it is the correct time to invest. While 61 believe whenever it is down, we will invest.

Recommendation:

One can’t change the mentality of the people but if properly facts as well as figures are shown to them they might change from its previous decision. Because here the deep study is required and it is not possible for the client to do this study so good advice can changer customers mindset.

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LIMITATION

Costumers may not be aware about typical Question regarding investment.

Rajkot is a big city and timing has been allotted is very less.

Researcher didn’t have enough exoerience.

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Conclusion

From the above finding and recommendation, the following are the concluding points:

There are sufficient numbers of people aware about share khan so this is a good for the company that at least people are aware about the company.

Share khan is also providing all the services as well as facilities to trade in almost all the exchanges, therefore the company has nothing to worry in that matter.

Share khan also has good network all over India and franchise offices are also in good number, therefore it is also an advantage for the company because customer can access their accounts from anywhere.

Share khan has a good research team at its Head Office and the fact is that the almost 75 to 80% advices of the total given is true and has benefited the clint in achieving the profit.

Last but not the least is the existing customer base of the company and their level of faith in the company. So with the help of this customer base, the company can expand its scope of the their businrss.

One of the limitation is there that the company has lengthy process of opening the account, so it should concentrate and make some corrective measures to make that process easy and fast.

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Investment pattern in Rajkot cityRESPONDENT’S PROFILE:

NAME:____________________________________________GENDER: MALE: FEMALE: :

AGE GROUP: BELOW 30: 30-50:ABOVE 50:

EDUCATION: under graduate Graduate

Post graduate

OCCUPATION: Govt. Employee:Non-Govt. Employee:Business Man:

Professional:

Q.1 Do you invest Your surplus money in saving instrument?YES: NO:

Q.2 If YES, Where do You invest Your savings?Bank F.D.: Gold:Post office schemes: Equity:Insurance: Derivatives:Mutual Fund: Commodities:Other than specify:________

Q.3 with which company do you trading?share khan anand rathimotilal auswal kotak securitymarvadi HDFC 5 paisa ICICI direct

Q.4 which mediums do you use to invest ?Broker: Internet:Magazine: dail n trade

Other than Specify:____________

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Q.5 Which type of time period you like to investment?Daily basis short termDelevary basis long term

Q.6 which stock exchange would you prefer to carry out your transaction? BSE: NSE:

Q.7 Which factor plays crucial role when you make a decision to invest money?

Risk Reduction: Speculative Motive:Leverage Benefit: Arbitrage Benefit:

Q.8 According to You, Which medium is the most reliable for trading in stock market ?

Stock Broking Company:Franchises:broker

Q.9 How do you take decisions if you want to trade in stock market? (Give Rank according to you)

Independently Advice of Friends/colleagues

Broker/Agent’s advice Well-known Stock Broking Houses

News channels Business Magazines

Newspapers Internet

Q.10 when you invest in commodity, which type of industry do you preferred? Oil fmcg Metal gold

If other specify__________________________

Q.11 in which type of market do you prefer at a time of investment? When it go up When it go down

When it stable

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BIBLIOGRAPHY

BOOK

Marketing Management Phillip KotlerResearch Methodology KooperHuman Resource AswathapaProduction and Operation Adam & Abert

Magazine

Value LineEagle EyeBusiness WorldNSDL

Web Site

www.sharekhan.comwww.sski.comwww.bseindia.comwww.nseindia.comwww.moneybhai.com

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