1. PROJECT REPORT
ON
“CUSTOMER SATISFACTION IN ONLINE TRADING’
(With Special reference to Indianinfoline Limited, Bhubaneswar)
Submitted to Bput
for partial fulfillment of the requirement for the award of the degree
of Master in Business Administration
SUBMITTED BY
Venketeswar choudhury,
MBA 3rd Semester,
REGD NO-1006286069
UNDER THE GUIDANCE OF
MR. SWADHIN SAHOO MR P.K SAHOO
SALES MANAGER, ASST. PROFESSOR
INDIAINFOLINE LTD,BBSR DEPT.OF FINACE
SRUSTI ACEADEMY MANAGEMENT
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2. (Affiliated to BPUT, University)PATIA, BHUBANESWAR
CERTIFICATE
BY THE
HEAD OF THE DEPARTMENT
Mr. P.K HAOO
Department, Finance.
This is to certify that MR.VENKETESWAR CHOUDHURY a
bonafide student of Master in Business Adminstration(M.B.A) has
completed the project entitled “ Dirict marketing with customer
satisfaction surveya (with reference to indiainfolineLtd.”. This project
has been submitted as a partial fulfillment of the requirement for the
Master in Business Adminstration Examination, 2010.
To the best of my knowledge no work with such caption and
content has been submitted to any other University or institution for the
award of any degree.
Date:-
Place: - (MR. P.K. SAHOO)
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3. CERTIFICATE
BY
THE GUIDE
Mr. P.K SHAOO
Faculty Member,Finance.
This is to certify that MR Venketeswar choudhury, a bonafide
student of Master in Business Adminstration has completed the project
entitled “ Direct marketing Customer Satisfaction survey (with
reference to indiainfoline Ltd., Bhubaneswar)”. This project has been
submitted as a partial fulfillment of the requirement for the MBA
Examination, 2010.
Date:-
Place: - (MR. P.K SAHOO)
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4. ACKNOWLEDGEMENT
The joy of creativity! Probably that’s why I am drawn to give my
best in preparation of this project book. Though the cover of the book
bears only my name, it reflects the collective wisdom of numerous
people and websites to whom I met or gone through. They developed
zeal in me to learn, to grow, to inspire and also to perspire.
I put on record the unflinching support of Mr. AISH
KU.PRADHAN, Secretary which has sustained me all through.
I place my sincere and profound thanks to DR.G.K SHARMA,
Principal and Mr. N.S NANDA, Head of the Department, P.G.
Department of Finance and Management, SAM for their kind guidance,
meticulous care and concern in enabling me to study the numerous
aspects.
I gratefully acknowledge my guide, Mr. P.K SAHOO, Faculty
Member(AST.PRO), Department of finance and Management, SAM for
his advice, supervision, and crucial contribution, which made him a
backbone of this research and so to this project. His involvement with
his originality has triggered and nourished my intellectual maturity that
I will benefit from, for a long time to come. I am grateful in every
possible way and hope to keep up our collaboration in the future.
My sincere thanks also goes to Mr. SWADHIN SAHOO(SALES
Manager),Indiainfoline limited. Bhubaneswar for offering me the
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5. summer internship opportunities in their groups and leading me
working on diverse exciting projects.
I would like to thanks Miss Manani pradhan & priynka patnyak
Non-teaching staff members of the institute for their kind help without
which it was impossible to travel a long distance and their direct or
indirect interactions between us will enchant and inspire me for a long
time.
(Mr venketeswar chouhury)
ROLL NO. 1006286069
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7. CHAPTER – 1
INTRODUCTION
1.1 INTRODUCTION
Directly satisfaction to customer personal marketing based
investment activity that involves no direct involvement of the broker.
There are many leading cutomer satisfaction portals in India along with
the Directly convince to customer platforms of the biggest stock houses
like the National stock exchange and the Bombay stock exchange. The
total portion of online share trading India has been found to have grown
from just 4 per cent of the total turnover in 2008-09 to 20 per cent in
2010-11.
The investor has to register with an online trading portal and get into
an agreement with the firm to trade in different securities following the
terms and conditions listed down on the agreement. The order
processing is done in correct timings as the servers of the online trading
portal are connected to the stock exchanges and designated banks all
round the clock. They can also get updates on the trading and check the
current status of their orders either through e-mail or through the
interface. Brokerages also provide research content on their websites,
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8. such that the clients can take their own decisions on stocks before
investing.
The major financial products and services of the Online trading in
India are like equities, mutual funds, life insurance, general insurance,
loans, share trading, commodities trading, portfolio management and
financial planning.
In spite of many private stock houses at present involved in online
trading in India, the NSE and BSE are among the largest exchanges.
They handle huge daily trading volumes, supporting large amounts of
data traffic, and possessing a countrywide network. The automated
online systems used for trading by the national stock exchange and the
Bombay stock exchange are the NIBIS or NSE’s Internet Based
Information System and NEAT for the national stock exchange and the
BSE Online Trading system or BOLT for the Bombay stock exchange.
Customer satisfaction is a measure of how products and services
supplied by a company can meet the customer‘s expectations. Customer
satisfaction is still one of the single strongest predictors of customer
retention. It’s considerably more expensive to attract new customers
than it is to keep old ones happy. In a climate of decreasing brand
loyalties, understanding customer service and measuring customer
satisfaction are very crucial. There is obviously a strong link between
customer satisfaction and customer retention. Customer’s perception of
service and quality of product will determine the success of the product
or services in the market.
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9. With better understanding of customers’ perceptions, companies can
determine the actions required to meet the customers’ needs. They can
identify their own strength and weaknesses, where they stand in
comparison to there competitors, chart out path future progress and
improvement. Customer’s satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvement s in
the work practices and processes used within the company.
Customer expectations are the customer defined attributes of your
product or service you must meet or exceed to achieve customer
satisfaction. There are many reasons why customer’s expectations are
likely to change over time. Process improvement s, advent of new
technology , changes in customer’s priorities, improved quality of
services provided by competitors are just a few examples.
There is growing competition between broking firms in post reform
India. For investor it is always difficult to decide which broking firm to
choose. Research was carried out to find which brokerage house people
prefer and to figure out what people prefer while investing in stock
market.
This research aims is to analysis stock broker on the basis of their
services, products, growth and their subsidiaries. Because stock brokers
are one of the main participants in stock exchanges world wide, they
often act as an agent for there clients, making trades on their behalf.
They also act as advisors, providing suggestion to their clients on what
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10. stocks to buy and sell. They have always providing the latest services to
there clients for fulfillment of the customer satisfaction.
1.2 PURPOSE OF THE STUDY
The main purpose of the study is to know the expectation of the
customers and the satisfaction levels of investors with the services
provided by indiainfoline Limited.
In the present competitive environment it is very crucial to every
business firm to ensure satisfaction to its customer s. according to one
survey it was found that it costs five time more to attract a new
customer than to retain an existing customer. So with all these
parameters taking into consideration one can say that it is very important
to provide goods and services that satisfy customers needs or wants
irrespective of the industry or scale of the business in which a firm is
operating.
Here the main purpose of the survey is to know the various factors that
are very important in satisfying the customers’ needs and to know how
indiainfoline Limited is insuring its customer satisfaction.
The expectations of customers are very from one customer to the other
customer. For example: - some customers are only concerned about the
returns that they are getting in a fund but at the same time there are
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11. some other customers who are very specific about the location,
ambiance and front line employees ‘ interaction and some other
parameters. It is very difficult to any business firm to satisfy all the
expectations of all customers but there are some common factors that are
essential to fulfill.
1.3 OBJECTIVES OF THE STUDY
To know the various services provided by the indiainfoline
Limited.
To have a comparison between indiainfoline Limited and other
broking firms.
To study the satisfaction levels of customers in indiainfoline
Limited
How IIFL is best service providers as a stock broker in the region.
To know about the awareness towards stock brokers and share
market.
To study about the effectiveness and efficiency of IIFL in relation
to its competitors.
To study about whether people are satisfied with IIFL and
management system or not.
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12. To study about the difficulties faced by persons while trading in
IIFL.
1.4 RESEARCH DESIGN
The design of the project report is a random sampling.
1.5 RESEARCH METHODOLOGY
This is a Descriptive research for which there is a comparison with
in the different stock brokers in relation to customer satisfaction towards
the best service provider.
1.6 SOURCES OF DATA
The present research study is based on two kinds of data, primary
and secondary data. The primary data was collected through observation
and well prepared questionnaires and the secondary data was collected
from various journals like business today, India today, business
standard, and the annual report of the company. It helps to understand
the topic clearly.
1.7 DATA ANALYSIS AND TECHNIQUES
These data are analyzed manually. The sampling technique is
stratified random sampling. “A sample design is a definite plan for
obtaining a sample from a given population. It refers to the technique or
the procedure the researcher would adopt in selecting item for the
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13. sample”. Generally sample design is two types i.e.:- sampling units and
size of sample.
1.8 SAMPLING UNITS
Sampling unit may be a geographical one, such as state, district,
village etc. the researcher will have to decide one or more of such units
that he has to select for his study. In my research study Bhubaneswar
city as a sampling unit.
1.9 SIZE OF SAMPLE
This is refers to the number of items to be selected from the
universe to constitute a sample. In my research the sample size is 40.
1.10 LIMITATIONS OF THE STUDY
Size of the research may not be substantial.
There may be biasness in information by market participants.
Complete data was not available due to company privacy and
secrecy.
Lack of time as 1 month and 2 weeks is not sufficient to make
a study on a topic like customer satisfaction towards the
service provided by the broking house.
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16. CHAPTER – 2
COMPANY PROFILE
2.1 COMPANY PROFILE
INDIAINFOLINE Limited is a leading full service investment bank
founded in 1995 offering a wide range of financial services and wealth
management solutions to institutions, corporations, high–net worth
individuals and families. The firm has rapidly expanded its footprint to
over2500 locations across India with international presence in
Singapore Exchange (SGX) & Sri Lanka(Colombo stock
exchange) . Founded by Mr. NIRMAIL JAIN (CEO) and Mr.
R.VENKATARAMA(Manageing director) of this group. , the group
today employs over 18000 professionals throughout India and its
international offices.
The firm’s philosophy is entirely client centric, with a clear focus on
providing long term value addition to clients, while maintaining the
highest standards of excellence, ethics and professionalism. The entire
firm activities are divided across distinct client groups: Individuals,
Private Clients, corporate and Institutions. indiainfoline has been named
The Best broking firm house awarded in India. The firm has emerged a
winner across all key segments in india’s largest survey of high net
worth individuals in India.
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17. 2.2 BOARD OF DIRECTORS
TABLE NO. – 2.1
TABLE TITLE – MANAGEMENT OF THE ORGANISATION
SL.
NAME DESIGNATION
NO.
1 Mr. Nirmal jain Chairman
2 Mr. R.venkataramana Managing Director
3 Mr. Kranti sinha Ind-Managing Director
4 Mr. Arun kumar parver Ind-Director
5 Dr. Nitas vikamasy Ind-Director
6 Mr. C. D. Arha Director
7 Mr. Ajit Bhushan Director
SOURCE:- www.indiainfoline.com
2.3 DEPARTMENTS OF INDIAINFOLINE LIMITED
The following are different departments of indiainfoline Limited
1. Private Wealth Management
Client Testimony
We have been ranked for the 1st c broking from house onsecutive year
as the #1 holding company? Overall BY OUR CLIENTS in an
international Poll (2010& 2011) conducted by the IIFL magazine. We
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18. believe that this is testimony to the faith and trust that our clients have in
our advisory and us.
Client-centric Ethos
Our belief is that there is a spark in every person that distinguishes him
as an individual, and defines his aspirations and goals. A Wealth
Management solution for every individual is therefore unique.
You deserve a customized solution for managing your wealth that is
specific to your needs and not a generic template – based offering.
Strong Research Capabilities
Our Advisory process is rooted in the strength of our research
team, giving us expertise across various asset classes. Our
Economic Research team has been ranked among the top 20 in
Asia by Institutional Investor and is one among the only 2 teams
from India to feature in this list.
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19. PRODUCT AND SERVICES PROVIDED
Products
Equities I Bonds I Mutual Funds I Derivatives
Managed Investment Services / PMS
Commodities
FX Trading
Welth Management
Asset Management
Investment Banking
Insurance
Fixed Diposit
Lones
Gol Bonds
Offshore other small Investments
Services
1. Creation of a customized financial strategy
2. Diversification of assets based on a formal process of asset allocation
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20. 3. Active tracking, monitoring and review of portfolios
4. Creation of private trusts
5. Tax planning
6. Estate planning
7. Structuring of family wealth
Team Member
Mr. Nirmal Jain
Chairman , India Infoline
Ltd.
MR.Nirmal Jain is the founder and Chairman of India Infoline Ltd. He
is a PGDM (Post Graduate Diploma in Management) from IIM
(Indian Institute of Management) Ahmedabad, a Chartered
Accountant and a rank-holder Cost Accountant. His professional track
record is equally outstanding. He started his career in 1989 with
Hindustan Lever Limited, the Indian arm of Unilever. During his stint
with Hindustan Lever, he handled a variety of responsibilities,
including export and trading in agro-commodities. He contributed
immensely towards the rapid and profitable growth of Hindustan
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21. Lever’s commodity export business, which was then the nation’s as
well as the Company’s top priority.
He founded Probity Research and Services Pvt. Ltd. (later re-
christened India Infoline) in 1995; perhaps the first independent equity
research Company in India. His work set new standards for equity
research in India
Mr. R. Venkataraman
Managing Director , India Infoline Ltd
Mr. R Venkataraman, Co-Promoter and Executive Director of India
Infoline Ltd, is a B.Tech (electronics and electrical communications
engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined
the India Infoline Board in July 1999. He previously held senior
managerial positions in ICICI Limited, including ICICI Securities
Limited, their investment banking joint venture with J P Morgan of US,
BZW and Taib Capital Corporation Limited. He was also the Assistant
Vice President with G E Capital Services India Limited in their private
equity division, possessing a varied experience of more than 19 years in
the financial services sector.
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22. Mr. Nilesh Vikamsey
Independent Director , India Infoline Ltd.
Mr. Nilesh Vikamsey – Board Member since February 2005 - is a
practicing Chartered Accountant for 25 years and Senior Partner at M/s
Khimji Kunverji & Co., Chartered Accountants, a member firm of HLB
International, a world-wide organisation of professional accounting
firms and business advisers, ranked amongst the top 12 accounting
groups in the world. Mr. Vikamsey headed the audit department till 1990
and thereafter also handled financial services, consultancy,
investigations, mergers and acquisitions, valuations and due diligence,
among others. He is elected member of the Central Council of Institute
of Chartered Accountant of India (ICAI), the Apex decision making
body of the second largest accounting body in the world, 2010–2013.
Mr. Kranti Sinha
Independent Director , India Infoline Ltd.
Mr. Kranti Sinha — Board member since January 2005 — completed his
masters from the Agra University and started his career as a Class I
Officer with Life Insurance Corporation of India. He served as the
Director and Chief Executive of LIC Housing Finance Limited from
August 1998 to December 2002 and concurrently as the Managing
Director of LICHFL Care Homes (a wholly-owned subsidiary of LIC
Housing Finance Limited). He retired from the permanent cadre of the
Executive Director of LIC; served as the Deputy President of the
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23. Governing Council of Insurance Institute of India and as a member of
the Governing Council of National Insurance Academy, Pune apart from
various other such bodies. Mr. Sinha is also on the Board of Directors of
Hindustan Motors Limited and Cinemax (India) Limited
Mr. A. K. Purwar
Independent Director , India Infoline Ltd.
Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt.
Ltd., investment manager to IndiaVenture Trust – Fund I, the healthcare
and life sciences focussed private equity fund sponsored by the Piramal
Group. He has also taken over as the Chairman of IL & FS Renewable
Energy Limited in March 2008 and India Infoline Investment Services
Ltd in November 2009. He is working as Independent Director in
leading companies in Telecom, Steel, Textiles, Power, Auto
components, Renewable Energy, Engineering Consultancy, Financial
Services and Healthcare Services. He is an Advisor to Mizuho Securities
in Japan and is also a member of Advisory Board for Institute of Indian
Economic Studies (IIES), Waseda University, Tokyo, Japan.
About Investment Banking
We are a leading investment bank focused on the middle-market in India
and aim to provide a level of service, dedication and expertise that is
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24. unmatched in the industry today. Our firm’s core principles of integrity
and dedication to the success of our clients are reflected in all that we
do. We offer our client’s high-quality, unbiased advice.
We have assembled a group of talented and experienced professionals
who are domain experts and have been recruited from a wide variety of
leading global financial institutions. Our professionals concentrate on
using their time and their “intellectual capital” to solve complex
financial problems and executing specialized transactions for you. We
strive to offer clients more senior-level attention than may be available
from many of our competitors.Our advisory business serves as an
independent sounding board and advisor on every strategic, financial
and operational issue our clients face in the daily management of their
businesses. We view our clients as partners, which ultimately means that
our focus and dedication extends far beyond that of traditional
investment banking advisory services – and includes a commitment to
senior level focus. Over the course of their careers, members of our
senior team have advised on over $30 billion in transactions.
• Exploring, evaluating and recommending financial and strategic
alternatives
• Assessing potential acquirers and targets and providing valuation
analyses.
• Negotiating and Consummating transactions.
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25. • Advising on transaction structuring, timing, pricing and potential
financing.
• Providing Fairness opinions
indiainfoline Limited (IIFL), one of the leading full service investment
bank in India.
Extensive knowledge and coverage of the private equity community not
just in India but around the world allows Indiainfoline Limited to bring
strong proprietary investment ideas to financial sponsors and to optimize
outcome through identifying high–quality financial buyers for our
middle–market clients. We have built a specialized practice in advising
private equity firms that want to invest in India but do not have a
presence here.
Exploring value maximization strategies.
Developing company positioning and all documentation for potential
buyers.
Developing buyers lists and managing all communications with potential
buyers.
Managing due diligence, data rooms, site visits and all buyer
investigations. Evaluating bids and negotiating and executing final
transactions and documentation.
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26. Corporate restructuring
Our dedicated, experienced Corporate Restructuring team can assist
debtors and creditors with restructuring leverage in a dynamic, global
economy by drawing on our deep industry knowledge and broad
network of commercial bankers, private equity leadership and hedge
fund managers.
Developing the comprehensive restructuring and reorganization plans
and assisting in the court administered approval process.
Advising on the ultimate structuring of a potential sale or
recapitalization
Capital Market Service
indiainfoline is a leading underwriter of public offerings and private
placements for middle–market companies in India. We’re known for our
innovative financing solutions that support complex corporate strategies,
as well as our long–standing client relationships. Our capital markets
business seeks to leverage our operational expertise and world class
institutional and retail distribution platforms to partner with existing
owners and management to maximize value at the time of a public or
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27. secondary market offering. Over the course of their careers, members of
our senior team have raised over $20 billion in equity and debt capital
for companies around the world.
• Assessing a company’s optimal capitalization and sources of
incremental capital.
• Developing a target investor group and effectively positioning the
company’s story to the investor community.
• Preparing all investor materials and managing all communications
with potential investors.
• Managing the due diligence process and all investor inquiries.
• Assisting with necessary documentation to expeditiously execute a
successful capital raising.
• Assessing the most appropriate group of investors to assist the
company in its long–term plan.
COMPANY DESCRIPTION:
Indiainfoline Limited is a leading full service investment bank
founded in 1996 offering a wide range of financial services and wealth
management solutions to institutions, corporations, high–net worth
individuals and families. The firm has rapidly expanded its footprint to
over 2500 locations across India with international presence in Singapur
& Sri lanka. Founded by IIFL Limited. The firm’s philosophy is entirely
client centric, with a clear focus on providing long term value addition to
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28. clients, while maintaining the highest standards of excellence, ethics and
professionalism. The entire firm activities are divided across distinct
client groups: Individuals, Private Clients, Corporates and Institutions.
IIFL has been named The Best broking fram house in India. The firm
has emerged a winner across all key segments in Asiamoney’s largest
survey of high net worth individuals in India.
In order to satisfy the growing demand of Indian investors for
trading offshore investment products, Spread Co has designed and
created a new financial product which incorporates the benefits of
traditional share trading and offering leverage. The new asset class is
known as Premium Securities. indaiinfoline Limited Group has entered
for a Introductory Broker relationship with Spread Co to introduce
clients for this financial product.
Premium Securities
Premium Securities are the new and exciting way to trade world markets
all from one online trading account at your fingertips. Our goal is to
make your Premium Security trading experience efficient and enjoyable,
and support you in what you are looking to achieve.
Puts you in control of your own trading
86
29. You can see the prices you are trading at and can choose to deal
straightaway or place orders to deal at a future time. You can trade a
range of financial products - all from one account. You really are in
control of your own trading.
Deal in small or large amounts
Unlike trading physical shares, when trading Premium Securities with
us, you can trade as little as one share, one index unit and five thousand
units of currencies.
Instant execution of trades
When trading Premium Securities with Spread Co, your trade will be
confirmed almost immediately you select the buy / sell button (this is
subject to the deal or order size being within permitted limits and the
instrument being priced correctly.) You should not have to wait more
than a few seconds for prices to be confirmed, except in unusual market
circumstances.
Flexibility – Ability to Hold an Investment in a Buy or Sell Position
Premium Securities give you the flexibility to buy or sell. If you buy (go
long) a Premium Security, you will make profits should the market price
rise and incur losses if market price falls. On the contrary, if you sell (go
short) a Premium Security, you will make profits if the market price falls
and incur losses if market price rises.
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30. Limited Risk
Trading Premium Security is limited risk trading. Unlike margin trading,
where you can lose more than your initial margin, your losses are limited
to the initial Investment Amounts for the relevant investment (as
increased by top ups you elect to make). Once your Investment Amount
drops to zero, your investment will be automatically liquidated. You are
protected by Spread Co who automatically creates a stop loss when you
purchase a Premium Security investment.
Access to Huge range of Global Markets
Premium Securities also enable you to trade a range of markets across
multiple asset classes from a single account.
Extended Trading Hours
24 hours between 10pm on Sunday evening (GMT) to 10pm on Friday
evening (GMT), markets are open and available for trading.
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31. Leverage
Premium Securities are leveraged financial instruments. When you buy
or sell Premium Securities, you only need a fraction of the nominal
amount - the valuation. If the market moves in your favour, your
valuation will increase. If the market moves against your favour, your
valuation will decrease. The maximum amount you can lose is the initial
Investment Amount (as increased by top ups you elect to make). Unlike
margined products, profits are potentially unlimited while losses are
limited.
Corporate Actions
Like traditional share trading, you can benefit from corporate actions in
dividend payments. Corporate actions and dividend payments will be
reflected as adjustments to the trade price.
Cash Settlement
Premium Securities are cash settled. When you hold Premium Securities,
you will need to place an Investment Amount. When you sell the
investment, the sales proceeds will be returned to you. You will not be
required to settle the underlying physical asset which may be the case in
other markets.
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32. No Partial Fills
In the physical markets, there are times which you may not know
whether there is sufficient liquidity to fill your entire order. With
Premium Securities, you can be sure that your entire order will be filled
up to the normal market size shown by Spread Co. Within predefined
quantity limits, Premium Security eliminates partial fills.
Premium Securities are new products and are launched as collaboration
between India infoline Limited and Spread Co. We are the first to launch
this product. Please click here to get more information regarding
Premium Securities
Competitive prices
We believe we are one of the most competitive providers in the
marketplace for the instruments we offer. See the Fees List for full
details of the current charges.
New technology with additional features
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33. You can customize your trading screen and lay it out how you want to
see it. You can also store numerous layouts for easy access to what you
need to see quickly. Alternatively you can simply use the default
versions Spread Co will provide you with.
Transparency
Spread Co provides total transparency on your trading history through
daily and monthly statements. These will be emailed to you and are also
always available through the trading system itself.
Premium Securities
A purchase of a Premium Security Investment is one where you make a
fixed investment to gain a leveraged exposure to an underlying financial
instrument at its current market price.
The embedded leverage in the Premium Security contract means you
have the potential of making higher returns, or losses, when compared to
trading the cash value of the underlying instrument.
However, similar to purchasing an option, losses are limited to the
amount invested.
Unlike option trading the Premium Security has no expiry and you are
free to choose when you want to close the position.
Derivative Product
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34. Premium Securities are financial derivative trading products. Their
prices are derived from the prices of their underlying financial
instruments. The underlying of a Premium Security is an asset, index, or
even another derivative, such that the cash flows of the derivative
depend on the value of this underlying.
When you buy or sell Premium Security, you will not physically own the
underlying instrument. With Premium Security, you are gaining
exposure to the direction of the future price movement in an underlying
instrument. You actually hold a contract with Spread Co to buy or sell a
Premium Security paying the Investment Amount and on selling the
same investment, receive the sale proceeds (if any).
Pricing
Premium Securities are priced almost identically to their underlying
instruments. They are typically quoted on a spot basis. Premium
Securities prices move in real-time as the price of their underlying
instruments move on the relevant exchange they are quoted or in the
inter-bank market.
The Spread
The spread, also known as the dealing spread or the Buy/Sell spread, is
the difference between the buy and sell rates at which you can buy and
sell Premium Securities.
Spread sizes vary by instrument depending on:
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35. 1. the liquidity of the underlying instrument
2. the volatility of the underlying instrument
3. the amount of freely traded shares that exist for the relevant
underlying instrument
The size of the spread represents how much the market must move in
your favor before you begin to make a trading profit. For example, if
you buy 1,000 Google Premium Securities at a $0.05 spread, your trade
will begin at a $50.00 loss.
Profit
The two main ways to profit from investing Premium Securities are to:
1. Buy at one price then sell at a higher price
2. Sell at one price then buy at a lower price
Loss
The two main ways to lose while investing in Premium Securities are to:
1. Buy at one price then sell at a lower price
2. Sell at one price then buy at a higher price
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36. Foreign Exchange Premium Securities
Trading FX Premium Securities is the new way to trade a range of
different currency pairs, and all from one online trading account at your
fingertips. Our goal is to make your FX trading experience efficient and
enjoyable, and support you in what you are looking to achieve.
What is Foreign Exchange Premium Securities
The foreign exchange (FX or Forex) market is where the world trades
currencies. It is the largest, most heavily traded market in the world,
with an estimated daily turnover of US$1.9 trillion. It is a true 24-hour
market from Sunday 10:00 PM GMT to Friday 10:00PM GMT. Trading
starts every day in Sydney and then moves round the world as the
business day starts in each financial centre; Tokyo, then London, then
New York.
This means that, unlike any other financial market, traders can respond
to currency fluctuations caused by economic, social and political events
at the time they occur, without having to wait until the relevant
Exchange opens.
Spread Co enables you to trade foreign exchange using FX Premium
Securities which simulate the price performance of an exchange rate
without the need to physically own the relevant currencies.
Currency pairs
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37. During an FX Premium Securities trade, you buy one currency while
simultaneously selling another in order to pay for the first currency.
The two currencies which are the subject of a single FX trade are
referred to as a currency pair. For example, USDJPY is a commonly
traded currency pair. USD stands for United States Dollar and JPY
stands for Japanese Yen. The most commonly traded (and therefore most
liquid) currencies are known as the “Majors” and this includes the US
Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian
Dollar and Australian Dollar. Each currency is referred to for the
purposes of FX trading by a three-letter code.
The first currency in a currency pair is called the 'base currency'. The
second currency in a currency pair is called the 'quote' or' term currency'.
The exchange rate quoted for the purposes of FX trading is how much of
the quote currency you need to sell in order to buy one unit of the base
currency.
Quotation principles
Exchange rates are almost always quoted with five significant figures.
This means that most currencies are quoted to the ten thousandth of a
currency unit. For example, 1.8525 would be a valid quote for
GBPUSD.
The smallest possible exchange rate movement is called a pip. For
example, GBPUSD can increase by 0.0001 from 1.8500 to 1.8501,
therefore one pip is equal to 0.0001 for GBPUSD. USDJPY can increase
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38. by 0.01 from 115.00 to 115.01 therefore one pip is equal to 0.01 for
USDJPY. If USDJPY goes up by 0.15, you would say, "USDJPY went
up 15 pips".
The Spread
The spread, also known as “the dealing spread” or “the Buy/Sell
spread”, is the difference between the prices at which you can buy and
sell.
The spread is how market makers such as Spread Co are compensated
for creating a market for you to trade FX. A wide or large spread is more
expensive to you. A narrow or small spread is cheaper for you.
The size of the spread represents how much the market must move in
your favour before you begin to make a trading profit. Your trades will
always begin at a loss calculated by multiplying the trade quantity by the
size of the dealing spread.
For example, if you buy 100,000 USDJPY at a JPY 0.03 spread, your
trade will begin at a JPY 3000 loss. See more examples on the left.
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40. There are different product and services which are
provided by Indiainfoline Ltd. They are as follows
Products
• Equities I Bonds I Mutual Funds I Derivatives
• Managed Investment Services / PMS
• Commodities
• FX Trading
• Welth Management
• Asset Management
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41. • Investment Banking
• Insurance
• Fixed Diposit
• Lones
• Gol Bonds
• Offshore other small Investments
Services
8. Creation of a customized financial strategy
9. Diversification of assets based on a formal process of asset allocation
10. Active tracking, monitoring and review of portfolios
11. Creation of private trusts
12. Tax planning
13. Estate planning
14. Structuring of family wealth
4.1 EQUITY SHARES
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42. Equity shares are commonly referred to common stock or ordinary
shares. Share capital of a company is divided into a number of small
units of equal value called shares. But the term stock is the aggregate of
a member’s fully paid up shares of equal merged into one fund. It is a set
of shares put together in a bundle. The stock is expressed in terms of
money and not as many shares. It can be divided into fractions of any
amount and such fractions may be transferred like shares. The person
who bought those shares is known as share holders.
According to section 85 (2) of companies Act 1956, equity share
holders have some rights these are
• Right to vote at the general body meetings of the company.
• Right to control the management of the company.
• Right to share in the profits in the form of dividends and bonus
shares.
• Right to claim on the residual after repayment of all the claims in
the case of winding up of the company.
• Right to pre-emption in the issue of new capital.
• Right to apply to court if there is any discrepancy in the rights set
aside.
• Right to receive a copy of the statutory report, copies of annual
report with audited report.
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43. • Right to apply the central government to call an annual meeting
when a company fails to call such a meeting.
• KEY FEATURES OF EQUITY SHARES
• # Capital appreciation
• # Limited liability
• # Free tradability
• # Tax advantages
• #Hedge against inflation
• COMMODITIES TRADING
• Indiainfoline extension into commodities trading reconciles its strategic
intent to emerge as a one stop solutions financial intermediary. Its
experience in securities broking has empowered it with requisite skills
and technologies. The companies commodities business provides a
contract- cyclical alternative to equities broking. The company was
among the first to offer the facility of commodity trading in India’s
commodity market. The commodities market has several products with
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44. different and non-correlated cycles. On the whole , the business is
fairly insulated against cyclical gyrations in the business.
KEY FEATURES
• The company provides a complete advice to execution solution
facilities by information and advice on likely commodity trends in
the India and international environment.
• Enjoy membership with the MCX and NCDEX, two leading Indian
commodities exchanges.
• Provide regular commodity updates pertaining to the Indian and
international environment.
• Online business at 80% of revenues dominates commodity trading
revenue.
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45. 4.3 INSURANCE PRODUCTS
An entity into this segment helped complete the client’s product basket, it
graduated the company into a one stop retail financial solutions provider. To
ensure maximum number of customer across India , indiainfoline employed a
multi pronged approach and reach out to customer via different network
through directly or indirectly. Following the opening of the sector, a number of
privet sector insurance service providers commenced operation aggressively
and helped grow the market. The companies enters into insurance sector de
risked the company from a predominant dependence on broking and equity
linked revenues. The annuity based income generated from insurance
intermediation result in solid core revenues across the tenure of the policy.
KEY FEATURES
• Indiainfoline provides both life insurance as well as general insurance in
the market.
• The company is the biggest corporate agency in india for life insurance
products.
• The company operates multiple channels like branch networking,
preferred client group, direct marketing, corporate tax advisory, walk-ins
and seminars to reach out to customers.
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46. • Forged alliances with major insurance companies for the distribution of
life and non-life insurance products.
• Altered the product mix in favor of traditional products like endowment
products.
4.4 MUTUAL FUND INVESTMENT PRODUCTS
Indiainfoline offers you a host of mutual fund choices under one roof , backed
by in-depth research and advice from research house and tools configured as
investor friendly.
Buying a mutual fund may be the smarter financial decision of your life. But
with over 2500 mutual funds to choose from, you can be sure that there are a
decent number of sour apples out there. To be safe , take a look at the items
mentioned on this list before you invest in any mutual fund.
Indiainfoline Ltd. Deals with the four most important funds like wise.
Growth fund
The aim of growth fund is to provide capital appreciation over the
medium to long term. Such schemes normally invest a majority of
their corpus in equities. It has been proven that returns from stocks,
have out performed most other kind of investments held over the
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47. long term. Growth schemes are ideal for investor having a long
term view seeking growth over a period of time.
Exchange Traded Debt funds
The Exchange trade funds are hybrid of open ended mutual funds
listed individual stocks on stock exchanges. Basically these are
managed funds which are traded in a particular index and there price
are determined by demand and supply in the market. In practice these
are traded in small range around the assets (NAV) held by them.
These are represent a basket of securities that are traded on an
exchange.
Balanced funds
The aim of balance funds is to provide both growth and regular
income. Such scheme periodically distribute a part of their earning
and invest both in equities and fixed income securities in the
proportion indicated in there offer documents. In a rising stock
market, the NAV of these schemes may not normally keep pace, or
fall equally when the market falls. These are ideal for investors
looking for a combination of income and moderate growth.
Other funds
The other funds are include sectoral funds, tax saving funds, special
schemes.
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48. • Sectoral funds include those funds which are invested in a
specific industry or a various segments.
• Tax saving funds offers rebates to the investors under specific
provisions of the Indian Income Tax Act 1961. Investment
made in Equity Linked Savings Schemes and pension schemes
are allowed as deduction u/s 88 of the Income Tax Act.
• Special schemes includes Industry specific scheme which
invest only in the industries. The investment of these funds is
limited to specific industries like InfoTech, FMCG and
pharmaceuticals etc.
KEY FEATURES OF ONLINE TRADING IN MUTUAL FUND
• Registered users can log into their investment online account
and specify amount, folio number etc & submit details with
Indianifoline Ltd.
• Investor will be then taken to banks homepage. One can use
his/her net banking user id & password & transfer funds directly
using any of these banks. ICICI, HDFC, and UTI banks.
• These transaction details then Indiainfoline Ltd. Would
download & process the transaction & transfer funds to
respective mutual funds.
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49. • Online trading in mutual fund is increasing day by day as per
investors interest.
WHY PEOPLE DO INVESTMENT
Investment is an activity that is engaged in by people who have savings
or in other words, people invest their savings. It is the employment of
funds on assets with the aim of earning income or capital appreciation.
The investment has two attributes namely time and risk.
In the view of an economist, investment is the net addition made to the
nation’s capital stock that consists of goods and services that are used in
the production process.
Financial investment is the allocation of money to assets that are
expected to yield some gain over period of time.
INVESTMENT OBJECTIVES
The main objective of investment are reducing the risk and increase the
rate of return but there are other subsidiary objectives of investment are
like safety, liquidity and hedge against inflation.
Return
In simple words return means the time value of the money, because an
investor always wants a good rate of return and reducing the risk. The
return from an investment depends upon the nature of the investment.
Risk
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50. Risk is inherent in any investment. It may relates to loss of capital, delay
in repayment of capital or non payment of interest. If a person invest in
government securities or deposit in a bank the deposits are almost
riskless but in other segments are more risky. The factor of risk in
investment depends on the longer maturity period, the lower credit
worthiness of the barrowers. Risk and return of an investment are
related. The higher is the risk, the higher is the return.
Safety
The safety of an investment implies the certainty of return of capital
without loss of money or time. Safety is another feature which an
investor desires for his investments. Every investor wants to get back his
capital on maturity without loss and without delay.
Liquidity
The liquidity depends upon the marketing and trading facility. If a
portion of the investment could be converted into cash without much
loss of time. It helps the investor in case of emergencies.
Hedge against inflation
We saw there is inflation in almost all the economy, the rate of return
should ensure a cover against the inflation. The return rate should be
higher than the rate of inflation; otherwise the investor will have a los in
real time.
Investment Avenues
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51. There are a large number of investment instruments available
today. To make our lives easier we would classify or group the
investment avenues. We shall name and briefly describe them.
1. Financial securities / corporate securities: These investment
instruments are freely tradable and negotiable. These would include
equity shares, preference shares, convertible debentures, non-convertible
debentures, public sector bonds, savings certificates, gilt-edged
securities and money market securities.
2. Non-securitized financial securities: These investment instruments
are not tradable, transferable nor negotiable. And would include bank
deposits, post office deposits, company fixed deposits, provident fund
schemes, national savings schemes and life insurance.
3. Mutual fund schemes: If an investor does not directly want to invest
in the markets, he/she could buy units/shares in a mutual fund scheme.
These schemes are mainly growth (or equity) oriented, income (or debt)
oriented or balanced (i.e. both growth and debt) schemes.
4. Real assets: Real assets are physical investments, which would
include real estate, gold & silver, precious stones, rare coins & stamps
and art objects.
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52. 5. Life insurance policies: The Life Insurance Corporation (LIC) offers
the investor for investment. This scheme has the additional facility of
life insurance cover. Some of the scheme of LIC is Whole life policies,
Endowment policy, Money Back Plan, Jeeven Dhara etc.
6. Provident fund schemes: provident fund schemes are compulsory
deposit schemes applicable to employees in the public and privet sectors.
There are three types of provident fund known as statutory provident
fund, recognized provident fund and unrecognized provident fund.
Before choosing the avenue for investment the investor would probably
want to evaluate and compare them. This would also help him in
creating a well diversified portfolio, which is both maintainable and
manageable.
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53. Internet Trading - Shares & Commodities
Indiainfoline Limited Securities Ltd is today the ‘Preferred’-trading
partner for customers across the country. The unique 3-in-1 integrated
accounts are backed by state-of-the-art technology that provides you a
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54. blend of safety, transparency and convenience, which is unparalleled in
the industry.
Salient features of indiainfoline Limited Trading Account:
One of the most technologically advanced trading platform
World class research
Facility to trade through toll free no. (1800-228-800) in addition to
the Internet.
Instant limits on shares sold. Use the proceeds of shares to buy
further shares instantly.
100% Inter-settlement trade at no extra cost.
Low and Competitive Brokerage: 0.50% of the transaction value for
delivery transactions and 0.05% on each side of the transaction for
square off trades and derivatives.
PRODUCTS:
The services provided by IIFL Ltd are as follows:
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55. Cash & carry on NSE & BSE.
Derivatives (F&O) on NSE.
Initial Public Offers (IPO’s)
NCDEX – Commodities Trading
Term “Cash & Carry” implies
One needs to have 100% balance in his / her Trading Account before
placing a Buy order or against one's sell position; Buying Limit is
immediately generated to his / her account, which can be utilized for
future purchases.
Similarly one is allowed to Sell stocks either he/she has to have balance
in Demat a/c or need to
have sufficient balance to sell the stock.
Online IPO:
Conveniently subscribe to the latest IPO’s directly through your
trading account.
ACCOUNT OPENING REQUIREMENTS:
For opening a Trading Account through IIFL Limited one either needs
to have a Saving
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56. Account with HDFC/UTI/ICICI Bank & Demat Account with
INDIAINFOLINE Limited . his / her existing HDFC/ UTI/ICICI Bank
Savings Account with Trading Account or else, we would assist in
opening a 3 - in - 1 Account.
Please note that as per SEBI vide Circular dated 26th-August-2004, has
specified Uniform Documentary Requirements, for clients intending to
open a trading with any SEBI Registered Broker. As per the said
Guideline, we would require following documentation:
Identity Proof: (Self Attested)
Pan Copy
Passport Copy
Driving License
Voter ID
Address Proof: (Self Attested)
Passport
Driving License
Voter ID
Ration Card
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57. Bank Passbook/Statement (Attested by banker)Rental Agreement/lease
Agreement
(PAN card, as an Identity Proof is mandatory for opening a Trading
account. )
AOC: Account Opening Charges
2 cheque’s favoring –Indiainfoline Ltd.
Rs 750/- Account opening fees.
Rs. 10,000/- Margin amount for trading.
MODES OF TRADING:
Indiainfoline Ltd Trading Account offers all its clients the convenience
of operating Trading Account
both either through the Internet via "Web-Trading Model" or over the
Telephone Toll Free no.
BROKERAGE:
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58. Please be informed that for every transaction carried out by the client,
indiainfoline Limited Securities Ltd would
levy Brokerage, Service tax, Securities Transaction tax & Stamp Duty
charges:
Cash & Carry:
Delivery Based:
Brokerage is 0.50% of the Transaction Value, subject to minimum Rs
10.00 per
Order, which is applicable on both Buying & Selling plus Service Tax,
STT & Stamp duty charges at applicable rates.
Brokerage is Rs 0.05 per shares, subject to Rs 10.00 per Leg (applicable
on both Buy as well as Sell Order), whichever is higher plus Service
Tax, STT & Stamp duty charges at applicable rates.
Square Off Trade:
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59. Brokerage is 0.10% of the Transaction Value, subject to a minimum of
Rs 10.00 per Order, which is applicable on both Buying & Selling plus
Service Tax & STT at applicable rates.
Derivatives Trading:
Futures Market:
Brokerage is 0.05% of the Transaction Value, subject to a minimum of
Rs 10.00 per Order, which is
applicable on both Buying & Selling plus Service Tax, STT & Stamp
duty charges at applicable rates.
Transaction Value is calculated as "Futures Price x Lot Size".
Options Market:
Brokerage is higher of 1% of the Premium Amount, subject to a
minimum of Rs.100.00 on each lot,
which is applicable on both Buying & Selling plus Service Tax & STT
at applicable rates.
Service Tax:Service Tax will be levied @12.36 %of the Brokerage
Value .
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62. 4.1: comparison of INDIAINFOLINE with other competitors
4.1 comparison of INDIAINFOLINE with other competitors
PARTICULARS INFOLINE ANAND ICICI SHARE
A RATHI DIRECT KHAN
INITIAL 750 555 975 750
CHARGES (IN
RS)
INITIAL 10000 20000 15000 12000
MARGIN (IN
RS)
AMC (IN RS) 500 (after Nil 500( afte 300(after 1
1 yr) r 1 yr) yr)
BROKERAGE .05% .05% .075% .10%
(IN RS) .10% .50% .75% .50%
comments
# ICICI DIRECT charges more in initial charges Rs 975 of Account
opening charges.
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63. # INFOLINE, SHARE KHAN and ICICI DIRECT charged more in
initial margin of Rs 10000.
# INFOLINE and ICICI DIRECT charged Rs 500 after 1 year where
as SHARE KHAN charges Rs 300.
# INDIAINFOLINE charges less brokerage i.e. .05 in case of intra
day and .10 in case of delivery, than others.
4.2 RESULTS ON THE BASIS OF BROKERAGE CHARGES
There are two types of transactions , such as:-
4.2.1 INTRA DAY BASED.
4.2.2 DELIVERY BASED.
Fig 4.1 show results on the basis of brokerage on investments.
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
ANAND RATHI INDIA ICICI DIRECT SHARE KHAN
INFOLINE
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64. Comments:-
INDIAINFOLINE charges less amount of brokerage in case of both
intra day and delivery trading.
According to the survey ICICI DIRECT charges more brokerage in
case of delivery trade than Others.
Incase of intra day SHARE KHAN charges less brokerages than
others.
4.3 RESULTS ON THE BASIS OF ACCOUNT OPENING
CHARGES
@ INDIAINFOLINE
Account opening charges is Rs 750 only. After 1yera it charges Rs
500 p.a. as Annual Maintenance Charges (AMC).
@ ICICI DIRECT.
A one time charge of Rs 750 at the time of account opening will be
charged. A customer can later upgrade his account to an ICICI
direct.com share trading account when he desire to trade in equity.
@ ANANDA RATHI
There is a nominal charge of Rs 500 only for stamp duty, legal and
processing fees for opening the account. This includes the
registration and account opening charges . The Bank and
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65. Depositary Participant (DP) account opening charges are payable
separately.
@ SHAREKHAN
There is no account opening charges but require margin money of
Rs 5000 for trading purpose .
4.4 RESULTS ON THE BASIS OF BROKERAGE
@ ICICI Direct charges 0.075 paisa in a Rupee in case of intra day and
0.75 paisa in a Rupee in case of delivery trade.
@ share khan charges 0.05 paisa in a Rupee in intra day trade and 0.50
in a Rupee in case of delivery trade.
@ INDIAINFOLINE charges 0.05 In a Rupee in case of intra day trade
and 0.10 in a Rupee in case of delivery trade.@ Anada rathi charges
brokerage 0.05 in a Rupee in case of intra day and 0.50in a Rupee in
case of delivery trade.
4.5 RESULTS ON THE BASIS OF FACILITIES
Table 4.2 shows the results on the basis of facilities provided by
broking firms.
Basis of INDIAINFOLIN ICICI Share khan Anada rathi
facilities E Direct
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66. Share Yes Yes yes Yes
trading
Commodity Yes Yes Yes Yes
trading
D- mat Yes Yes Yes yes
opening
rights
4.6 ROLE OF STOCK BROKER
A Stock broker is a professional who buys and sells stocks and other
securities in the stock market through the book makers from the stock
investors. As per the law in United States one needs to pass the General
Securities Representative Examination for working as a stock broker.
Brokers provide different types of services to the clients.
4.6.1 Execution only
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67. In this service the broker only carries out the trading according to the
direction of the investor. This is the basic and the most commonly used
service of the brokers.
4.6.2 Advisory Dealing
In this service the broker not only performs the buying and selling
instruction of the client but also advises the investor about which stock
to buy and which stock to sell.
4.6.3 Discretionary Dealing
This is the most comprehensive service that a broker provides. In this
case the broker has the discretionary power to take the investment
decisions on behalf of the investor.
These are the basic services provided by the stock market brokers and it
completely depends on you which service you will subscribe.
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69. DATA ANALYSIS & INTERPRETATION
To get the findings of any study, the collected data has to be analyzed ,
if the raw data is to bring in a meaningful form. The interpretation
involves drawing conclusion from the analysis data.
Analysis of primary data:-
1) Do you know about investment options available?
Table 5.1 shows investment knowledge
KNOWLEDGE PERCENTAG POPULATION
E (%)
YES 80% 32
NO 20% 8
TOTAL 100% 40
Figure 5.1
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70. COMMENTS:- Only 80% people i.e.32 knows the exact meaning of
investment. Because of remaining 20% i.e. 8 take his/her residential
property as an investment.
2) Most preferable investment option.
Table 5.2 shows investment scenario
INVESTMENT PERCENTAGE (%) POPULATION
SCENARIO
BANKS 26% 11
DERIVATIVES AND 30 % 12
SECURITIES
MARKET
INSURANCE 24% 9
BONDS 20% 8
BANKS DERIVATIVES INSURANCE BONDS
20% 26%
24%
30%
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71. Figure 5.2
COMMENT
Today scenario is changed so that most area covered by the derivatives
and securities market. It is 30% of the total population i.e.12 , then banks
26% i.e. 11, insurance 24% i.e. 9 and after that bonds 20%i.e. 8 person
from the total population
3) what is the basic purpose of your investment?
Table 5.3 shows investment purpose.
INVESTMENT PERCENTAGES (%) POPULATION
PURPOSE
LIQUIDITY 30% 12
RETURNS 25% 10
CAPITAL 10% 4
APPRICIATION
TAX BENEFITS 20% 8
RISK COVERING 10% 4
OTHERS 5% 2
TOTAL 100% 40
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72. Fig 5.3
COMMENT
75% people i.e.30 are interested in liquidity, return and tax benefits.
And remaining 25% i.e.10 people are interested in capital
appreciation ,risk and other factors.
4) Most important things you take into your mind while making
investments?
Table 5.4 shows investment factors.
FACTORS PERCENTAGE (%) POPULATION
RISK 8% 3
RETURN 17% 7
BOTH 75% 30
TOTAL 100% 40
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73. Fig 5.4
COMMENT
75% people i.e. 30 are considered the both factors risk as well as
return , but 25% i.e. 10 people considered the risk or return factor.
5) Awareness related to security markets.
Table 5.5 shows knowledge about markets.
KNOWLEDGE PERCENTAGE(%) POPULATION
COMPLETE 15% 6
PARTIAL 75% 30
NIL 10% 4
TOTAL 100% 40
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74. Fig5.5
COMMENT
On the basis of research , it is concluded that 10% people i.e.4 are know
nothing about the securities. 75% i.e.30 people are partially aware about
securities and investment. So, some promotional activities are required
for increasing the awareness about security market.
5) Specify the reason of satisfaction with the current broking house.
Table 5.6 shows satisfaction of broking house.
SATISFACTION PERCENTAGE(%) POPULATION
OPERATING 18% 7
EXPENSES
SERVICES 25% 10
BROKERAGE 57% 23
TOTAL 100% 40
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75. Fig 5.6
COMMENT
On the basis of research , I conclude that 57% i.e. 23 people know about
the brokerage system of the broking firms and 25% i.e.10 people know
about the service provided by broking firms.
7) Are you satisfied with your broking firm ?
Table 5.7shows satisfaction with present broking firm.
SATISFACTION PERCENTAGE(%) POPULATION
YES 80% 32
NO 20% 8
TOTAL 100% 40
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76. Fig 5.7
COMMENT
On the basis of my research , here 80% i.e. 32 people are satisfied with
their broking house and only 20% i.e.8 people are not satisfied.
8) Specify the consumer satisfaction towards best financial services
provided by which broking house?
Table 5.8 shows customer satisfaction for financial services provided by
broking firms.
SATISFACTION PERCENTAGE(%) POPULATION
TOWARDS
ANADA RATHI 10% 26
ICICI DIRECT 15% 6
INDIA INFOLINE 65% 4
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77. SHARE KHAN 10% 4
TOTAL 100% 40
fig5.8
COMMENT On the basis of research, 65% i.e.26 people are satisfied
with anada rathi, 15% i.e. 6 people are satisfied with ICICI direct and
10% i.e. 4 people are satisfied with both Anada rarthi and share khan .
9) In which method do you trade?
Table 5.9 shows the method of trading in stock market.
METHODS PERCENTAGE POPULATION
(%)
ONLINE 30% 12
OFFLINE 70% 28
TOTAL 100% 40
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78. ONLINE
OFFLINE
fig 5.9
COMMENTS
According to the survey there are 70% people who are doing trade in off
line basis and 30% people do trade in online basis.
10) Why do people prefer stock market?
Table 5.10 shows the performance of stock market.
PREFERENCE PERCENTAGE (%) POPULATION
For earning of short 17% 7
term profit
For earning of long 50% 20
term profit
Risk reduction 8% 3
Hedging purpose 25% 10
TOTAL 100% 40
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79. fig 5.10
COMMENT
According to my research , 50% people i.e. 20 are invest their money for
getting long term profit , 25% people i.e. 10 people are invest money for
hedging purpose,17% people i.e7 are interested in short term profit and
less 8% people i.e. 3 are invest money for risk reduction.
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81. MAJOR SUMMARY
6.1 FINDINGS
e option which is always preferable when the market is volatile. After
the process of tabulation and data analysis the research had explored the
following findings like
@ According to the survey most of the customer of indiainfoline says
that , it is pocket friendly which is provided less investment charges than
others.
@ Coming to faith 65% says that indiainfoline is better than other stock
brokers due to customer satisfaction because it provide the maximum
investment facilities and options to the investor.
@ Lack of promotional activities undertaken by indiainfoline in
BBSR.
@ The main purpose of investments are liquidity and returns.
@ Investor take risk as well as get return on their investment.
@ Businessmen are more interested in stock market than the others in
terms of risks and returns.
@ commodity market is less preferred by the investor because of less
awareness about commodity market.
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82. @ People want to invest their money in security market but they have
no sufficient knowledge about investment procedure.
@ People pay more emphasis on brokerage than service provided by
brokerage house.
@ People are not aware of hedging in stock market.
6.2 SUGGESTIONS
@ There should be equal commitment for every person.
@ There should be some promotional activity required for awareness
of the customer.
@ Provide the facility of free demonstration for all.
@ There should be a limited number of clients under the relationship
manager . so that they can handle new as well as old customer properly.
@ Improvement in the opening of De-mat account and contract notice
procedure is required.
@ young age people should encouraged to invest in stock market.
6.3 CONCLUSIONS
@ On the basis of study it is found that indianifoline is provide better
service than other stock brokers because of their timely research and
personalized advice on what stocks to buy and sell, when to buy and
when to sell.
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83. @ indiainfoline provides the facility to trade as well as the relationship
manager facilitate to encourage and protect the interest of the customer
or the investors. It also provides the information through the internet
and mobile alerts that what IPO’s are coming in the market and it also
provides its research on the future prospect of the IPO.
@ It is also found that people are not aware about commodity market ,
Hedging etc. so there should be a creation of awareness of share market
and its instruments, how it takes place, when to invest or not etc.
@ The company should come up with innovative ways of service at
their door steps this may be a costly affair but will surely give positive
results in the long run as the banks and insurance companies done.
@ The company should take the initiative of training the advisors about
the new funds from time to time which also makes the advisors
connected to the company.
@ The company should give emphasis on creating an awareness about
the market knowledg
@ The company should focus on the advertising strategy and also the
marketing of the product.
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84. BIBLIOGRAPHY
BOOKS
KOTHARI, “RESEARCH METHODOLOGY ’’ published By
VIKAS PUBLISHING HOUSE PVT.LTD. NEW DELHI.
GOYAL, DR. ALOK- “FINANCIAL MARKET OPERATION”
published By V.K. (INDIA) ENTERPRISES. NEW DELHI.
WEBLIOGRAPHY
http://www.nseindia.com
http://www.indiainfoline.com
http://www.moneycontrol.com
http://www.sharekhanltd.com
http://www.icicidirect.com
http://www.anadt rathi.com
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85. QUESTIONARY
1. Personal details
Name--------------------------------------------------------
Address------------------------------------------------------------------------------
-----------
------------------------------------------------------------------------------
Phone no (res) -------------------------------------, -----------------------
Mob-------------------
2. Age of the candidates
20-30, 30-40, 40-50, 50-60
3. Your Annual income
a) 50000-1,00000
b) 1,00000-1,50000
c) 2,00000-2,50000
d) 5,00000 above
4) Do you know about investment options available?
a) Yes b) No
5) Do you know about the different types of investment alternatives?
a) Insurance &mutual funds b) Banks
c) Real estate d) Share market
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86. e) Commodity f) Others
6) What is the basic purpose of your investment?
a) Liquidity b) Return
c) Capital appreciation d) Risk covering
e) Tax benefits
7) What are the most important things you take into account, while
making any investment?
a) Risk b) Return c) Both
8) Do you have any knowledge about share markets?
a) Complete b) Partial c) Nil
9) Do you know about 3-in-one Account?
a) Yes b) No
10) Do you have D-mat & Trading account? If yes, in which broking
firm?
a) Indiainfoline LTD. b) HDFC securities
c) Share khan d) ICICI direct
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87. e) Karvy e) others
11) By which way you like to invest?
a) Online b) Off line
12) What type of trading you do?
a)Delivery b)Intra-day
c) Future option
13) Are you satisfied with your present broking company?
a) Yes b) No
14) What is the reason?
a) Services
b) Brokerage
c) Operating expenses
d) Others
15) Specify the consumer satisfaction towards best financial services
provided by which broking house?
a)Indiainfoline b) ICICI Direct
c) HDFC securities d) Anand Rathi
securities ltd
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