1. 1
PROJECT REPORT
ON
“Analysis of Online Trading and Stock Market with
reference to share khan”
Submitted in the partial fulfillment of the degree of
Bachelor of Business Administration
(2017-2018)
SUBMITTED BY:
HARSHITA BANSAL
ROLL NO.
Under the guidance of
MS. RUCHI KALIA
(Assistant Professor, Management)
Mr. Mayank Gupta
(Assistant Professor, Management)
SUBMITTED TO:
Ideal Institute of Management & Technology & School of Law16-x
Karkardooma Institutional Area ,Delhi-92
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CERTIFICATE
This is to certifythat the projectentitled “Analysis ofOnline Tradingand
Stock Market”is bonafide work carried out by Harshita Bansal student of
BBA, Ideal Institute of Management and Technology and School of Law
during the year 2018,inpartial fulfillmentof the requirements by the award
of the degree of BBA, under our guidance and direction. To the best of
our knowledge and belief the data and information presented by her in the
project has not been submitted earlier.
_____________ ___________
Mr.Mayank Gupta Ms.Ruchi Kalia
(AssistantProfessor,Mgmt.) (Assistant Professor,Mgmt.)
Supervisor Supervisor
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ACKNOWLEDGEMENT
I am writing this final project for the program of Bachelor of Business
Administration on “Analysis of Online Trading and Stock Market” for
IdealInstitute of Management & Technologyand Schoolof Law, Affiliated
to Guru Gobind Singh Indraprastha University.
It has beena great challenge but a plenty of learning and opportunities to
gain a huge amount of knowledge on the way of writing this projectreport.
I could not have completed my project without the constant guidance of
Mr.Mayank Gupta (AssistantProfessor,Mgmt.) and Ms. Ruchi Kalia
(Assistant Professor, Mgmt.), our faculty guide who helped me along
the way and was always prepared to give feedback and guidelines
whenever I needed it.
Student Name: Harshita Bansal
Enrollment No:
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INDEX
S.NO PARTICULAR PAGE NO.
CH-1
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
2
3
4
INTRODUCTION
ABOUT STOCK MARKET & ONLINE TRADING
STOCK MARKET
PEOPLE WORKS IN THE STOCK MARKET
IMPORTANCE OF STOCK MARKET
ONLINE TRADING
PROSES OF ONLINE TRADE
ONLINE TRADING BENEFITS
ONLINE SHARE TRADING TOOLS & PLATFORMS
THE MAIN OBJECTIVES
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
2
2
4
5
6
7
8
10
12
12
13
CH-2 COMPANY PROFILE 14-38
CH-3 ANALYSIS & INTERPRETATION OF DATA 39-51
CH-4 CONCLUSION & RECOMMENDATION 52-54
BIBLIOGRAPHY
Annexure
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1. ABOUT STOCK MARKET & ONLINE TRADING
1.1 STOCK MARKET
A stock market, equity market or share market is the aggregation of buyers and sellers
(a loose network of economic transactions, not a physical facility or discrete entity) of
stocks (also called shares), which represent ownership claims on businesses; these
may include securities listed on a public stock exchange as well as those only traded
privately. Examples of the latter include shares of private companies which are sold to
investors through equity crowdfunding platforms. Stock exchanges list shares of
common equity as well as other security types, e.g. corporate bonds and convertible
bonds. The stock market refers to the collection of markets and exchanges where the
issuing and trading of equities or stocks of publicly held companies, bonds, and other
classes of securities take place. This trade is either through formal exchanges or over-
the-counter (OTC) marketplaces. The stock market is one of the most vital
components of a free-market economy. It provides companies with access to capital
in exchange for giving investors a slice of ownership.
It can be difficult for investors to imagine a time when the stock market and the NYSE,
in particular, wasn't synonymous with investing. Of course, it wasn't always this way.
There were many steps along the road to our current system of exchange. In fact, the
first stock exchange thrived for decades without a single stock being traded.
Belgium boasted a stock exchange as far back as 1531 in Antwerp. Brokers and
moneylenders would meet there to deal with business, government, and even
individual debt issues. It is odd to think of a stock exchange that traded exclusively in
promissory notes and bonds, but in the 1500s there were no real stocks. There were
financier partnerships that produced income as stocks do, but there was no official
share that changed hands.
In the 1600s, the Dutch, British, and French governments all gave charters to
companies with East India in their names. On the cusp of imperialism's high point, it
seems like everyone had a stake in the profits from the East Indies and Asia except
the people living there. Sea voyages that brought back goods from the East were
perilous with threats of Barbary pirates, risks of bad weather, and poor navigation.
To lessen the risk of a lost ship ruining their fortunes, ship owners had long been in
the practice of seeking investors who would put up money for the voyage. The
investors fund the outfitting of the ship and crew in return for a percentage of the
proceeds if the voyage was successful. These early limited liability companies often
lasted for only a single voyage.
When the East India companies formed, they changed the way business was done.
These companies had stocks that would pay dividends on all the proceeds from all the
voyages, rather than journey by journey. These were the first modern joint stock
companies. This allowed the companies to demand more for their shares and build
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larger fleets. The size of the companies, combined with royal charters forbidding
competition, meant huge profits for the investors.
Because the shares in the various East India companies were issued on paper,
investors could sell their holdings to other investors. Unfortunately, there was no stock
exchange in existence, so the investor would have to track down a broker to carry out
a trade. In England, most brokers and investors did their business in various coffee
shops around London. Debt issues and shares for sale were written up and posted on
the shops' doors or mailed as a newsletter.
The British East India Company had one of the biggest competitive advantages in
financial history as a government-backed monopoly. When the investors began to
receive huge dividends and sell their shares for fortunes, other investors were hungry
for a piece of the action. The budding financial boom in England came so quickly that
were no rules or regulations for the issuing of shares. The South Sea Company (SSC)
emerged with a similar charter from the king, and its shares and the numerous re-
issues sold as soon as they were listed. Before the first ship ever left the harbour, the
SSC had used its newfound investor fortune to open posh offices in the best parts of
London.
Encouraged by the success of the SSC and realizing that the company hadn't done a
thing except for issue shares, other "businessmen" rushed in to offer new shares in
their own ventures. Some of these were as ludicrous as reclaiming the sunshine from
vegetables or, better yet, a company promising investors shares in an undertaking of
such vast importance that they couldn't reveal the details, something known today as
a blind pool.
Inevitably, the bubble burst when the SSC failed to pay any dividends off its merger
profits, highlighting the difference between these new share issues and the British East
India Company. The subsequent crash caused the government to outlaw the issuing
of shares and the ban held until 1825.
Once new securities have been sold in the primary market, they are traded in the
secondary market—where one investor buys shares from another investor at the
prevailing market price or at whatever price both the buyer and seller agree upon. The
secondary market or the stock exchanges are regulated by the regulatory authority. In
India, the secondary and primary markets are governed by the Security and Exchange
Board of India (SEBI).
A stock exchange facilitates stock brokers to trade company stocks and other
securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is
the meeting place of the stock buyers and sellers. India's premier stock exchanges are
the Bombay Stock Exchange and the National Stock Exchange.
Investing in the stock market is among the most common ways investors attempt to
grow their money, but it's also among the riskier investment options available.
Understanding the basic concept of the stock market is a first step in becoming an
informed investor. While the stock market is an extremely complex system, its basic
traits are much simpler.
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There are two kinds of share markets:
Primary share market
A company enters the primary market to raise funds. It is in the primary market that a
company gets registered to issue shares to the public and raise money. Companies
generally get listed on the stock exchange through the primary market route. In case
a company is selling shares for the first time, it is called an Initial Public Offering or
IPO, after which the company becomes public. While going for an IPO the company
has to provide details about itself, its financials, it promoters, its businesses, stocks
being issued, price band and so on.
Secondary share market
In the secondary market, investor’s trade already listed securities by buying and selling
them. Secondary market transactions are transactions where one investor buys
shares from another at the prevailing price. Normally, these transactions are
conducted through a broker. Secondary market offers investors a chance to sell all its
shares and exit the financial market.
For example: Shares of Tata Steel are trading in the market at Rs 230 a share. An
investor can buy these shares at current market price and will get part-ownership of
the company and become a shareholder.
1.2 PEOPLE WORKS IN THE STOCK MARKET
There are many different players associated with the stock market, including
stockbrokers, traders, stock analysts, portfolio managers and investment bankers.
Each has a unique role, but many of the roles are intertwined and depend on each
other to make the market run effectively.
STOCKBROKERS
Stockbrokers, also known as registered representatives in the U.S., are the
licensed professionals who buy and sell securities on behalf of investors. The
brokers act as intermediaries between the stock exchanges and the investors
by buying and selling stocks on the investors' behalf.
STOCK ANALYSTS
Stock analysts perform research and rate the securities as buy, sell, or hold.
This research gets disseminated to clients and interested parties who decide
whether to buy or sell the stock.
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PORTFOLIO MANAGERS
Portfolio managers are professionals who invest portfolios, or collections of
securities, for clients. These managers get recommendations from analysts and
make the buy or sell decisions for the portfolio. Mutual fund companies, hedge
funds, and pension plans use portfolio managers to make decisions and set the
investment strategies for the money they hold.
INVESTMENT BANKERS
Investment bankers represent companies in various capacities, such as private
companies that want to go public via an IPO or companies that are involved in
pending mergers and acquisitions.
1.3 IMPORTANCE OF STOCK MARKET
The stock market allows companies to raise money by offering stock shares and
corporate bonds. It lets investors participate in the financial achievements of the
companies, making money through dividends. Dividends are cuts of the company's
profits. Investors also make a profit by selling appreciated stocks. This is known as a
capital gain. Of course, the downside is that investors can lose money as well if the
share price falls or if the investor must sell the shares at a loss.
One of the whole points of open exchange is to provide transparency and opportunity
for all investors. Furthermore, laws and governing bodies, such as the SEC, exist to
"level the playing field" for investors. However, there are undeniable advantages that
institutional investors and professional money managers have over the individual
investor.
Advantages of large institutional investors include the timely access to privileged
information, full-time research departments, vast amounts of capital to invest,
discounts on commissions, transaction fees, and even share prices based on the large
dollar amount they invest, political influence, and more significant experience.
While the internet has been somewhat of an equalizing factor, the reality is that many
institutional clients get news and analysis before the public does and can act on
information more quickly. Over-the-counter (OTC) and listed securities are the two
primary types of securities transacted on stock markets. Listed securities are those
stocks traded on exchanges. These securities need to meet reporting regulations of
the SEC as well as the requirements of the exchanges where they trade.
Over-the-counter securities are exchanged directly between parties, usually via a
dealer network. These securities do not list on any stock market exchange but will
show on the pink sheets. Pink sheet security often will not meet the requirements to
list on an exchange and tend to have a low float, such as closely held companies or
thinly traded stocks.
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1.4 ONLINE TRADING
Investing online, also known as online trading or trading online, is a process by which
individual investors and traders buy and sell securities over an electronic network,
typically with a brokerage firm. This type of trading and investing has become the norm
for individual investors and traders since late 1990s with many brokers offering
services via a wide variety of online trading platforms. Online trading involves the
trading of securities through an online platform. Online trading portals facilitate the
trading of various financial instruments such as equities, mutual funds, and
commodities. Angel Broking offers Angel Speed Pro - an online trading platform that
helps investors and traders to buy/sell stocks and other financial instruments.
Prior to the Internet, investors had to place an order through a stockbroker, in person
or via telephone. The brokerage firm then entered the order in their system, which was
linked to trading floors and exchanges.
In 1985, Trade*Plus (later to become E-Trade) offered a retail trading platform on
America Online and CompuServe, and in 1991 one of its founders, William Porter,
created a new subsidiary company called E*Trade Securities, Inc.
In August 1994, K. Aufhauser & Company, Inc. (later acquired by TD Ameritrade)
became the first brokerage firm to offer online trading via its "Wealth WEB”, and other
platforms such as Master trader emerged in the late 1990s.Online investing has
experienced significant growth since that time. Investors could now enter orders
directly online, or even trade with other investors via electronic communication
networks (ECN). Some orders entered online are still routed through the broker,
allowing agents to approve or monitor the trades. This step helps protect both the client
and brokerage firm from unlawful or incorrect trades that could affect the client’s
portfolio or the stockbroker’s license.
Online brokers in the US are often referred to as discount brokers but in Europe and
Asia many so-called online brokers work with high-net-worth individuals. Their
popularity is attributable to the speed and ease of their online order entry, and to fees
and commissions significantly lower than those of full service brokerage firms within
the US. Two types of online brokerages have emerged in the US in the mid-2000s:
those offering direct-access trading on exchanges, and those that route orders to
market maker firms to have their orders filled.
Many online brokers provide tools to help investors research and select potential
investments. There are also numerous third party providers of information, such as
Yahoo! Finance and ADVFN. Other reputable sites provide information on business
sectors, news and financial statements of individual companies, and basic tutorials on
subjects such as diversification, basic portfolio theory, and the mitigation of risk
associated with volatility in the stock market.
Stock trading can be financially rewarding if done in the right way. Investing in the
stock market involves riding the various ups and downs of the market. Since the
introduction of online trading in India, investing has become convenient. Stock market
trading is a great alternative when it comes to long-term wealth creation. Although, it
might take a while for you to hone your skills.
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1.5 PROSES OF ONLINE TRADE
Before selling the securities through stock exchange, the companies have to get
their securities listed in the stock exchange. The name of the company is included in
listed securities only when stock exchange authorities are satisfied with the financial
soundness and other aspects of the company.
The Trading procedure involves the following steps:
1. SELECTION OF A BROKER:
The buying and selling of securities can only be done through SEBI registered brokers
who are members of the Stock Exchange. The broker can be an individual, partnership
firms or corporate bodies. So the first step is to select a broker who will buy/sell
securities on behalf of the investor or speculator.
2. OPENING DEMAT ACCOUNT WITH DEPOSITORY:
Demat (Dematerialized) account refer to an account which an Indian citizen must open
with the depository participant (banks or stock brokers) to trade in listed securities in
electronic form. Second step in trading procedure is to open a Demat account.
The securities are held in the electronic form by a depository. Depository is an
institution or an organization which holds securities (e.g. Shares, Debentures, Bonds,
Mutual (Funds, etc.) At present in India there are two depositories: NSDL (National
Securities Depository Ltd.) and CDSL (Central Depository Services Ltd.) There is no
direct contact between depository and investor. Depository interacts with investors
through depository participants only.
Depository participant will maintain securities account balances of investor and
intimate investor about the status of their holdings from time to time.
3. PLACING THE ORDER:
After opening the Demat Account, the investor can place the order. The order can be
placed to the broker either (DP) personally or through phone, email, etc.
Investor must place the order very clearly specifying the range of price at which
securities can be bought or sold. e.g. “Buy 100 equity shares of Reliance for not more
than Rs 500 per share.”
4. EXECUTING THE ORDER:
As per the Instructions of the investor, the broker executes the order i.e. he buys or
sells the securities. Broker prepares a contract note for the order executed. The
contract note contains the name and the price of securities, name of parties and
brokerage (commission) charged by him. Contract note is signed by the broker.
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5. SETTLEMENT:
This means actual transfer of securities. This is the last stage in the trading of
securities done by the broker on behalf of their clients. There can be two types of
settlement.
(a) On the spot settlement:
It means settlement is done immediately and on spot settlement follows. T + 2 rolling
settlement. This means any trade taking place on Monday gets settled by Wednesday.
(b) Forward settlement:
It means settlement will take place on some future date. It can be T + 5 or T + 7, etc.
All trading in stock exchanges takes place between 9.55 am and 3.30 pm. Monday to
Friday.
If you bear all these points in mind, online share trading will be an easy and profitable
task for you. Practice is the key to successful online trading. Stock trading is a long-
term investment and requires patience and perseverance.
It involves buying and selling of securities such as stocks, bonds, and other related
financial instruments online. For this purpose, you will require a Demat account and a
trading account. A Demat account acts as the common repository to store the
purchased units of stocks whereas the trading account acts as the platform to buy and
sell the share. A bank account is linked to the trading account to facilitate funding of
trade.
The major benefit of online trading is that investor can seek the help of dedicated
customer care in case of any clarifications or queries.
1.6 ONLINE TRADING BENEFITS
Online trading is easy and quick. You can educate yourself on your investment
options, place orders to buy and sell, and possibly make a considerable amount of
money without ever speaking with a broker or leaving the comfort of your home. As
with any investment strategy, there are benefits and risks involved.
IT IS CONVENIENT
When it comes to online trading, you only need to open a trading account via
internet and you’re good to go. You’re not bound by time and place as long as
you have an internet connection. Hence, online trading is convenient and
accessible from anywhere with limited hassle. It also saves time.
IT IS CHEAPER
In online stock trading, the stock broker fee which you will have to pay is lower
when compared to the commission charged by traditional method. If you trade
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in a sufficiently large volume of stocks, it is possible for you to be able to
negotiate your broker’s fees.
YOU CAN MONITOR YOUR INVESTMENTS ANYTIME
Online trading allows you to buy or sell shares according to your convenience.
It offers advanced interfaces and the ability for investors to see how their money
is performing throughout the day. You can use your phone or your computer to
evaluate your profit or loss.
IT ALMOST ELIMINATES THE MIDDLEMAN
Online trading allows you to trade with virtually no direct broker communication.
Apart from reducing the overall trading cost, this benefit also makes the trading
hassle free, making this service much more lucrative.
INVESTOR HAS GREATER CONTROL
Online traders can trade whenever they wish to. On the other hand, in traditional
trading, an investor may be stuck until he or she is able to contact their broker
or when the broker is able to place their order. Online trading allows nearly
instantaneous transactions. Also, investors are able to review all of their options
instead of depending on a broker to tell them the best bets for their money.
They’re able to monitor their investments, make decisions and buy/sell stock
on their own without any outside interference; thus, giving them greater control
over their investment.
FASTER TRANSACTIONS
Online banking is fast and efficient. Funds can be transferred between accounts
almost instantly, especially if the two accounts are held at the same banking
institution. All it takes to be able to buy or sell stocks is a single click of the
mouse. Through this, a quicker exchange can be made which may also ensure
quicker earnings.
BETTER UNDERSTANDING OF ONE’S MONEY
This is a hidden advantage of online trading which you wouldn’t want to pass
up on. You’ll be handling your own finances and be responsible for them. Over
time, you become more experienced in understanding the market, and good
investment opportunities from the bad ones. This knowledge about money is
very useful, and having this on your resume makes you more marketable to
companies looking to fill a well-paying position in the finance department. So
while making a quick buck, you also manage to become financially smarter, in
both your professional and personal life.
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1.7 ONLINE SHARE TRADING TOOLS & PLATFORMS
The best online trading accounts provide much more than the convenience of trading.
These accounts include various tools and platforms to give access to users from
anywhere, making the entire procedure versatile. Moreover, the tools are available for
making informed trading decisions that help to harness profit. Angel Eye from Angel
Broking is an established trading platform that helps investors and traders to buy/sell
stocks with the intention to invest or earn profits.
PLATFORMS FOR ONLINE TRADING
There are different platforms available for online trading.
Website:
Users can access their online trading account through the service provider site.
Using the log-in name and password, traders can procure access to all the
different services offered by the service provider. Most service providers offer
access to the trading accounts through smartphones and other devices, such
as tablets and IPad. Some of the service providers offer specially designed
websites for account-holders who use slow Internet connections.
Dealer-Assisted Trading:
Experienced and qualified dealers will assist the account-holders to oversee
their online share trading and provide guidance on making the right financial
decisions. Moreover, users can call the dealers and complete trades on the
phone. The dealers answer customer queries and offer the right financial advice
to help users grow their capital and meet various financial goals and objectives.
Call and Trade:
If the users do not have access to their computers, they can call to place their
trades. The account-holders can place any number of orders and can deal in
any segment, including cash, derivatives, and initial public offerings. Contrary
to belief, the call and trade platform is completely secured because users have
to pass through several levels of verifications ensuring no frauds can occur.
All the above online share trading platforms provide convenience and flexibility to the
online stock trading account-holders. Moreover, it makes the entire procedure
significantly less cumbersome and greatly reduces the need for completing the
necessary paperwork related to stock market trading.
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TOOLS FOR ONLINE SHARE TRADING
Technical analysis is the study of stock prices and pricing patterns that can help
investors determine whether a stock is overbought (expensive) or oversold
(cheap). By using various technical indicators together, called correlation, traders
can bring the "bigpicture" about a stock into clearer focus. Three technical analysis
tools that can be used to help facilitate more profitable trades. In fact, investors can
use them in conjunction with each other to spot emerging trends and stay ahead
of the crowd.
Stock Watch list:
It is not possible to search through the entire scrip list to monitor particular
stocks of your interest. To make things simple for you, Stock Watch list helps
to keep a watch on a set of scrips that are of interest to you. The watch list is
customizable, and you can add or remove the scrips as per your wish. The list
gives a holistic view of growth, % change, profit or loss, volume, and price
movement, thus helping the trader to take quick decisions.
Research Reports:
Availing an online trading account with a reliable service provider gives access
to excellent research and analysis undertaken by experienced and trained
professionals. Users can also learn about market statistics, such as top losers
and gainers, daily highs and lows, and buyers and sellers to make their
investment decisions. The wide amount of research provides account-holders
all the knowledge they need to trade on the stock markets. For advanced
traders, in-depth reports such as OHLC, Candlestick, and others are also
provided to do technical analysis of stocks and plan trading strategy.
SMS Alerts:
Users can stay informed on market trends and occurrences through the live
updates offered by the service brokers through News alerts. In addition, they
can set alerts and receive reminders through email and SMS about their
preferred investments to make the appropriate decisions.
Because every customer has unique needs, the service providers offer different
platforms and tools to enhance each online trading experience. All account-holders
can avail these services as per their preferences and requirements.
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2. THE MAIN OBJECTIVES
:
To pick up learning about the stock market.
To examine how currency and equity exchanging stage works in the share
trading system.
To study how to exchange the stock market.
To investigate whether share advertise is gainful for clients or not.
To study the significance of common store. In mutual fund, how SIP (systematic
investment plan) is gainful for clients.
To study the role of brokers in the share market.
To determine the growth and development of online trading in India.
To determine the type of products used by the customers while doing the online
trading.
3. RESEARCH METHODOLOGY
Research methodology is defined as a way to systematically solve the research
problem. It consists of different types of steps that are generally used by every
researcher to study the complete research problem and find out the conclusion for it.
It is necessary for researcher to study about both the research methods and also the
methodology.
Topic of the study: “Analysis of Online Trading and The Stock Market”
Research data source: My research on this project report is based on primary data
collection which i have collected on my own under the supervision of my industry
guide.
Primary data: I have collected the data for the report in the form of questionnaire and
much by meeting individuals and surveys.
In this project the approach followed is questionnaire approach as the main objective
of this internship report was to study the online trading and the stock market and to
have an idea how the general investors invest in the equity market.
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Sampling:
Sampling Procedure
I collected the sample randomly from my friends and relatives irrespective of knowing
about their investment avenues and also through personal interaction by formal and
informal talks and getting the questionnaire filled by them and also i have analysed
the data collected by statistical tools.
Sample size:
The sample size of my project was limited to 53 people.
Sample design:
I have presented the data in the form of pie charts and bar graph.
I have used descriptive research design for collected data in completion of my project
report.
4. LIMITATIONS OF THE STUDY
It is always a problem to get an enthusiastic response. There were not many willing
participants; lack of cooperation remains an aberration in most of the survey based
researches.
The respondents’ behavior changes according to stock market fluctuations.
The study is only restricted to the Noida city.
Time constraint is also one of the factor.
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ABOUT SHARE KHAN
Share khan is the largest standalone retail brokerage in the country and the third
largest in terms of customer base after ICICI Direct and HDFC Securities. Share khan
is one of the pioneers of online trading in India. It offers a broad range of financial
products and services including securities brokerage, mutual fund distribution, loan
against shares, ESOP financing, IPO financing and wealth management.
Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Share khan
was one of the first brokers to offer online trading in India. With 16 lakh customers,
153 branches and more than 2400 business partners spread across over 575
locations, Sharekhan is one of the largest brokers in India. Sharekhan offers a wide
range of savings & investment solutions including equities, futures and options.
Currency trading, portfolio management, research and mutual funds and investor
education. On an average, Sharekhan executes more than 400,000 trades daily
Guiding India's retail stock investors for 16 years
Registered with NSE and BSE for capital market, futures and options and
currency segments and CDSL and NSDL for depository services.
A full-service stock broking firm providing online services right from online
account opening to trading and investments.
Created India’s best online trading platforms: Website (www.sharekhan.com),
Trade Tiger (the ultimate desktop trading software), Sharekhan App (available
for Android and iOS devices) and Sharekhan Mini (a low bandwidth website
especially for mobile browsers)
A strong brick-and-mortar network with over 2600 outlets in 575+ cities
Research-based financial advice on all asset classes to suit all investing and
trading styles
Dedicated Education and training courses for investors and traders in
association with Online Trading Academy
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JAIDEEP ARORA is the CEO of the company
It is a service provider and provides services like: depository services, online
services and technical research.
Over 4800 employees work in its with 2600(app) of its business partners
Its website is www.sharekhan.com
.
Sharekhan ltd is the leading retail broking house which is running since 1922 in the
country and is the retail broking arm of the Mumbai-based SSKI group. Sharekhan
offers its investors a variety of equity related services like: Trade Execution on BSE,
NSE, Derivatives, Depository Services, Online Trading, Investment Advisory, Mutual
Fund Advisory etc.
Sharekhan has its online trading and investment site which was launched on Feb. 8,
2000. Over 14 lakh customers are registered on it. Currently there are more than 10
lakhs number of trading members and has branches in more than 575 cities in India.
In 2016, Sharekhan has been bought by the French Bank “BNP Paribas”.
BNP Paribas acquired Sharekhan.
BNP Paribas:
Sharekhan has become a fully owned subsidiary of the French Bank “BNP Paribas”
which is a business line towards digital banking and investment services serving 2.9
million individual investors across India, Germany, Austria and Spain. BNP Paribas is
a leading bank in Europe with an international reach. It has a presence in 75 countries,
with more than 189,000 employees. It has had a presence in India for over 150 years
having established its first branch in Kolkata, in 1860. With this unparalleled
experience of the Indian market, it is among the leading corporate banks inthe country.
Through its branches in eight key cities — Mumbai, Delhi, Kolkata, Chennai,
Hyderabad, Bangalore, Ahmedabad and Pune — BNP Paribas offers sophisticated
solutions in its three core businesses — corporate and institutional banking,
investment solutions and retail banking — many of them in association with strong
local partners. The bank also offers services for individual clients in Wealth
Management.
At present Sharekhan is fully owned by BNP Paribas
21. 21
The Main Aim of Sharekhan is:-
a) To provide online and offline trading services to clients: -
Trading is done online with Sharekhan website and offline through dial and
trade service which is provided by Sharekhan to every customers.
b) Investment: -
Sharekhan gives an opportunity for investment. An investment always gives
income in return or the value of that asset will increase to have benefit on
return basis.
c) Portfolio management service: -
Sharekhan is also having portfolio management services for exclusive clients.
d) Mutual fund: -
If anyone invests in mutual fund, Sharekhan also provides the service of
mutual fund.
Vision
To be the best retail brokering Brand in the retail business of stock market.
Sharekhan is in fact:
Among the top 3 branded retail service providers.
Best player in online business.
Largest network of branded broking outlets in the country serving more than
8, 00,000 clients.
Sharekhan FirstStep
The Sharekhan First Step is a brand new program designed especially for those who
are new to investing in shares. All one have to do is open a Sharekhan First Step
account and they guide us through the investing process.
22. 22
SWOT analysis of Sharekhan Ltd:-
I. Strengths
Services provided:
Sharekhan in itself is an innovative product having the least cost and
provides its investors various services like online trading facility, institutional
and domestic brokering, customizes research reports with almost 80%
efficient etc. which helps Sharekhan to win over its competitors.
Products offered:
Sharekhan has a flexible product line in the sense that there are products
with Sharekhan for all kinds of investors and all the products help the
company in competing with its competitors.
Marketing:
Sharekhan do not have experts with itself in too many things but it has
expertise knowledge which lies in stock market guidance and gives its
investors higher returns.
STRENGTH WEAKNESS
THREAT OPPORTUNITY
23. 23
II. Weakness
Competition from banks:
Mostly Customers have blind faith on banks due to its good branding and safety
related issues. So customers have faith on bank and find their interest more
reliable on them to trade with rather than to trade through a broker and banks
also enjoy the collection of huge database.
Customer satisfaction:
Sharekhan provide relationship manager to their all investors who can
understand the needs of individual investor and guide them according to their
needs.
Branding:
Investors are not aware about the companies that offer help for trading in share
market. The most basic expectation for a trader or investor when one begins
trading is that one must get timely delivery of shares and proceeds from sale of
shares.
III. Opportunities
Upgrade Technology:
In our country India technology is improving which gives the company a chance
to keep on improving their products with time whereas for the small players like
local brokers it will be difficult to keep the same pace as the changing
technology. The traditional business model are largely depends on the large
network.
Expansion of Market:
After the NSE bought the screen based trading system in stock market are now
more secured which has attracted lot of retail investors and the demand is
increasing day by day. It has been dynamic enough to move with the time and
capture the opportunity that the market throws up from time to time.
24. 24
Education of Stock Market:
The education level; in the country is improving year after years as far as
technology goes. With that the understanding of the stock market is also
increasing and a lot of retail investors are stepping in market which shown by
increasing volumes, transactions and indices.
IV. Threats
Technology based business:
Online trading is totally based on the technology which is quite complex typically
the technology solution has to start from the internet front end .so the
technology is kind of threat because unless until it is working properly it is good
but internet is not that safe. Though there is lot of cyber laws are being made
but not yet executed.
New entrance:
A lot of competition is trying to enter the market in this bullish run to taste the
flavor of the cherry .the competition with existing brokerage house is increasing
day by day.
Services offered by Sharekhan:-
Sharekhan offers the following services:-
Online BSE and NSE executions
Free access to investment advice from Share khan’s research team
Daily research reports and market review
Daily morning views
Depository services.
Market watch
Derivatives trading (futures and options).
IPO’s and mutual funds distribution
Currency trading
Internet-based online trading: share mobile app
Fund transfer
26. 26
Regional Head
Vice President
Directors
CEO
Products offered by Sharekhan:-
Equity trading platform(online/offline)
Commodities trading platform (online/offline).
Portfolio management service.
Mutual fund advisory and distribution.
Active training cell (ATC)
In duration of my internship i learned about share market in a multinational broker
house which has been taken over by BNP Paribas with 100% stake. Sharekhan
started its online platform in 2001.
Features of Trading With Sharekhan:-
Freedom from paperwork
Instant credit and money transfer
Trade from any net enabled PC
After hour orders
Online orders on the phone
Timely advice and-research reports
Real-time Portfolio tracking
27. 27
COMPETITORS OF SHARE KHAN
• Indian bulls Securities
Indian bulls is an Indian group with its headquarters in Mumbai. It has presence in
sectors ranging from Real Estate, Infrastructure, Housing Finance, and Securities
India bulls Group has several companies with presence in Housing Finance, Real
Estate, Securities. All the group companies are listed on the Bombay Stock Exchange,
and the National Stock Exchange. The combined market capitalization of these
companies is 15,443 Crore. India bulls was conferred the status of a Business Super
brand by The Brand Council, Super brands India in 2008.
• Sumpoorna Portfolio ltd.
Sumpoorna Portfolio ltd. is an online website portal for online trading, investments and
stock marketing. The company was founded in February 2000 by entrepreneur
ShripalMorakhia. Share khan is ranked 2nd largest stock broker portal and has its
branches in 575 cities in India.
• Angel Broking Limited
Angel Broking is an Indian Stock Broking firm established in 1987. The company is a
member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE),
National Commodity & Derivatives Exchange Limited (NCDEX) and Multi Commodity
Exchange of India Limited (MCX). It is a depository participant with Central Depository
Services Limited (CDSL). The company has 8500+ sub-brokers and franchisee outlets
in more than 850 cities across India. The company Angel Broking provides financial
services to retail clients. Their services include online stock broking, depository
services, and commodity trading and investment advisory services. Wealth
management solutions such as personal loans and insurance are also delivered by
this company. In 2006, the company started its Portfolio Management Services (PMS),
IPOs business and Mutual Funds Distribution (MFD) arm. The company publishes
research reports on areas related to investment broking.
• Kotak Securities Limited
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking
and distribution arm of the Kotak Mahindra Group. One of the oldest broking houses
in India, its operations include stock broking and distribution of various financial
products. It is a corporate member of both the Bombay Stock Exchange and the
National Stock Exchange of India. Kotak Securities was founded in 1994 and is
headquartered in Mumbai, India. In 2014, Kotak Securities was ranked as number 1
in India's Institutional Investor rankings by weighted average. Kotak Securities is well
known with professional traders for its comprehensive online trading portal offerings.
28. 28
• India Info line Services
FL was co-founded on Oer 17, 1995 by Nirmal Jain and R. Venkatraman. Jain was
previously employed with Hindustan Lever Limited. The company was founded as
Probity Research and Services Private Limited which provided research on the Indian
economy, businesses and corporates. The name was later changed to India Info line
Limited. A few years into the business, the organization found itself with clients which
included research organizations, banks and corporates. They then began launching
their research products to become more noticeable in the market. In the meanwhile,
the dotcom revolution was beginning to take place in India. Taking advantage of this
revolution would mean an increase in the number of readers to millions. The website
was created in 1999.
• PAISA.COM
Taking the business one step ahead this group of consultants opened a trading portal
– www.5paisa.com –in 2000 thus moved into the business of being a full service
broking agency. During this time they widened their distribution network. In 2001, the
Indian dotcom industry saw a downfall. During this time, sustaining became tough.
The organization then decided to tie-up with leading Life Insurance company ICICI
Prudential, thus putting to use its distribution network and becoming India’s first
corporate agent for insurance.
Behind the Picture: Why Sharekhan?
The underlying picture forming answer for above question is given below.
29. 29
CUSTOMEROF SHAREKHAN
Business class people (high class)
High Net worth Individuals
Service class people
Government Employees
Young Adults (19-30 yrs.)
Adults (35-50 yrs.)
HUF (Hindu Undivided Family)
Women (literate and working)
TIED UP BANKS
HDFC Bank:
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. It has 88,253 permanent employees
as on 31 March 2018 and has a presence in Bahrain, Hong Kong and Dubai.
HDFC Bank is India’s largest private sector lender by assets. It is the largest
bank in India by market capitalization as of February 2016. It was ranked 69th
in 2016 Brand Top 100 Most Valuable Global Brands.
IDBI BANK:
IDBI Bank (Industrial Development Bank of India) was established in 1964 by
an Act of Parliament to provide credit and other financial facilities for the
development of the fledgling Indian industry. It is owned by the Government of
India. It is one among the public sector banks in India and is a nationalized bank
to be treated on par with State Bank of India (SBI) and other nationalized banks
in accordance with the notification dated 26 February 2013 by the finance
ministry. At present the government holds 85.96% stake in IDBI Bank. For the
first quarter of the current financial year 2017-18, the bank reported a net loss
of Rs.853 crore compared to a profit of Rs.241 crore during the corresponding
period last financial year. In the fourth quarter of financial year 2016-17, the
bank had reported a loss of Rs.3, 200 crore. While the reported loss was lower
than the preceding quarter, bad loans continued to surge. In the quarter ending
September 2017 the bank bounced back with a loss of Rs.198 crore compared
to a loss of over Rs.2,000 crore in the previous quarter. The bank is expected
to return to profit in the near future.
30. 30
YES BANK:
Yes Bank is India's fourth largest private sector bank, founded by Rana Kapoor
and Ashok Kapur in 2004. It primarily operates as a corporate bank, with retail
banking and asset management as subsidiary functions. Yes bank limited
operates as three entities - Yes bank, yes capital and Yes asset management
services. As per the banks website and information published, these are
bifurcated as: Corporate and Institutional Banking, Commercial Banking,
Investment Banking, Corporate Finance, Financial Marketing, Retail Banking.
As of September 2018, Yes bank had taken syndicated loans from eight large
international entities including ADB, OPIC, European investment bank, banks
in Taiwan and Japan for amounts ranging from US$ 30 Millon to US$ 410
Millon, which it in turn lends to small and medium scale enterprises as well as
large corporates. It has also both taken as well as given short term loans to a
number of retail and corporate banks in Taiwan, Japan, USA and
Europe.[12][13] It has a strategic partnership with the US government based
OPIC and with Wells Fargo.
AXIS BANK:
Axis Bank is the third largest of the private-sector banks in India offering a
comprehensive suite of financial products. The bank has its head office in
Mumbai and registered office in Ahmedabad. It has 3,703 branches, 13,814
ATMs, and nine international offices. The bank employs over 55,000 people
and had a market capitalization of ₹1.31 trillion (US$18 billion) (as on March
31, 2018). It sells financial services to large and mid-size corporates, SME, and
retail businesses.
CITI BANK:
Citibank is the consumer division of financial services multinational Citigroup.
Citibank was founded in 1812 as the City Bank of New York, and later became
First National City Bank of New York. Citibank provides credit cards,
mortgages, personal loans, commercial loans, and lines of credit. The bank has
2,649 branches in 19 countries, including 723 branches in the United States
and 1,494 branches in Mexico. The U.S. branches are concentrated in six
metropolitan areas: New York City, Chicago, Los Angeles, San Francisco,
Washington, D.C., and Miami. In 2016, the United States accounted for 70% of
revenue and Mexico accounted for 13% of revenue. Aside from the U.S. and
Mexico, most of the company's branches are in Poland, Russia, Pakistan, India
and the United Arab Emirates.
31. 31
Account Types in Sharekhan
1. Classic account
Allow investor to buy and sell stocks online along with the following features like
multiple watch lists, Integrated Banking, demat and digital contracts, Real-time
portfolio tracking with price alerts and Instant credit & transfer.
a. Online trading account for investing in Equities and Derivatives
b. Free trading through Phone (Dial-n-Trade)
I. Two dedicated numbers for placing your orders with your cell phone or
landline.
II. Automtic funds transfer with phone banking (for Citibank and HDFC bank
customers)
III. Simple and Secure Interactive Voice Response based system for
authentication
IV. get the trusted, professional advice of our telebrokers
V. After hours order placement facility between 8.00 am and 9.30 am
c. Integration of: Online trading + Bank + Demat account
d. Instant cash transfer facility against purchase & sale of shares
e. IPO investments
f. Instant order and trade confirmations by e-mail
g. Single screen interface for cash and derivatives
2. Trade Tiger account
This is a net based executable application for active traders who trade frequently
during the day's trading session. Following are few popular features of Trade Tiger
account.
a. A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,
NCDEX
b. Multiple Market Watch available on Single Screen
c. Hot keys similar to a traditional broker terminal
d. Tie-up with 12 banks for online transfer of funds
e. Graph Studies are available including Average, Band- Bollinger, Know
SureThing, MACD, RSI, etc.
32. 32
Sharekhan Brokerage Charges 2018
Customer pays commission (brokerage) when buying or selling stocks through
Sharekhan. The brokerage charges for equity, commodities and currency derivative
trading for Sharekhan are explain as below.
Sharekhan Brokerage Plan - Classic Account
Segment Brokerage Fee
Flat Monthly Fee
Equity Delivery 0.50%
Equity Intraday 0.10%
Equity Futures 0.10%
Equity Options Rs 100 per lot
Currency Futures 0.10%
Currency Options Rs 30 per lot
Commodity 0.10%
33. 33
Sharekhan Brokerage Charges 2018
Customer pays commission (brokerage) when buying or selling stocks through
Sharekhan. The brokerage charges for equity, commodities and currency derivative
trading for Sharekhan are explain as below.
Sharekhan Brokerage Plan - Classic Account
Segment Brokerage Fee
Flat Monthly Fee
Equity Delivery 0.50%
Equity Intraday 0.10%
Equity Futures 0.10%
Equity Options Rs 100 per lot
Currency Futures 0.10%
Currency Options Rs 30 per lot
Commodity 0.10%
34. 34
Sharekhan Demat Account Charges 2018
The demat account transactions are charged separately from trading commission.
Find Sharekhan demat account charges 2018.
Sharekhan Depository Service Charges for Resident Retail Customers
Sr Services (CDSL) Scheme A (AMC 400) Scheme B (AMC 500)
1 Account Opening Charges Nil Nil
2 Annual Maintenance
Charges (AMC)
Rs 400/- p.a. Rs 500/- p.a.
3 Sales - Through Sharekhan Nil Nil
4 Purchases Nil Nil
5 Brokerage Minimum Brokerage of
Rs 16/ Per scrip
settlement delivery (sell)
Minimum Brokerage of
Rs 16/ Per scrip
settlement delivery (sell)
6 Sales - Not through
Sharekhan/ Offmarket
transfer/IDT
0.03% of the value of
transact on (Min.Rs.30)
0.03% of the value of
transact on (Min.Rs.30)
7 Dematerialization Charges Rs 5/- per certificate Rs 5/- per certificate
8 Rematerialisation Charges Rs 50 per certificate or
Rs 50 for every hundred
securities
Rs 50 per certificate or
Rs 50 for every hundred
securities
9 Custody Charges Nil Nil
10 Pledge Creation 0.03% of the value of the
transaction (Min Rs 100)
0.03% of the value of the
transaction (Min Rs 100)
11 Freeze/De-freeze Rs 25/- Rs 25/-
12 Additional Statement of
Holding/Transaction
Rs 10/- Rs 10/-
35. 35
Sharekhan Transaction Charges / Turnover Charge
A combination of Exchange Turnover Charge and Trade Clearing Charge. Know more
about Transaction Charges.
Sharekhan transaction charges
Segment Transaction Fee
Equity Delivery NSE ₹325 | BSE ₹275
Equity Intraday NSE ₹325 | BSE ₹275
Equity Futures NSE ₹190 | BSE ₹50
Equity Options NSE ₹5000 | BSE ₹50
Currency Futures NSE ₹135 | MCX ₹130
Currency Options NSE ₹4220 | MCX ₹3220
Commodity MCX (Non-Agri) ₹230 | MCX (Agri) ₹95
Free Trading & Demat Account (for limited time only)
Sharekhan offers FREE Trading + Demat Account (Rs 1150 waived). You can also
avail of attractive trading plans that suit your needs by just paying the AMC charges
that are fully adjustable against brokerage. Thereby saving up to 70% on brokerage.
36. 36
Sharekhan Post Paid Plans
Sharekhan offers following post paid plans. To get the offer customer has to deposit
the margin money with Sharekhan based the plan they choose. The brokerage
reduces as the margin money is high
Margin
Scheme
Cash
Leg 1
Cash
Leg 2 Delivery
Future
Leg 1
Future
Leg 2
same day
Future
next
day Option
25 K 0.1 0.1 0.5 0.1 0.02 0.1 Higher of 2.5% of
premium or Rs
100
30 K 0.1 0 0.5 0.1 0 0.1 Higher of 2.5% of
premium or Rs
100
40 K 0.09 0 0.45 0.09 0 0.09 Higher of 2.25% of
premium or Rs 95
50 K 0.07 0 0.4 0.07 0 0.07 Higher of 1.5% of
premium or Rs 80
1 Lakh 0.05 0 0.25 0.05 0 0.05 Higher of 1% of
premium or Rs 70
3 Lakh 0.04 0 0.2 0.04 0 0.04 Higher of 1% of
premium or Rs 50
5lakhs 0.03 0 0.18 0.03 0 0.03 Higher of 0.75% of
premium or Rs 40
10 Lakhs 0.02 0 0.15 0.02 0 0.02 Higher of 0.60% of
premium or Rs 30
20 Lakhs 0.015 0 0.1 0.015 0 0.015 Higher of 0.55% of
premium or Rs 25
37. 37
Sharekhan Pros and Cons
Sharekhan Advantages
1. Sharekhan offers different trading platform to suite customer requirement. This
includes online browser based trading, Installable terminal, mobile, call n trade
and in-person trade though branch offices.
2. It offers different brokerage slabs to suit individual customers. Higher your trade
your brokerage gets reduced. They have multiple brokerage schemas are
available with them.
3. Sharekhan offers online and classroom training, seminars and workshops to
investors.
4. Sharekhan doesn't charge for Online Funds Transfer from bank account and
Funds Pay-out to bank account.
5. Sharekhan doesn't charge for DP transactions. Share transfer from and to the
dp account is free.
6. Sharekhan has India-wide network of branches. You can find surly find a
Sharekhan in your neighborhood.
7. Call & Trade facility is free with Sharekhan.
8. Sharekhan allows fixed deposit as collateral for future and option trading.
Sharekhan Disadvantages
1. Sharekhan doesn't offer 3-in-1 account as they don't provide banking services.
2. They brokerage charges are % based which are higher in comparison to flat fee
brokers.
3. They charge minimum brokerage of 10 paisa per stock would not let you trade
stocks below 20 rs. (If you trade, you will loose majority of your money in
brokerage).
4. Facility to place orders after trading hours is not available.
5. Classic account holders cannot trade commodities.
38. 38
SHAREKHAN TRADING PLATFORMS
This full-service stockbroker has multiple trading platforms for both desktops as well
as mobile. Here are the details:
SHAREKHAN TRADE TIGER
Trade Tiger is a stock trading application that customers can use through their
desktops or laptops. It is claimed to be as powerful as the terminal of a broker.
Tradetiger helps you to trade across different financial segments including equities,
currencies, commodities, derivatives, IPOs and mutual funds.
Since the platform is a hybrid cloud-based application, traders can create customized
market watch lists and access those from different machines by logging into the
system. Tradetiger comes with the following features as well:
High-quality charts for detailed research and stock analysis
Instant pay in/pay out via 14 national banks
Access to all trading calls, market tips by the technical and fundamental
research desk
Customized alerts and notifications based on user preferences for quick
reminders on stocks and exchanges
It is a pretty mature trading application and has been used by a huge number of clients
for more than a decade. The application has seen quite a few upgrades and
technology enhancements over these years.
SHAREKHAN MOBILE APP
Sharekhan has had a strange history when it comes to mobile apps. Sharekhan has
launched multiple mobile apps in the last few years and when one app gets a lot of
negativity in terms of ratings and feedbacks, instead of incorporating those feedbacks,
the broker simply launched a new mobile app altogether.
Most recently they have launched a new app with their brand name itself. The
application. The app, until now, has received a relatively positive response from both
Google Play as well as Apple store based on speed, performance, and accuracy.
The app comes with the following features:
Trading facility across market exchanges
Live reports, news, market trends
Fund transfer facility from bank to Sharekhan trading account
39. 39
SHAREKHAN WEB TRADING
Sharekhan does offer a web-based trading application as well and to access it you
need to browse the Sharekhan website, click on login and put in your credentials to
start trading. Some of the features of this application are as follows:
Trading across multiple segments
Lightweight application requiring basic configuration
Order confirmations communicated via email and SMS
Research and recommendations from more than 120 companies listed on the
stock market across 6 industry domains.
‘Pattern finder ‘feature helps the investor to screen stocks that are healthy for
long-term investments.
‘O Alert ‘feature integrates the trading application with 3rd party technical
analysis software’s for automated order alerts.
SHAREKHAN CUSTOMER CARE
Sharekhan is one biggest names in the stockbroking space in India. Thus, users
have all the rights to have huge expectations from the broker in terms of reliability
and quality service. The stockbroker provides the following channels to its users for
customer service:
Toll-Free Number
Email
Phone
Email
Chat (intermittently available)
Offline Locations (through sub-brokers and franchise offices)
Social Media
When it comes to quality, this full-service stockbroker leaves no stone unturned in
making sure users get a wide range of communication channels to get back to the
broker. The support executives are decently trained and speak in multiple languages
depending on the user’s location.
When it comes to the funds transfer process, the broker a detailed list of banks that
you can integrate your trading account with. Here is the complete Sharekhan Bank
List for your reference.
Without a doubt, Sharekhan lives up to its expectations when it comes to servicing
its client base. No doubt, they have one of the highest numbers of active clients in
India.
40. 40
Screenshots of Demo of How Online trading is done:-
Firstly the investor needs to open the Demat account with Sharekhan brokering firm
to do online trading in share market than the investor is given the username, trading
password and membership password. Then open on webpage www.sharekhan.com ,
official page will appear then click on trade now and enter your username and
password and the home page of your Demat account will be opened. I did online
trading on my Demat account and the images below are describing the procedure of
doing online trading.
1. Firstly go to trade now after logging in the clients ID and go to exchange (NSE
or BSE) that from where we want to purchase the shares.
41. 41
2. Then go to buy/sell option to buy or sell the shares whatever you wish to.
3. Next go to validity that is GFD, IOC or My GTD which means for how much time
you want to trade either a delivery trade or a intraday trade.
42. 42
4. Nextly, write the name of the company whose share you want to buy in the scrip
option. For ex: I need to buy the share of Axis Bank so I took axis bank.
5. After filling the required amount of shares place the order and a box appears for
confirmation and follow the steps to confirm your order.
44. 44
Q1. Would you like to Open a demat account in sharekhan?
The table explains about pen demat account in sharekhan.
sources No of respondent % of respondent
Yes 7 13.2
No 22 41.5
Maybe, if the right
information is provided
24 45.3
Interpretation: -
Inference: From the table 12, pie chart depicted above, out of 53 respondents who
answered the questionnaire, around 13.2% people wants to open Demat A/C with
Sharekhan and are leads for the company. And 45.3% are optimistic that with right
information they can open accounts.
45. 45
Q2 Are you an Active investor?
This table tells about an active investors:
Active investor No of respondent % of respondent
Yes 23 43.4
No 30 56.6
Interpretation: -
Inference: From table 1, pie chart depicted above, it can be interpreted that out of 53
respondents of the questionnaire, around 56.6 % people are not the active investor as
they invest yearly or monthly. Around 43.4 % people are active investors, who invests
daily or weekly.
46. 46
Q3. What kind of investment have you made so far?
The table explains about the Investment type.
Type of investment No of respondent % of respondent
Saving A/C 27 51.9
Mutual funds 18 34.6
Fixed Deposits 17 32.7
Gold 14 26.9
Stock/Equity 9 17.3
Real Estate 5 9.6
PPF 6 11.5
Insurance 14 26.9
Interpretation: -
Inference: From the table 2, pie chart depicted above, out of 52 respondents who
answered the questionnaire, 51.9% of the people invests in banking sector as
compare to stock market. Fixed deposit, insurance and mutual funds also play a major
role in investment.
47. 47
Q4. What is Purpose of your investment?
The table explains about the investment purpose.
Purpose of investment No of respondent % of respondent
To meet the cost of inflation 4 7.7
To earn a good return on idle 28 53.8
Resources
To make a provision for an 17 32.7
Uncertain future
To generate a specific sum of 23 44.2
Money for a specific goal in
life
Interpretation: -
Inference: from the table 3, pie chart depicted above, out of 52 respondents who
answered the questionnaire, around 53.8% people are doing investment to earn good
return from idle resources.
48. 48
Q5. Have you ever invested in equity market?
The table explains about an investment in equity market.
Investment in equity market No of respondent % of respondent
Yes 16 30.2
No 26 49.1
Planning to invest in future 11 20.8
Interpretation: -
Inference: From the table 4, pie chart depicted above, out of 53 respondents who
answered the questionnaire, 49.1% people are unaware about the equity market that’s
why 30.2% people are investing in equity market in 1 year. Whereas 20.8% people
are interested in investing in equity markets in future.
49. 49
Q6. If not, then why?
The table explains about the reasons for not investing.
Reasons for not investing No of respondent % of respondent
Lack of interest 16 38.1
Lack of knowledge 30 71.4
Unavailability of such firms to 4 9.5
Provide information
Interpretation: -
Inference: From the table 5, pie chart depicted above, out of 42 respondents who
answered the questionnaire, 38.1% people agree that there is no promotion or
awareness is there about these brokering firms, due to which 71.4% of people have
no knowledge about this Share Market.
50. 50
Q7. If yes, then which Sectors do you invest more?
The table explains about the reasons for not investing.
Sectors No of respondent % of respondent
IT 11 32.4
Pharmacy 6 17.6
Telecom 9 26.5
Banking 24 70.6
Petroleum 7 20.6
Automobile 10 29.4
Entertainment 5 14.7
Oil and gases 5 14.7
Engineering 5 14.7
Metals and Mining 7 20.6
.
Interpretation: -
Inference: From the table 6,pie chart depicted above, out of 34 respondents who
answered the questionnaire , most of the people invests in banking sector it means
they are not aware about any other options of investment
51. 51
Q8. What Sources do you use to make decisions on investments in stock
market?
The table explains about sources used to make decision on investments in stock
market.
Sources No of respondent % of respondent
Internet 20 41.7
TV 9 18.8
Press 3 6.3
Broker advice 14 29.2
Others 2 4.2
.
Interpretation: -
Inference: from the table 7, pie chart depicted above, out of 48 respondents who
answered the questionnaire is that people make their decision on investments mainly
through internet.
52. 52
Q9. What are objective Factors that you think are in general taken into account
when invested in stock market?
The table explains about what factors taken into account when invested in stock
market.
Sources No of respondent % of respondent
Dividend 4 11.9
Low share price 7 16.7
Expectation of share price 23 54.8
Increases
Taxation of dividends and 7 16.7
Stock market gains
.
Interpretation: -
Inference: from the table 8, pie chart depicted above, out of 42 respondents who
answered the questionnaire, 54.8% people has objective that they invest in share
market on the expectation that the share price will increase.
53. 53
Q10. What Sources do you use to track the investment?
The table explains about what factors sources to track the investment.
Sources No of respondent % of respondent
Internet 31 52.2
TV 8 47.8
Press 2
Broker advice 5
.
Interpretation: -
Inference: From the table 9, pie chart depicted above, out of 46 respondents who
answered the questionnaire, 67.4% people track their investment through internet.
54. 54
Q11. How frequent do you invest?
The table explains about how frequent we are investing.
Sources No of respondent % of respondent
Daily 2 4.3
Weekly 8 17
Monthly 12 25.5
Yearly 31 66
Interpretation: -
Inference: from the table 10, pie chart depicted above, out of 47 respondents who
answered the questionnaire, 66 % people invest in market yearly. It means lack of
awareness about stock market.
55. 55
Q12. Have you ever invested in mutual funds?
The table explains about invested in mutual funds.
Sources No of respondent % of respondent
Yes 22 41.5
No 20 37.7
Planning to invest in future 11 20.8
Interpretation: -
Inference: From the table 11, pie chart depicted above, out of 53 respondents who
answered the questionnaire, around 3 % people has invested in mutual funds. And
there are 20.8% people who are interested in investing in future.
57. 57
Findings and conclusions:
After completing the survey and analyzing the responses of the questionnaire. I came
across the following facts:
There is huge scope for new investor to invest in equity market, as it gives great
returns, other than the banks.
Individuals don't know much about online trading however in coming future
there is a huge scope.
In order to increase online trading, customer ought to be given more and more
services so preference can be given to online trading over offline trading.
Customer interest should be increased in mutual funds, so that they can invest
in it. Even the government itself nowadays promoting mutual funds which are an
opportunity for such firms like Sharekhan.
Customer should be aware about the derivative, commodities, currency
because it is also an investment option apart from equity market.
58. 58
Suggestions:
I recommend that the organizations should find a way to teach investors about
their rights and duties. I suggest them to build the investor’s belief.
I suggest that the company can increase the awareness of the own company
among the public.
I suggest that the company must spread the awareness to its client for the
services like Future and Option equities to increase the satisfaction level of
client as we have find that there is positive aspect between the satisfaction level
of services provided by Sharekhan success in online trading,
60. 60
Annexure:
Company Profile Questionnaire:
Questionnaire on stock market investment:
Name:
Age:
Email id:
Occupation:
1. Would you like to open a Demat Account with Sharekhan?
o Yes
o No
o Maybe, If the right information is provided
2. .Are you an Active Investor?
o Yes
o No
3. What kind of investment you have made so far?
o Saving A/C
o Fixed Deposits
o Mutual Funds
o Gold
o Equity/ Stock Market
o Real Estate
o PPF
o Insurance
61. 61
4. What is the purpose of your investment?
o To meet the cost of inflation
o To earn a good return on idle resources
o To make a provision for an uncertain future
o To generate a specific sum of money for a specific goal in life
o Others
5. Have you ever invested in Equity Market?
o Yes
o No
o Planning to invest in future
6. If not, then why?
o Lack of interest
o Lack of knowledge
o Unavailability of such firms to provide information
7. If yes, then in which sector do you invest more?
o IT
o Pharmacy
o Telecom
o Banking
o Petroleum
o Automobile
o Entertainment
o Oil and Gases
o Engineering
o Metals and Mining
62. 62
8. What sources do you use to make decisions on investments in stock market?
o Internet
o TV
o Press
o Broker advice
o Others
9. What are the objective factors that you think are in general taken into account when
invested in stock market?
o Dividend
o Low share price
o Expectation of share price increase
o Returns of other substitutive investments
o Taxation of dividends and stock market gains
o Other
10.What sources do you use to track your investments?
o Internet
o TV
o Press
o Broker advice
o Other
11. How frequent do you invest?
o Daily
o Weekly
o Monthly
o Yearly
12.Have you ever invested in Mutual Funds?
o Yes
o No
o Planning to invest in future
