PROBLEMS FACED BY SHAREKHAN LTD.
- 1. INTRODUCTION Sharekhan ltd is established in 1922 having its main headquarter in Mumbai, Maharashtra the services provided by Sharekhan are depository services, online trading services and Technical research. Today Sharekhan is among the top brokerage house in India that has a strong online trading platform. Sharekhan was incorporated in February 2000 and it is India’s 2nd largest stock broker the leading one is ICICI Direct. It provides its services through its online trading website Sharekhan.com. this website has seen a huge growth over last 10 years and it has proved itself as a successful online trading platform and located in almost every part of India. As its presence, it has office in UAE and Oman. It offers its services to all kinds of customers including retail investors and traders, big corporate houses, institutional bodies and NRI’s Sharekhan hold more than 18 lakh customers. Sharekhan Ltd also has its own research teams that regularly publishes investment advice, good stock tips, quarterly result of companies and its analysis and other recent and trendy news alerts to the customers through E-Mail, SMS and on Sharekhan.com. It runs a knowledge center on its website to help investors being aware of stock and commodity market. It also offers and conducts free online & classroom seminars/Workshops for the investors. Each account comes with online and in-person help from the representative of Sharekhan. Overview: Sharekhan ltd is a brokerage firm which provide services like online trading, portfolio management and technical research. Sharekhan comes 1st when we talk about online trading services and comes 2nd when we talk about number of clients. Sharekhan holds more than 15 lakh customers. Demat account refers to Dematerialized account. It is a type of account that lets customer dematerialize their paper based physical shares. It is required when one wants to hold the shares that they buy online. For holding and keeping shares, having a demat account is must. For opening a demat account, one has the option to either approach their bank or get it opened through a brokerage firm. Sharekhan ltd. Is one of the registered brokerage firm where demat account can be opened. In the past, investors had no options but to contact their brokers every now and then to get a real- time access to situation and market data. But today, the internet brings this data to the investors online and enables the trader to trade on a click of mouse so that they are able to transect in the share market themselves. Because of online trading only, this information has now become easily accessible to both retail as well as big investors. Sharekhan ltd offers a very advanced and easily available software for their clients like Sharekhan.com, trade tiger, Sharekhan mobile app etc. where it becomes easy for the investor to invest money and understand the rise and fall of the current market. Online trading portal of Sharekhan is considered as one of the best for online traders as it is fast and easy to use. OBJECTIVE OF DEMAT ACCOUNT is to make electronic book entry of all the shares and stocks you have purchased or in which you have invested your money. Before the introduction of Depository act 1996, the purchase, sale and transfer of stocks is huge problem as we need to keep physical records of everything. Case Problem:
- 2. Now the problem arises when we talk about capturing the market and motivating people to invest their money in stock market. Sharekhan ltd. Runs internship program every month in Noida office where they recruit interns from different colleges and train them to increase their client base this helps Sharekhan ltd to capture the large part of market in less time while other companies are still using traditional direct marketing techniques. Problem arises in the training part as well as for the clients that are new to Sharekhan as there are less number of trainers they devote less time in training those interns, only one trainer is assigned for more than 60 students. The place is very small for accommodating 60 students in one session so they distribute students in different batches but this leads to work load on single trainer which decreases the quality of work and training becomes less effective for interns as well. This lead to management problem as it becomes difficult to manage those students as different targets are assigned to them according to their capabilities. Problem which is faced by clients is that not all clients are techno friendly they need proper training of Sharekhan application, website and trade tiger then only they can easily do share trading because of large number of clients this becomes impossible for Sharekhan ltd to train all the clients and let them understand how Sharekhan is better than other stock broking companies. In present, online trading is the fastest portal of investing money for both retailers and investors but if that is not done with correct guidance there can be huge loss in the stock market. Sharekhan gives advisory services but due to large number of clients it becomes difficult to advise all the clients about the daily market situation. Demat account is a dematerialized account in which people invest their money in different market products like mutual funds, bonds, shares etc. some of the clients don’t even know about all the charges that company charge for opening a demat account and very few know about the annual maintenance charge that is taken by every stock broking company for maintaining their demat account. The maintenance charge is annual charge which is charged only one time in a year of around Rs.400. Solution: This problem can easily be resolved by distributing work and outsourcing the advisory work which automatically help clients in knowing the market and this also increase the market value of Sharekhan. In the above case, we can see that there is one trainer which is managing all the work, so in this distribution of work is needed instead of 1 trainer the work can be done by 3 trainers which will increase the efficiency and effectiveness of training. Sharekhan ltd should increase their office size in which they should make one training room as they are recruiting trainees every month so they can easily train them and if they have a training room in that case they can recruit more interns which can make their work easy. This increases the efficiency level of interns and leads to completion of target on time. Interns can also help in training clients about the Sharekhan features and services which brings helping hand for marketing team as they can give some clients to every intern. For advisory services, the work can be outsourced to small advisory firm where clients can call and get market tips in this the reach of Sharekhan increases they can cover all the clients that are part of Sharekhan ltd. This brings to trust factor that clients can easily trust Sharekhan when it comes to investment. Sharekhan can tie up with online advisory firms which give their clients regular market updates. Every retail individual wants to have advice about the share market as this helps them in earning easy money. Advisor helps them to understand the merits and demerits of demat account.